ABSTRACT

The study covers the Contributions of Palm Oil Production to Growth and Development of the Economy of Enugu State of Nigeria: A study of Agricultural Cooperative in Udi Local Government Area of Enugu State,. The study to find out the contribution of oil palm production and distribution in Agricultural Cooperative in Udi Local Government Area of Enugu State and the problems of oil palm producers and distributors in Agricultural Cooperative in Udi Local Government Area of Enugu State. This was divided into five chapter. The chapter one contained the introductory part of the project. Literature review, research design, data presenting and analysis, conclusion and recommendation made up other four chapters.  The researcher made use of both primary and secondary data, structured questionnaires were the methods used for the collection of primary data, and secondary data were also collected from textbook and various research materials. The researcher used population of 75 selected randomly. The research found out that That the main hindrance or factors that agitate against youthful participation in palm oil production is as a result of non-lucratively of the sector coupled with lack of motivation from the government as regards to the provision of basic amenities credit facilities etc. and that  palm oil production is the mainstay of the rural dwellers and therefore top priority should be given to it by all stakeholders. And recommended that the government should retake a stand on its agricultural policies and revitalize the agricultural sector through the provision of basic amenities which would increase agricultural productivity. The government should carry out a grassroot orientation programme on the importance, benefits of palm oil production to the people
TABLE OF CONTENTS
Abstract  
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study
1.2     Statement Of Problem 
1.3     Objective of the Study
1.4     Research Questions
1.6     Significance of the Study
1.7     Scope and Limitations of the Study
1.8    Definition Of Terms

2.0    LITERATURE REVIEW
2.1    An Overview of Oil Palm production 
2.2    Meaning of Distribution 
2.3    Oil Palm Varieties and Farm System 
2.4    Economic Importance of Oil Palm
2.5    Health Benefits of Palm Oil
2.6    Diversifying the Economy through Palm Oil Production 
2.7    Environmental Issues of Palm Oil Production
2.8    Problems of Oil Palm Production and Distribution
2.9    Prospects for Oil Palm Production  

CHAPTER THREE
3.0    RESEARCH METHODOLOGY
3.1         Research Design 
3.2     Area Of Study   
3.3    Population of the Study
3.4     Sample Size Determination  
3.5     Sources of Data  
3.6     Method Of Data Analysis 

CHAPTER FOUR
4.0 DATA 0PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1    Data presentation
4.2    Data Analysis 
4.3    Discussion of Results  

CHAPTER FIVE
5.0    SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
5.1    Summary of Findings 
5.2    Recommendations 
5.2    Conclusion    
Reference
Appendices

