• O. O. Ogunmola
  • F. P. Oyawole
  • B. O. Oladele
Keywords: Adoption, Palm oil, Stochastic Frontier Analysis, Technical Efficiency


Although Nigeria is ranked third among palm oil producers globally, her production still falls short of local demand, indicating a gap in processing efficiency. This study examined the effect of adoption of improved processing technologies on technical efficiency of rural processors. The study is based on a primary dataset collected from 80 palm oil processors who were selected through multistage random sampling from Ipokia and Ado-Odo Ota Local Government Areas of Ogun State, Nigeria. Data were analysed with budgetary analysis and stochastic frontier analysis to estimate the profitability and technical efficiency of oil palm processing enterprise respectively. An average processor is capable of realizing 36 kobo as gain on every naira invested in the business. The results showed that the enterprise yielded profitable returns to the processors. The mean technical efficiency (TE) 0.95 indicates that 95% of the respondents are efficient and 5% inefficient. Quantity of palm fruits, quantity of water, and transportation cost were the crucial factors that contributed to the TE of oil palm processors while age, membership of association and adoption of oil clarifier significantly affect their technical inefficiency. The study recommends proper training on palm oil processing towards usage of the desired technology to attain capacity building


Adaigho, D. and Nwadiolu, R. (2018). Adoption of Recommended Palm Oil Processing Technology in Isoko North Local Government Area, Delta State, Nigeria. Asian Journal of Agricultural Extension, Economics & Sociology 24(1): pp 1-8.

Adebiyi, S. and Okunlola, J. (2010). Factors affecting Adoption of Cocoa Rehabilitation Techniques in Oyo State of Nigeria. Proceedings of the 18th Annual Congress of the Nigerian Rural Sociological Association of Nigeria. FUTA. Akure, Nigeria

Adejoh, S.O.; Edoka, M.H. and Adah, O.C. (2012). Adoption of Farm Management Techniques among Rural Farmers in Ankpa Local Government Area of Kogi State, Nigeria. International Journal of Agricultural Economics, Management and Development. Vol 2: pp 1-7.

Adetola, S. (2015). Palm Oil Importation: A Strategic Stabiliser for Palm Oil Industry in Nigeria. Retrieved on 26/01/17 from http://www.thisdaylive.com/articles/palm-oil importation-astrategic-stabiliser-for-palm-oil-industry-innigeria/198476/

Adetunji, M.O. (2004). Post-harvest technology as a panacea to food security and economic development. Paper presented at Regional Workshop on Food Security as a Panacea for Poverty Eradication and Development of Rural Economy. 2-3.

Agwu, A.E. (2006). Adoption of improved Oil Palm Production and Processing Technologies in Arochukwu Local Government Area of Abia State, Nigeria. Agro-science: Journal of Agriculture, Food, Environment and Extension 5(1): pp. 25-35.

Ajani, E.N., Onwubuya, E.A., and Nwalleji, H.U. (2012). Assessment of Oil Palm Production and Processing among Rural Women in Enugu North Agricultural Zone of Enugu State, Nigeria. International Journal of Agricultural Sciences ISSN: 2167-O447 2(12): pp.322-329.

Akangbe, J. A., Adesiji, G. B., Fakayode, S. B., and Aderibigbe, Y. O. (2011). Towards Palm Oil Self-sufficiency in Nigeria: Constraints and Training Needs Nexus of Palm Oil Extractors. Journal of Human Ecology, 33(2): pp. 139-145.

Ayodele, T. (2010). African Case Study: Palm Oil and Economic Development in Nigeria and Ghana; Recommendations for the World Bank’s 2010 Palm Oil Strategy. Initiative for Public Policy Analysis, Lagos, Nigeria. Available in http://www.ippanigeria.org. 1-13.

Battese, G.E., and Tessema, G.A. (1992). Estimation of Stochastic Frontier Production Functions with Time-Varying Parameters and Technical Efficiencies using Panel Data from Indian Villages. Agricultural Economics Journal Vol 9: pp. 313-333.

Bello, M., Dauda, S.; Galadimma, O.E., Anzaku, T.K.A. and Abubakar, A.A. (2012). Factors Influencing Adoption of Crop based Technologies in Jenkwe Development Area of Nassarawa State, Nigeria. Global Advanced Research Journal of Agricultural Sciences. 1(18): pp 250-256.

Breure A.M., and Zechmeister H.G. (2003) Bio-Indicators and Bio-Monitors, Elsevier, Philadelphia: pp 903-916.

