AKSU Journal of Agricultural Economics, Extension and Rural Development
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
ISSN(Online): 2736-0040 ISSN(Print): 2695-1975
Abstract
The study analyzed the profitability of palm fruit processing in Ohaji-Egbema Local Government Area of Imo State. Simple random sampling was used in selecting eight (8) communities in the Local Government Area. Two (2) villages were randomly selected from the eight communities making it sixteen (16) villages. From each village, five (5) palm oil processors was randomly selected, this gave a total of eighty (80) palm oil processors which constitutes the sample size for the study. Results showed that the mean age of respondents was 54.5 years, 60% of the respondents were males and 40% were females, 77.5% of them married with mean household size of 8 persons while 37.5% had tertiary level of education. Furthermore, the Mechanical press technology was the highest ranked technology adopted in the study area. Costs and returns analysis showed a total returns of N1,963,815, total cost of N 1,107,840, and net farm income of ₦855,975. The profitability ratios were as follows; return per 1 naira (₦) invested was 0.77, Gross Ratio 0.56, Expense Structure Ratio 0.028 and Benefit Cost Ratio is 1.77. The results of the factors affecting profitability showed that the linear function was the lead equation. The study recommends that improved technologies that will reduce processing time, quantity of fuel consumed and increase quality of palm oil produced should be provided at subsidized rate to processors. Government should ensure that the price of diesel and fuel be further subsidized to allow businesses break-even in their production, since this is a vital component of the processing firms. Social amenities like electricity, pipe borne water should be provided in the area to facilitate palm oil processing.