ECONOMICS OF OIL PALM SEEDLING PRODUCTION IN EDO SOUTH SENATORIAL DISTRICT, EDO STATE.
ABSTRACT
The study determined the economics of oil palm seedlings production in Edo South Senatorial district, Edo State. The specific objective was to examine the
socio-economic characteristics of the oil palm seedlings producers, identify the methods adopted in raising oil palm seedlings in the study area, to estimate
this cost and returns in oil palms production and access it’s profitability and viability, identify the factors expecting the level of income generated by producers
and the likely problems of oil palm seedlings production. The study covered ninety (90) randomly selected oil palm producers from nine villages in the study
area. The results showed that the production of oil palm seedling had a high returns. The cost of selling price per seedling was N272.378, gross margin had
N120.621 and Net profit had N75.932. The following was found to be major constraint, inadequate finance, time consumption, irregular supply of fresh fruit
bunches, and high transportation cost. Recommendations were made based on the identified problems facing the oil palm seedling producers and it
includes provision of planting material as at when due, encouraging farmers to pull their resources together, for farming themselves into cooperative
societies.
CHAPTER ONE
INTRODUCTION
1. BACKGROUND OF THE STUDY
The African Oil Palm, Elaeis guineensi jacq (Jacquin, 1963), is placed in the Are caceae family which contains about 225 genera with over 2600 species along
with coconut and date palms cultivars. There are 3 naturally occurring forms of the oil palm fruit, termed dura, tenera and pisifera. The selection of dura
female and pisifera male parents is carried out to obtain tenera ospring
that produce large oil yield (Breure et al, 1986, Breure, 2003).
The African oil palm is native to tropical Africa, from Sierra Leone in the West through the Democratic Republic of Congo in the East, it was domesticated in its
native range, probably in Nigeria, and moved throughout tropical Africa by humans who practiced shiing agriculture at least 5,000 years ago (Hartley, 1988).
European explorers discovered the palm in the late 1400’s, and distributed it throughout the world during the slave trade period (Corner, 1966). In the early
1800’s, the slave trade ended but British began trading with West Africans in Ivory, lumber and palm oil.
The oil palm was introduced to the Americans hundred years ago, where it became naturalized and associated with slave plantations, but did not become an
industry of its own until the 1960s (Lereka, 1998). The first plantations were established on Sumatra in 1911, and in 1917 in Malaysia (Raymond, 1961). Oil
plantations were established in tropical America and West Africa about this time, and in 2003, palm oil production equaled that of soybean, which had been
the number one oil crop for many years.
Elaeis guineeasis is characterized by its vertical trunk and feathery nature of its leaves every year 20 – 25 new leaves called “frond” develop in continuous
whorle at the apex of the trunk (Devendra, 1984). The fruit bunches develop between the trunk and the base on the new fronds and the plant can reach 60 –
80 in height in nature, but is rarely more than 20 or 30
in cultivation. Although new plantation starts to bear fruit at 3 years, generally, the first commercial crop require between five and six years and continuous to produce for 25 – 30 years, or until the palm grow too high to be harvested. Once a plantation
reaches full production, a new inflorescence is produced every 15 days. It weights between 15 and 20kg and can conking up to 1500 individual palm fruit of
between 8 and 10 grams each (Chavaliar, 1937). The individual fruits consist of the following four parts, a pericarp, a thin outer skin which upon ripening
changes from brown to red or orange, a mesocarp, a large of fibrous material which surrounds the nut, an endocarp or hard inner shell (nut) to protect the
seed or kernel and the seed (kernel) (Aighologa, 1995). The female inflorescence contains 200 – 300 fruits, and fruit set is 50 – 70% fruit riped about 5 – 6
months pollination (Ergo, 1977).Vegetable and edible oil producer of Nigeria (VEOPAN) claims that, it provided job opportunities for not less than 1.8 million farmer family involved in this production of oil seeds and related crops. Nigeria with a National 1.3 million tones of palm oil and a population. Of over 140 million that means each family produces less than 700kg per year, i.e. an average of less than 2kg/day (Eshalomi, 2008).
Last year, the vegetable oil sub-sector of Manufacturers Association of Nigeria reported that the market has been very unstable because of high cost of input,
excessive smuggling of vegetable oil and faking. Recently, the group lamented the shortage of palm oil plantation production which is the major raw material
for vegetable oil production because it condemned the Federal Government of Nigeria for signing a contract to supply palm oil to Ghana, whose local
demand has not been met (Eshlomi, 2008).
In Edo State, has been made to encourage the establishment of oil palm plantation. These has yielded some positive result such as establishment of
multinational oil palm plantation companies, whose production has follow Presco Industry Limited 22,000 tonnes/year and an indigenous oil palm farm
Nosakeri Farm (Vanguard, 2007).
1. STATEMENT OF PROBLEM
The production of oil palm seedling is currently the only source of planting materials for oil palm production in Edo State senatorial district. The entire
seedling produced in the world is of the tenera type obtained from fertilizing dura tree with pollen form pisifera tree (Griseb, 2007).
The oil palm seedling production is handled directly by organizations such as the Ministry of Agriculture and NIFOR (Wikipedia, 2008).
However, it is observe that a number of business oriented persons are not investing in oil palm seedlings production. What would be responsible for this?
The equation therefore is whether investment in oil palm seedling production is not profitable or there are some other problems that are preventing
investment in oil palm seedling production.
It is necessary to carry out an economic analysis to determine the profitability and viability of oil palm seedling production in Edo South Senatorial district.
1.3 OBJECTIVE OF THE STUDY
The broad objective of the study is the economic analysis of oil palm seedlings production in Edo South senatorial district.
The specific objectives are:
1. To examine the soicio-economic characteristics of the producers of oil palm seedlings in the study area.
2. To identify the methods adopted in raising the oil palm seedlings in the study area.
3. To estimate the cost and returns in oil palm seedlings production and access its profitability and viability.
4. To identify the factors aecting
the level of income generated in the production of oil palm seedlings in the study area.
5. To identify constraints militating/facing against oil palm seedlings production.
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ECONOMICS OF OIL PALM SEEDLING PRODUCTION IN EDO SOUTH SENATORIAL DISTRICT, EDO STATE.
