ECONOMICS OF OIL PALM SEEDLINGS PRODUCTION

ABSTRACT

This study was conducted on economics of oil palm seedlings production in IkpobaOkha Local Government Area, Edo State, Nigeria. The specific objectives were to; estimate the cost and returns of oil palm seedlings production in the study area, identify the determinants of profit in oil palm seedling production and identify the constraints faced by oil palm seedlings farmers in the study area. A two-stage sampling procedure was used to select 100 respondents for the study. Primary data used in the study were collected through structured questionnaire administered to 100 randomly selected oil palm seedlings producers in the study area. Descriptive statistics, budgetary and Stochastic production function was use for analysing collected data Results of the data analysis showed that majority (84.4%) of the respondents were males and were in their active years and were married (80.8%). The household size on the average was 4 persons. The selling price per oil palm seedling was ₦287.30 with a total revenue of ₦1,598,609.6 per production cycle. The result of the CobbDouglas functions shows the total cost of fixed inputs and age of respondents significantly affected revenue. Inadequate farm land (mean = 4.72), finance (mean = 4.79), inadequate planting materials (mean = 4.59), pest (mean = 4.18), high cost of labour (mean = 4.57), Government policies (mean = 3.95), lack of improved technology (mean = 3.36) and poor storage (mean = 3.40) were the serious constraints affecting oil palm seedlings production in the study area. It was concluded that Oil palm seedling production is profitable and a viable business venture. It was recommended that Oil palm seedling producers should form cooperatives so as to solve the problems associated with inadequate finance and other major constraints they encounter. Farm inputs such as fertilizers should be subsidized to reduce cost of production and improve farmers production efficiency.