Marketing Of Palm Produce In Awgu, Udi, And Nkanu LGA

Marketing Of Palm Produce In Awgu, Udi, And Nkanu Lga’s In Enugu State

ABSTRACT

          This study tried to find out and evaluate the marketing of palm produce in Awgu, Udi, and Nkanu LAG’S in Enugu State. The sample size used in the study was determined using Bourley’s formular. Personal interviews and questionnaires were used to obtain data from respondents. Secondary data was also sourced from textbooks. A total number of 70 questionnaires were distributed to both the consumers and staffs of oil palm produce. 50 were randomly selected individuals, while 38 respondents were returned out of which a total of 250 were used in the analysis. The researcher used chi-square statistical methods to test the hypothesis which were earlier formulated for the study. The result of the study showed that marketing activities are not properly coordinated and managed in the oil palm producers and some oil palm companies in Enugu State, not only that, the study also revealed consumers attitude or belief towards the production of oil production in Enugu State Nigeria. It was recommended that the relevant authority in the manufacturing of oil palm produce should work with great commitment and vigour towards effective management of marketing activities in those firms. This will lead to the attainment of the satisfaction of consumers need which is ultimate goal of marketing.

CHAPTER ONE

1.1     INTRODUCTION

The discovery of petroleum in commercial quantities in the country in the late 60’s and the consequent ‘oil Boom’ in the 70’s produced a most adversed effect on our agricultural sector. people abandon their farms for more lucrative alternatives, and became emergency traders, transporters, contractors, etc, leaving only old people on the farms. Palm oil as a sub-sector of the agricultural sector remains the most produce of the oil palm tree that are of relative importance include palm kernel, palm tree, palm leaves, and the palm trunk.

The economy of Nigeria transformed from being palm oil led in the 1955 to 1963 to being by petroleum oil from 1970 to the present day. Although, both sources of oil seem to have waned in their foreign exchange earnings ability, the importance of palm oil in the domestic economy to the industrial sector and the households cannot be over emphasized.

Aggregate production of palm oil has continued to grow from a record low of 320 thousand tones in 1967 to more than 700 thousand tones in 1980. All of these oil are used in the domestic economy with shortfall which is made up by importation. In 1981 alone, so thousand tons of palm oil was imported.

However, this shortfall in palm produce in this area of study Enugu-State-has been attributed to lack of organized marketing arrangements and production. Marketing of palm produce has not been adequately organized.

This situation appears to be aggravated by policy makers who have been emphasizing on palm production with little or no consideration to the marketing and distribution of these products.

The failure of supply of palm produce to keep pace with demand has generated a lot of arguments. While some emphasized production as being responsible, others emphasized inadequate supply and distribution problem. However the problem of shortages could be attributed to the production and marketing inefficiencies. It is therefore contended that efficient marketing of palm produce can indirectly increase production.

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1.2     OIL PALM DEVELOPMENT PROJECTS

Various agencies including states and the federal government are involved in the establishment of oil palm plantation in Nigeria. As at 1982, an estimated 154, 789 hectares of improved oil palm were established. (Table 1 below). The largest percentage of hectares were established under the pre – 1966 rehabilitation scheme and the post-1970 world Bank assisted smallholder management unit (SUM) programmes.

The lowest percent of hectares (1.42), on the other hand, were established by other agencies which include individuals, co-operatives and other private organizations. An important development not explicit in the table 1 below is that establishment of 21, 580 hectares of federally sponsored plantations and 35,538 hectares of states government sponsored smallholders units. Enugu –State rank third in the total hectares under palms.

(17 hac) with the effective presence of the World Bank assisted smallholder tree crop unit Enugu state senatorial zone, largely a poor agrarian community with a population of about 7.602 farm produce which is a palm oil and others like cocoyam, cassava, etc and other privately held estate   the state and other privately held estates.

These estates are usually provided with good access and farm roads collection of FFB to the production plant is facilitated by the availability of tractors- trailers. in contrast, the quantity and quality of rural roads serving smallholders farms are deficient. The existing roads are narrow, seasonal, earth-surfaced and far-between. As a result, the average distance from the farm to the nearest motorable road, farmers home and farmer’s market are large. These distances range from 1.5 to 7.5km in Imo State (Obiechina 1986). Although, vehicular transport is accessible to these rural communities, the winding and difficult train to some farms have necessitated the combined use of the head, bicycles and commercial motor vehicles to move FFB to processing and marketing centres.

1.3     DEFINITION OF PROBLEM

The problem of marketing of oil palm produce in Enugu State is diversified and covered every aspect of the commodity marketing scheme. These problems runs from the producer down to the consumer, sometimes replicating forms and these are mainly decline in the quantity of the products for both industrial and household consumption and it’s scarcity.

In this connection, the farmers would like to know the impact of distribution, pricing, processing and storage strategies being adopted in the marketing of the products Enugu State with a view to evaluating them and offer solutions where there are lapses.

