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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Beyond adjustment: the production of palm oil in Nigeria
Author:Ekwere, A.O.
Year:1996
Periodical:The Nigerian Journal of Economic and Social Studies
Volume:38
Issue:2
Pages:153-168
Language:English
Geographic term:Nigeria
Subjects:economic policy
palm oil
Abstract:The problems facing the oil palm industry in Nigeria cannot be separated from those facing the agricultural sector as a whole. Failure to achieve production targets can be explained partly by the fact that about 90 percent of palm oil is extracted from wild, low-yielding oil palms, and the inefficiency of traditional extraction methods. Other inhibiting factors include the inability of the government to implement improvements, such as replanting, and to provide modern processing mills. The low producer prices set by the marketing boards in the pre-SAP period also acted as a disincentive to oil palm farmers. Other constraints included inadequacies in the provision of credit and extension services to farmers. Under the SAP initiated in 1986 the importation of vegetable oils was banned, producer prices were to be determined by the free market, exchange and interest rates were deregulated and input subsidies reduced. The performance of the oil palm industry in response to these measures was less than satisfactory. Future policy for sustained growth of oil palm production must take account of the observed inability of the SAP to significantly bridge the gap between supply and demand for palm oil. Emphasis should be placed on the promotion of smallholder oil palm schemes and the provision of adequate incentives to smallholders. Bibliogr., sum.
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