ABSTRACT

This research dealt with determinants and profitability of palm kernel marketing in Abia State. The specific objective were to describe the socio characteristics of the respondents in the study area, identify the sources of palm kernel marketing, estimate the cost and returns of the palm kernel marketing, determine the factors influencing the profitability of palm kernel marketing, identify the major constraints in the distribution and marketing of palm kernel in the study area. Both purposive and multi-stage random sampling techniques were employed in the selection of traders in the study area. A well structural questionnaire administered to traders were used to collect information. Descriptive statistics were employed in analyzing the data. Results shows that young people were not much involved in the enterprise and that more male participated in the enterprise than the female counterpart in the study area. The cost-return of the enterprise is profitable with the return of 1.12 naira spent in the enterprise. Four factors level of education, marketing experience, transportation cost and depreciation cost influenced profitability of palm kernel marketing. The regression results shows level of education, marketing experience, transportation cost and depreciation cost were significant at 1%, 5%, and 10%. Major problem perceived in the study area include; lack of credit, poor storage facilities, seasonality in fresh fruit bunch, poor grading, fluctuation in market prices, lack of improved variety of seed, low output of palm kernel nuts. People should be encouraged to undertake the business (palm kernel marketing) on a full time and professional basis, traders should be encourage to form cooperative societies this will enable them to obtain loans from financial institution for the business. The use of improved high variety of palm fruits should be encouraged in planting in order to maximize the use of palm kernel, seasonality in fresh fruit bunch should be harvested on time in a year since it determines high yield of palm kernel nuts.