ABSRACT
The study provided empirical evidence of rural household’s engagement in production, processing and marketing of oil palm produce in Southeast Nigeria. The specific objectives were to ascertain the level of engagement of rural households in oil palm production, ascertain the level of household’s engagement in oil palm processing, ascertain the level of household’s engagement in marketing of oil palm produce among others. The study made use of multi-stage random sampling procedure in selecting 540 respondents. Data for the study were collected with the use of structured questionnaire and analyzed with the use of both descriptive (frequency, percentage, mean and gross margin) and inferential statistics (ANOVA and multiple regression models). The major results revealed that the respondents in the study area were moderately engaged in the production of oil palm produce (pooled grand mean = 3.35). There was high level of engagement in the processing of oil palm produce (pooled grand mean = 3.67). More so, the result revealed that the respondents had high level of engagement in the marketing of oil palm produce (pooled grand mean =3.80). F-test value of 1.525 indicated that there was no statistically significant difference in the level of engagement of rural households in production of oil palm produce across the states in the study area. The F-test value of 11.654 indicated that there was a statistically significant difference in the level of engagement of rural households in processing of oil palm produce across the states in South East Nigeria at 5% level of probability. More so, the F-test value (1.4290) indicated that there was no statistically significant difference in the level of engagement of rural households in the marketing of oil palm produce across the states in the study area. Again F-test value (1.1697) indicated that there was no statistically significant difference in the level of engagement of rural households in the production, processing and marketing of oil palm produce in the study area. The coefficients of age (0.756**), level of education (0.188***), production experience (0.089**), distance (-0.006**) and transportation cost (-0.107***) significantly influenced level of engagement oil palm production in Southeast Nigeria. The coefficients of household size (0.117**), level of education (2.003**), processing experience (0.071**), income (0.844***) and labour cost (1.324***) significantly influenced level of engagement the processing of oil palm in Southeast Nigeria. The coefficients of household size (1.149***), level of education (0.068***), marketing experience (0.370**), income (0.113***) and distance to market (0.089**) significantly influenced level of engagement the marketing of oil palm produce in Southeast Nigeria. The study concluded that if rural households are adequately empowered to engage in production, processing and marketing of palm products, it will create employment, satisfy local and export demand as well improve the welfare of the rural dwellers. It was recommended that rural household’s engagement in oil palm production, processing and marketing must be re-emphasized as a panacea to unemployment among rural households in Southeast Nigeria.
TABLE OF CONTENTS
PAGES
Title Page i
Declaration ii
Certification iii
Acknowledgement iv
Table of Contents vii
Lists of Tables xii
List of Figures xvi
Abstract xvii
CHAPTER
1: INTRODUCTION
1.1 Background Information 1
1.2 Problem Statement 7
1.3 Research Questions 9
1.4 Objectives of the Study 10
1.5 Hypotheses of the Study 11
1.6 Significance of the
Study 12
1.7 Scope of the Study 13
1.8 Limitations of
the Study 13
1.9 Definition of Terms 14
CHAPTER 2: REVIEW OF
RELATED LITERATURE
2.1
Conceptual Review 17
2.1.1
Historical background of origin and distribution of oil palm 18
2.1.1.2
Oil palm
production in Nigeria 21
2.1.2.
