Invited paper presented at the 6th African

Conference of Agricultural Economists,

September 23-26, 2019, Abuja, Nigeria

Copyright 2019 by [authors]. All rights reserved. Readers may make verbatim copies of this
document for non-commercial purposes by any means, provided that this copyright notice
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 Value Addition in Oil Palm Processing in Anyama District, Ogbia Local
Government Area (LGA) of Bayelsa State, Nigeria.

by
Owutuamor, Zechariahs B. ; Iruo, Felix 2 and Ologidi, Cynthia 2
1*

1
Department of Agricultural Extension and Management, Federal Polytechnic Ekowe, Bayelsa State.
email: ilsignorzax@gmail.com Tel: +234 803 222 5083
2
Department of Agricultural Economics, Extension and Rural Development, Niger Delta University,
Wilberforce Island, Bayelsa State. Nigeria.

* Corresponding author
 ABSTRACT

The socio-economic characteristics, value chain processors, cost and returns; and problems
faced by oil palm processing and value addition were examined in Anyama District of Ogbia
local Government Area, Bayelsa State, Nigeria. Purposive and random sampling were used to
select 6 communities and 10 palm fruit producers respectively for the study. Primary data
collected by the use of questionnaires were analyzed using percentages, mean, and cost and
return analysis. Results revealed that majority of the respondents were married males within
the age range of 41-50 years with some form of education, having a household size of 1-4
persons with 20-25 years’ experience in the industry. It was also revealed that value addition
processing from palm fruit to storage, which is profitable with a N1.40 returns per one Naira
(N1.00) invested are fruit and nut based products like palm oil and palm kernel oil respectively.
Some constraints like high cost of transportation, theft, dearth of storage facilities and
unfavourable weather affected the profit levels. It is thus, recommended that the State
Government and government related agencies should create more motorable roads or upgrade
the existing ones and make provision for storage facilities at subsidized rates to palm oil
producers.

Keywords: Bayelsa State, cost and returns analysis, oil palm, palm kernel oil, value
addition.
Introduction
The oil palm, which is a monoecious crop, is botanically known as “Elaeis guiñeensis”, a palm
species that serve as the sole source of palm oil to humans. It has the potentials to bring about
economic development and food security through the activities and value addition in its
production chain.

Value addition is a business activity where particular members of a supply chain are rewarded
for undertaking activities that are previously performed by downstream industries or for
accomplishing activities that are deemed valuable but have been overlooked by producers
(Amanor-Boadu, 2003). Sarku (2014) noted that the United States Department of Agriculture
(USDA) defined value addition as a modification of the state or form of a product, the
production of goods in a way that improves its value and the physical segregation of an
agricultural product in a way that results in boosting the value of that product. Anderson and
Hanselka (2013) generally agreed that that the major objectives of value addition are often
aimed at the maximization of producers’ net farm income and wealth. This is necessary so that
they do not just produce to enrich participants in the downstream of their supply chain, and in
order to benefit from economies of scale, it is essential to expand the activities in value addition
processes.

Beveridge (2009) posited that products, which emanate from the processing of oil-palm can be
conveniently grouped into three, viz:
1. fruit-based products, which include crude palm oil, fibre and sludge;
2. Nut-based products, such as palm kernel oil, palm kernel cake and empty shell; and
3. Trunk-based products.
These products are used as food (cooking and frying oil, margarine, cocoa butter substitute,
etc.), oleochemical (Stearine, soap, salad oil, detergent, lubricant, biodiesel, etc.), particle
board, pulp, paper, fertilizer, energy, feedstuff and starch.

Oil palm processing and its value addition have the potential to strengthen national food
security and reduce rural poverty. The extra value like vegetable oil, palm kernel oil, native
soap, can be used for commercial purposes, which serve as a source of income. Also,
processing of palm kernel by small scale producers have the ability to increase income, reduce
rural unemployment, rural poverty and wastages in oil palm processing (Sarku, 2014).

