Greener Journal of Business and Management Studies Vol. 4 (3), pp. 070-082, July 2014
Manuscript Number: 012714071
Small-Scale Palm Oil Processing Business in Nigeria; A Feasibility Study
Elijah I. Ohimain1*, Cletus I. Emeti2,
Sylvester C. Izah1 and Dorcas A. Eretinghe1
1Department of Biological Sciences, Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria.
2Department of Business Administration, Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria.
*Corresponding Author’s Email: firstname.lastname@example.org
Palm oil is a major food and
non-food ingredient consumed by virtually everyone in Nigeria through the use
of palm oil related products. This study investigates the feasibility of
small-scale palm oil processing in Nigeria, using Elele, Rivers State as case
study. Information was elicited through interviews and physical observations.
Manual processing and screw hand press methods were adopted for palm oil extraction
from fresh fruit bunch. Data were analyzed using descriptive statistics (mode, frequencies
and corresponding percentages and gross margin model) and profitability
techniques (i.e Gross ratio, Expense Structure Ratio, rate of return and
Benefit-Cost Ratio). The findings show that the average cost of procuring
and its installations for a small-scale palm oil processing mill were estimated
at N623,650.00. The gross margin return
from this study was N44,000.00 while
net return was N14,000.00. The gross
ratio reveales that for every N1.00
return to the mill 68.00 kobo was spent on the production processes. The small-scale
palm oil venture is dominated by elderly people from 50 years and above (30%). About 34% and 32% of the processors have WASC
and Primary School Leaving Certificates respectively as the educational
qualification. About 50% of the processors have 16-20 years experience in oil
palm processing. The study concludes
that small-scale oil palm processing is profitable and can also be a source of
Keywords: feasibility, Nigeria, Palm oil, processing equipment, profitability, small scale palm oil processing.
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