The decline in palm produce could be as a result of inadequate storage facilities. Palm products are perishable goods, as a result if properly stored, it will get spoiled and the resultant effect will decline in supply.

The use of crude production technique yielded products of bad quality and contributed immensely to low-output.

It could also be continued reliance on existing wild grove palm which are low yielding and which because of their excessive heights, are difficult to harvest and as a result, are left virtually unexploited.

Relatively low extraction rate of the wild groves and very low extraction efficiency from traditional processing methods and the drudgery associated with transitional processing methods made the enterprise unattractive to young people, could be one of the reasons for the decline of palm products.

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Another problem could be the government pricing policy starting from the days of the marketing boards up till now and has been a very bit disincentive. Only the recent open market prices for palm oil have acted as catalyst to the renewed interest in investment in oil palm development.

The decline could also be as a result of an increase in local consumption due to population explosion. The decline could also be contributed to many people leaving the production and processing sectors of the industry for other jobs especially as it is evident in the drift from rural to urban areas.

The decline in producers prices could equally be attributed to the complex nature of the channels of distribution of the palm produce. This could create artificial scarcity where the distributors would command higher prices before bringing them out for sale.

The above reasoned cannot be assured without carrying out a research on them. This study, therefore intends to research on these problems identified to find out what the situations are in Enugu State.

1.4     OBJECTIVES OF THE STUDY

The overall objectives of the study is to asses the efficiency of oil palm produce marketing in Enugu State with a view to identifying the major marketing constraints and make recommendation to remove or at least reduce them specifically, the investigation is designed to:

  1. Evaluate the marketing channels for the produce.
  2. Evaluate the means of transportation, storage and processing method employed by producers.
  3. Evaluate the pricing strategies of the produce used by the producers in the areas of study.
  4. Make recommendations as to how to improve the marketing situations of the oil palm produce in the area of study and the country as a whole.

1.5     HYPOTHESIS

  1. Null: The distribution channels are not adequate.

Alternate: The distribution channels are adequate

  1. The processing and storage facilities are crude and in adequate.

Alternate: The processing and storage facilities are not crude inadequate.

1.6     NEED AND JUSTIFICATION STUDY  

Palm oil and palm kernel were contributing substantially in the past to the growth of Nigeria export economy. At present, however, this contribution to gross domestic product (GDP) has fallen drastically to an extent that local agro-based industries are now importing palm oil.

The study, therefore has promoted by this low level of performable of this sub-sectors of our economy.

This study will investigate the farmers attitudes to oil palm production and marketing. The problems of distribution pricing, processing and storage are evaluated. It will also identify some constraints militating against the efficient marketing of the palm produce by the farmers and make suggestions on the ways of improving the situation such a study would provide a basis for evaluating a modern milling technique.

The problems of distribution pricing storage will also be evaluated in the light of the present economic situation in the area of study in particular and the country in general.

Price represents in the quantity of resources that must be given up in order to enjoy a particular product or service if the pricing is adequate with the producers and the consumers will benefit from it.

In the same way, if the channels of distribution are properly planned and constituted the consumers will get the goods at the right place and at the right time. This makes it cost effective, both to the producers and to the consumers.

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Another area of importance in the storage and processing facilities. If these are note adequate, there will be high wastage and high waste, there will be high wastage and high wastage and decline in production.

It should however be noted that all there problem of marketing functions don’t work on isolation. They combine to reduce the quantity of palm produce offered in the market for sale proper evaluation of these factors would enable one know evaluation of those factors would enable one know areas which need an urgent attention.

Finally, this study will also be very useful to those desiring to know the economic importance of palm produce for domestic and industrial uses and in the export market. Thus, it is hoped that the successful completion of the study would bring this part of the country into the general trend of academic inquiries.

1.7     SCOPE AND LIMITATION OF STUDY

This is a state-wide study conducted in Enugu-State which is the coal city state and which also means top of the hill, the Nigerian institute for oil palm research (Nifor).

Nifor has an oil palm mill an installed capacity of 6 tonnes of fresh fruit bunches (FFB) per hour.. at plantation level, there are the 9 tonnes per hour unilever mill at owan estate, the 2.5 tonnes per hour De wecker mill at Aden plantation and the stock Hydraulic presses at Okhuo oil palm estates. Again, is the 20 tonnes per hour mill at the plantation in Nsukka, the 1.5 tonnes per hour VDK mill at Okomu and a mill of similar capacity at Jesse in Fthiope Local Government Area.

Four of the twenty local government areas in the state were purposely sampled to represented the central, eastern and northern sections of the state. The geographical spread of the study area covers about 70% of the commercial oil palm producing belt in the state.

However, the value of information lost because of the concentration on four local government in the state alone is not worth the trouble, time and money that would be involved in getting it outside when the four local governments are a good approximation of the total market.

 

 

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