ECONOMIC ANALYSIS OF OIL PALM MARKETING IN ORUK ANAM LOCAL GOVERNMENT AREA OF AKWA IBOM STATE, NIGERIA

The study examined the economic analysis of palm oil marketing in Oruk Anam Local Government Area of Akwa Ibom State, Nigeria. A total of one hundred and five (105) palm oil marketers were randomly selected from a purposively selected seven (7) oil palm producing communities in the study area, and fifteen (15) palm oil marketers from each of the communities. The data for the study were collected with the aid of a well-structured questionnaire. Statistical tools such as simple descriptive statistics (table, mean, frequency and percentage), correlation, five point Likert-scale and market efficiency model were used for data analysis. The result indicates that female (52.38%) formed a greater proportion of palm oil marketers (wholesale and retail) in the study area. The research shows that 70.48% of the marketers were below 41years of age, 49.52% were married. The level of marketing experience (mean=8 years) in the study area was low. Majority (80.95%) of the marketers were not members of any cooperative society while 65.72% run their business with their personal capital, and majority (71.43%) of the marketers were retailers. The marketing efficiency (ME) of 1.17 and 1.23 respectively for wholesaler and retailer were recorded, this shows that the business is profitable. This is due to high marketing cost associated with palm oil marketing. It is therefore recommended that policy that improves rural infrastructure and marketing incentive should be encouraged by government to reduce the cost associated with the business. It was also recommended that financial institution should be strengthened by government to give loan to mitigate the problem of inadequate capital and price stabilization policy to bring about perfect market performance.