Available Online at http://www.recentscientific.com International Journal of CODEN: IJRSFP (USA) Recent Scientific International Journal of Recent Scientific Research Research Vol. 9, Issue, 8(A), pp. 28244-28249, August, 2018 ISSN: 0976-3031 DOI: 10.24327/IJRSR Research Article EVALUATION OF PALM FRUITS PROCESSING IN ACCELERATING RURAL DEVELOPMENT IN UMUAGWO, OHAJI EGBEMA L.G.A, IMO STATE, NIGERIA 1Osugiri, I.I., 2Nwaihu, E.C., 1Okwara, M.O., 3Osuagwu, C.O. and 3Utazi, C.O 1Department of Agricultural Economics, Federal University of Technology Owerri 2Department of Forestry and Widelife Technology, Federal University of Technology Owerri 3Department of Agricultural Management and Extension, Imo State Polytechnic Umuagwo, Ohaji DOI: http://dx.doi.org/10.24327/ijrsr.2018.0908.2423 ARTICLE INFO ABSTRACT Article History: Palm fruits processing is an age-long agricultural activity in Imo State especially in rural areas such as Umuagwo in Ohaji egbema Local government area (L.G.A), Imo State. There have been some Received 19th May, 2018 documented researches an the profitability of the palm fruits processing enterprise, but little or Received in revised form 5th nothing had been recorded on the use of the profits accruing from the enterprise. This research was June, 2018 carried out to ascertain the extent agricultural benefits from palm fruits processing has improved the Accepted 10th July, 2018 study area. The study area is Umuagwo in Ohaji Egbema L.G.A, Imo State. Primary and secondary Published online 28th August, 2018 sources of date were used. A total of 60 respondents were sampled for the study and well structured questionnaire served as instrument of data collection which bothered on age and experience of the Key Words: processors, sources of palm fruits, costs of palm fruits processing and the benefits or profitability Evaluation, palm fruits processing, rural which was estimated with gross margin analysis. The constraints of palm fruits processing was development determined with the use of regression analysis (OLS). The result revealed that experience of the processors had direct relationship with age and most of the processors (30%) sourced their palm fruits from their own plantation and through purchase of fresh bunch of palm fruits. The gross margin per 100 fresh bunches processed was N50, 500 and net margin was N10, 890. Some of the positive and significant determinants of palm fruits processing were quantity of palm fruits processed, cost of processing and processing experience. High cost of palm fruits, poor feeder roads, fluctuation in prices and electricity supply were major constraints to palm fruits processing. The profits from the enterprise were used in market development, construction of village hall, renovation of schools, churches and equipment of rural clinic. The study concludes that palm fruits processing is profitable and benefitable in rural development in the study area. It recommends that processors should form cooperative associations to pool their resources together and establish palm plantations for palm fruits as well as buy in large scale to reduce costs of palm fruits and cost of processing marketing. Copyright © Osugiri, I.I et al., 2018, this is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. INTRODUCTION profitable perennial oil crops in Africa and Southeast Asia and no part of the crop is a waste (Komolafe & Joy, 1990; Soyebo The African oil palm (Elaeis guineensis) is a tropical plant et al., 2005 Osugiri et al., 2007 and Onwubuya et al., 2012). It which belongs to the family Arecaceae. It was stated that oil is regrettable that despite the usefulness and economic benefits palm originated from the humid tropics of West Africa (Poku, of the oil palm, its cultivation, production and processing is 2002) and cultivated extensively or found growing wild in dwindling in the tropics especially Nigeria. It has been reported grooves as over 1.67million hecters of land are cultivated by that Nigeria which used to be the highest producers of palm oil small holder farmers across the area (Carrier), 2011; Osugiri et (Mathew, 2009) is now a net importer, ranking 5th in the world al., 2006 and Oluseguaji, 2008). and Malaysia that collected their first palm seedling from The plant has been domesticated and spread to other parts of Nigeria is now the world’s largest producer and exporter of Africa and Asia by European explorers who discovered it in the palm oil (Brown and Jacobson, 2005, Ayodele, 2010). late 14th century (Sridler and Ade-oluwa, 2009 and Ibitoye et Nevertheless, there is yet untapped potentials for massive al., 2011). It is regarded as one of the most viable and production of palm oil in Nigeria, especially in the Southeast, *Corresponding author: Osugiri, I.I. Department of Agricultural Economics, Federal University of Technology Owerri Osugiri, I.I et al., Evaluation of Palm Fruits Processing in Accelerating Rural Development in Umuagwo,Ohaji Egbema l.g.a, Imo State, Nigeria the study area. This assertion is incontrovertible when