ADIKAIBE, PASCHAL CHUKWUNONSO (2023) ECONOMIC ANALYSIS OF OIL PALM PRODUCTION VALUE-CHAIN IN IMO STATE, NIGERIA. Masters thesis, Fakultas Peternakan dan Pertanian Universitas Diponegoro.

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Abstract

The demand for oil palm products abounds with opportunities and challenges to
sustainable economic growth in developing economies like Nigeria. Although
discovery of crude oil shifted the focus of Nigeria from agriculture. There has been
different government intervention to improve this sector of agriculture in Imo state.
There is need for economic diversification and food security for the teeming
population. The study took into consideration three key plays in the oil palm value
chain which are farmers, processors, and traders. Research questions addressed
where the structure of the oil palm value chain, the methods used by the processors,
the profit at each stage of the chain assessed and the factors affecting the actors.
The objectives of the study were built from the research question and the following
were the findings. Structured questionnaires were adopted for data collection, the
data were sampled randomly to draw up a sample size. The data collected, were
analysed using functional analysis, value chain mapping, descriptive statistics, and
multiple regression techniques. The value chain actors were not in their productive
age as the mean ages were 57 years, 47 years and 45 years for the farmers,
processors and traders respectively. There is gender disintegration as both were
found across the value chain. Educational attainment among the actors was till
secondary education. The findings revealed that the actors of the value chain were
family oriented as 75%, 69% and 65% of the farmers, processors and traders were
married. The functions of the value chain actors were categorized into production,
marketing, value-addition and consumption. The oil palm processing is dominated
by smallholder processors, who still use the traditional method in processing
resulting to low production efficiency. The profitability ratio of the value chain
actors was 0.30, 0.11, and 0.25 for the farmers, processors and traders respectively,
in Imo State. Factors affecting the profit of the farmers was land cost for the farmers
had an influence on the profit of the farmers. The transportation cost and energy
cost and water for the processors, and purchasing costs had significant influence on
the profit of the traders at 5% interval. The identified opportunities in the value
chain are job creation, increased demand for the products of oil palm, economic
diversification, value chain integration and collaboration with other stakeholders,
export potential and Interventions from governments and investors across the globe.
The government should reform the land tenure system, ensure continuity in policies,
make agriculture an occupation for all, ensure security and minimize the civic
unrest. In summary, the study has shown the potential and the limitations faced by
the value chain actors of oil palm in Imo State, Nigeria

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