Profitability and Factor Influencing Palm Oil Production in Edo State, Nigeria

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 3

Year of Publication : 2019

Authors : A.S. Bankole, S.O. Ojo, A.C., Ojemade, B. Adakaren, I. A. Oghogho

10.14445/23939125/IJEMS-V6I3P102

How to Cite?

A.S. Bankole, S.O. Ojo, A.C., Ojemade, B. Adakaren, I. A. Oghogho, "Profitability and Factor Influencing Palm Oil Production in Edo State, Nigeria," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 3, pp. 11-14, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I3P102

Abstract:

The study focused on profitability and factor influencing palm oil production in Edo State, Nigeria. Data used in the Study were collected from 110 palm oil producers with the aid of well-structured questionnaire using multi-stage sampling technique. Descriptive statistics, budgeting analysis and ordinary least square (OLS) were used in analyzing the data. Results revealed that the majority of the respondents were male (86.4 %,), having mean age of 49.7 and married (90%). The average household size was seven persons. Most of the respondents (60%) relied on fresh fruit bunch gotten from rented oil palm plantation. Palm oil production was shown to be profitable in the study area, with net revenue of ₦100, 860. The return to scale (RTS) of 0.188 indicated a positive decreasing return to scale and that palm oil production in the study area was in stage II of the production function. Palm oil production as an enterprise is a profitable venture.

Keywords:

Profitability, Palm oil, Production, Factor, Edo State

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