Methods of oil palm production in Nigeria 25
2.1.2.1
Sources of planting material 25
2.1.2.2
Selection of a site 26
2.1.2.3
Propagation 26
2.1.2.4
Germination 26
2.1.2.5
Nursery 26
2.1.2.6
Land preparation 27
2.1.2.7
Transplanting 28
2.1.2.8
Weeding 28
2.1.2.9
Harvesting 28
2.1.2.10
Yield 29
2.1.3
Resource use in oil palm production 30
2.1.3.1
Land resource 31
2.1.3.2
Capital resource 31
2.1.3.4
Labour resource 32
2.1.4 Economic benefits and composition of oil palm
produce 33
2.1.4.1 Relative reliability in its supply 33
2.1.4.2
Edible and non edible ingredient 34
2.1.4.3 Industrial use of oil palm produce 35
2.1.4.4
Useful to man and animal 36
2.1.4.5 Nutritional and health benefits of oil palm
produce 36
2.1.5
Oil palm processing in Nigeria 38
2.1.5.1 Manual/
traditional oil palm processing 38
2.1.5.2 Modern oil palm processing method 43
2.1.5.3 Large-scale automated processing 48
2.1.6
Traditional techniques and innovations in small-scale palm oil processing 51
2.1.6.1 Mechanical extraction 51
2.1.6.2 Direct screw-pressing 52
2.1.6.3 Hydraulic presses 56
2.1.7.0 Palm kernel oil extraction 60
2.1.7.1 Mechanical extraction 60
2.1.7.2 Traditional method of palm kernel extraction 60
2.1.8
Environmental considerations in oil palm processing 61
2.1.8.1 Treatment of solid waste
products 61
2.1.8.2 Treatment of aqueous
effluent 63
2.1.9
Marketing of palm oil products in Nigeria 64
2.2
Empirical Studies 68
2.3
Theoretical Framework 72
2.4
Conceptual Framework 76
CHAPTER
3: METHODOLOGY
3.1 Study Area 79
3.2 Population of the study 80
3.3 Sample and Sampling Procedure 81
3.4 Data Collection 83
3.5 Validation of Instrument 83
3.6 Reliability of the Instrument 84
3.6 Measurement of Variables 85
3.8 Data Analysis 89
3.9
Model Specification 89
CHAPTER 4: RESULT AND DISCUSSION
4.1: Socio-economic
Characteristics of the Respondents 99
4.2 Oil palm Produce of Primary
Interest to the Households 108
4.3 Level of Engagement of Rural Households in Production of oil Palm
Produce 110
4.4 Estimate of Output from Oil Palm Produce 112
4.5 Level of Household’s Engagement in Processing of Oil Palm Produce 114
4.6 Methods of Processing Oil Palm Produce 116
4.7 Estimate of the Costs and Returns from Processing of Oil Palm Produce 118
4.8 Rural Household’s Engagement in
Marketing of Oil Palm Fruit Products 120
4.9 Market and Marketing Channels Used by Rural
Households in the Marketing of Oil Palm Produce 122
4.9.1 Market for Oil Palm Produce 122
4.9.2 Marketing Channels for Oil Palm 123
4.10 Estimate of Cost and Returns from the Marketing Oil Palm Produce 124
4.11 Roles Performed by Household Members in Oil Palm Production,
Processing and Marketing 126
4.11.1 Role Performed by
Household’s Members in Oil Palm Production 126
4.10.2 Role Performed by
Household’s Members in Oil Palm Processing 128
4.10.3 Role Performed by
Household’s Members in the Marketing of Oil Palm Produce 129
4.12 Constraints to the
Engagement in Production, Processing and Marketing of Oil Palm Produce 131
4.12.1
Constraints to Production of Oil Palm Produce 131
4.12.2
Constraints to Processing of Oil Palm Produce 133
4.12.3 Constraints to
Marketing of Oil Palm Produce 134
4.13 Hypotheses Testing 135
CHAPTER
5: SUMMARY, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary 152
5.2 Conclusion 160
5.3 Recommendations 162
References 165
Appendix 1 191
Appendix 2
LIST OF TABLES
Table 2.1: Summary of Unit operations 51
Table 2.2. Foodstuffs and industrial applications of
oil palm products 68
Table 3.1 Sample selection plan 82
Table 4.1a: Socioeconomic characteristics of the respondents in the study
area 99
Table 4.1b: Socioeconomic characteristics of the respondents in the study
area 103
Table 4.2: Oil palm produce of households of primary
interest zin the study area 108
Table 4.3: Mean rating of level of engagement of rural
households in production of oil palm produce in the study area 110
Table
4.4: Estimate of Average quantity and income from oil palm produce in the study
area 112
Table 4.5: Mean rating of the respondents level of
household’s engagement in processing in the study area 114
Table 4.6: Methods of palm oil processing in the study
area 115
Table 4.7: Gross Margin estimate of the quantity
processed and income generated from oil palm processing in the study area 118
Table 4.8: Mean rating of the level of household’s
engagement in marketing of oil palm produce in the study area 120
Table 4.9b: Market for oil palm produce in the study
area 122
Table 4.9b: Marketing channels used by rural
households in the marketing of oil palm produce in the study area 123
