Economic Analysis of Oil Palm Production in Surulere Local Government Area of Oyo State, Nigeria.

Abstract

This study determines the economic analysis of oil palm production in Surulere Local Government Area, Oyo State, Nigeria. The population of the study comprises oil palm tree farmers. Multistage sampling technique was adopted to select 125 respondents. Primary data were obtained using a well-structured interview schedule while descriptive and inferential statistics were used for the analysis. The descriptive statistical tools such as mean, frequency distribution, table, percentages, were used to present the socio-economic characteristics of the respondents. The inferential statistical tools; budgetary analysis and regression analysis were employed to measure the profitability of oil palm production and dependence of oil palm output on various inputs used respectively. The result of the findings revealed the socio-economic characteristics of the respondents in the study area as follows; 84.0% were male, 58.4% were within the age range 41-50 years while, 84.0% were married and 67.2% of the respondents had primary education. More than three-quarter (88.8%) practice Christianity, 51.2% have experience within the range of 31-40 years, 55.2% occupy farm size which ranges from 6-10 acres, and 88.8% of them applied fertilizer obtain them from government. All the farmers inherited their land and involved in other occupation. Also, they obtained funds from their previous savings, and utilized hired labour. All farmers in the study area utilized chemical, obtained seedlings from government, though 54.4% of them did not belong to any farmers association. Obsolete technology, low investment level and late arrival of inputs were the major problems faced by the farmers in the study area which government should ensure timely provision of necessary inputs required by farmers for production.

Key words: Production, Oil palm, budgetary analysis, price and profitability.