viewed common boundaries with owerri in the east, Oguta in the north at the resilience of some small holder oil palm processors in the and Ogba/Egbema/Ndomi in Rivers state in the south west. It rural areas in Imo State (southeast Nigeria), particularly at covers an area of approximately 958.010 sq/km, and has an Ohaji Egbema L.GA where this was conducted, and the estimated population of 800,904 (NPC, 2006). proceeds from palm fruits processing were used for rural Ohaji Egbema local government area comprises of three (3) development. districts namely: Ohaji East, Egbema North, and Ohaji West. Development generally, is concerned with enhanced ability to There are 12 council wards. The local government has sixteen shape one’s life (Sen, 1999). In rural development, it is a (16) autonomous communities namely: Egbema, Umuagwo, transformation of society, a movement from traditional ways of Oloshi, Umunwaku, Obile, Obitti, Mgbirichi/Abakuru, thinking, production etc. to modern or advanced methods. This Opuoma, Assa, Awarra, Ikwerede, Umuokanne, Obiakpu, requires total transformation of all aspects of living, otherwise Ohuba, Obosima, and Mmahu. In Umuagwo community, there known as multidimensional development (Servaes, 1999 and are 8 villages which include: Umuelu-Umuagwo, Umukene- Madu 2003a). Umuagwo, Umuezewere-Umuagwo, Okohia-Umuagwo, Etuohia-Umuagwo, Umuogbani-Umuagwo, Umuduko- In addition, the essence of rural development is the Umuagwo and Umuogbuanua-Umuagwo. improvement of the spatial and socioeconomic environment of rural space which culminates to the enhancement of The inhabitants of Umuagwo community are mainly farmers individual’s ability to care for or sustain a healthy living. Rural especially palm fruit processors. Their interest was due to their development possess a challenge because it involves people endowment with a suitable soil for growth of palm trees. (with diverse opinion/ability) and natural resources (often in Umuagwo was selected from Ohaji Egbema L.G.A. both rudimentary stage) with particular focus on the people. Rural primary and secondary sources of data were used for the study. area in this context refers to settlements with less than five Primary data were collected through oral interviews and the use thousand people with low population density and agricultural of structured questionnaires designed to obtain information related activities dominate their sources of income. One of such relating to the socio-economic characteristics of the processors, activities is palm fruits processing. volume of palm oil processed, purpose of engaging into palm fruit processing, the processing technologies used and their Palm oil from palm fruits processing is a very important oil of achievements from the processing of palm fruits. The socio-economic importance in Nigeria, most especially in the secondary data were collected from journals, textbooks, Igbo culture. Traditional method of palm oil processing is not previous projects, internet, and publications. only tedious and inefficient, but also time consuming and low in palm oil quality and quantity. There has also been expressed Descriptive statistics such as the mean, mode, charts, concern by various agencies, particularly Nigeria Institute for percentage and frequency distribution table were used for the Oil Palm Research (NIFOR) on the need to improve the analyses. Gross margin analysis was used to determine the processing techniques associated with palm fruit processing. In difference between total revenue and total variable cost (Odii, Nigeria, oil palm is indigenous to the coastal plain, having 1998). It is specified as follows: migrated inland as a staple crop. For millions of Nigerians, oil Gross Margin (GM) = Total Revenue (TR) – Total Variable palm cultivation is part of the way of life –indeed it is part of Cost (TVC) their culture. However, during the past decades, the country has become a net importer of palm oil, while in the early 1960’s, Net margin analysis was used to determine the net return. It Nigeria’s palm oil production accounted for 43% of the world measured the difference between the total processing cost and production, nowadays it only accounts for 7% of total global the total returns from the sales of palm oil per 100 FFB (Fresh output. In Nigeria, 80% of production comes from dispersed fruit bunches). It is specified as follows: smallholders who harvest these palm fruits and use manual Net margin= Total Revenue (TR) – Total Cost (TC) processing techniques, many oil palm producers inherited Where: Total Cost (TC) = Total Fixed Cost (TFC) + Total abandoned government plantations which were sub-divided and Variable Cost (TVC) leased to private producers. Everything seems to point at the possible expansion of oil palm plantations in Nigeria- The multiple linear regression models are specified as follows: revitalizing old ones and establishing new ones- both aimed at Linear Function Q= b0 + β1X1 + β2X2 + β3X3 + β4 X4+-- n7+ e meeting the demand of the national and international market.