Table 4.10: Gross Margin estimate of costs and returns
generated marketing of oil palm produce in the study area 124
Table 4.11.1: Role performed by
household’s members in production of oil palm produce in the study area 126
Table 4.11.2: Role performed by household’s
members in oil palm processing in the study area 128
Table 4.11.3: Role performed by
household’s members in the marketing of oil palm Produce in the study area 129
Table 4.12:
Constraints to household engagement in production, processing and marketing of
oil palm produce in the study area 131
Table 4.13: Duncan’s New Multiple Range Test (DNMRT) analysis of the mean
difference in the level of engagement of rural households in production of oil
palm produce across the states in South East Nigeria 137
Table 4.14: Duncan’s New Multiple Range Test (DNMRT) analysis of the mean
difference in the level of engagement of rural households in processing of oil
palm produce across the states in South East Nigeria 138
Table 4.15: Duncan’s New Multiple Range Test (DNMRT) analysis of the mean
difference in the level of engagement of rural households in the marketing of
oil palm produce across the states in South East Nigeria 141
Table 4.16: Duncan’s New
Multiple Range Test (DNMRT) analysis of the mean difference in the
level of household’s engagement in production, processing and
marketing of oil palm produce in South East Nigeria 142
Table 4.17: Multiple regression analysis of the
relationship between selected socioeconomic characteristics of the respondents
and their level of engagement oil palm production in the study area
Table 4.18: Multiple regression analysis of the
relationship between the selected socioeconomic characteristics of the
respondents and their level of engagement in the processing of oil palm produce
in the study area
Table 4.19: Multiple
regression analysis of the relationship between the socioeconomic
characteristics of the respondents and their level of engagement marketing of
oil palm produce in the study area
LIST OF FIGURES
Figure 2.1 Palm oil processing flow chart 48
Fig 2.2: Mechanical extraction of palm kernel oil. 57
Figure 2.3: Conceptual framework of rural household’s
engagement in oil palm fruit production, processing and marketing in South East
Nigeria 81
Figure 3.1 Map of Southeast 83
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
INFORMATION
Oil
palm (Elaeis guineensis) is one of the most important economic oil crops
in Nigeria. Oil palm is indigenous to the Nigerian coastal plain though it has
migrated inland as a staple crop (Alabi, Famakinwa and Akinnawonu 2020;
Nwalieji and Ojike 2018 and Udo and Essien, 2018). The global growing demand
for palm oil is making oil palm cultivation becoming a means of livelihood for
many rural families, and indeed the farming culture of millions of people in
Nigeria especially Southeast. The oil palm tree is a useful crop that is
relevant in all aspects of live with socioeconomic and socio-cultural values.
The reference to oil palm as a crop of multiple value underscores its economic
importance. Oil palm is made of essential components, namely; the fronds, the
leaves, the bunch, fruit, the trunk and the roots etc. Oil palm provides a lot
of resources ranging from palm oil, palm kernel oil, palm wine, broom, and palm
kernel cake (Nwalieji and Ojike 2018).
The
importance of oil palm to the national economy of Nigeria cannot be over
emphasized. It ranges from production of food for human consumption,
employment, income to farmers and nation and raw materials for industries. Oil
palm has been a major source of foreign exchange to Nigeria as well as source
of revenue to major segment of the rural population of South East Nigeria (Onoh
and Peter-Onoh, 2012). The most important product of oil palm is the palm
fruit, which is processed to obtain three commercial products namely: palm oil,
palm kernel oil and palm kernel cake. Palm oil and palm kernel oil are two
distinct oils which are important in World Trade, (Barcelos, Almeida, Cunha,
Lopes 2015). Hence, oil palm is often referred to as a crop of multiple values,
which underscores its economic importance (Akangbe, Adesiji, Fakayode, and
Aderibigbe, 2011). It has been established in literature that the domestic
consumption of palm oil in Nigeria, in 2017/2018, amounted to about 1.29
million metric tons (Conway, 2018). Palm oil is used in the manufacturing of
margarine, soap candle, base for lipstick, waxes and polish bases in a condense
form, confectionary (Embrandiri, Singh, Ibrahim and Ramli, 2011).
