ABSTRACT
The study determined the economics of oil palm seedlings
production in Edo South Senatorial district, Edo State. The specific
objective was to examine the socio-economic characteristics of the oil
palm seedlings producers, identify the methods adopted in raising oil
palm seedlings in the study area, to estimate this cost and returns in
oil palms production and access it’s profitability and viability,
identify the factors affecting the level of income generated by
producers and the likely problems of oil palm seedlings production. The
study covered ninety (90) randomly selected oil palm producers from
nine villages in the study area. The results showed that the production
of oil palm seedling had a high returns. The cost of selling price per
seedling was N272.378, gross margin had N120.621 and Net profit had
N75.932. The following was found to be major constraint, inadequate
finance, time consumption, irregular supply of fresh fruit bunches, and
high transportation cost. Recommendations were made based on the
identified problems facing the oil palm seedling producers and it
includes provision of planting material as at when due, encouraging
farmers to pull their resources together, for farming themselves into
cooperative societies.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The African Oil Palm, Elaeis guineensi jacq (Jacquin, 1963), is placed in the Arecaceae family
which contains about 225 genera with over 2600 species along with
coconut and date palms cultivars. There are 3 naturally occurring forms
of the oil palm fruit, termed dura, tenera and pisifera. The selection
of dura female and pisifera male parents is carried out to obtain
tenera offspring that produce large oil yield (Breure et al,
1986, Breure, 2003). The African oil palm is native to tropical Africa,
from Sierra Leone in the West through the Democratic Republic of Congo
in the East, it was domesticated in its native range, probably in
Nigeria, and moved throughout tropical Africa by humans who practiced
shifting agriculture at least 5,000 years ago (Hartley, 1988). European
explorers discovered the palm in the late 1400’s, and distributed it
throughout the world during the slave trade period (Corner, 1966). In
the early 1800’s, the slave trade ended but British began trading with
West Africans in Ivory, lumber and palm oil. The oil palm was introduced
to the Americans hundred years ago, where it became naturalized and
associated with slave plantations, but did not become an industry of its
own until the 1960s (Lereka, 1998). The first plantations were
established on Sumatra in 1911, and in 1917 in Malaysia (Raymond,
1961).
Oil plantations were established in tropical America and
West Africa about this time, and in 2003, palm oil production equaled
that of soybean, which had been the number one oil crop for many years. Elaeis guineeasis is
characterized by its vertical trunk and feathery nature of its leaves
every year 20 – 25 new leaves called “frond” develop in continuous
whorle at the apex of the trunk (Devendra, 1984). The fruit bunches
develop between the trunk and the base on the new fronds and the plant
can reach 60 – 80ft in height in nature, but is rarely more than 20 or
30ft in cultivation. Although new plantation starts to bear fruit at 3
years, generally, the first commercial crop require between five and six
years and continuous to produce for 25 – 30 years, or until the palm
grow too high to be harvested. Once a plantation reaches full
production, a new inflorescence is produced every 15 days. It weights
between 15 and 20kg and can conking up to 1500 individual palm fruit of
between 8 and 10 grams each (Chavaliar, 1937). The individual fruits
consist of the following four parts, a pericarp, a thin outer skin which
upon ripening changes from brown to red or orange, a mesocarp, a large
of fibrous material which surrounds the nut, an endocarp or hard inner
shell (nut) to protect the seed or kernel and the seed (kernel)
(Aighologa, 1995). The female inflorescence contains 200 – 300 fruits,
and fruit set is 50 – 70% fruit riped about 5 – 6 months after
pollination (Ergo, 1977). Vegetable and edible oil producer of Nigeria
(VEOPAN) claims that, it provided job opportunities for not less than
1.8 million farmer family involved in this production of oil seeds and
related crops. Nigeria with a National 1.3 million tones of palm oil
and a population. Of over 140 million that means each family produces
less than 700kg per year, i.e. an average of less than 2kg/day
(Eshalomi, 2008). Last year, the vegetable oil sub-sector of
Manufacturers Association of Nigeria reported that the market has been
very unstable because of high cost of input, excessive smuggling of
vegetable oil and faking. Recently, the group lamented the shortage of
palm oil plantation production which is the major raw material for
vegetable oil production because it condemned the Federal Government of
Nigeria for signing a contract to supply palm oil to Ghana, whose local
demand has not been met (Eshlomi, 2008). In Edo State, effort has been
made to encourage the establishment of oil palm plantation. These has
yielded some positive result such as establishment of multinational oil
palm plantation companies, whose production has follow Presco Industry
Limited 22,000 tonnes/year and an indigenous oil palm farm Nosakeri Farm
(Vanguard, 2007).
1.2 STATEMENT OF PROBLEM
The
production of oil palm seedling is currently the only source of planting
materials for oil palm production in Edo State senatorial district.
The entire seedling produced in the world is of the tenera type obtained
from fertilizing dura tree with pollen form pisifera tree (Griseb,
2007). The oil palm seedling production is handled directly by
organizations such as the Ministry of Agriculture and NIFOR (Wikipedia,
2008). However, it is observe that a number of business oriented persons
are not investing in oil palm seedlings production. What would be
responsible for this? The equation therefore is whether investment in
oil palm seedling production is not profitable or there are some other
problems that are preventing investment in oil palm seedling production.
It is necessary to carry out an economic analysis to determine the
profitability and viability of oil palm seedling production in Edo South
Senatorial district.
1.3 OBJECTIVE OF THE STUDY
The
broad objective of the study is the economic analysis of oil palm
seedlings production in Edo South senatorial district. The specific
objectives are:
i. To examine the soicio-economic characteristics of the producers of oil palm seedlings in the study area.
ii. To identify the methods adopted in raising the oil palm seedlings in the study area.
iii. To estimate the cost and returns in oil palm seedlings production and access its profitability and viability.
iv.
To identify the factors affecting the level of income generated in
the production of oil palm seedlings in the study area. To identify
constraints militating/facing against oil palm seedlings production.