Economic Analysis of Palm Oil Marketing In Ile-Oluji/Oke-Igbo Local Government Area, Ondo State, Nigeria

Abstract

Price fluctuations and their impact on enterprise profitability motivated this study on the Economic Analysis of Palm Oil Marketing in Ile-Oluji/Oke-Igbo Local Government Area of Ondo State, Nigeria. Purposive and simple random sampling techniques were used to select 120 respondents, and data were collected through structured questionnaires. Analytical tools employed included descriptive statistics, Gini coefficient, budgetary analysis, and multiple regression analysis. Results revealed that palm oil marketing was dominated by females (90.8%), with most marketers being married (97.5%) and over 50 years of age (53.3%). Household size of 5–7 persons was most common (44.2%), while 79.2% had some level of formal education. About 75% of respondents had 1–10 years of marketing experience. A Gini coefficient of 0.63 and deviation of the Lorenz curve from the line of equality indicated imperfect market competition. Profitability analysis showed that palm oil marketing was viable, with a gross margin of ₦2,824,618.70, net return of ₦2,562,870, return on investment of 1.35, marketing margin of 28.7%, and marketing efficiency of 135%. Household size, age, and marketing experience significantly influenced marketing margin. Key constraints included seasonality, perishability, labour shortages, and high farm-gate prices. The study recommends government and NGO interventions through price regulation, storage infrastructure, and programmes to encourage youth and male participation in the enterprise.