REGIONAL PLANNING ASSESSMENT OF INDUSTRIAL LINKAGES IN THE COCOA PRODUCTS (ILE-OLUJI) LIMITED, ONDO STATE, NIGERIA

Abstract

This study identified the linkages that exist in the Cocoa Products (Ile-Oluji) Limited. The aim of the study was to assess the industrial linkages in the CPL as it relates with other cocoa based firms in the region with a view to promoting regional industrial growth. The specific objectives are to identify the various cocoa based firms that supply the Cocoa Products (Ile Oluji) Limited (CPL) with raw cocoa beans; examine the rate at which the CPL patronize the cocoa based firms within the region; examine the chain of flow of cocoa beans from farm gate to the cocoa firm; and examine the industrial linkages in the cocoa industry across the region. Data was collected from both primary and secondary sources. The primary data used for this study was collected using purposive sampling technique; to select suppliers of raw cocoa to the firm. 70 Farmers within the region were also sampled using the simple random sampling technique. The instruments used to collect primary data are: structured questionnaire, interview guide and personal observation while the secondary data was gathered from Libraries, internet, books, and journals. The data collected were presented and analyzed using descriptive statistics, inferences made and conclusions and recommendations drawn. The study revealed that there is a positive difference between production of raw cocoa beans before the inception of the CPL and after its inception and that the existence of the CPL in the region also led to the establishment of various cocoa firms which are linked to each other thereby making job opportunities available to individuals. It also revealed that the cocoa supplied by the LBAs to the CPL does not end at the CPL but is also sold out as raw materials to other firms in the cocoa industry such as Promasidor Nig. Ltd, Triboma, Trading and services among others. The conclusion from this study is that there is a strong backward linkage existing between the CPL and the farmers in the region as well as a strong forward linkage existing between the CPL and higher order cocoa firms such as Nestle Nigeria Limited. It was recommended therefore that the CPL be seen as a regional agro pole whose existence in the region brings about regional value.