Nigeria
used to be one of the world largest producers and exporters of palm oil in the
early 1900s to the 1960s, accounting for more than 40% of global output and 82%
of its export earnings (Ataga, Ilechie, & Omoti, 2013). Foundation for
Partnership Initiatives in the Niger Delta (PIND) (2011) reported that up until
the 1960s, Nigeria was the world’s largest producer of palm oil accounting for
43% of global palm oil production. Over-reliance on traditional production
methods, excessive tapping of palm trees for palm wine and the civil war
between 1967-1970, are factors that contributed to Nigeria’s inability to meet
up with the global rise in demand for palm oil (PIND, 2011). By the end of the
twentieth century, the Nigerian palm oil harvest had dwindled to about 7% of
the global production due to the discovery of crude oil in commercial quantity,
over-reliance on traditional production methods and inefficient oil extraction
practices among others (Onwumwere, Onwusiribe and Iheanatu, 2014). Statista
(2020), reported that in 2020, the production of palm oil in Nigeria was
estimated to be 1,015 thousand metric tons. Between 2010 and 2020, the palm oil
production in the country increased, registering the highest growth in 2010,
when the production grew by 14 percent compared to the previous year. In the
last three years (2018-2020), the production remained stable at over one
million metric tons making Nigeria one of the leading five producers of palm
oil worldwide.
Processing
of oil palm fruit is defined as a process by which palm fruit is processed into
palm oil through threshing or stripping, milling and digestion, pressing and
clarification (Emokaro and Ugbekile, 2014). Oil palm fruit processing involves
harvesting, threshing or bunch quartering, fruit loosening, boiling, digestion,
pressing/oil extraction, clarification and packaging/storage. All these stages
are done manually except the digestion or pounding of cooked fruits which is
done by a diesel engine powered digester equipment (Osei-Amponsah Agbotse, Swanzy and Stomph, 2018).
Small- scale production involves the use of traditional or semi-mechanized
methods for oil extraction from the fresh fruit bunch (Adeniyi, Ogunsola and
Olawusi, 2014). According to Nwalieji and Ojike (2018) two broad methods of
palm oil processing, thus the traditional or manual methods normally referred
to as “low” technology and the mechanized or modern method of processing
basically the same principles as the present industrial method, the difference
is the equipment and technology being employed and of course the quality of
each method and it is common knowledge that the use of machine enhances
productivity. In addition, during processing, outdated equipment is mostly
used. This method of oil palm processing is arduous, time consuming and oil
yield is usually low. Often, about 25% - 75% of potential palm oil is lost
during processing (Nyakuma, 2015) while 71.8 – 90.6% and 9.0 – 28.0% palm oil
end up as waste under smallholder palm oil processing in Nigeria depending on
the variety of the oil palm (Ohimain, Izah, and Obieze, 2013).
Adah
and Obinne (2015) stated that palm oil can be processed by using the
traditional method or more sophisticated method. The industrial method is processed:
After harvesting the fruits in the groves or plantation, the fruit bunches are
moved to the mill. Here the fresh fruit bunches are weighted and then quartered
before they are transferred to the sterilization unit where they are cooked.
After sterilization, the next step is stripping and threshing to separate the
fruit from the husks. The husks are then discarded and later used as fuel for
firing furnaces that power the sterilizer. The separated fruits are then
transferred to the digester where the cooked fruits are mashed into a pulp. The
mash is transferred to the presser from where the palm oil will be squeezed out
and transferred into a clarifier for sedimentation. While the traditional
method are employed by peasant women and small processors using mortars. Palm
oil has always been processed by using traditional primitive rural technique of
cooking the palm fruits in a pot and pounding the cooked fruits in a wooden
mortar. The mash is then squeezed either by hand or any other method which will
squeeze the palm oil out of the mash. Nwalieji and Ojike (2018) reiterated that
majority of palm oil processors adopt traditional technique of processing.
Palm
fruit processing and palm oil marketing are still faced with a lot of problems
including; inadequate finance, shortage of labour, scarcity of water and
firewood and lack of effective processing techniques, irrespective of all the
research efforts on improved palm oil processing methods over the years by
research institutes (Adetola, 2015). Ajani, Onwubuya and Nwalieji (2012)
posited that marketing and pricing information transmission mechanism are
inefficient in the palm oil sector although there are many buyers and sellers
in the market. Furthermore, since independence in 1960, Nigeria's agricultural
sector has experienced slow output growth that has not kept pace with
population increases (Emokaro and Ugbekile, 2014). This has resulted in
declining agricultural exports and domestic food supplies and growing reliance
on imported food. Nigeria has been particularly fortunate in having vast palm
oil reserves but it has also been plagued by economic chaos and political
instability over the past three decades while the decline in the agricultural
sector can be partly explained by drought and serious pest and diseases
infestation (Udo and Essien, 2015).At the same time, the rapid devaluation of
the Naira combined with high transportation costs. Thus Nigeria's first goal is
to meet the domestic demand and then if possible seek to become competitive in
export markets (Egwu, 2008).
