ECONOMICS OF OIL PALM SEEDLINGS PRODUCTION

ABSTRACT

The study looked at the economic analysis of Oil palm seedlings production in Ikopoba Okha, Edo State. The specific objectives were to describe the socio-economic characteristics, identify the methods adopted in raising the Oil palm seedlings in the study area, estimate the cost and return in Oil palm seedlings production, determine its profitability and viability and identify the constraints of Oil palm seedlings production in Ikpoba Okha Local Government Area, Edo State. Primary data were used in the study. A two-stage sampling procedure was used and seventy farmers were selected using the simple random sampling technique. Copies of questionnaire were the main tool for data collection. Both descriptive (such as mean, frequency and percentage) and inferential statistics (budgetary analysis) were used for the analysis. The result showed that more of the oil palm seedling farmers were males (61.43%). The average mean gap was 48.11 years and the mean farming experience is 10 years. The average household size was six persons while the mean farm size is 5.4 hectares. The result also indicated that Oil palm seedling production is profitable in the study area as indicated by large gross margin of ₦761,000 for Oil palm seedling farmers with less than 2000 seeds and ₦259,642,050.00 for Oil palm seedling farmers with above 2000 seeds annually. The net income of ₦537,846 and ₦258,432,995.00 was reached by the small- and large-scale Oil palm producers respectively. This study also showed that the major constraints of Oil palm seedling production in the study area was low capital. It was recommended that farmers could explore more avenue to access capital through government support programs, cooperative financing or microfinance institutions to enhance their production activities and farmers should consider strategies such as investing in efficient farming practices, implementing integrated pest management techniques, seeking financial assistance or grants and exploring partnership or cooperatives to pool resources and reduce costs. Proper risk management and continuous monitoring of the production can help curb these issues.