International Journal of Agricultural Economics, Extension and Rural Development ISSN: 2716-7969 Vol. 7(1), pp. 173-178, July, 2021.  © Advanced Scholars Journals

Full length Research paper

Analysis of palm oil value chain in Ondo state, Nigeria.

Aina OS^1*, Odegbade OO²,Yakubu SA¹, Dada OA³ and Sangodare AO¹

¹Department of Cooperative Economics, Federal College of Horticulture, Dadin-Kowa.P.M.B. 108, Gombe State, Nigeria.

²Department of Agricultural Economics and Extension, Ambrose Ali University, Ekpoma, Edo State.

³Economics and Extension Department, Cocoa Research Institute of Nigeria (CRIN), P.M.B 5244, Ibadan, Oyo State, Nigeria.

*Corresponding Author’s email: [email protected]

Accepted 7^th July, 2021.

Abstract 

The study analyzed the palm oil value chain in Ondo State, Nigeria. The specific objective of the study were to investigate the activities of all the actors in the palm oil value chain and the value added at each stage of the value chain, evaluate the cost and returns associated with palm oil along the value chain and identify the constraints encountered by actors in the palm oil value chain. Multistage sampling procedure was adopted in the study. 96 respondents were selected in the two Local Government Area of the State and structured questionnaire was used for data collection. The data collected were analyzed using gross margin analysis. The result of the gross margin analysis indicated that palm oil business is a viable and profitable business in the study area with a gross margin of ₦171,000 per month and net returns of ₦117,000. The gross ratio was 0.85. Also the gross margin for the marketers was ₦138,000 and the gross ratio was 0.89. The major constraints encountered in the processing activities were poor water supply while the marketers complained about high cost of transportation and irregular supply of palm oil. It was therefore, recommended that government should assist in the provision of portable water to the mill and upgrading of road network in palm oil processing area.

Keywords: Analysis, Palm oil, Value chain, Profitability, Ondo State, Nigeria.