Nigeria
has for long time recognized the importance of agricultural marketing as a
critical component and catalyst to promote viable agricultural production
system and economic growth. The country's agricultural marketing policy aimed
at the attainment of self-sufficiency in food commodities, increased production
of raw materials for increased production process (Nwalieji and Ojike 2018).
The distribution of processed palm oil from the point of production to the
final consumers has provided an array of economic opportunities to majority of
people in the producing areas in South East.
In
some states such as Imo, Ebonyi and Anambra state, the marketing of palm oil
takes the traditional but efficient system of distribution. It takes place in
the homes of the processors, by the road sides and in the local market centers.
These centers serve as channels of distribution for palm oil, the local market
centers are classified according to their function in respect to palm oil
distribution in the area. These are market places found in most of the villages
in South East. Palm oil is sold in cans, drums and retail markets where it is
sold in bottles and tins; it is sold either in wholesale or retail markets.
Transactions takes place side by side, but the only justification for this
classification is that a greater volume of palm oil is sold at wholesale than
at retail market.
Agricultural
products marketing is faced with problems such as improper pricing, poor market
infrastructure, including rural roads and local markets, inappropriate storage
and processing technologies to inadequate market information systems.
Notwithstanding that palm fruit processing is a major source of income and
employment to a large proportion of the resource poor rural population in
Nigeria especially in the South-Eastern part of the country, its production has
drastically downsized (Obasi and Kalu, 2015).The principle factors responsible
for this decline is the inefficiency that exists in the production system of
palm oil processing, which are as a result of high cost of labour, lack of
linking roads for transportation, electricity, water and inadequate credit
facility (Emokaro and Ugbekile, 2014).
Studies
by Udoh and Essien (2015), Nwalieji and Ojike (2018) Ukwuteno, Eboh and Ocheja
(2018) and revealed that, palm oil production, processing and marketing is a
major economic activity of the people of Southern Nigeria and is mostly carried
out by rural dwellers particularly women under manual and subsistence methods.
Usually, local producers will take their processed oil and kernel to the
periodic or daily markets, or display same by the road side or village square
where prospective buyers will come for purchase. Okoronkwo,
Onya and Amah (2020) found that, palm oil
processing and marketing generates revenue for the rural people and therefore
boost the economy of the rural dwellers in the area. In a further bid to
encourage rural households engagement in production, processing and marketing
of palm products to satisfy local and export demand as well improve the welfare
of the rural dwellers, the study sought to analyze rural households engagement
in oil palm production, processing and marketing in South East, Nigeria.
1.2 PROBLEM SATEMENT
Oil
palm production, processing and marketing enterprises remains major livelihood
activities among many rural households in South East Nigeria. It involves
hundreds of thousands of poor producers and tens of thousands of poor
processors. It provides income for many
farmers and their dependents. This connotes that an efficient and strong palm
oil sector in Nigeria will enable the poor to be part of the solution to
poverty challenge through provision of employment and a means of livelihood
especially among rural households.
However,
palm produce is characterized by low productivity at production (wild grove)
and processor levels (traditional processing). The lack of storage and
marketing facilities and the numerous intermediaries involved in the value
chain could have also strongly depressed producer prices (Gourichon,2013). The
major constraints of palm oil production according to Olagunju (2008) and Obasi and Kalu (2015)
are the supply of inputs, the inefficiency of processing methods, the low
quality of the output, the lack of infrastructure and inefficient distribution.
With regards to production, the traditional method is dominant, so yields
remain low. For rural poor households, this method is very tedious and
laborious compared to mechanical methods and requires a substantial proportion
of labour force. Milling cost of production is high, which results in high
prices. The lack of infrastructure such as storage facilities, transportation
systems, access roads, communication channels are also sources of
inefficiencies in the value chain (Obasi, Igwe and Ogbonna 2014). Small-scale agro-production, processing and
marketing of palm produce among rural dwellers seems to hold the key to rural
poverty reduction and the prolific oil palm tree provides the best raw material
for starting rural industries. Nevertheless, it is observed that traditional
methods of extracting palm produce are inefficient and tedious.
