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ECONOMICS OF
OIL PALM SEEDLING PRODUCTION
CHAPTER ONE
INTRODUCTION
Background
of the study
The African
Oil Palm, Elaeis guineensi jacq (Jacquin, 1963), is placed in the Arecaceae
family which contains about 225 genera with over 2600 species along with
coconut and date palms cultivars. There
are 3 naturally occurring forms of the oil palm fruit, termed dura, tenera and
pisifera. The selection of dura female
and pisifera male parents is carried out to obtain tenera offspring that
produce large oil yield (Breure et al, 1986, Breure, 2003).
The African
oil palm is native to tropical Africa, from Sierra Leone in the West through
the Democratic Republic of Congo in the East, it was domesticated in its native
range, probably in Nigeria, and moved throughout tropical Africa by humans who
practiced shifting agriculture at least 5,000 years ago (Hartley, 1988). European explorers discovered the palm in the
late 1400€™s, and distributed it throughout the world during the slave trade
period (Corner, 1966). In the early 1800€™s,
the slave trade ended but British began trading with West Africans in Ivory,
lumber and palm oil.
The oil palm
was introduced to the Americans hundred years ago, where it became naturalized
and associated with slave plantations, but did not become an industry of its
own until the 1960s (Lereka, 1998). The
first plantations were established on Sumatra in 1911, and in 1917 in Malaysia
(Raymond, 1961). Oil plantations were
established in tropical America and West Africa about this time, and in 2003,
palm oil production equaled that of soybean, which had been the number one oil
crop for many years.
Elaeis
guineeasis is characterized by its vertical trunk and feathery nature of its
leaves every year 20 €“ 25 new leaves called €œfrond€ develop in continuous whorle at the
apex of the trunk (Devendra, 1984). The
fruit bunches develop between the trunk and the base on the new fronds and the
plant can reach 60 €“ 80ft in height in nature, but is rarely more than 20 or
30ft in cultivation. Although new
plantation starts to bear fruit at 3 years, generally, the first commercial
crop require between five and six years and continuous to produce for 25 €“ 30
years, or until the palm grow too high to be harvested. Once a plantation reaches full production, a
new inflorescence is produced every 15 days.
It weights between 15 and 20kg and can conking up to 1500 individual
palm fruit of between 8 and 10 grams each (Chavaliar, 1937). The individual fruits consist of the
following four parts, a pericarp, a thin outer skin which upon ripening changes
from brown to red or orange, a mesocarp, a large of fibrous material which
surrounds the nut, an endocarp or hard inner shell (nut) to protect the seed or
kernel and the seed (kernel) (Aighologa, 1995).
The female inflorescence contains 200 €“ 300 fruits, and fruit set is 50
€“ 70% fruit riped about 5 €“ 6 months after pollination (Ergo, 1977).
Vegetable
and edible oil producer of Nigeria (VEOPAN) claims that, it provided job
opportunities for not less than 1.8 million farmer family involved in this
production of oil seeds and related crops.
Nigeria with a National 1.3 million tones of palm oil and a population. Of over 140 million that means each family
produces less than 700kg per year, i.e. an average of less than 2kg/day
(Eshalomi, 2008).
Last year,
the vegetable oil sub-sector of Manufacturers Association of Nigeria reported
that the market has been very unstable because of high cost of input, excessive
smuggling of vegetable oil and faking.
Recently, the group lamented the shortage of palm oil plantation
production which is the major raw material for vegetable oil production because
it condemned the Federal Government of Nigeria for signing a contract to supply
palm oil to Ghana, whose local demand has not been met (Eshlomi, 2008).
In Edo
State, effort has been made to encourage the establishment of oil palm
plantation. These has yielded some
positive result such as establishment of multinational oil palm plantation
companies, whose production has follow Presco Industry Limited 22,000
tonnes/year and an indigenous oil palm farm Nosakeri Farm (Vanguard, 2007).
STATEMENT OF
PROBLEM
The
production of oil palm seedling is currently the only source of planting
materials for oil palm production in Edo State senatorial district. The entire seedling produced in the world is
of the tenera type obtained from fertilizing dura tree with pollen form
pisifera tree (Griseb, 2007).
The oil palm
seedling production is handled directly by organizations such as the Ministry
of Agriculture and NIFOR (Wikipedia, 2008).
However, it
is observe that a number of business oriented persons are not investing in oil
palm seedlings production. What would be
responsible for this?
The equation
therefore is whether investment in oil palm seedling production is not
profitable or there are some other problems that are preventing investment in
oil palm seedling production.
It is
necessary to carry out an economic analysis to determine the profitability and
viability of oil palm seedling production in Edo South Senatorial district.
1.3 OBJECTIVE OF THE STUDY
The broad
objective of the study is the economic analysis of oil palm seedlings
production in Edo South senatorial district.
The specific
objectives are:
To examine
the soicio-economic characteristics of the producers of oil palm seedlings in
the study area.
To identify
the methods adopted in raising the oil palm seedlings in the study area.
To estimate
the cost and returns in oil palm seedlings production and access its
profitability and viability.
To identify
the factors affecting the level of income generated in the production of oil
palm seedlings in the study area.
To identify
constraints militating/facing against oil palm seedlings production
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