article · European Modern Studies Journal
An investigation into small-scale oil palm seedling production in Makurdi Local Government Area, Benue State, assessed the economic viability and constraints faced by local nurseries. Drawing on survey data from 114 producers, the findings indicate that the enterprise is profitable, generating an average total revenue of 254,603.22 Naira against total variable costs of 106,612 Naira, leaving a positive mean gross margin of 147,990.74 Naira. The workforce is balanced between genders, with an average age of 42 years and relatively high formal education, as 40 percent attained tertiary schooling. However, nearly half of respondents identified poor access to improved seed varieties as a severe obstacle. Key input costs included labour, polythene, shade, and fertilisers. Addressing input shortages through cooperative credit and targeted agricultural extension could further stabilise nursery operations.
Oil palm is a vital agricultural commodity, and nursery enterprises supply the foundation for future plantation yields. Demonstrating that seedling production is profitable highlights its potential to support rural livelihoods and employment. At the same time, pinpointing critical barriers such as restricted access to certified seed varieties helps development agencies, agricultural extension services, and policymakers design practical interventions to support smallholder commercial viability.
The findings show immediate commercial relevance for agricultural input suppliers, nursery operators, and agribusiness cooperatives currently operating in local markets. Because this analysis evaluates active, existing seedling enterprises, the commercial model is already applied and functioning in the real world. Growth opportunities lie in distributing certified improved seed varieties, supplying affordable packaging materials like polythene, and forming farmer cooperatives to improve access to formal credit and technical extension support.
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The study examined the profitability of small-scale oil palm seedling production in Makurdi Local Government Area of Benue State. A multi-stage sampling technique was used to select 114 respondents for the study. Primary data were obtained with the aid of a well-structured questionnaire and analysed using descriptive and inferential statistics such as mean, frequency distribution, percentages, gross margin analysis and F-value test. Results showed that majority (50.9%) of the respondents were males, while (49.1%) were females. The mean age (42 years) of respondents indicates that small-scale oil palm seedlings producers are in their productive age, while the result of household size was 8 persons. Result of educational level shows that the majority (40.0%) of the respondents attended tertiary institutions, (32.5%) attended secondary school, (12.3%) attended primary school while (12.3%) had no formal education. Result on constraints faced by oil palm seedling producers shows that (47.4%) of the oil palm seedling producers indicated insufficient access to improved varieties which is a very severe challenge encountered by oil palm seedling production in the study area. The results on the profitability of oil palm seedling production show that the average mean value of seed, top soil, fertilizer, labour, water, agrochemical, polythene, equipment, shade and others respectively stood at ?25.90, ?31.98, ?5502.66, ?29711.45, ?5526.84, ?287.54, ?20493.95, ?7865.83 and ?19842.8, while the total variable cost stood at ?106612, the mean total revenue stood at N254603.22 while the mean total gross margin stood at ?147990. The study concludes that oil palm seedling crop enterprise is profitable in the study area with positive values ?147, 990.74 of the mean gross margin in oil palm seedling production. It was recommended that government and NGOs should support farmers with inputs such as seed and fertilizers that will aid oil palm seedling farmers in their production, organize seminars and workshops with increased involvement of extension agents on oil palm seedling production to educate them while farmers should be encouraged to join cooperatives unions as this will help in accessing credit facilities for sustainable oil-palm seedlings production in agriculture.
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DOI: 10.59573/emsj.9(1).2025.4
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