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OIL PALM VALUE CHAIN IN DELTA STATE

SUBMITTED TO

DELTA STATE JOB AND WEALTH CREATION BUREAU


GOVERNOR’S OFFICE,
ASABA.

FEBRUARY, 2021
TABLE OF CONTENT

1.0 INTRODUCTION ................................................................................................ 1

2.0 PRODUCTION POTENTIALS .............................................................................. 2

3. CONTRIBUTIONS AND BENEFITS OF OIL PALM VALUE CHAIN ............................ 3

4. PRODUCTION SYSTEMS AND PATTERNS ............................................................. 5

5. ECONOMICS OF PRODUCTION ............................................................................ 5

5b. Table 2: Cost and Returns of Value Addition in Palm Oil Processing
for 24 Tonnes (2ha) FFB/Annum ...................................................................... 9

6. PROCESSING ACTIVITIES AND PRACTICES .........................................................11

7. MARKETING CHANNELS AND PRACTICES .........................................................13

8. OIL PALM VALUE CHAIN CHALLENGES AND CONSTRAINTS ..............................15

9. INVESTMENT OPPORTUNITIES AND POSSIBILITIES ...........................................17

REFERENCE ..............................................................................................................19

i
1.0 INTRODUCTION
Oil palm (Elaeis guineensis Jacq) bounds in Nigeria especially in the southern
region. Oil palm is found in both wild and plantations (Nwaugo et al; 2008; Ohimain
et al. 2013a). Basically oil palm thrives in tropical and subtropical regions (Izah and
Ohimain, 2015). It is a monocotyledons belonging to the palmae family (Ohimain et
al., 2012a) and produces separate malke and female inflorescences (Ibitoye and
Onje, 2013). Oil palm is propagated by seed.
During cultivation, oil palm is spend 9 – 12 months in the nursery section
before being transplanted. The useful economic plant start bearing fruit after 3 –
6years of planting, which could reach optimum yield in about 10years for Tenera
and Dura varieties respectively (Ibitoye, 2014; Ohimain et al; 2013a). Oil attain a
height of 10 – 18meters tall depending on the variety. Each oil palm tree produces
compact branches of fruit lets, weighing about 10 – 25kg with 100 – 3000 fruit lets
per bunch (Ibitoye and Onje, 2014).
The palm branch which bear the fruit develops into fruit bunches, each
bearing up to 200 fruits is a drupe with an oval, spherical or elongated in shape and
sizes depending on the variety (Ibitoye, 2014). Generally, palm fruits are dark in
colour but turn red, yellow, orange and blackish-red when ripe (Ibitoye, 2014;
Ibitoye and Onje, 2014).
Oil palm have been severally reported as the most oil bearing plants in the
world (Izah and Ohimain, 2013b; Akangbe el al. 2011; Oke chalu et al; 2011; Singh
et al 2010; Tagoe et al; 2012; Ugbah and Nwawe, 2008). Palm oil is one of the major
products produced from the processing of oil palm. Palm oil has found application
in both food and industries. Izah and Ohimain (2013a), Pleanjai et al. (2007)
reported that palm oil is a suitable feedstock for biodiesel production. Embrandin
et al (2012), Aghalino (2000), Izah and Ohimain (2013a), Ibitoye (2014), Basiron and
Weng (2004) reported that palm oil is used for soap, margarine, soap candles, base
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for lipstick, waxes and polish bases, confectionaries, tin planting, lubricant and
pharmaceutical products. However, nearly 90% of global palm oil produced is used
for food and feed production including baking and soap making etc (Mahlia et al;
2001Ohimain and Izah, 2014a; Akinola et al. 2010, Izah and Ohimain, 2013b).
Nigerian Institute for Oil Palm Research (NIFOR) (1986) reported that oil palm
contributes over 15% or about N62 million yearly to the national revenue and also
provides employment to millions of Nigerians. Palm kernel another important
product forms a substantial export product while the remainder is crushed locally
for palm kernel oil and palm kernel cake which is major ingredient in livestock feed
manufacture. The ever popular palm wine, which is also very important socio-
economically, is obtained from the male inflorescence. The leaflets of the oil palm
are used for making thatches for roofing houses, the leaf rachises are used for
fencing, reinforcing buildings and basket making. The mid ribs of the leaflets are
used for brooms. The bunch refuse which is left after the fruits have been removed
from the palm bunch is a source of potassium. Locally, it is used for making soap.
The palm trunk is sawn into timber and used in constructing fences, roofing houses
and reinforcing buildings.

