You have no items in your shopping cart.
ABSTRACT
This study was carried out to analyze the profitability of oil palm seedling production in Egor Local Government Area of Edo State. The specific objectives were to describe the socio-economic characteristics of oil palm seedling producers, determine the profitability and viability in oil palm seedlings production, estimate the factors affecting profitability of oil palm seedlings production and identify the critical constraints faced in oil palm seedling production in the study area. A two-stage e sampling technique was used to select 120 respondents on retrieved 108 was valid. Descriptive statistical tools such as frequency tables and percentages were used to describe socio economic characteristics of respondents. Gross margin analysis was used to estimate cost and return, benefit cost ratio and return on investment were used to determine the profitability in the study area. The result showed that majority of the respondents are males (68.22%), at average age (53), literate (62.62%), while 92% had 1-16years of experience in oil palm seedling production. The result further revealed a return of ₦1,580,523.38 and profit of ₦1,558,757.57 was generated at BCR of N3.03. The result of the R2 was 0.6549 implying that the independent variables explain the dependent variable by 65%. Oil palm seed cost and weeding cost had negative relationship on returns but insignificant. The result revealed that the main constraints faced were high cost of transportation, inadequate fund and cost of fertilizer application. In conclusion it is crucial to assess various factors and implement key strategies to ensure profitability. Focusing on efficient operations, ensuring quality control, conducting market research, diversifying products, controlling costs, and implementing thorough financial planning are commendations to enhance profitability in oil palm seedlings production. The study recommended that producers should be encouraged to join farmers’ societies for easy access to credit facilities, production inputs, and also good pricing regimes should be introduced by producers.