CHAPTER ONE
1.0    BACKGROUND OF  THE STUDY
1.1    Introduction
Palm oil is produced from the mesocarp of the fruit of oil palm (Elaeis guineensis). Oil palms are found in the hot wet tropics. The oil palm is a perennial crop that originated in the tropical rain forest region of West African where evidence of its use as a staple food crop dates as far back as 5000years. It spread to South American in the 16th century and to Asia in 19th century.  It’s export began in 1832 and by 1911 “British” West African alone exported 157000 tonnes of which about 75% came from Nigerian. Meanwhile, in the 1870’s British administration took that plant to Malaysia and in 1934 that country surpassed Nigeria as the largest exporter of the product, led by Nigeria and Zaire.  Africa continued to lead the world in production and export of palm oil throughout the first half of the 20th century.  By 1966, however, Malaysia and Indonesia had surpassed African’s total palm oil production.
    Kei et al (2006:19), compared the characteristics of the oil palm sectors in Malaysia and Nigeria, and found out that Malaysia’s success was built on plantation management together with processing in large modern mills (the processes and procedures undergone to get an edible special palm oil with the use of modern technology).  The plantation mode of production is characterized by large scale monoculture under unified management. In Nigeria by contrast, 80% of production comes from dispersed small holder who harvest semi wild plants and use manual processing techniques.  Several million small holders are spread over an estimated area of 1.65 million hectares in the southern part of the Nigeria.  Also, other environmental and co-ordination factors like little use of modern inputs and extension services previously controlled by monopoly marketing board; low previsions of market information, standards and quality control (Udom, 1986:134) all these and many others contributed to the low success of Nigerian oil producers.
World Rain forest Movement (2001) is of the opinion that Oil palm cultivation is part of the way of life in Nigeria. Indeed, it is part of their culture. However, during the past decades, the country has become a net importer of palm oil production accounted for 43% of the world production, nowadays, it only account for 7% of total global output.
Hartley (2009:9) Nigeria lost her foremost place in oil exports to Zaire and regained it only temporary in 1964-1965. As at today (from 1970 when we experienced oil boom in Nigeria till now), the country has lost her place to Malaysia which is now the largest oil palm producer in the world.  Apart from this, there has been a steady decline in the nation’s domestic supply of palm oil.
Iloeje (2001) ascertain that Nigeria’s export of palm oil rose steadily to a peak of 566,400 tones, valued at over 80million in 2004, but fell very abruptly to a minimum of 164,950, tones with only 20.6million in 2004. The decline palm oil and kernel exports were as a result of increased domestic consumption following population growth, crude palm oil extraction methods employed by palm fruit processors which results into low quality and poor quality oil, varying quality and drudgery involved in the processing of palm fruits and the lower producer prices allowed by marketing board which had a monopoly of purchase for export.  Equally, the producer prices given were little more than half of the world market prices and it discouraged both planting and harvesting (Hartley 2003:11).  These are some of the huge important reasons responsible for the recurrent fall in domestic palm oil supply in the country.
Also, as a way of promoting palm oil business in Nigeria, the World Bank has played an important role in it.  Nigeria is the second largest recipient of world bank palm oil sector project, with six project from 1975 to 2009 According to a recent World bank report. While the results achieved includes the plantation of 42,658ha of oil palm, as well as road improvement and increased milling capacity, only one of the World Bank project is still under implementation, with the rest having gone bankrupt. As a result, many private oil palm producers eventually accessed abandoned government plantations following the leasing of such estates to private individuals.  Some private owners formed limited liability companies to ensure effective management and to attract investments.  Some of the plantation have younger plants/ fields, some of which are yet to fruit while most of the oil palm plantations are over 30years.
The oil palm sub-sector of the agricultural sector of the economy presented itself as a potential productive sector that could be used to diversify the economy after years of neglect.  Omoti (2001:70), stated that Nigeria has enormous potential to increase her production of palm oil and palm kernel primarily through application of improved processing techniques and marketing. There are so many palm tree uses than just providing shade for you on a hot Caribbean beach.  It is one of the most widely used trees on the planet. Everything on the tree even some roots is re-used in some way.  Palm tree fruit are used for oil, biodiesel, wax, jelly, wine and palm heart for salads.  The component of oil palm tree such as the frond, leaves, truck and the roots are used for several purpose ranging from palm oil, palm kernel oil, palm wine, broom and palm kernel cake.  Iwene (2002), found out that on commercial basis, both palm oil and palm kernel are important product of oil palm tree. Oil palm stand out as one of the important food security crops for Nigeria mainly because of its usefulness and important. Adekekan laleye Idowo (2002) is of the opinion that palm oil is the principal source of much of the edible oil consumed in Nigeria especially in Imo State and the rest of the West Africa sub region. In fact, Imo is among the first ten producing palm oil states in Nigeria. Imo’s oil is so edible that people from Northern part of Nigeria came to buy in bulk purchases from them.  Not only oil, palm wine that is extracted from oil palm is also demanded in high quantity especially in Agricultural Cooperative in Udi Local Government Area of Enugu Stateof Imo state.
1.2 Statement of Problem
The palm oil production and distribution problems are largely government induced rather than environmental. The challenges been faced by palm oil producers are heightened by inappropriate agricultural policies that have stifled agricultural potential. Over the years little has been done to address low yields on the contrary, it seems government has gone out of its way to hinder production for example, small holders who constitute majority of palm oil producers cannot access government administered credit facilities.
    The major problems that militates against increase in palm oil production, to at least meet the local demand, includes problem of inadequate infrastructure, finance, land acquisition, tariff in agriculture, attack by pest and diseases and out of date production techniques.  The survey conducted by palm oil producers indicated that infrastructure and finance rank higher among the problems encountered by palm oil producers.
1.3    Objectives of the study
The general objectives of the study are The Contributions of Palm Oil Production to Growth and Development of the Economy of Enugu State of Nigeria: A study of Agricultural Cooperative in Udi Local Government Area of Enugu State, of Imo State
    The specific objectives include:
1.    To find out the contribution of oil palm production and distribution in Agricultural Cooperative in Udi Local Government Area of Enugu State.
2.    To examine and identify the problems of oil palm producers and distributors in Agricultural Cooperative in Udi Local Government Area of Enugu State.
3.    To find out if imbalance in demand and supply of palm oil exists primarily due to the inefficiency in distribution of palm oil across the region.
4.    To investigate the traditional method of extracting palm oil, whether efficient for making palm oil product and distribution in Agricultural Cooperative in Udi Local Government Area of Enugu State.
5.    To ascertain the solution /prospect to the problems of oil palm producers and distributors.
1.4    Research Questions
The study seeks to investigate the following:
1.    What are the contributions of the oil palm tree production and distribution to the development of Agricultural Cooperative in Udi Local Government Area of Enugu Stateof Imo State.
2.    What are the problems facing oil palm production and distribution in Agricultural Cooperative in Udi Local Government Area of Enugu Stateof Imo state.
3.    To what extent do imbalance in demand and supply of palm oil leads to inefficiency in palm oil distribution.
4.    Does the traditional method of extracting palm oil in Agricultural Cooperative in Udi Local Government Area of Enugu Stateefficient for palm oil production.
5.    What could be done to prevent the problem /challenges facing oil palm tree production and distribution?