2.0 PRODUCTION POTENTIALS


For optimal growth and production, oil palm requires stable climatic
conditions in particular with respect to light and moisture supply. Any deviation
from these conditions results in yield depression.
Oil palm strive best at high temperature. The optimal daily temperature
being 270 – 280c, with mean monthly values between 300 – 320c maximum and
210 – 240c minimum.
Oil palm require an average rainfall of 150mm/month, with dry periods not
exceeding 2 -3 months. Relative air humidity should be above 75% throughout the

2
year. On average, a minimum annual rainfall of 1,800mm is considered optimal,
ranging up to 2,500mm without harm and above 2,500mm is considered
unfavourable because this interferes with a lower solar radiation. The palm can
tolerate temporary flooding provided the water is not stagnant and the water table
is fluctuating (Verheye, 2010).
In Nigeria, oil palm grows best in acid sand soils. They are soils having loose
brownish top soil over a great depth of largely non-differentiated, non-mottled,
non-gravelly, porous sub-soil in which coarse sand is the predominant fraction and
clay content is up to 35% (NIFOR, 1986).
Delta State has the potential to be a leading oil palm producing state in
Nigeria having met these ecological requirements and growing conditions.

3.0 CONTRIBUTIONS AND BENEFITS OF OIL PALM VALUE CHAIN


Oil palm (Elaesis guineaesis) is one of the major economic perennial
agricultural crops grown in Delta State. Oil palm is referred to as NKWU, Onie and
Orie by the Ibos, Uhrobos and Isoko’s respectively of Delta State.
Palm oil, one of the major products obtained from oil palm processing, is
obtained from the reddish extract of the fibrous layers of fresh palm fruit bunch.
The oil is consumed locally in varied meals such as soup, native jolof rice etc (Wilcox
and Tasie, 2018). Extracts from the nut is used in the manufacture of soup, candles
and some other products (Akangbe et al., 2011). Palm oil contains carotene which
is rich in vitamin A (Adeniyi et al; 2014). It is a source of income and livelihood to
the rural farmers in the value chain process.
The prospect for job creation in oil palm processing is high as oil palm
production remains a major vocation in many rural communities, involving
hundreds of poor producers and processors. The palm oil industry represents one
of the most effective avenues for poverty alleviation, food security, ensuring

3
economic stability in Delta State and providing income for rural poor farmers. It
also has the prospects providing employment for millions of unskilled and semi-
skilled people. Ukpabi (2014) reported that the success or failure of processing
depends largely upon how labour and other associated resources are efficiently
used because it will increase the quality and quantity of food availability for
consumption and trade.
Oil palm sector could provide direct employment to about 4 million to oil
palm growing states in Nigeria and indirect employment to several people that are
involved in other value chain such as marketing (Ahmed, 2001). According to
Olagunnju (2008), Ohimain et al; (2014b, 2012b), the cultivation and processing is
a source of livelihood to several millions of families especially in the rural areas.
Table 1 below represents the number of staff that oil palm can employ in
smallholder and semi-mechanized palm-oil mills according to operational activities.

Table 1: Age and gender characteristic of oil palm processors in Nigeria


Socio- Ohimain et al; Ekine and Ajayi and Soyebo et al; Ohimain et al;
Economic 2014b Onu 2008 Solomon 2005 2012b; 2014a
2010
States Bayelsa Rivers Delta Osun Rivers
Processing Semi- Traditional
mills mechanized
Age %
21 – 30 11 6.7 – 14.6 .33.0 1.9 14.0
31 – 40 35 6.7 – 31.3 32.0 24.5 31.0
41 – 50 27 29.9 – 53.3 23.0 23.5 25.0
>51 27 31.3 – 33.3 24.0 50.0 30.0
Gender %
Male 72.7 62.5 – 66.9 74.0 79.4 73.0
Female 27.3 31.1 – 37.5 26.0 20.6 27.0

