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Monday 29 February 2016

THE ROLE OF PALM FRUIT PROCESSING TO ACCELERATE ECONOMIC DEVELOPMENT IN UMUAGWO, OHAJI EBEMA LOCAL GOVERNMENT AREA








CHAPTER ONE
INTRODUCTION

1.1     Background To  The Study

The processing of palm fruit is the most important processing activity carried on in Nigeria and it is geared towards accelerating economic development Armstrong, R. (2010).  The end products, palm oil and palm kernels, have traditionally composed 15 to 20 per cent of Nigeria's exports as their combined value was £40 million years back.  In addition, palm fruit which is processed into palm oil is an important item in the Nigerian diet (as part of the traditional soup or sauce) and is used as an illuminant, cooking fat, and soap ingredient Chukwu, A.O (2011). Implicit production estimates based on marketing board purchases of palm kernels, for which there is little domestic use, indicate that internal consumption ranges from 80 to 150 per cent of exports.

Palm fruit is one of the most important economic oil crops in Nigeria. According to World Rain-forest Movement,  palm fruit is indigenous to the Nigerian coastal plain though it has migrated inland as a staple crop. Cultivation of it serves as a means of livelihood for many rural families and indeed the farming culture of millions of people in the country thereby contributing to the GDP of the nation. The reference to palm fruit as a crop of multiple value underscores its economic importance Carrere, T. R. (2001).


Modern processing of oil palm fruit bunches into edible oil is practiced using various methods, which may be grouped into four categories according to their throughput and degree of complexity Ekine, D. I. and Onu, M. E. (2008).
Generally, processing units handling up to 2 tonnes of fresh fruit bunches (FFB) per hour are considered to be small-scale. Installations that process between 3 and 8 tonnes FFB per hour are termed medium-scale, while large-scale refers to mills that process more than 10 tonnes per hour.  The Nigerian  palm fruit belt covers twenty-four states, including all nine states of the Niger Delta (Akwa Ibom, Abia, Rivers, Edo, Imo, Ondo, Bayelsa, Cross River and Delta) Ibrahim, H. M. and Ramli, A.A. (2011).

Within the palm fruit belt in Nigeria, 80% of production comes from dispersed smallholders who harvest semi-wild plants and use manual processing techniques. Several million smallholders are spread over an estimated area ranging from 1.65 million hectares to 2.4 million hectares and to a maximum of 3 million hectares. The estimate for palm plantations in Nigeria ranges from 169,000 hectares (72,000 ha of estate plantations and 97,000 ha of smallholder plantations) to 360,000 hectares of plantations.
Today small-scale processors who appreciate the value of using machines, are asking for them to be more sophisticated FAO (2005)..
Thus current demand for small-scale palm oil mills is shifting from simple stand-alone unit operational machines to a more integrated system which will in turn boost economic activities Ibitoye, S.J. and Onje S. O (2013).
Machinery manufacturers have responded with machines that combine several operations into one machine unit. The complete range of operational machines – covering bunch stripping, fruit sterilization, digestion, pressing, clarification, oil drying and storage have been developed for processing applications. The processors can change and/or combine equipment to suit their purchasing power.
Machinery manufacturing is a recent development in the West African sub-region, and until recently it has not been possible to develop the sophisticated machines required to improve on traditional methods. Machinery manufacture in Africa must be carefully considered if progress is to be made in joining the rest of the industrialized world Kadurumba, C. and Ume, S.I. (2011).  

1.2     Statement Of The Problem

One of the constraints of economic growth in Nigeria has been the slow development of the agricultural sector. The performance of the sector was undermined.  The role of Palm fruit processing in economic development cannot be overemphasized.  The emerging problem which constraint the full realization of the potentials in the palm fruit includes inadequacies in the processing, the supply and delivery, shortage of working capital, low level of technology, poor post-harvest processing and shortage etc. There is need for palm fruit processing in Nigeria to put the economy on the part of sustainable growth and development as a whole Olagunju, F. I. (2008).
 The economic stabilization Act enacted in 1982 affected expenditure on agriculture and restricted income. Indeed, the contribution of the sector to total GDP has been falling, not necessarily because a strong industrial sector is displacing agriculture as a result of low productivity Omereji, G.O. (2005).

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