OIL PALM PRODUCTION AND ITS ECONOMIC IMPORTANCE IN EDO STATE

OIL PALM PRODUCTION AND ITS ECONOMIC IMPORTANCE IN EDO STATE

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CHAPTER ONE INTRODUCTION 1.1 Background of the study The oil palm belong to the palmae family and sub-family oooideae which also include coconut the genus was founded by Jacquin in 1963 on oil palm introduction originated in tropical West Africa which was given the name Elaeisguineasesis. It is a monocotyledonous plant that sometimes grows to a height of about 15 meter. It has an unbranohed habit and produces a single truck which bears a crown of forns. The crown may consist of between 25 and 40 large plant fronds being a monoecious plant. The male and female inferesences (flowers) are borne at the axile of the fornds. These are produced in alternating cycles, the female infloresooence given rise to the palm bunch bearing the fruits the palm fruit. It is a drupe and consist of leathery exocarp, fleshy mesocarp from which palm is extracted and a stoney endocarp which enclases the kernel.A huge percentage of farmers in Nigeria are small scale farmers. Small-scale farming involves growing crops, at least in part, to be used by an individual family, with farming being a significant source of their livelihoods (Lininger, nd.)Small Scale farming is usually characterized by intensive labour and in most cases, animal traction, limited use of agrochemicals and supply to the local or surrounding markets. Unlike large-scale commercial agriculture, it plays a dual role of being a source of household food security as well as income from sale of surplus. Although some claim small-scale agriculture is less efficient in output as compared to commercial agriculture (Kirsten & Van Zyl, 1998), it is ecologically friendly in that less land is cleared for cultivation, there are less emissions due to less use of fuel-driven machinery and the market is usually local implying less carbon miles (Kutya, 2012). Oil palm (Elaecisguineansis) can be characterized according to its feature. It can be recognized on the basis of the fruits. Characteristics mainly by its shell thickness the form are as follows Dura, Pisifera, and Tenera. The Dura Palm: This has a thick shell with a thin pericarp and a large kernel. When processed, it gives a relatively low quantity of oil. The Teneral Palm: This has a fairly thick pericarp (up to 60% of the fruit weight) a small kernel and thin shell. The Pisifera palm: This has fruit without shell and a tiny kernel surrounded with fibres. Many of this variety or form of oil palm is sterile.The oil palm (Elaeisguineensis) is the dominant source of vegetable oil consumed in the world (USDA, 2006), in the form of palmoil (mesocarp oil) and kernel oil (seed oil). Palm oil is the main edible vegetable oil produced and consumed in Nigeria where the oil palm tree features regularly in the natural vegetation of the lowland humid to sub-humid areas in a belt that covers almost 24 million hectares (ha) (Opeke, 2003). Dispersed smallholders harvest fruits from the wild/semi-wild palms and process them to produce 80% of the palm oil output and through which Nigeria accounted for 43% of global palm oil production up till the mid-1960s. The performance has declined such that the annual output at 850,000 metric tonnes (MT) leaves an overall supply gap of 0.5 million MT currently met through imports (Omoti, 2001). Palm oil production starts with the oil palm trees whose cultivation has formed the farming culture and a means of livelihood for millions of families in the rural landscape. Palm oil production is a major vocation which has played significant roles in poverty alleviation in some countries, especially in Malaysia and Indonesia (BusinessDay, 2013). The huge potentials for generating rural income and providing employment have enabled the poor to be part of the solution to the scourge of widespread poverty.

1.2 STATEMENT OF THE PROBLEM Edo State is one of the major producing areas in Nigeria. Recently some other ones have sprung up and Edo State is noted as the largest producers of palm oil and palm kernels in Nigeria. It is therefore, the concern of this study to identify the reasons or the problems responsible for the falling level of oil palm production in the areas of study and also to render useful suggestions and solutions. 1.3 OBJECTIVE OF THE STUDY 1. To find out, identify and examine the problems of oil palm production in Edo State. 2. To find out solutions to some of those problems. 3. To make recommendations for improved or better oil palm production in Edo State. 4. To identify the reasons for the problems and the factors responsible for the falling level of oil palm production in the areas of study. 5. To carry out recent research findings that will help the researcher in finding solutions to the problems and how it will be of benefit to the researcher, the world at large and to contribute to already existing knowledge, and research. 1.4 RESEARCH HYPOTHESES To aid the completion of the study, the following research hypotheses were formulated by the researcher H0: oil palm production does not play any significant role on the socio-economic development of Nigeria. H1:oil palm production does play a significant role on the socio-economic development of Nigeria. H02: government does not play any role in aiding effective production and distribution of oil palm in Edo state. H2:government does play a significant role in aiding effective production and distribution of oil palm in Edo state 1.5SCOPE AND LIMITATION OF THE STUDY This study is focused on the oil palm production problems and the prospects in Edo State of Nigeria, and specifically the Nigerian Institute for Oil Palm Research (NIFOR) in Benin City of Edo State for the purpose of the research. Oil palm production will be among small scale farms and will be used as a case study. In the light of the above, information gathering will be limited to communities in NIFOR at Ovia North East Local Government Area of Edo State. The researcher also encountered the following limitations a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities 1.6SIGNIFICANCE OF THE STUDY The importance of oil palm production to the society cannot be overemphasized. Therefore, this research work is designed to find out the problems facing the improvement of oil palm production, problems and prospects in NIFOR (Edo State).The study will also be of great importance to the government as the study seek to explore that untapped potentials of oil palm production in Edo state and its contribution to economic growth. The study will also be of great importance to researcher who wants to embark on research on similar topic as the findings will serve as a reference point to them. Finally the study will be of great importance to the academia and the general public as the study will add to the pool of knowledge. 1.7 DEFINITION OF TERMS

Oil palm Palm oil is naturally reddish in color because of a high beta-carotene content. It is not to be confused with palm kernel oil derived from the kernel of the same fruit, or coconut oil derived from the kernel of the coconut palm Economic development Economic development is the process by which a nation improves the economic, political, and social well-being of its people. Whereas economic development is a policy intervention endeavor with aims of economic and social well-being of people,economic growth is a phenomenon of market productivity and rise in GDP Distribution Distribution (or place) is one of the four elements of the marketing mix. Distribution is the process of making a product or service available for the consumer or business user that needs it. This can be done directly by the producer or service provider, or using indirect channels with intermediaries. 1.8 ORGANIZATION OF THE STUDY This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.


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