Bassey (2016) reported that Nigeria was the leading producer and distributor of palm oil until
the petroleum (oil) boom of the late 1970’s. Data from Gourichon (2013), Statista (2017), Palm
Oil Analytics (2017), amongst many, shows that Nigeria and other West Africa countries have
generally been stagnated or subjected to critical fluctuation of palm oil production, which is a
major source of income and employment to a substantial proportion of the rural populace in
the southern part of the country. However, the decline in agricultural output and export,
particularly with regards to oil palm processing and value addition is not conducive for the
economic development of the nation. More so, that high labour costs in oil palm processing,
non-availability of good roads in prospective high producing areas and dearth in the sources of
credit facilities and infrastructure needed in the processing of oil palm, have also contributed
immensely in a negative manner to affect value addition processes (Edem, 2012; Gourichon,
2013; Nwalieji & Ojike, 2018). With the myriad of challenges already identified, this study
therefore seeks to determine the level of value addition in the oil palm processing industry in
Anyama District, to know if it is truly profitable, whether or not there is capacity for more
entrants and the challenges they face in the value addition process. This study would then
indicate if the central idea about value addition, as operationalized in the oil palm industry,
especially in small-scale scattered production units is truly profitable, as well as examine how
farmers and processors add value to the raw materials in the face of all the daunting challenges.

The broad objective of this study is to evaluate value addition in oil palm processing in Anyama
District of Ogbia Local Government Area in Bayelsa State, Nigeria. While the specific
objectives are to: describe the socio-economic characteristics of oil palm processors; identify
the value chain processes of oil palm; ascertain cost and return of value addition in oil palm
processing; and identify challenges faced by oil palm processors in Ayanma District.

The significance of this study is enormous and cannot be over emphasized, since Nigeria
already have the awareness that oil palm is one of the most important monoecious crops that
feed the world. Therefore, the study will provide us with information which will be useful to
government agencies, Ministries of Agriculture, researchers, oil palm farmers and people
involved in the oil palm value chain such as input suppliers, assemblers and processors. It will
further show how government, oil palm farmers, assemblers and processors can provide some
basic facilities that will help mitigate against some of the challenges faced by oil palm
production in the area.

Literature Review
Conceptual Framework: Value Addition in Agriculture
Several meanings have been attributed to value addition in agriculture because it comprises
many innovative activities which sterns from producer’s creativity (Faibairn & Gustafson,
2004). Value addition in agriculture connotes modifications, improvements and enhancements
of production, processing and marketing activities (Flemming, 2005), while Ernest and Woods
(2011) also specified that value addition is not related to a specific activity because it is the
result of the creative imagination of producers who may be responding to consumer’s need.
The USDA (2002) defined value addition as:
• A modification of the state or form of a product.
• The production of goods in a way that improves it value.
• The physical segregation of an agricultural product in a way that results in boosting the
value of a product.
Anderson and Hanselka (2013) noted that value addition in agriculture can be answered by the
questions: What is customer value and what creates a value-added product? The answers to
these questions, according to Webber and Labaste (2010), also enables equal opportunities to
be derived by producers and consumers. As such, value addition in agriculture is variously
defined because it encompasses many innovative activities which stems from producers
creativity (Knop & Transstad, 2000).

Analytical Framework: The Value Chain

The analysis of value addition in the oil palm industry draws heavily from the value chain
theory because the underlying drive, which is to alleviate poverty among small scale industries
and smallholder farmers, participating directly or indirectly in global trade (Kaplinsky &
Morris, 2000; Kaplinsky, 2013). The theory also posits that each point or linkage in the value
chain presents an opportunity for people to engage in innovative activities for income and
activities through which value and competitive advantage are created. Thus the total benefit
that can be derived by a value chain actor is directly proportional to the number of activities
engaged in. A value chain is a full range of interconnected value adding activities required to
bring a product or service through the different phases of production, including procurement
of raw materials other inputs, assembly, physical transformation, acquisition of required
services such as transportation or cooling, and ultimate response to consumer demand (Janssen,
et al., 2010). The characteristics of value chain have been identified by Webber and Labaste
(2010) as including value addition, cost build-up and value accretion, distribution of burdens
or benefits, variance according to the specific product type and target market of linkages
between productive activities/actors, dynamism of economic activities which necessitates
adjustments in strategy and tactics, recognition of different kinds of value chains depending on
the activity that has the most leverage, information and power. Consequently, each of the
characteristics described consist of interactions between some structures and elements, but a
broad structure of a value chain is characterized by the end market, business and enabling
environment, vertical linkages, horizontal linkages and supporting services (Sarku, 2014). The
structures in oil palm processing value used herein operate with some elements that interact
and shape the structure of a value chain; the elements include upgrading or innovation,
governance, information transfer, cooperation and competition, and power exercised by
businesses in their relationships with each other (Amanor-Boadu, 2003; Webber and Labaste,
2010). The characteristics, and element of the value chain theory make it a suitable instrument
to demonstrate the value addition in the oil palm industry (Sarku, 2014).