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4.0 PRODUCTION SYSTEMS AND PATTERNS
The Nigerian oil palm belt covers twenty four states, including all nine states
of the Niger Delta (Akwa-Ibom, Abia, Rivers, Edo, Imp, Ondo, Bayelsa, Cross River
and Delta). Within the oil palm 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 1.65million hectares to 2.4 million hectares and to a maximum of 3 million
hectares. The estimated for oil palm plantations in Nigeria ranges from 169,000
hectares (72,000ha of estate plantations and 96,000ha of smallholder plantations)
to 360,000hectares of plantations (PIND, 2011).
Delta State has an estimated 1.2 million hectares of oil palm plantation. This
is greatly influenced by the supportive vegetation and the efforts of both the
government and the farmers. Like in Nigeria, 80% of oil palm production in Delta
State is in the hands of small scale farmers mostly characterized by smallholders,
low productivity, low resource base and low income. A large proportion of
production comes from these dispersed smallholder farmers who harvest semi-
wild plants and use manual processing techniques.

5.0 ECONOMICS OF PRODUCTION


i. Output and Production Level: Yield from oil palm industry has
increase recently in Delta State. This could be attributed to recent
intervention campaign of the Delta State Government through the
provision of high yielding pure tenera varieties of oil palm seedlings,
fertilizer, herbicides, insecticides ad well as provision of tractors and
making it assessable and affordable to farmers.
In Delta state, fully mature oil palms produce an average of 15
tonnes/hectare/annum of fresh fruit bunches (FFB) (Field survey

5
2020). However, the yield is affected by a number of factors such as
age of palm, seed quality, soil and climatic conditions, quality of
plantation management and the timely harvesting and processing of
FFB. The ripeness of FFB harvested is critical in maximizing the quality
and quantity of palm oil extracted. This is in consonance with the
report of Singh et al; 2010; Sridhar and Ade Oluwa, 2009; Chavalpant
et al; 2006; Mahlia et al; 2001; Ohimain et al; 2013b who opined the
yield of 10 – 30 tonnes/hectare/annum of FFB.
During processing about 9 – 30% of the palm fruit forms palm oil while
70 – 90% end up as wastes and by-products such as empty fruit bunch,
chaff, palm press fibre, palm nut, palm kernel, palm kernel shell
(Ohimain et al; 2013b). Other waste generated include gaseous
emissions such as Nitroden dioxide (NO2), Carbon monoxide (CO),
Sulphur dioxide (SO2), Hydrogen sulphide (H2S), Ammonia (NH3),
Volatile organic compounds and suspended particulate matters etc
(Ohimain et al; 2013c; Ohimain and Izah, 2013a) and Liquid wastes
such as palm oil mill effluents (POME). All these find its usefulness in
the value addition of oil palm processing.

6
Flow charts from FFB to Palm Oil and PKO from two different field surveys
are as shown in figures 1 and 2 below:

THE PALM OIL PROCESS

FRESH FRUIT BUNCHES (1000kg)


STEAM CONDENSATE
STERILIZATION

STRIPPING EMPTY BUNCHES (234kg)

FIBROUS MATERIALS FRUITS (666kg)


STEAM
DIGESTION

WATER CRUDE OIL PRESS CAKE


PRESSING

NUT/FIBRE FIBRE (180kg)


SCREENING SEPARATION

OIL
CLARIFICATION NUT DRYING

DESANDING PURIFICATION DIRT


NUT CRACKING

CRACKED MIXED
SEPARATION DRYING DRY SHELL
DRY SEPARATION
(total shell
WASTE WATER 73kg
SLUDGE CRUDE PALM OIL WET SEPARATION
(180kg) (225kg) WET SHELL

KERNEL DRYING
KERNELS FUEL
(57kg)

Figure 6. Flow Chart for the Palm Oil Process (PIND, 2012)

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MASS BALANCE – FFB TO PALM OIL

Moisture
10%

X
Oil in Condensate
FFB -0.03%
Sterilization
100%

Sterilised FFB
89.97%

Empty bunch
23.4% to FFB
Stripping
14.75% water
8.20% NOS
Dilution water Fruitlets 0.45% oil
17.30% 66.57%
Boiling
Digestion
Pressing

Press Liquor Press cake


34.60% 31.97%
Clarification
Depericaper

Sludge Nut
29.40% 14%
26.60% water Fibre Shell
2.4% NOS 17.97% Nut Cracking
0.40% oil 7.28%
7.39% water 1.47% water
9.70% NOS 5.70% NOS
0.88% oil 0.11% Oil
Kernel
Oil 6.34%
22.90% 1.34% water
1.98% NOS
Source: Field Survey (2021) 3.40% Oil
8
5b. Table 2: Cost and Returns of Value Addition in Palm Oil Processing
for 24 Tonnes (2ha) FFB/Annum

