ECONOMICS OF SMALL-SCALE OIL PALM PRODUCTION IN KOGI STATE, NIGERIA

•              TABLE OF CONTENTS Cover page ---------------------------------------------------------------------------------------------------------- i Title page------------------------------------------------------------------------------------------------------------- ii Declaration ----------------------------------------------------------------------------------------------------------- iii Certification ----------------------------------------------------------------------------------------------------------- iv Dedication -------------------------------------------------------------------------------------------------------------- v Acknowledgement --------------------------------------------------------------------------------------------------- vi Table of contents ------------------------------------------------------------------------------------------------------ viii List of tables------------------------------------------------------------------------------------------------------------- xiii List of figures----------------------------------------------------------------------------------------------------------- xv Abstract ---------------------------------------------------------------------------------------------------------------- xvi 

Chapter ONE

INTRODUCTION

• 1.0Introduction--------------------------------------------------------------------------------- 1 
• 1.1Background information--------------------------------------------------------------------------------------- 1 
• 1.2The problem statement--------------------------------------------------------------------------------------- 9 
• 1.3The objectives of the study-------------------------------------------------------------------------------- 13 
• 1.4Hypotheses--------------------------------------------------------------------------------------------------- 13 
• 1.5Justification of the study---------------------------------------------------------------------------------- 13 
• 1.6Limitations of the Study --------------------------------------------------------------------------------- 15 
• 1.7Basic Assumptions -------------------------------------------------------------------------------------- 16 

Chapter TWO

LITERATURE REVIEW

• 2.0Literature Review------------------------------------------------------------------ 17 
• 2.1The small-scale farms---------------------------------------------------------------------------------- 17 
• 2.2Origin and distribution of oil palm-------------------------------------------------------------------- 18 
• 2.3Oil palm development in Nigeria--------------------------------------------------------------------- 20 
• 2.4Social and economic value of oil palm-------------------------------------------------------------- 22 2.
• 4.1Social value-------------------------------------------------------------------------------------------- 22 2.
• 4.2The economic value--------------------------------------------------------------------------------- 23 
• 2.5Methods of oil palm production in Nigeria-------------------------------------------------------- 23 2.
• 5.1Sources of planting material----------------------------------------------------------------------- 23 2.
• 5.2Agronomy of the oil palm--------------------------------------------------------------------------- 24 2.5.
• 2.1Germination----------------------------------------------------------------------------------------- 25 2.5.
• 2.2Nursery----------------------------------------------------------------------------------------------- 25 2.5.
• 2.3Harvesting------------------------------------------------------------------------------------------- 27 
• 2.6Resource use in oil palm industry----------------------------------------------------------------- 28 
• 2.7Oil palm processing in Nigeria-------------------------------------------------------------------- 31 2.
• 7.1Local method--------------------------------------------------------------------------------------- 31 2.
• 7.2Modern method------------------------------------------------------------------------------------ 32 
• 2.8Funding ----------------------------------------------------------------------------------------------- 32 
• 2.9Costs and returns in oil palm industry----------------------------------------------------------- 34 
• 2.10The importance of oil palm in Nigerian economy-------------------------------------------- 35 
• 2.11Uses of oil palm products------------------------------------------------------------------------- 36 
• 2.12Conceptual framework---------------------------------------------------------------------------- 36 
• 2.13Theoretical framework---------------------------------------------------------------------------- 38 
• 2.14Analytical framework----------------------------------------------------------------------------- 39 2.
• 14.1Farm budgeting technique------------------------------------------------------------------ 39 2.
• 14.2Resource use efficiency--------------------------------------------------------------------- 40 2.
• 14.3Capitalization Techniques ----------------------------------------------------------------- 40 2.
• 14.4Optimum replacement model------------------------------------------------------------- 41 2.
• 14.5Price Instability and Production--------------------------------------------------------- 42 2.
• 14.6Production function------------------------------------------------------------------------ 43 2.
• 14.7Regression Analysis---------------------------------------------------------------------- 43 
• 2.15Empirical studies------------------------------------------------------------------------------- 47 