1.5    Significance of the study
The study on “Economic Importance of oil palm tree production and distribution in Agricultural Cooperative in Udi Local Government Area of Enugu Statearea of Imo State is considered relevant because it is believed  that the result will be beneficial to us (inclAboh Mbaiseng government, policy makers, farmers and other individuals).  This is so because it will help us to know the contributions which palm oil production has provided to the local government of Aboh Mbaise.
    The finding will also open the eyes of the government of Agricultural Cooperative in Udi Local Government Area of Enugu Stateas well as government of Imo State in general on some problems and challenges that obstruct the income earning capacity of Aboh Mbaise oil palm producers and Nigeria as a whole so that appropriate and adequate measures will be taken for improvement of oil palm production which will in-turn add value to the gross domestic product (GDP).
    It is also believed, that the findings will also serve as a guide to the agricultural policy makers and planner when adopting any program. The findings will equally influence the habits and attitude (perceptions) of the people who think that palm oil production is only meant for the farmers both women and men farmers, illiterate and poor people.  Also, by having knowledge of the important of oil palm tree production and its contribution in the state, it will increase people’s incentives and will therefore make way for more increase in the capacity of palm oil production in Agricultural Cooperative in Udi Local Government Area of Enugu State.
    Lastly, but not the least, the study is timely and significant to the government and indeed to the national economy. This is seen from the important of the study as helping to achieve the age long glory of government of improving agricultural sector of palm oil production through the provision of farm credit. The study will also serve as a reference for further research.
1.6    Scope and limitation of the Study
The study examines the economic importance of oil palm tree production and distribution in Imo state: A case study of Agricultural Cooperative in Udi Local Government Area of Enugu Statearea.
The scope of the study covers the contribution of oil palm in developing Agricultural Cooperative in Udi Local Government Area of Enugu State, problem faced by palm oil producers and solutions towards enhancing the productivity of palm oil and measures that will be taken to enhance palm oil productivity in Agricultural Cooperative in Udi Local Government Area of Enugu Stateof Imo state.
    Some limitations were also encountered in the course of carrying out this research work. Among this limitations include, the time frame, apathy on insufficient research materials, inadequate resources (finance), power failure
and poor record keeping.
    Even with the presence of this limitation, the findings of this study are still very reliable and dependable.  This is so, because adequate efforts were made to ensure that the research was carried out under conditions that ensured dependable and valid conclusions.
1.8    Definition of Terms
-    Finance:  Are money used to run a business, an activity or a project.  Finance in this content means money from the government or financial institutions that are used in the financing of agricultural farm products.
-    Agricultural manpowers:  This refers to the labour required for agricultural management whether skilled or unskilled.
-    Risk: Is the possibility of something bad happening at sometime in the future. It is a situation that could be dangerous or have a bad result. There is always possibility of losing in the money invested in agricultural projects.
-    Rural population: These are the people who live in the rural areas.  They are the rural dwellers. They supply labour needed in agricultural production.
-    Extension services:  These are usually trained agricultural/ cooperative officer who help in disseminating and transferring information on new improved techniques, procedures and farm inputs to farmers in order to ensure increase agricultural productivity as well as increase income for farmer.
-    Farm Machinery: Farm machinery are the modern equipment that are used in the farm such as tractors and other related machineries.