ECONOMICS OF OIL PALM PRODUCTION IN ISIALA-NGWA SOUTH LGA OF ABIA STATE

Abstract

This study examined the Economics of oil palm production and its value chain in
Isiala-Ngwa South LGA of Abia State, Nigeria. A two-stage sampling technique
was adopted. Five oil palm producing communities were purposively selected out
of which a random sample of 400 households were chosen for the study. The
research instrument was a questionnaire. Out of the 400 questionnaires
administered. Analysis was based on 315 that were retrieved. Using descriptive
analysis and linear regression model, this study showed that palm oil production
has a positive impact on job creation. The most important endogenous factors
determining the economics of oil palm production in the area include the number
of children, size of land area cultivated, number of employees and output. The
study, among others, recommended the urgent amendment of the 1978 Land
Tenure Act and allocating more land area for agricultural purposes especially for
oil palm production.