ECONOMIC ANALYSIS OF PALM OIL MARKETING

ABSTRACT

This study analyzed the commercialization of palm oil in the Aniocha South Municipality Region of Delta State. State. 100 palm oil marketer were randomly selected using a one-step sampling technique and analyzed to describe the socioeconomic characteristics of marketers in the study area and to determine the performance of the palm oil market. They were also examined for the factors that influence palm oil market sales and the limitations they face. The data were collected using a well-structured questionnaire. Collected data were analyzed using descriptive statistics, total profit analysis, ROI analysis, and multiple linear regression. We found that the majority of palm oil marketers are women. The average household size was 4.49 (about 5) and the average householder age was 41.57. Less than half of marketers were found to have a secondary education, suggesting that innovation may not be easy. The results also showed that the marketer had a total variable cost of ₦360,271.92 and a total revenue of ₦533,870.13. The net profit was ₦173,598.21, and the return on investment (ROI) was 0.48. This indicates that palm oil commercialization is profitable in the study area. The survey showed that transportation, labor, and safety accounted for 5% of total costs in the study area. The main limitations were high operating costs and low returns. Efforts to regulate marketing spending using policies were recommended. Grants and loans should be made available to marketers so they can expand and grow their businesses.