Value Addition in Oil Palm Processing

The products that emanate from value addition in oil palm processing can be grouped into
three: fruit-based (crude palm oil, fibre, and sludge), nut-based (kernel, palm cake, shell, empty
bunch), and trunk based products (Beveridge, 2009). Explaining further, Proforest (2011)
differentiated these products as follows:
Fruit Base: the product emanate from the fruit base are the crude palm oil (food frying oil,
cocoa, butter, fiber (particle board, pulp, paper) sludge (feedstuff, soap and fertilizer).
Nut base: The products gotten from the nut base are kernel (frying oil, salad oil), palm cake
(deed stuff, fertilizer) shell (carbon briquette, activated carbon) empty bunch (pulp, paper,
particle, board, fertilizer, energy).
Trunk: Product emanate from the trunk base are furniture, particle board, starch, firewood.

The products of the value addition in oil palm processing is summarized in figure 1.

Figure 1: The products from value addition in oil palm processing (Beveridge, 2009)
Theoretically, processing is conversion of a commodity from its raw state to a more acceptable
form. In the case of oil palm, it involves changing the raw form of the product from fresh fruit
bunches (FFB) to palm oil and other products, to make it ready for use. The oil winning process
(value addition) in summary involves the reception of FFBs from the plantations, sterilizing
and threshing of the bunches to free the palm fruit, mashing the fruit and pressing out the crude
palm oil, which is further purified and dried for storage and export (Poku, 2002). After
harvesting the FFBs, according to Anyaoha, Sakrabani, Patchigolla and Mouazen (2018), the
palm fruits are processed into palm oil using either manual/traditional or mechanized/modern
methods. However, other authors, like Ukwuteno (2011) refered to the manual/traditional
method as local method and further noted that this is a very labourious process, going ahead to
describe it as follows. The palm bunches are quartered and covered with plantain leaves or
palm branches overnight for easy separation of nuts from the spikelets. The fruits are separated
from the spikelets and then washed in water before boiling for one (1) to one and a half hour
(1 hour, 30 minutes), pounded with a matching pestle in purposely-constructed wooden or
concrete mortars or drums buried in the ground or macerated with feet in a canoe or canoe-like
container. After which, water is added and the mix is well-shoveled up or mixed to wash the
kernels very well, so that all nuts can be carefully removed by hand or using small baskets to
grope or skim inside the palm fruit broth to remove kernel and fibres. The fibres are well-
shaken over or squeezed out in the sludge until oily foam floats to the surface of the sludge.
The foams continue to collect in a container until the operation is completed. The broth or
sludge is later boiled for some time to allow clean edible palm oil collect on the surface, leaving
the sludge at the bottom of the pot. The floating oil is then decanted to separate the oil from the
sludge by scooping up or tilting the pot in one direction so that the oil can flow out into
containers for storage (Ukwuteno, 2011). The palm kernel is separated from the other residues
from the mashing and washing process and then cracked to get the nut, which is ground and
boiled with water in a big pot. After boiling for some time, the frying oil float on top of the hot
water and is then decanted and collected for storage. On the other hand, the palm kernel can
also be sun-dried, cracked and toasted in a cooking pot to extract the palm kernel cream or oil,
locally called uvi-ode.

