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 analysed and compared the profitability of palm oil marketing with or without access to e-payment in Akwa Ibom State. Primary data was collected from 234 palm oil marketers that were randomly selected using a multi-stage sampling procedure (117 marketers who accepted e-payment and 117 marketers who did not accept e-payment). Data was analysed using descriptive statistics, budgetary analysis, Z-test, and multiple regression analysis. The findings revealed that 59% and 51.3% of marketers without access and marketers with access to e-payment respectively were male, also, 74.4% and 70.9% respectively were married. The mean age was 39 years and 42 years for marketers without access and with access to e-payment respectively. The mean years of education for marketers without access and marketers with access was 9 years and 11 years respectively, the mean years of marketing experience was 8.1 years and 8.9 year, and average monthly income of ₦61,420 and ₦77,500 respectively. The average household sizes were 6 persons for marketers without e-payment and 4 persons for marketers with e-payment. Result of the budgetary analysis yielded a gross margin of ₦25,753.16 and ₦26.052.27, and a net marketing income of ₦2,702.95 and ₦3,349.73 per 25 litres of palm oil for marketers without access to e-payment and marketers with access to e-payment respectively, showing that palm oil marketing in the study area was profitable. Findings further revealed a return on investment of 0.0062 and 0.0094, marginal efficiency of 0.62% and 0.94%, marketing efficiency of 99.38% and 99.06%, with profitability index of 0.006 and 0.0094, benefit cost ratio of 1.006 and 1.009, and operating profit margin of 0.62% and 0.93% for marketers without access and with access respectively. The Z-test result (Z = 19.05, p < 0.01) indicated a statistically significant difference in returns between the two groups indicating that returns to marketers using e- payment was higher than those of non-users. Result of the multiple regression analysis showed that returns to palm oil marketers with access to e-payment were influenced by years of formal education (466.04; p < 0.01), amount of credit obtained (0.06; p < 0.01), cooperative membership (2224.00; p < 0.01), and marketing experience (358.07; p < 0.05), while those without access to e-payment were influenced by education (392.47; p < 0.01), household size (301.98; p < 0.01), credit access (0.06; p < 0.01), and marketing experience (271.36; p < 0.05). It is recommended that improving access to credit, strengthening cooperative participation, enhancing trader capacity, and promoting digital inclusion are essential for improving the profitability of palm oil marketing in the study area.