Production Cycle of Oil Palm: 25 years and above

Items Amount Cost of Percent


(N) of Total Cost (%)
Harvesting Stage (Total) 156,900 32.16
Labour 40,000 8.20
Loading cost 18,000 3.69
Offloading cost 10,000 2.05
Haulage (Transportation) 58,900 12.07
Threshing 30,000 6.15
Digestion Stage (Total) 33,800 6.93
Labour 25,000 5.13
Water 1,300 5.13
Fuel / Wood 4,500 0.92
Other Inputs 3,000 0.61
Pressing / Extraction of Oil Stage (Total) 58,800 12.05
Labour 45,000 9.22
Water 1,300 0.27
Fuel / Wood 10,000 2.05
Other 2,500 0.51
Clarification and Drying Stage (Total) 55,500 11.38
Labour 45,000 9.23
Water 2,000 0.41
Fuel / Wood 8,500 1.74
Storage / Packaging (Total) 5,000 1.03
Containers 5,000 1.03
Kernel Recovery Stage (Total) 42,800 8.77
Labour 40,000 8.20
Water 1,000 0.20
Other Input Cost 1,800 0.37

9
Items Amount Cost of Percent
(N) of Total Cost (%)
Kernel Oil Pressing Stage (Total) 17,000 3.49
Labour 12,000 2.46
Fuel / Wood 4,000 0.82
Other Inputs 1,000 0.21

Other Variable Costs 70,000 14.35


Rent 50,000 10.25
Levies and Taxes 20,000 4.10

Total Variable Cost (TVC) 439,800 90.16

Fixed Cost (Total) 480,000


Delivery Van 280,000
Threshing Equipment 120,000
Extraction Equipment 80,000
Depreciations (10 years useful life and no 48,000 9.84
salvage value, using straight line method)
Total Production Cost (TVC + Depreciation) 487,800 100

Productivity Analysis
Total Revenue (TR) 1,172,000
Total Cost (TC) 487,800
Profit (л) = (TR – TC) 684,200
Gross Margin TR – TC x 100 140.2606
TR 1
Gross Return / Naira Invested 1,402.6

Sources: Owutuamor, et al; (2019)

As can be seen in table 2 above, the harvesting stage of the value addition
process, labour accounted for 8.2%, loading accounted for 3.69%, offloading costs
were 2.05%, transportation costs accounted for 12.07%, while threshing
accounted for 6.15%, making a total of 32.16% of the total cost.

10
Similarly, the digestion, pressing/extraction, clarification, storage/packing,
kernel recovery and palm kernel pressing stages constituted 6.93%, 12.05%,
11.38%, 1.03%, 8.77% and 3.49% respectively of the total cost.
From the profitability analysis, it can be seen that total revenue was
N1,172,000.00, total variable cost was N439,000.00, while depreciation was
factored in as N48,000.00 bringing the total value addition cost to N487,800.00.
This gave a profit of N684,200.00 for every 24 tonnes of FFB processed (i.e
N28,508.00/tonne) and a gross margin of 140.26%, signifying that for palm-
processing, the investor if bound to recoup N1.40 as profit. Thus, it is clear that
adding value to oil palm by processing it to palm oil and other derivations is
profitable. This is in line with the previous report by Nwalieji and Ojike (2018).

6.0 PROCESSING ACTIVITIES AND PRACTICES


The oil palm industry value chain is structure similarly to the of the crude oil
(Petroleum) industry. It comprises an upstream segment (planting, cultivation and
harvest), a mid-stream segment (Refining and processing) and a downstream
segment (end product, brand and industrial derivatives).