Nwalieji and Ojike (2018) summarized the oil winning process to involve the reception of fresh
fruit bunches from the plantations, sterilizing and threshing of the bunches to free the palm
fruit, mashing the fruit and pressing out the crude palm oil. The crude oil is further treated to
purify and dry it for storage and export. The mechanized/modern method uses such simple
machines as presses to more sophisticated palm oil mills in processing fresh fruit bunch (ffb)
into palm oil and other products. The palm oil mill consists of a series of operations designed
to separate the harvested bunch into distinctive fractions – stalk, fruit, fibre, oil, sludge, nut,
kernel and so on. (Ukwuteno, 2011). Palm oil processors of all sizes go through these unit
operational stages, only differing in the level of mechanization of each unit of operation and
the interconnecting materials transfer mechanisms that make the system batch or continuous
(Nwalieji & Ojike, 2018), as such, the scale of operations differs at the level of process and
product quality control that may be achieved by the method of mechanization adopted (FAO,
2004; Nwalieji & Ojike, 2018).

MATERIALS AND METHODS

The Study Area
This study was conducted in Anyama District of Ogbia Local Government Area, located in the
East Senatorial District of Bayelsa State. Ogbia Local Government Area with a population of
179,926 persons (National Population Commision (NPC), 2006) has 15 wards and 51
communities consisting of four (4) clans namely: Anyama clan, Emeyal clan, Aburane clan
and Oloibiri clan. The Anyama clan is made up of Eighteen Communities namely; Otuopoti,
Otuogori, Otueggire 1 and 2, Onuebum, Ayakoro, Ologi, Otuedu, Anyama, Ologohe, Okiki,
Otakanagu, Okodi 1 and 2, Ewarna, Epebu, Emadike. The primary occupation of the people in
the study area includes farming, palm oil processing, petty trading, fishing and civil service,
while other economic activities includes canoe carving, palm wine tapping, lumbering and
ogbono picking (Allison-Oguru, et al., 1999).

Sample Size and Sampling Technique

The population for this study included all oil palm fruit processing households in Anyama clan
of Ogbia LGA, Bayelsa State, while the sample size was sixty (60) respondents. A two-stage
multistage sampling technique was used for this study. The first stage involved purposely
selecting six (6) communities (Otuopoti, Anyama, Ayakoro, Okiki, Emadike and Ewaran)
known for oil palm processing, while in the second stage, ten (10) palm oil extracting and
processing households were randomly selected from each of the six communities, giving a total
of sixty (60) respondents which formed the sample size for this study.

Method of Data Collection

This study essentially made use of primary data collected by the administration of structured
questionnaires. The reliability of the research instrument was established by using the test-
retest method in a pilot survey, by re-administering the questionnaires to a select group of same
individuals in the sample, several days after the initial questionnaires have been collected from
them and then comparing the results obtained to check for disparity in the answers. While,
validity of the instrument was determined using the face (content) validity by giving the
questionnaires to well-grounded researchers (experts and experienced in Agricultural
Economics) in the Department of Agricultural Economics and Extension Management of the
Niger Delta University to see whether or not they agree that the statements do measure what
was intended accurately.

Data Analysis
Data collected for the study was analyzed using simple descriptive statistical tools such as
percentages, frequencies and mean scores, presented in tabular form, while profitability was
assessed using cost and returns analysis.

RESULTS AND DISCUSSION

Socio-Economic Characteristics of Oil Palm Processors
Table 1 shows the results of the 60 respondents randomly interviewed. 70.0% were males,
while 30.0% were females, indicating that the oil palm value chain in Anyama clan is
dominated by males, which, apart from the risk elements, is attributable to the tedious nature
of the jobs involved in value addition, as the products are bulky and marketing involves a lot
of travelling to far distances, especially the northern parts of the country. 46.7% of the
respondents were aged between 41-50 years, 26.7% were within the ages of 31-40 years, 13.2%
fell within the ages of 21-30 years and the remaining 13.4% were between 51-60 years, thus
indicating that oil palm processing is mostly carried out by people above middle-age. 20.0% of
the respondents were single, 50.0% were married, while 30.0% were divorced, revealing that
majority if the respondents are family people who were either previously married or still
married. This may be due to the fact that family labour is sometimes employed in carrying out
certain tasks in the value addition process. 50.0% of the respondents had primary school
education, 30.0% had gone to secondary school, 11.7% had tertiary education, while the
remaining 8.3% did not have any formal education, indicating that most of the respondents
have had some sort of formal education and as such, may be knowledgeable enough to
understand the workings of the industry. Results indicate that 53.3% of the respondents have a
household size of 1-4 members, 30.0% belong to a household with 5-8 members, while 16.7%
have a household size of 9-12 members. 41.7% of the respondents have 20-25 years’ experience
in the industry, 25.0% have 15-20 years’ experience, 13.3% have 10-15 years’ experience,
8.3% have 5-10 years, while 11.7% have 1-5 years’ experience, thus indicating that majority
(about 80%) of the respondents have over 10 years’ experience in adding value to oil palm and
as such are not new to the activities and challenges prevailing in the industry.

