Allocative Efficiency Of Palm Oil Processing Mills In Ikeduru And Ahiazu Mbaise

ABSTRACT

The study analyzed the allocative efficiency of palm oil processing mill in Ikeduru and Ahiazu Mbaise Local Government Area both in Imo state, Nigeria. The study presents the result of analysis, collected on 60 palm oil mill operators by the aid of randomized sampling technique in the study area. The study showed, that the study area is dominated by males still in their most productive years of life, married with large household size, educated and experienced. The analysis showed that the enterprise is profitable by returning N1.25k for every N1.00 spent. Apart from land that is underutilized, all other resources which comprises of fuel, labor, water, other capital inputs as well as maintenance cost were all over utilized. Therefore, to attain absolute efficiency there should be decrease Ln the use of fueL, Labour, water, other capital inputs, milling plant as well as maintenance cost.