Furthermore,
researches (Nwalieji and Ojike 2018; Ukwuteno., Eboh and Ocheja 2018; Udo and
Essien, 2015), have revealed other fundamental problems such as tenure-right
which is mostly tenancy-right through leasing and rent, lack of land for
planting of oil palm trees, inefficient methods of harvesting and conveying oil
palm fruits, poor market price also pose serious challenges to oil palm
production and processing among rural dwellers in the study area. It is equally
reported by the operators that the business has been facing series of
challenges ranging from lack of mechanized processing, poor produce pricing by
middlemen, lack of storage facilities, lack of capital for large-scale
production and expansion, lack of credit facilities by micro-finance banks, and
long period of maturity. The situation thus appears in Nigeria that neither
large-scale monocultures nor small-scale holdings seem able to provide answers
to problem of the scarcity of palm oil in one of the countries, which the oil
palm is native.
However,
Nwalieji and Ojike (2018) Okoronkwo et al., (2020) and Alabi et al.,
(2020) observed that production and processing activities are dominated by
smallholders located in the rural communities of Nigeria. These smallholders
account for the greater percentage of palm produce output in the area but their
output cannot even satisfy local demands both quantitatively and qualitatively.
The small-scale farmers who constitute the bulk of oil palm producers in the
study area seemed not to be adequately involved. Thus, they have continued to
rely on wild oil palm groves. Besides, the processing of fruits into oil and
kernel is still being done by the traditional method, which is tedious and low
yielding.
If
oil palm industry is a source of livelihood to a large proportion of households
in the rural areas of Southeast, Nigeria, are farmers adequately engaged in
production, processing and marketing activities? This
study sought to provide empirical evidence of the level of engagement of rural households’
in production, processing and marketing activities in South East Nigeria is
unknown.
1.4
RESEARCH
QUESTIONS
The
study was guided by the following research questions;
i.
What are the
socioeconomic characteristics of the respondents?
ii.
What is the oil palm
produce of interest to the household?
iii.
What is the level of
engagement of rural households in production activities of oil palm?
iv.
What is your estimate the
output and income of major oil palm produce?
v.
What is the level of
household’s engagement in processing of oil palm produce?
vi.
What are the methods of
processing oil palm fruits?
vii.
What is the estimate of the
cost and returns from oil palm processing?
viii.
What is the level of
household’s engagement in marketing of oil palm produce?
ix.
What are the various
marketing channels used by rural households in the marketing of oil palm
produce?
x.
What is your estimate of
costs and returns from the marketing oil palm produce?
xi.
What are the roles
performed by men and women in oil palm production, processing and marketing?
xii.
What are the challenges
to the engagement in production, processing and marketing of oil palm produce in
the study area?
1.4 OBJECTIVES OF THE STUDY
The
broad objective of the study was to analyze rural household’s engagement in the
production, processing and marketing of oil palm produce in South East Nigeria.
The specific objectives were to;
i.
describe the
socioeconomic characteristics of the respondents;
ii.
ascertain the oil palm
produce of interest among rural household;
iii.
examine the level of
engagement of rural households in production of oil palm produce;
iv.
estimate the output and
income of major oil palm produce;
v.
ascertain the level of household’s
engagement in processing of oil palm produce;
vi.
examine the methods of
processing oil palm produce;
vii.
estimate the costs and
returns from processing oil palm produce;
viii.
ascertain the level of household’s
engagement in marketing of oil palm produce;
ix.
examine the various
marketing channels used by rural households in the marketing of oil palm
produce;
x.
estimate the costs and
returns from the marketing of oil palm produce;
xi.
examine the roles
performed by men and women in oil palm production, processing and marketing;
xii.
identify the challenges to the engagement in
production, processing and marketing of oil palm produce in the study area.
1.5 HYPOTHESES OF THE
STUDY
The
following null hypotheses were tested at 5% alpha level to guide the study;
H01: There is
no significant difference in the level of engagement of rural households in
production of oil palm produce across the states in South East Nigeria.
H02: There is
no significant difference in level of household’s engagement in processing of
oil palm produce across the states in South East Nigeria.
H03: There is
no significant difference in the level of household’s engagement in marketing
of oil palm produce across the states in South East Nigeria.
H04: There is
no significant difference in the level of household’s engagement in production,
processing and marketing of oil palm produce in South East Nigeria.
H05: There is no significant relationship
between selected socioeconomic characteristics of the respondents and their
level of engagement oil palm production in the study area.
H06:
There is no significant relationship between selected socioeconomic
characteristics of the respondents and their level of engagement oil palm
processing in the study area.
H07:
There is no significant relationship between selected socioeconomic
characteristics of the respondents and their level of engagement the marketing
of oil palm produce in the study area.