Table 1: Socio-economic Distribution of the Respondents

S/N Socio-economic Characteristic Frequency Percentage (%)
1. Sex Male 48 70.0
Female 18 30.0
Total 60 100.0
2. Age (Years) 21-30 8 13.2
31-40 16 26.7
41-50 28 46.7
51-60 8 13.4
Total 60 100.0
3. Marital Status Single 12 20.0
Married 30 50.0
Divorced 18 30.0
Total 60 100.0
4. Level of education Primary 30 50.0
Secondary 18 30.0
Tertiary 7 11.7
No formal education 5 8.3
Total 60 100.0
5. Household size 1-4 32 53.3
5-8 18 30.0
9-12 10 16.7
Total 60 100.0
6. Years of experience 1-5 7 11.7
5-10 5 8.3
10-15 8 13.3
15-20 15 25.0
20-25 25 41.7
Total 60 100
Source: Field Survey, 2018.

Value Addition in Oil Palm in Anyama District

Value addition in the oil palm value chain in Anyama district involves basically processing and
storage. Oil palm processing in Anyama district followed the traditional/manual/local methods
described by Ukwuteno (2011) and Nwalieji and Ojike (2018), while palm oil and other by-
products like frying oil and kernel oil/cream are stored such containers as drums, tin, gallons
and rubber cans, with the intent of not running out of stock during the off season, since almost
all agricultural production in Nigeria are plagued by seasonality due to the overdependence on
rain-fed conditions. This work hence, was limited to small-scale palm oil producers that use
the local/traditional/manual method of production.

Cost and Return Analysis in the Oil Palm Value Addition Process
In the harvesting stage of the value addition process, labour accounted for 8.2%, loading
accounted for 3.69%, offloading costs were 2.05%, haulage (transportation costs) accounted
for 12.07%, while threshing accounted for 6.15%, making a total of 32.16% of the total cost.
In the digestion stage, which involves cooking, sterilization and mashing, labour contributed
5.13%, water was 0.27%, fuel/fuel wood was 0.92% and other inputs costed 0.61%, totaling
6.93% of the total cost of value addition. During the oil pressing and extraction stage, labour
accounted for 9.22%, water for 0.27%, fuel/fuel wood contributed 2.05% and other unspecified
inputs accounted for 0.51%, giving a total of 12.05% of the total cost value. The drying and
clarification stage contributed a total of 11.38% to the total cost of value addition to the palm
fruit, with labour contributing 9.23%, water contributing 0.41% and fuel wood contributing
1.74%. During packaging and storage, a total of 1.03% was contributed to the total cost, with
containers accounting for the whole 1.03%. During kernel recovery, labour costed 8.20%,
water 0.20% and other inputs accounted for 0.37%, making a total of 8.77% of the total cost.
At the kernel oil processing stage, labour accounted for 2.46%, fuel/fuel wood for 0.82% and
other inputs constituted 0.21%, making a total of 3.49% of the total production cost. Other
variable costs such as rents and taxes (levies) accounted for 10.25% and 4.10% respectively,
bringing the total to 14.35% of the total production cost. Thus, the total variable cost in the
value addition in palm fruit processing in Anyama district accounted for 90.16%, while fixed
cost factored in as depreciation, using a straight line method with no salvage value and a 10-
year useful life span, contributed the remaining 9.84% to the total cost of value addition.

