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The African Oil Palm, Elaeis guineensi jacq (Jacquin, 1963), is placed in the Arecaceae
family which contains about 225 genera with over 2600 species along
with coconut and date palms cultivars. There are 3 naturally
occurring forms of the oil palm fruit, termed dura, tenera and
pisifera. The selection of dura female and pisifera male parents is
carried out to obtain tenera offspring that produce large oil yield
(Breure et al, 1986, Breure, 2003).
The African oil palm is native to tropical Africa, from Sierra
Leone in the West through the Democratic Republic of Congo in the East,
it was domesticated in its native range, probably in Nigeria, and
moved throughout tropical Africa by humans who practiced shifting
agriculture at least 5,000 years ago (Hartley, 1988). European
explorers discovered the palm in the late 1400’s, and distributed it
throughout the world during the slave trade period (Corner, 1966). In
the early 1800’s, the slave trade ended but British began trading with
West Africans in Ivory, lumber and palm oil.
The oil palm was introduced to the Americans hundred years ago,
where it became naturalized and associated with slave plantations, but
did not become an industry of its own until the 1960s (Lereka, 1998).
The first plantations were established on Sumatra in 1911, and in 1917
in Malaysia (Raymond, 1961). Oil plantations were established in
tropical America and West Africa about this time, and in 2003, palm oil
production equaled that of soybean, which had been the number one oil
crop for many years.
Elaeis guineeasis is characterized by its vertical trunk and
feathery nature of its leaves every year 20 – 25 new leaves called
“frond” develop in continuous whorle at the apex of the trunk
(Devendra, 1984). The fruit bunches develop between the trunk and the
base on the new fronds and the plant can reach 60 – 80ft in height in
nature, but is rarely more than 20 or 30ft in cultivation. Although
new plantation starts to bear fruit at 3 years, generally, the first
commercial crop require between five and six years and continuous to
produce for 25 – 30 years, or until the palm grow too high to be
harvested. Once a plantation reaches full production, a new
inflorescence is produced every 15 days. It weights between 15 and 20kg
and can conking up to 1500 individual palm fruit of between 8 and 10
grams each (Chavaliar, 1937). The individual fruits consist of the
following four parts, a pericarp, a thin outer skin which upon ripening
changes from brown to red or orange, a mesocarp, a large of fibrous
material which surrounds the nut, an endocarp or hard inner shell (nut)
to protect the seed or kernel and the seed (kernel) (Aighologa, 1995).
The female inflorescence contains 200 – 300 fruits, and fruit set is
50 – 70% fruit riped about 5 – 6 months after pollination (Ergo, 1977).
Vegetable and edible oil producer of Nigeria (VEOPAN) claims that,
it provided job opportunities for not less than 1.8 million farmer
family involved in this production of oil seeds and related crops.
Nigeria with a National 1.3 million tones of palm oil and a
population. Of over 140 million that means each family produces less
than 700kg per year, i.e. an average of less than 2kg/day (Eshalomi,
2008).
Last year, the vegetable oil sub-sector of Manufacturers
Association of Nigeria reported that the market has been very unstable
because of high cost of input, excessive smuggling of vegetable oil and
faking. Recently, the group lamented the shortage of palm oil
plantation production which is the major raw material for vegetable oil
production because it condemned the Federal Government of Nigeria for
signing a contract to supply palm oil to Ghana, whose local demand has
not been met (Eshlomi, 2008).
In Edo State, effort has been made to encourage the establishment of oil palm plantation. These has yielded some positive result such as establishment of multinational oil palm plantation companies, whose production has follow Presco Industry Limited 22,000 tonnes/year and an indigenous oil palm farm Nosakeri Farm (Vanguard, 2007).
STATEMENT OF PROBLEM
The production of oil palm seedling is currently the only source
of planting materials for oil palm production in Edo State senatorial
district. The entire seedling produced in the world is of the tenera
type obtained from fertilizing dura tree with pollen form pisifera tree
(Griseb, 2007).
The oil palm seedling production is handled directly by
organizations such as the Ministry of Agriculture and NIFOR (Wikipedia,
2008).
However, it is observe that a number of business oriented persons
are not investing in oil palm seedlings production. What would be
responsible for this?
The equation therefore is whether investment in oil palm seedling
production is not profitable or there are some other problems that are
preventing investment in oil palm seedling production.
It is necessary to carry out an economic analysis to determine the
profitability and viability of oil palm seedling production in Edo
South Senatorial district.
1.3 OBJECTIVE OF THE STUDY
The broad objective of the study is the economic analysis of oil
palm seedlings production in Edo South senatorial district.
The specific objectives are:
- To examine the soicio-economic characteristics of the producers of oil palm seedlings in the study area.
- To identify the methods adopted in raising the oil palm seedlings in the study area.
- To estimate the cost and returns in oil palm seedlings production and access its profitability and viability.
- To identify the factors affecting the level of income generated in the production of oil palm seedlings in the study area.
- To identify constraints militating/facing against oil palm seedlings production.
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