Delta State Oil Palm Growers Association

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Figure 3: Tree to Table, Palm Oil Value Chain Map

Fresh Palm Fruit Bunches From The Plantation

In-Country Mill

In Crude Palm Oil (CPO) Palm Kernel


-Country Mill -Country Mill
Refinery Crushing Plant

Various Palm Oils and Fats


Palm Kernel Oil (PKO) Palm Kernel Mill (PKM)
-Country Mill -Country Mill
Various Palm Kernel Oils and Fats Animal Feed

Food Industry Cosmetic and Chemical Industry Livestock Industry


Detergent Industry

Biscuit Ice Cream Cosmetics Paint Meat Products


Cakes Margarine Detergent Greace
Chips Mayonnaise Soap Chemicals
Chocolate Pastry Others
Cooking Oil Snacks
Crips Others

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In Nigeria, Beveridge (2009), report that the products that emanate from
value addition in oil palm processing can be grouped into three: fruit base (crude
palm oil, fibre and sludge), nut base (Kernel, palm cake, shell, empty bunch) and
truck based products. This is summarized in figure 4 below:
The products of the value addition in oil palm processing is summarized in figure 4

Food (frying oil, margarine, cocoa


butter substitute)
Crude palm oil
Oleochemical (stearine, soap,
detergent, lubricant biodiesel)
Fruit Fibre Particle board, pulp, paper
Sludge Feed stuff, soap, fertiliser
Kernel Frying oil, salad oil oleochemical
Palm cake Feedstuff, fertilizer
Oil palm Nut Shell Carbon briquette, activate carbon
particle board
Empty bunch Pulp, paper, particle board, fertilizer,
energy

Truck Furniture, particle board, feedstuff,


starch, energy

Figure 2: The production from value addition in oil palm processing (Beveridge, 2009)

7.0 MARKETING CHANNELS AND PRACTICES


Marketing is concerned with all stages of operations that aid movement of
the products to the final consumer. This includes assemblage, storage,
transportation, grading and financing. Palm oil demand is primarily driven by the
household consumers who prefer the Technical Palm Oil (TPO), because of its
flavour profile, but it is complemented by an increasing demand for the special
palm oil (SPO) to meet the needs of industrial processors.
In Delta State as in other Niger Delta Region there are both wholesale and
retail types in both rural and urban centres.

13
Generally, the supply of TPO, SPO and PKO to the end consumers or end-
users is carried out through local and foreign sources. The local sources is
characterized by three main actors namely:-
(i) Palm oil dealers;
(ii) Secondary processors; and
(iii) Automated processing plant owners.
There are also three main groups of end-users:-
(i) Household consumers of TPO;
(ii) Commercial users of TPO; and
(iii) Industrial users of SPO, SPO Value added products and PKO.

CRUDE PALM OIL AGGREGATING AND WHOLESALING


Generally, there are four categories of traders for TPO each having a place in
the existing value chain:
(i) Community Palm Oil Dealers: This group buys palm oil in bulk on a
regular basis for known dealers/merchants. They purchases palm oil
in plastic jerry cans of 20 litres; in drums of 200 litres each or in tankers
from plantation estate owners.
(ii) Peddlers: This group operates at the oil beaches and buys from
farmers and millers and sells to oil dealers, making a living largely from
commissions. The buy CPO from small holders during the market day
and hand it over to the dealers on commission basis.
(iii) Oil Merchants: This group have strong links with markets in the
Northern cities and Lagos. Some of these merchants have established
a procurement network with the local traders and middlemen and
they buy in drums of 200 litres each. They then deliver to different
offloading points at distant Northern States or Western Nigeria. They

14
own and operate distribution stores and have good distribution
network either in retailers, wholesalers or individual markets.
(iv) This group buys and stores the product during the period of high sully
and later sells to major dealers at a profit during the period of scarcity.
Farmers themselves often times serves as speculators; retaining oil
from their own production and storing it at home until cash is needed.

8.0 OIL PALM VALUE CHAIN CHALLENGES AND CONSTRAINTS


The Nigeria/Delta oil palm sector are faced with several challenges. These
include dominance of the industry by small holder who basically uses the manual
equipment for processing, political/regime changes, poor attitude towards work
and inadequate government policies, inadequate access to credit facility and poor
infrastructures.
(i) Dominance By Smallholders Processing Using Rudimentary Facilities:
Nigeria oil palm industry (including cultivation and processing) are
categories in to three scale of processors. The smallholder as a
plantation size of about 1 – 6 hectares, and they account for about
80% of the sector (Olagunju, 2008, Ohimain et al; 2012b, PIND 2011;
IPPA 2010).
On the other hand, semi-mechanized and mechanized processors has
a plantation size of 5 – 20 hectares and >20 hectares accounting for
16% and 4% of the oil palm sector respectively. The mechanized
processor basically used mechanized equipment for processing. The
semi-mechanized share about 50% of the characteristics of both
mechanized and smallholder processing (Izah and Ohimain, 2015b).
The smallholder processor uses rudimentary/manual equipment for
oil processing. Ibitoye and Onje (2013) stated that the use of crude

