Value Chain Analysis of Palm Fruit Production and Processing in Abia State, Nigeria

Abstract

This study analyzed the value chain of palm fruit production and processing in Abia state of Nigeria. The analysis was imperative, because of the increased emphasis on value addition to improve the market value of agribusiness products. The objectives considered included the socio economic characteristics of the respondents, the cost and returns of the value addition stages in the value chain, the determinants of participation in the value chain and the effect of the value addition stages on the value chain. The tools used to achieve these objectives are descriptive statistics, gross margin analysis, probit regression analysis and polynomial regression analysis. Random samples of 40 palm fruit farmers were selected from the three agricultural zones of Abia state, to make up a sample size of 120 palm fruit Agribusiness operators. The analytical synthesis unveiled that most of the palm fruit Agribusiness operators were headed by females with highest education attainment as secondary education. A major constraint to the value chain includes credit as a limiting factor. The factors found to be significantly affecting the participation in the value chain were credit, farm size and education. The harvesting, cooking, digesting, clarification, extraction stages of value addition were found to be positive and significantly influencing the value chain. It is therefore recommended the education (training) and credit facilities should be made available and policies should be formulated to enhance the participation in the palm fruit value chain as it was found to be a profitable means of entrepreneurship and the proper management of the stages of value addition to enhance the palm fruit value chain.