Socio-Economic Determinants of the Performance of Small-Scale Palm Oil Producers in Abia State

This study examines the socioeconomic determinants of palm oil production among smallholder farmers in Abia State, focusing on four local government areas: Isiala Ngwa North, Obingwa, Ukwa East, and Ukwa West. Primary data were obtained using a well-structured questionnaire from 312 small-scale palm oil producers in the study area. The data were analysed using descriptive statistics, mean ratings and ordered logit regression. The descriptive statistics showed that oil palm production in the study area is predominantly female led, with an average age of about 46 years and average household size and monthly income of 4 persons and 128,000 naira, respectively. The ordered logit regression results showed that socioeconomic factors such as age, education, household size, years of experience, income and tax are significant determinants of palm oil production in the study area. In particular, age and tax significantly decrease the probability of reporting output growth (from low, moderate to high) by 6.07% and 0.94%, respectively. Interestingly, household size and education significantly increase the probability of reporting output growth (from low, moderate to high) by 0.5% and 4.3%, respectively. Similarly, income and years of experience in the palm oil processing significantly increase the probability of reporting output growth (from low, moderate to high) by 3.6% and 6.3%, respectively. This finding highlights the importance of income and years of experience in enhancing palm oil production in Abia State. In addition, the results showed that the constraints affecting palm oil production in the study area include difficulty in acquiring modern processing equipment, inadequate access to funding, high cost of hired labour, high processing cost, lack of storage facilities, and quick deterioration of palm fruits. Given the findings, this study recommends that the Abia State Government should encourage people to venture into palm oil production at a young age to reduce the negative implications of age on the performance of small-scale palm producers.