ANALYSIS OF PALM OIL MARKETING IN IMO STATE

Abstract This study analyzed palm oil marketing in Ikeduru LGA of Imo State, Nigeria. The study specifically, described socio-economic characteristics of palm oil marketers; estimated net market returns accruing to the palm oil marketers; determined factors that influence net market returns and identified problems constraining palm oil marketing. Two hypothesis were tested by the study. Purposive and multistage random sampling techniques were employed in collecting data from one hundred and thirty two (132) palm oil marketers comprising of ninety palm oil retailers and forty two palm oil wholesalers using semi structured structured questionnaire. Data were analyzed with descriptive statistics and inferential statistics such as net return analysis and ordinary least square regression technique. Results showed that 78.89% of the palm oil retailers were females, while 57.14% of the palm oil wholesalers were males. Mean age of the retailers and wholesalers were 45.21% years and 52,18 years respectively. Also, 60.00% and 69.05% of the retailers and wholesalers were married. The mean household size of retailers and wholesalers were 6 and 7 persons respectively. Results also indicated that palm oil marketing was a profitable enterprise s evidenced by the net return (NR) of N84411.04 and N21036.51 recorded respectively among the wholesalers and retailers. The result of the OLS multiple regression analysis of factors that influence net returns of the palm oil wholesalers using linear function and as the lead equation showed that marketing experience, education level, transportation cost, price of palm oil were significant. Furthermore, result of the OLS multiple regression analysis of factors that influence net returns of the p palm oil retailers using double-log function as the lead equation showed that marketing experience, education level, transportation cost and market charges had significant effect on net returns of the retailers. The main problems encountered by palm oil retailers were inadequate finance (82.22%), low access to credit (74.44%), poor market condition (71.11%) and high transport cost (71.11%), while, among the wholesalers, the major problems encounter were inadequate finance (80.95%), low access to credit (73.81), poor market condition (71.43%), high transport cost (71.43%), while, among the wholesalers, the major problems encountered were inadequate finance. Based on the findings of this study it is concluded that palm oil marketing in the study area is a profitable business enterprise to both group of markets (wholesalers and retailers). It was recommend that in the wake of the current harsh economic realities and high transport cost occasioned by removal of fuel subsidy, policies directed the provision of state and local government assisted mass transportation will go a long way to reduce the transport problem experienced by the palm oil marketers.