ABSTRACT

 The study is on the economics of palm kernel marketing in Aguata Local Government Area of Anambra state. It examined the socio-economic characteristic of respondents involved in the business, identified the marketing channel of palm kernel products, estimated the cost and returns of the business, identified the various factors that affect the output level of palm kernel product and identified the constraints associated with palm kernel processing and marketing. Sixty (60) respondents randomly selected from the towns were used in the analysis. Data were analysed using simple descriptive statistics, gross margin analysis and multiple regression. The result show that most of the respondents were not into palm kernel on full time. The gross margin analysis N186,331.lOk indicating that the business is quite a profitable. The regression result show that capacity of machine, quantity of palm kernel and labour cost were significant factors that affect the output of processed product, although labour cost did not conform to a-priori expectation. The major problems found to militate against output are fluctuation in market price, seasonality in fresh fruit bunch and low capacity of machines. The study recommended that for increase in returns, higher capacity machines should be installed to take advantage of economics of scale.