Economic Analysis of Palm Oil Processing and Marketing in Oyo Town, Oyo State

Abstract

This study examines the economic analysis of palm oil processing and marketing in Oyo Town, Oyo State. A multistage sampling technique was used to randomly select 80palm oil processors. Data was collected with the aid of structural questionnaire. Descriptive and inferential statistics were suit for the data analysis. The results showed that majority of the palm oil processors were female with a mean age of about 50years. Household size was 10 persons. Monthly income of palm oil processors was N51,000, total cost and total revenue were N382,001.25 and N454,925.00 respectively with gross margin was N174,237.00, net farm income was N72,923.00 and return per naira invested was 1.19 other financial measure included are operating ratio, fixed ratio and gross ratio with 0.62, 0.22 and 0.84. The study showed that majority of the respondents belongs to cooperative association. Years of experience were 15years in the study area. The major constraints faced by the processors and marketer were transport cost, weather, unstable price, high cost of labor, poor marketing mechanism, inadequate infrastructure and poor management. It was recommended that palm oil processors should have access to credit facilities with low interest rate in order to boost palm oil production. Financial institutions especially Nigerian Bank for agriculture should be strengthened to provide soft agricultural credit and rural finance to palm oil processors and marketers at very low interest rates.

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