Economic Profitability Analysis of Oil Palm Production among Cooperative Women Palm Oil Processors in Iwo Zone of Osun State, Nigeria

Abstract

The study investigated the economic profitability analysis of oil palm processing among cooperative women palm oil processors in Iwo Zone, Osun State, Nigeria. Data were collected through a well-structured questionnaire administered to 120 cooperative women oil palm processors using a two-stage sampling technique. Both descriptive and inferential statistics were used for data analysis. The results showed that the majority (74.5%) of the oil palm cooperators were married, with an average age of 36 years. Findings further showed that 87.5% of the participants reported had enough experience on oil palm processing. Majority 83.3% of the respondents had joined cooperatives between 5 and 20 years or more.  Majority of the respondents make use of their personal savings (41.7%), personal savings was the most source of finance used by the cooperators. The majority (63.3%) of the respondents engaged in manual processing. The study concludes that cooperative participation plays a vital role in improving the profitability of palm oil processing enterprises in the study area. The findings indicated that the oil palm processing is a viable, economical and profitable business. The study recommended that, government should provide financial support to cooperatives through soft loans and grants to improve palm oil processing activities. Palm oil processors should actively participate in cooperative activities such as meetings, savings programs, and etc. Modern palm oil processing equipment should be provided to oil palm processors to reduce wastage and improve processing efficiency.