ABSTRACT
This study was conducted to examine the economics of oil palm seedlings production in Ovia North East LGA, Edo State. The specific objectives were to examine the socio-economic characteristics of the oil palm seedlings producers, identify the methods adopted in raising the oil palm seedlings, estimate the profitability and viability of oil palm seedlings production and the constraints militating against oil palm seedlings production, A purposive sampling procedure was employed to select 80 respondents for the study with the aid of a questionnaire. Data generated were analyzed using descriptive statistics, gross margin, benefit cost and net profit analysis.
Results of the data analysis showed that majority (87.5%) of the respondents were males and were in their most active years and (68.8%) married. It was revealed that (53.7%) of the respondents have household size between 1-5 persons. Majority (51.3%) of the respondents adopted both organic and inorganic methods in raising oil palm seedlings. The total revenue amounted to N63,540,000 and net profit of N18,656,550. The benefit cost ratio (BCR) was 2.4 which means the production of oil palm seedlings in the study area is viable. The major constraints faced by the producers were inadequate finance, water scarcity, no ready market for seedlings, pest and disease, as well as labour scarcity. It was then recommended that specific programmes that are based on improving and supplying the critical factors such credit, land and labour in oil palm production as they constitute serious bottlenecks to farm expansion.
