ABSTRACT
The study was conducted to examine the Economics of
Small-scale Oil Palm Production in Kogi State of Nigeria. The objectives of the
study are to: determine the factors affecting resource use efficiency by Oil
Palm Producers in the study area and determine the optimum replacement age of
oil palm. The tools of analysis used are:- simple descriptive statistics,
multiple regression analysis, optimum replacement model and gross margin
analysis. From the estimate of oil palm in the state,40,30,20 and 30 oil palm farmers
were proportionally and purposively sampled from the four (4) Agricultural
Zones, A,B,C and D with their headquarters at Ayetoro-Gbede, Anyigba,
Koton-Karfe and Alloma respectively, to give a sample size of 120 oil palm
producers. The oil palm producers were interviewed with structured
questionnaire to obtain information on oil palm production. Data for optimum
replacement age were obtained from NIFOR oil palm plantation, Acharu
substation. The data collected were analysed using the tools of analysis as
specified. The t-values and F-statistics are significant up to 5 percent level
of significance. The oil palm currently on the fields were planted over 26
years ago, most of which are over 45 years, already having impaired
productivity. The gross margin analysis shows a margin of N2,046,844.00.
The benefit-cost analysis shows a ratio of 1:1.56, indicating that one naira
invested in oil palm production will yield N1.56. The production has not
been able to keep pace with consumption demand, hence Nigeria has to import
palm oil to fill the deficit gap. The highest output recorded in research
station was 13.50tonnes of fresh fruit bunch (ffb) per hectare. The study shows
that optimum replacement age of oil palm is 35 years for the production to
enjoy a flow of output. The major constraint being lack of good policy
direction and inadequate financial support and other incentives to boost oil
palm produce economy. It is recommended that there should be conscious desire
to implement research findings. The need to commission agency(ies) to undertake
the establishment of oil palm farms by government and after tending it to
certain age shall hand them over to private individuals on charge is
imperative. There is a need for credit policy to offer credit assistance to oil
palm producers. Oil palm producers should be encouraged to cut down their oil
palm at the age of 35 years.
CHAPTER
ONE
1.0 INTRODUCTION
1.1 Background
Information
The production of oil palm is
as old as the history of the inhabitants of Kogi State. Few wild trees are of
as much economic and social value to Nigerian farmers and the country as the
oil palm tree, (Usoro, 1974). The oil palm (Elaeis guineensis Jacq) no
doubt is believed to have originated in the tropical rain-forest region of West
Africa, (Zeven, 1965; Agboola, 1979; Hartley, 1988; CTA, 1998).
Oil palm is a monocotyledonous
tree belonging to the family, palmae and the subfamily, cocoideae. The normal
(diploid) chromosome number is 2n = 32. The adult plant possesses an impressive
crown of 30 to 45 green leaves, each 5-9m long at the top of a trunk bearing
old leaf bases arranged spirally, (Kochhar, 1976; Opeke, 1992; CTA, 2000). The
stem may be 30 to 38cm in diameter, with progressive thickening towards the
base. On older palms, the stem is punctuated with conspicuous and regularly
arranged leaf scars and the stem terminates in a handsome growth of leaves
(fronds). The palm leaf is compound and is known as the frond. The leaf is
paripinnate with a prominent petiole (0.9 to 1.5m long). The petiole often
broadens at the base to form a clasper round the stem. Each palm frond bears,
20 to over 150 pairs of leaflets arranged in more or less two rows along each
side of the flattened rachis with the longest pinnate varying up to 120 cm. The
pinnae are parallel-veined.
The plant is monoecious with
separate male and female flowers (inflorescences) on the same plant.
Cross-fertilization is achieved through successive cycles of male and female
flower production. It produces bunches of fleshy fruits, the pulp (mesocarp) of
Oil palm adapts well to most
textures from medium loams to clays. Extremely coarse or fine textures may not
always be suitable, especially if they affect water supply to the roots. The
climatic and soil requirements constitute the physical factors that are
responsible for the growth of oil palm. They include availability of water
supply, soil conditions in terms of fertility and topography that is suitable
for the growth of oil palm. It is recommended that rainfall of 1600mm to 5000mm
per year evenly distributed will enhance the growth of oil palm, (Keu, 2001;
Khera, 1976). The oil palm has a wide adaptability
range of soils to low pH but sensitive to high pH (above
7.5) and stagnant water. Neutral pH soils are most favoured.
The temperature requirement
varies between 180C and 340C. Opeke (1992), observed that
oil palm would tolerate even higher temperature provided there is adequate
moisture. It requires plenty of sunshine; productivity is reduced in areas with
excessive sky overcast. It thrives under conditions of high relative humidity;
yields are adversely influenced when the crop is exposed to dry harmattan winds
(CTA, 2000).
Oil palm is a lowland crop
although it can grow well up to altitude of 900m. It has fibrous root system
and benefits from deep soils which are fertile, free from iron deposits and
well-drained.
Oil palm is affected by pests
and diseases attack. The pests and diseases attack both seedlings in the
nursery and mature plants on the field. Some notable pests of oil palm are
snails, crickets and mammals especially rodents (rats and mice). Others include......
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