15
equipment for palm oil processing has led to decline in the nation’s
domestic supply. The processes employed by smallholder processors
is tedious and time consuming because it is carried out in batches. For
instance, it has been reported that the processing of oil palm by
smallholder and semi-mechanized is carried out between 6 – 10 and
4 – 6 days respectively (Izah and Ohimain, 2015b). Smallholder’s
processing method leads to reduction in palm oil yield by 42% (Orewa
et al; 2009) and poor quality of the palm oil processed.
(ii) Poor Attitude Towards Work and Inadequate Government Policies:
Following the deteriorating nature of the Nigeria oil palm industry with
an increasing population, government at various time came up with a
development plan to sustain the industry. The first National
Development Plan being (1962 – 1968); and another between 1970 –
1974 and thirdly 1975 – 1980). The third National Development Plan
(1975 – 1980) stressed the need for smallholder to increase the
plantation size. The policy did not yield optimum result due to poor
attitude towards work. The government attempted to bridge
production and demand gap through the lunching of programme
including planting of 1 million hectares of oil palm for 15 million tonnes
of FFB annually (Ugah and Nwaiwe, 2008). This program did not yield
desired result due to mismanagement rather it made the sector to be
festered.
(iii) Inadequate Credit Facilities and Unequal Distributions: Over 70% of
oil palm processing reside in the rural areas. Most of these processors
process oil palm to palm oil to cater for their immediate needs. Most
of them lack long term asset to be used as collateral to obtain loan
from the bank. On oil palm perspective, the government has not

16
provided robust credit facilities in the form of loan to the farmers with
little or interest. The little that the government has provided to the
farmers is hijacked by the political farmers. As such, most of the
people that get the loans often divert it to other areas, neglecting the
sole aim of the loan/credit facilities. Hence, the farmers continues to
cultivate and process palm oil on their own capacity, despite having
long term vision on the business.
(iv) Poor Infrastructural Facilities: Agriculture generally is being carried
out in the rural areas where majority of the cultivable land are located.
The rural areas in Nigeria lack basic infrastructures such as electricity
supply, good road, well equipped school and hospital. Hence most oil
palm processing mills especially smallholder generates their own
energy using palm oil processing solid wastes such as empty fruits=
bunch, palm kernel shells, chaff and palm press fibre for heating during
sterilization. The smallholder processors also depend on the diesel
powered engine for digestion activity. Due to lack of these basic
facilities, the cost of oil palm processing is very high.
(v) High Cost of Labour: Oil palm production is elaborate as well as labour
intensive. Most smallholders carryout their activities manually which
is very expensive. For instance the cost of harvesting one bunch of FFB
is N100 (Field Survey, 2021) which is very high compared to
mechanized harvesting.

9.0 INVESTMENT OPPORTUNITIES AND POSSIBILITIES


The oil palm sector has several prospects for investors when adequately
managed. There are in fact many ways for a prospective investor to play palm oil –
with some more lucrative than others. The major investment strategies include

17
investing in real assets and investing in publicly traded financial instruments. More
specifically, these can be broken down as follows:-
(i) Investing in upstream plantations (planting, cultivation and
harvesting) – real assets.
(ii) Investing in midstream assets such as crushing mills and refineries
(real assets).
(iii) Investing on downstream assets such as vegetable oil brands and
production assets, personal care brands and production assets or
industries product brands and production assets (real and intangible
assets).
(iv) Investing in oil palm futures.
Nigeria has an estimated population of about 170 million (Izah and
Ohimain, 2016). Investing on oil palm sector could provide direct
employment to about 4 million to oil palm growing states in Nigeria
and indirect employment to several people that are involved in other
value chain such as marketing (Ahmed, 2001).
Studies have shown that there is profitability in oil palm processing business.
Oladipo (2008) stated that palm oil enterprise is a critical commodity traced
globally and helps for the sustenance of the economy.

Delta State Oil Palm Growers Association

18
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