ABSTRACT:

The study evaluated the factors that affect net returns of palm oil wholesale marketers in Imo State, Nigeria. Specifically, the study described the socioeconomic profile of respondents, ascertained costs, returns, marketing margin, marketing efficiency and estimated the factors that affect net returns from palm oil wholesale marketing. The constraints militating against palm oil marketing were also identified. A multi-stage sampling technique was adopted in sampling 60 palm oil wholesalers for the study. Data were collected using structured questionnaire. Data were analyzed using simple statistics such as means and percentages, cost and returns analysis and regression models. Socioeconomic characteristics of the wholesalers showed that the mean age of the wholesalers was 52 years. Majority (56.7%) of the wholesalers was married and good proportion (53.3%) of them was females. Mean household size of 5 persons was recorded and average number of years spent in school was 12 years. Mean marketing experience of 11 years was recorded from the study and most (75%) of them belong to market union. The marketing of palm oil was found to be viable as indicated by positive net returns of N93124.24 per month. The coefficient of marketing margin was 14%, while the marketing efficiency was 116%. Result of regression analysis indicated that, age, marital status, educational level, marketing experience, source of finance, purchase price, transportation cost, selling price and storage cost were significant at various probability levels. Inadequate capital and high cost of transportation were the major constraints to palm oil marketing. It was recommended that palm oil marketers should form cooperative society to enhance their access to finance, and the relevant variables that significantly influenced net returns should be considered in policy issues.