ECONOMIC ANALYSIS OF PRICE DIFFERENTIALS AND PROFITABILITY OF PALM OIL MARKETING IN OSHIMILI NORTH..

The study's main goal was to determine the price difference between the rural and urban markets during harvest season and after storage season. The second critical goal wasto figure out how profitable palm oil was after the storage season.Structured questionnaires were used to collect data, which were properly administered to respondents. The cost and return model and descriptive statistics were used to analyse the data. In the selection of 32 palm oil producers and marketers, the purposive selection method was used. The study found that people with an average age of 40 years and 37 years and 6 months were mainly involved in palm oil production and marketing. Due to the arduous nature of the work, males were primarily involved in palm oil processing, while females were primarily involved in its marketing. Both producers and marketers were illiterate, had a moderate household size, and had 10 and 11 years of experience in the palm oil industry, respectively. Prices of palm oil were found to be lower at a rural market during harvest season than after storage season, according to the report. The difference in price/revenue was N6,250, resulting in a profit of 46.3 percent. After storage season, the benefitcost ratio was 1.32, implying a profit of N0.32 for every N1 invested in the palm oil marketing industry.A large profit gap was discovered between harvest and after storage season, revealing that marketers who store palm oil made more money than palm oil producers.

According to the report, palm oil producers can form cooperatives so that enough of their money can be pooled to buy a warehouse and possibly a vehicle to transport the commodity from the rural market to the warehouse for storage and later to the urban market for sales after the storage season, resulting in more funds for the marketing sector and lower transportation costs.

Please see the link - https://ikprress.org/index.php/JET/article/view/5734