Abstract

Patrick IV, Akpan SB, Udoka SJ, John DE and Etokeren UE

This research assessed the socioeconomic characteristics of palm oil processors and determined factors affecting the performance of the business in Ikot Ekpene area of Akwa Ibom state, southern Nigeria. Thirty (30) oil palm processors were randomly sampled and used for data collection. The analysis of the socio-economic characteristics of processors reveals that respondents were all males who are approaching their old age. Majority of them have some levels of formal education and moderate family size. The OLS regression result showed that farmer’s education, experience, membership of a social group, income from other sources, labor cost and initial cost of mills are significant policy variables affecting both on-season and off- season performances (gross margins) of palm oil processors in the study area. Based on the finding, it is recommended that policies which focus on education of farmers or processors will promote performance in the sub sector. Also, Capital intensive method of processing should be introduced as a way to curb the rising cost of labour. In addition, farmers should be encouraged to form cooperatives or other social groups to enable them pool resources that will enhance acquisition of equipment with better efficiency. Organized market for palm oil mill products in Ikot Ekpene area is also strongly advocated.