Analysis Of The Structure And Performance Of Palm Oil Marketing In Edo State, Nigeria

Abstract

This study analyzed the structure and performance of palm oil marketing in Edo State, Nigeria. Four Local Government Areas of the Edo Central district were purposively selected for the study. Data were gotten from 80 randomly selected palm oil marketers, through interview schedule. Data collected were subjected to regression analysis. An R2 of 0.743 result of the analysis connotes that 74% of the variation in gross margin which is the dependent variable is explained by changes in the independent variable. The result of the F – value (F = 27.69; p<0.05) indicated that the estimated function was significant at 5% level, variables like household size (b = 0.016), marketing experience (b = 0.0608), cost of transportation (b = 0.561), cost of fresh fruit bunches (b = 0.6561), cost of processing (b = 0.162); and packaging (b = 0.020) were positively significant while age (b = -0.216) was negatively significant. The study revealed palm oil marketing to be very profitable with an average marketer earning #37,300.00 as gross margin per 1,000 liters of palm oil sold. However, improvement and expansion of palm oil market system (wholesaling and retailing) were recommended.

Keywords: Palm oil marketing, Edo State

Global Approaches to Extension Practice Vol. 3 (1) 2007: pp. 61-65