Climate and Weather (2019). Climate Information and Current Weather in Nigeria. www.wordtravel.com. Achieved from the original on 23 October 2017. Retrieved 25 April 2019

Coelli, T.J. (1995). Recent Development in Frontier Modelling and Efficiency Measurement. Australian Journal of Agricultural Economics 39(3): pp. 219-245.

Ekine, D. I. and Onu, M. E. (2008). Economics of Small-Scale Palm Oil Processing in Ikwerre and Etche Local Government Areas of Rivers State, Nigeria. Journal of Agriculture and Social Research 8 (2): pp. 1-9

Emmanuel, N.J. (2013). Adoption of Improved Technology and Farm Level Technical Efficiency of Small-Scale Oil Palm Producers in the Western Region of Ghana. Unpublished Thesis in the Department of Agricultural Economics and Agribusiness, College of Agriculture and Consumer Sciences, University of Ghana, Legon.

Emokaro, C.O. and Ugbekile, P.C. (2014). Economic Analysis of Oil Palm Processing in Ovia North East and Ikpoba-Okha Local Government Areas of Edo State, Nigeria. Nigerian Journal of Agriculture, Food and Environment 10(2): pp. 70-78

Food and Agriculture Organisation. (2015). Production / Crops: Oil, palm fruit, Statistics Division. http://faostat3.fao.org/browse/Q/QC/E.

Genius, M., Koundouri, P., Nauges, C. and Tzouvelekas, V., 2013. Information Transmission in Irrigation Technology Adoption and Diffusion: Social Learning, Extension Services, and spatial effects. American Journal of Agricultural Economics, 96(1): pp 328-344.

Gunn, P. (2014). Factors influencing Adoption of Recommended Palm Oil Processing Technologies in Ughelli-North and Isoko-North Local Government Areas of Delta State, Nigeria. Unpublished thesis in the Department of Agricultural Economics and Rural Sociology Faculty of Agriculture Ahmadu Bello University Zaria Nigeria.

Ikani, E.I, Annatte, A.I, Umane, M. and Jegede, O.C (1998). Study of extent of adoption of cockerel exchange technology (CET) by rural farmers in Adamawa state of Nigeria. Proceedings of the Silver Anniversary conference of the Nigeria society for Animal production (NSAP) 21-26 March 1998.

Korie, O.C., Ejike, O.U., Orebiyi, J.S., Osuigiri, I.I., Saliu, O.J. and Otitolaiye, J.O. (2013). Evaluation of the traditional method of palm oil processing in Isu LGA of Imo State, Nigeria. International Journal of Agricultural Economics, Management and Development. Vol 3: pp. 102 – 111.

Mignouna, B., Manyong, M., Rusike, J., Mutabazi, S. and Senkondo, M. (2011). Determinants of Adopting Imazapyr-Resistant Maize Technology and its Impact on Household Income in Western Kenya: AgBioforum, 14(3): pp. 158-163.

Muzari, W., Gatsi, W. and Muvhunzi, S. (2012). The Impacts of Technology Adoption on Smallholder Agricultural Productivity in Sub-Saharan Africa: A Review. Journal of Sustainable Development 5(8): pp. 69-77.

Nigerian Population Commission (NPC) (2006): National Population Commission, Sample Survey, Abuja, Nigeria.

Nwalieji, H.U. and Ojike, H.U. (2018). Characteristics of Small-Scale Palm Oil Production Enterprise in Anambra State. Journal of Agricultural Extension 22(1): pp. 22-34.

Oguzor, N. S. (2013). Technical and Economic Efficiency of Palm Oil Marketing in the Niger Delta Region of Southern Nigeria. Current Research Journal of Economic Theory 5(3): pp 38-43

PIND (Partnership Initiatives in the Niger Delta) (2012) A Scoping Study on the Palm Oil Value Chain in Rivers and Imo States, Nigeria. PIND ED-05-SSPOVCRIN https://www.ndpifoundation.org/wp-content/uploads/2018/09/Introducing-the-Palm- Oil-Scoping-Study.pdf

Ugwu, D. S. (2009). Problems and Prospects of Commercial Small and Medium Scale Cocoaand Oil Palm Production in Cross River State, Nigeria. Journal of Applied Sciences Research, 5(7): pp 827-832

How to Cite
OgunmolaO. O., OyawoleF. P., & OladeleB. O. (2023). EVALUATING THE EFFECTS OF ADOPTION OF IMPROVED PROCESSING TECHNOLOGIES ON TECHNICAL EFFICIENCY OF PALM OIL PROCESSORS IN OGUN STATE, NIGERIA. FUDMA JOURNAL OF SCIENCES, 3(4), 190 - 200. Retrieved from https://fjs.fudutsinma.edu.ng/index.php/fjs/article/view/1638