Chapter THREE

RESEARCH METHODOLOGY

• 3.0Research Methodology--------------------------------------------- 50 
• 3.1The study area----------------------------------------------------------------------------------- 50 
• 3.2Sampling procedure--------------------------------------------------------------------------- 53 
• 3.3Method of data collection---------------------------------------------------------------------- 54 
• 3.4Analysis of data---------------------------------------------------------------------------------- 55 3.
• 4.1Descriptive statistics------------------------------------------------------------------------ 55 3.
• 4.2Farm budgeting technique----------------------------------------------------------------- 55 3.
• 4.3Model specification--------------------------------------------------------------------------- 56 3.
• 4.4Optimum Replacement Model----------------------------------------------------------- 58 3.
• 4.5Price Instability and Production --------------------------------------------------------- 59 

Chapter FOUR

DATA PRESENTATION AND ANALYSIS

• 4.0Results and Discussions ---------------------------------------- 61 
• 4.1Socio-Economic Characteristics of Small-Scale Oil Palm Producers ------------ 61 4.
• 1.1Age of Respondents ------------------------------------------------------------------------ 61 4.
• 1.2Marital Status ---------------------------------------------------------------------------------- 62 4.
• 1.3Distribution of Respondents According to Occupation ------------------------------ 63 4.
• 1.4Household Size ------------------------------------------------------------------------------ 63 4.
• 1.5Level of Education --------------------------------------------------------------------------- 64 4.
• 1.6Experience of Oil Palm Production ---------------------------------------------------- 65 4.
• 1.7Income --------------------------------------------------------------------------------------- 66 
• 4.2Oil Palm Production ------------------------------------------------------------------------- 68 4.
• 2.1Field Planting Period by Respondents ---------------------------------------------- 68 4.
• 2.2Success Rate of Field Planting ------------------------------------------------------- 69 4.
• 2.3Field Maintenance Activities ----------------------------------------------------------- 71 4.
• 2.4Interest in Oil Palm Production -------------------------------------------------------- 72 4.
• 2.5Relative Contribution of Variables to Production Using Linear and Double Log Functions -------------- 73 4.
• 2.6Loans and Credit ----------------------------------------------------------------------------- 77 
• 4.3Yield of Oil Palm -------------------------------------------------------------------------------- 79 4.
• 3.1National Output of Oil Palm 1998 – 2008 ----------------------------------------------- 81 4.
• 3.2The Optimum Replacement Age of Oil Palm ------------------------------------------ 82 
• 4.4Productivity of Oil Palm ------------------------------------------------------------------------ 88 4.
• 4.1Gross Margin Analysis -------------------------------------------------------------------- 88 4.
• 4.2Cost and Returns in Oil Palm --------------------------------------------------------- 894.
• 4.3Capitalization of Annual Net Returns on Oil Palm at 22% Discount Rate 1998 – 2007 for the Four Zones of The Study Area ----------------------------------------------------------------------------- 94 
• 4.5Price Instability and Production ------------------------------------------------------- 96 4.
• 5.1Declining Productivity of Oil Palm ------------------------------------------------- 98 
• 4.6Products of the Oil Palm---------------------------------------------------------------- 100 4.
• 6.1Uses of Oil Palm Products ----------------------------------------------------------- 101 
• 4.7The Constraints of Oil Palm Production ------------------------------------------- 103 

Chapter FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

• 5.0Summary of Findings, Conclusion and Recommendations-- 106 
• 5.1Summary of Findings ----------------------------------------------------------------- 106 
• 5.2Suggestions for Further Studies………………....................................… 108 
• 5.3Conclusion ----------------------------------------------------------------------------- 109 
• 5.4Recommendations ------------------------------------------------------------------ 109 References --------------------------------------------------------------------------------- 113 Appendices ---------------------------------------------------------------------------------- 119