Marketing cost and value chain analysis of oil palm fruit processing in Imo State, Nigeria

Abstract

Evaluation of marketing cost and value addition to oil palm fruit processing and marketing in Imo State was carried out. Agricultural produce marketing channels are superfluous with intermediaries who have been opined to add no value. The study assessed the cost and return, established the net profit and values added along the marketing channel of oil palm fruit. Stratified, random and purposive sampling techniques were used in selecting 108 individual processors, 6 processing firms and 108 marketers. Three sets of questionnaire were administered, one to each set of respondents to generate data. Means, percentages, cost and return and regression analyses were employed in analyzing data. Results show a profitable business, simple marketing channels, value addition to product line by intermediaries, net profit of ₦39.90 for processors, and ₦81.80 for firms per 1000 FFB; wholesale and retail marketers made ₦39.20 and ₦41.50 per 1000 litres of oil respectively. Socio-economic characteristics had significant effect on net income of respondents, with gender, marital status, education and experience contributing significantly at 1% probability. The study recommended joint effort of private and public stakeholders, to provide improved facilities and policies, that will enhance oil palm fruit processing and marketing to reduce cost and increase net income.

Keywords: Processing, value chain, intermediaries, utility value and change of ownership