Analysis of Palm Oil Marketing in Ikwerre Local Government Area, Rivers State

Abstract

This study examined the analysis of palm oil marketing in Ikwerre Local Government Area, Nigeria. Specifically, the study examined the socio-economic characteristics of the palm oil marketers in the study area; marketing channels; determined the marketing costs and return incurred by palm oil marketers in the study area; determined the Factors that Affect the Marketing of Palm oil in the area and to determine the constraints experienced by palm oil marketers in the study area. Data was collected through the administration of a questionnaire and was analyzed with the use of descriptive statistics such as frequency, and percentages and determined multiple regression. The result showed that palm oil marketing is a women-dominated business as revealed by (92.7%) of the respondents were female. The results also indicated that people from the ages of 40 – 49 are more interested in palm oil marketing as they formed the majority with about 50%. The majority of (66.67%) of the marketers were married which showed that there were more married people involved in the marketing of palm oil in Ikwerre Local Government Area. Also, a greater percentage (53.33%) of the marketers have been in the palm oil business for 1 to 5 years. The results further showed that all respondents had formal education. The majority (60%) of palm oil marketers have household sizes of 1– 5 persons, with N 21,000 – N 30,000 being the income of the majority of the marketers. Also, the result showed that the total variable cost incurred was N26,000 while fixed cost amounted to N300, on the return side the average total revenue amounted to N26,300, the gross margin of the marketers was estimated to be N2,800,  the profit of N2,500 while the net return on investment was 0.10% per gallon per day The constraints affecting palm oil marketers were High cost of transportation, Price fluctuation, inadequate capital, Poor marketing channel, High market levy, Bad road network, Competition and Lack of storage facilities while the factor affecting palm oil marketing are Transportation cost, Competition, Production cost, low patronage, poor access to market price information, substitution by other oil, lack of access to credit facilities, unstable measurement, unfavourable government policy and poor quality of the product. The study concluded that palm oil marketing was profitable and solvent with a return on investment of 0.10 and a profit of N2,500 per gallon per day and recommends that there should be an improvement in the transportation system to reduce the high cost of palm oil transportation.