Abstract:
This study examined the Performance of Palm Kernel marketing in Ondo state, Nigeria. Two Local Government Areas, Okitipupa and Irele were purposively selected in the state with w'el1 structured questionnaire distributed randomly to 100 respondents in the study area. The data collected from the questionnaire were analysed using descriptive statistics for the socio-economic characteristics. Net Profit Analysis and profitability ratio were used to determine the profitability of the business. Gini coefficient and its adaptation of Lorenz
curve and the concentration ratio were used to determine the structure of the palm kernel market. Multiple Regression analysis was used to measure the influence of specific variables on the quantity of the palm kernel marketed and the extent to which they significantly determine the quantity (cracked kernel).
From the analysis, socio-economic characteristics indicated that 73% of the marketers were males while 27% were females. In terms of age, 76% were within the economically active age. This could be as a result of the drudgery of the processes involved in the business. The high Gini Coefficient result of 0.6806 indicates that there is a high degree of inequality in total sales distribution among the respondents which is a reflection of inefficiency of the palm kernel market structure.
Concentration ratio, CRs which is 44% indicated that only five (5) out of 100 marketers were controlling 44% of the market. With other characteristics like few buyers and sellers, no free entry except through joining association, huge capital involvement make the palm kernel business to be oligopolistic in nature. From the Net Profit analysis, palm kernel marketing was found to be profitable in the study area with mean profit of W746,534.80 per annum. The result of the regression analysis showed that R2 of 0.968 indicated that about 96.8% variation in the output of palm kernel marketers were explained by the included eight variables of the model. The quantity of processed/ cracked kernel
marketed will increase with increase in labour, cost of cracking, tonnes of uncracked kernel purchased, transportation and operational expenses.
