The Profit Analysis and Constraints of Oil Palm Production in Delta State

Subject Areas : Rural and Agricultural Sociology

D Adaigho ¹ , J. O Abojei ² , D. O Aberji ³ , E Ofili ⁴ , P. O Emaziye ^{5 *}

1 - Department of Agricultural Economics, Faculty of Agriculture, Delta State University of Science and Technology, Ozoro, Delta State, Nigeria
2 - Department of Agricultural Economics, Faculty of Agriculture, Dennis Osadebey University Asaba, Delta State, Nigeria
3 - Department of Agricultural Economics, Faculty of Agriculture, Dennis Osadebey University Asaba, Delta State, Nigeria
4 - Department of Agricultural Economics, Faculty of Agriculture, Delta State University, Abraka, Delta State, Nigeria
5 - Department of Agricultural Economics, Faculty of Agriculture, Delta State University, Abraka, Delta State, Nigeria

Received: 2025-01-22 Accepted : 2025-04-15 Published : 2025-06-30

Keywords: Analysis, Constraint, Oil Palm, Profit, Production,

Abstract :

This study was conducted to analyze the profitability of oil palm production in Delta State. Multistage sampling procedure was used to draw samples for the study. Data were composed using questionnaire and analyzed using descriptive statistic such as mean, percentage count, frequency and Likert scale. The mean age of producers was 46 years, with a fairly balanced gender distribution (51.7% male, 48.3% female) that were married (47.5%), with high degree of farming experience. Small farm sizes (1-10 acres) dominate (70.8%), and personal plantations were common (45.0%). Access to credit and extension services were limited (42.5% and 12.5%, respectively). The total cost incurred in palm oil production was N613789 and the total revenue generated from the palm oil plantation was N 842,600 resulting in a net income of N210, 811. The benefit cost ratio of the business was 1.33 revealing 33% profit, implying that for every Naira spent on palm oil processing, a profit of 33 kobo is generated, demonstrating profitability of the palm oil enterprise. The most significant constraint was the high cost of equipment (87.5%), followed by inadequate processing and the least constraint was lack of improved varieties (31.7%). It is therefore recommended that there should be a Collaboration between financial institutions and government agencies to provide affordable and accessible credit options to palm oil producers.

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Full-Text:



Received: 22 January 2025

Reviewed: 02 March 2025

 Revised: 13 March 2025

Accepted: 15 April 2025 

 

 

 

 

 

The Profit Analysis and Constraints of Oil Palm Production in Delta State

 

Adaigho, D1., Abojei, J. O2, Aberji, D. O2., Ofili, E3 and Emaziye, P. O3

 

1Department of Agricultural Economics, Faculty of Agriculture, Delta State University of Science and Technology, Ozoro, Delta State, Nigeria

2Department of Agricultural Economics, Faculty of Agriculture, Dennis Osadebey University Asaba, Delta State, Nigeria

3Department of Agricultural Economics, Faculty of Agriculture, Delta State University, Abraka, Delta State, Nigeria

Correspondence Email: [e-mail]

 

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Keywords  Constraint, Oil Palm, Profit, Production, Delta State

Abstract

              his study was conducted to analyze the profitability of oil palm production in Delta State. Multistage sampling procedure was used to draw samples for the study. Data were composed using questionnaire and analyzed using descriptive statistic such as mean, percentage count, frequency and Likert scale. The mean age of producers was 46 years, with a fairly balanced gender distribution (51.7% male, 48.3% female) that were married (47.5%), with high degree of farming experience. Small farm sizes (1-10 acres) dominate (70.8%), and personal plantations were common (45.0%). Access to credit and extension services were limited (42.5% and 12.5%, respectively). The total cost incurred in palm oil production was N613789 and the total revenue generated from the palm oil plantation was N 842,600 resulting in a net income of N210, 811. The benefit cost ratio of the business was 1.33 revealing 33% profit, implying that for every Naira spent on palm oil processing, a profit of 33 kobo is generated, demonstrating profitability of the palm oil enterprise. The most significant constraint was the high cost of equipment (87.5%), followed by inadequate processing and the least constraint was lack of improved varieties (31.7%). It is therefore recommended that there should be a Collaboration between financial institutions and government agencies to provide affordable and accessible credit options to palm oil producers.

 

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