ABSTRACT

This study examined the allocative efficiency of oil palm processing mill in Bende L.G.A. in Abia state, Nigeria. A total of 60 respondents were randomly selected for the study using multistage random technique. Data used in this study were generated using well structured questionnaire. In data analysis, descriptive statistics, regression analysis and simple correlation analysis were employed. Results obtained on socio-economic characteristics of the respondents shows that majority were male, married with mean household size of 1.91 oil palm processing was the major occupation of rural households with majority having basic education. In the multiple regression analysis of the relationship between inputs and outputs of palm oil processing, this result implies that these two variables are important factors influencing palm oil processing in Bende L.G.A. Limited equipment, labour availability, lack of credit, distance from mill to market, security of water during dry season and scarcity of firewood, were the obvious constraints to the Allocative efficiency in the study area. Enlightenment campaign via symposium to improve the level of awareness on processing efficiency. This would in no small measure improve the processing efficiency of oil palm processors.