From the profitability analysis in table 4.3, it can be seen that total revenue was N1,172,000.00,
total variable cost was N439,800.00, 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 and a
gross margin of 140.26%, signifying that for every N1.00 invested in value addition in oil palm
processing, the investor is 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 derivatives is profitable and lucrative, in line
with previous studies by Emokaro and Ugbekile (2014), and Nwalieji and Ojike (2018).

Table 2: Cost and Return of Value Addition in Palm Oil Processing

Items Amount (N) Cost as a Percent 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 0.27
Fuel/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/fuel wood 10,000 2.05
Other Input Costs 2,500 0.51

Clarification and Drying Stage (Total) 55,500 11.38

Labour 45,000 9.23
Water 2,000 0.41
Fuel/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

Kernel oil processing 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 Costs (Total) 480,000

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

Profitability Analysis
Total Revenue (TR) 1,172,000
Total Cost (TC) 487,800
Profit (π) = (TR – TC) 684,200
Gross Margin �
𝑇𝑇𝑇𝑇 − 𝑇𝑇𝑇𝑇
× 100� 140.26%
𝑇𝑇𝑇𝑇
Gross return/naira invested 1.4026
Source: Field Survey Data, 2018

Constraints in Oil Palm Processing in Anyama District

The table below shows that 46.7% of the respondents were affected by high cost of
transportation, while 25.0% were affected by cases of theft, 20.0% were affected by inadequate
storage facilities and 8.4% were also affected by weather constraint. Thus, indicating that the
major constraint to oil palm processing is high cost of transportation, this is most likely because
oil palm is bulky, found in areas that are difficult to access due to the swampy nature of the
terrain and the density of the forest. Moreover, the local processors do not own oil palm
plantations of their own, so the palm trees are scattered all around, thereby, making it tedious,
challenging and tasking to gather harvested oil palm fruit bunches in one place. This is similar
to observations raised by Edem (2012) and Nwalieji and Ojike (2018), who summarised this
constraint as infrastructure deficit.

Table 3: Distribution of respondents according to constraints experienced

Educational level Frequency Percentage (%)
High cost of transportation 28 46.7
theft 15 25.0
Storage facilities 12 20.0
weather 5 8.3
Total 60 100.0
Source: Field Survey Data, 2018
Summary, Conclusion and Recommendation
This study examined the socio-economic characteristics of oil palm processors like age, sex,
level of education, marital status, etc., identify the value chain processes, ascertain cost and
returns and identify constraints to oil palm processing. Analytical tools like percentages, mean
frequency tables and cost and return analysis were used to analyze the data. The study showed
that majority of the palm oil producers in Anyama district of Ogbia LGA in Bayelsa State,
Nigeria were mid-level educated married males, within the age bracket of 41-50 years, having
a household size of 1-4 members, with 20-25 years’ experience in palm oil processing. Results
revealed that the main products of the value addition processing of oil palm in Anyama district
can be grouped into fruit based product, which is palm oil and nut based product, which is palm
kernel oil. The value addition process in oil palm processing includes the following stages:
harvesting, digestion, pressing/extraction, drying/clarification, packaging/storage, kernel
recovery and kernel oil processing.

This study concluded that adding value to palm fruit was profitable with a 140.26% gross
margin, indicating a N1.40 returns for every one Naira (N1.00) invested, thus, suggesting that
the venture is highly profitable, in line with previous studies. The constraints affecting value
addition in oil palm processing were identified as high cost of transportation, theft, inadequate
storage facilities and unfavourable weather conditions in the study area.

The following recommendations were made to improve the output and quality of the final
products of the value addition process in oil palm processing in Anyama district. The Bayelsa
State government should give soft loans to palm oil producers and should encourage the
transformation of oil palm industries through subsidy and other incentives such as acquisition
of land and establishment of oil palm plantations and also assist oil palm farmers and processors
in the area of research. Based on the high gross margin indicating that oil palm processing and
value addition is profitable, it shows that there is capacity to accommodate more entrants,
therefore more people should go into the venture to be gainfully employed. There should be
construction, reconstruction and rehabilitation of access roads linking most of the oil palm
producing and processing areas in the Anyama district to help solve the problem of high cost
of transportation. Oil palm farmers should be educated and encouraged on the need to cut down
and replace aging oil palm trees which are over thirty (30) years old, to help increase
productivity and output of the producers.

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