1.6 SIGNIFICANCE OF THE STUDY
This study will be of immense benefit to
investors seeking to invest in oil palm production, small scale oil palm
producers, industrial scale oil palm producers, government and researchers in
the following ways;
Investors in oil production business benefited
in the sense that they identified the processing method that is more viable and
efficient for an improved production palm oil.
Small scale oil palm producers benefited in
that they identified other method that they are efficient and cost effective
that they can use to improve their oil production capacity.
Industrial scale oil palm producers benefited
from this study as they identified other viable means of combining both
traditional and modern methods to produce palm oil that has both quality and
financially efficient.
Government will benefit from this study as
they will be alerted of the need to invest more in palm oil processing, this
study will serve as an eye for them to see the effort put by rural farmers to
produce palm oil for commercial consumption and how they can be helped so as to
improve the production of the product and reduce if not entirely stop palm oil
importation in the country.
To the researchers, the study will be rich
source of theoretical and empirical data bank for further studies on the
subject matter. Researchers will equally benefit from the rich literature of
this study.
1.7 SCOPE OF THE STUDY
The scope of this study was delimited to the analysis
rural household’s engagement in oil palm production, processing and marketing
in South East Nigeria. The
content scope was on the specific objectives of the study while coverage scope
was Southeast geopolitical zone of Nigeria.
1.8 LIMITATIONS
OF THE STUDY
The study encountered the following limitation:
i.
There was a dearth of
information due to lack of adequate record keeping. This gave room for some
data to be estimated.
ii.
Where current literatures
on oil palm production, processing and marketing exist or are available, they were
scanty, particularly publication on oil palm in Nigeria.
iii.
There were some difficulties
in getting accurate information from the farmers because some believe that such
will expose the secret of their business.
iv.
The attitude of some of the respondents who
withheld information and would even throw away questionnaire after having
collected it. This actually brought a setback.
With serious
perseverance and commitment, the researcher overcame these challenges.
1.9
DEFINITION OF TERMS
The following terms were used as it applies to this study:
Household: household is
defined as those who dwell under the same roof and compose a family. It
can also be defined as a social unit composed of those
living together in the same dwelling. In most rural areas of the developing world, the household is the basic unit of production and reproduction.
Livelihood: A person's
livelihood refers to their "means of securing the basic necessities (food,
water, shelter and clothing) of life". Livelihood is defined as a set of
activities essential to everyday life that are conducted over one's live span.
Such activities could include securing water, food, fodder, medicine, shelter,
clothing. In this study, the livelihood activities includes production,
processing and marketing of oil palm produce.
Livelihood Outcomes: Outcomes are measured to determine how
successful households are in their livelihood strategies/activities. These
outcomes can be based on normative standards or on criteria identified by the communities. Is a measure of
people’s capacity to generate and maintain their means of living, enhance their
well-being and that of future generations;
·
More income
·
Increase in
output
·
Increased
wellbeing
·
Reduced
vulnerability/
·
Improved food
security
·
More
sustainable use of natural resource base
Oil Palm Production: This
involves all activities relating to harvesting and transportation of palm fruit, palm wine and palm
fronds. For this study, production
activities include;
·
Sighting of ripe fruit
·
Clearing of farm
·
Pruning of oil palm tree
·
Cutting/harvesting of
ripe fruits
·
Picking of oil palm
fruits
·
transportation of oil
palm produces.
Oil Palm Processing:
Processing of oil palm fruit is defined as a process by which palm fruit is
processed into palm oil through threshing or stripping, milling and digestion,
pressing and clarification (Emokaro and Ugbekile, 2014). In this study
processing of oil palm produce involves all activities relating to transforming
oil palm products to, palm oil, palm kernel, palm wine and broom. Oil palm fruits processing activities
such as;
·
threshing or bunch
quartering,
·
fruit loosening
·
boiling of fruits
·
digestion of fruits
·
pressing/oil extraction
·
clarification and
·
packaging/storage of product
Oil Palm Marketing: Marketing
here implies the distribution of processed palm oil produce from the point of
production to the final consumers. In this study marketing of oil palm produce
involves all activities relating to buying and selling of palm oil, palm
kernel, palm wine and broom. Oil palm marketing activities such as;
·
Buying of oil palm product
·
grading of products
·
transporting the products
·
Storing the product
·
canvassing for customers
·
acquiring the market shed
·
determines the quantity to be sold
·
packaging of products
·
selling of products
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