Economic analysis of palm oil processing in Ayedaade Local Government Area, Osun State, Nigeria
Palm oil appears as one of the most promising productive alternatives for the Nigerian agricultural sector and long-term industrialization. This research study examined the economic analysis of palm oil production in Osun State. A multi-stage sampling technique was used to select 240 processors which were sampled using structured questionnaires. Data were analyzed using descriptive statistics, budgetary technique as well as regression analysis. Results from the study revealed that majority of the processors were females (67.5%) and married (57.5%) with an average age of 52years and household size of 5 persons. 89.9% of the respondents had at least a primary education with an average of 11 years processing experiences. The descriptive results further revealed that majority of the respondent make use of digestion (95.8%) during production process as well as oil extraction (89.2%), and Threshing (86.7%). The budgetary analysis results showed a Gross Margin of ₦194,287.35. The Net Return (NR) of the palm oil processors was ₦109,804.60. In addition, Age, farm size and amount of credit used were significant variables that influence the quantity of palm oil produced. The study concluded that palm oil processing is profitable and therefore recommends among others that Agricultural extension institutions in collaboration with community leaders should aid in the provision of services to intensify and impact technical knowledge on palm oil processing, especially to the youths and young adults.
Keywords: Economic Analysis, Palm oil, Processing, Profitability
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