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September 2017 Vol. 5 No.9

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Adakaren B
Ekhator OJ

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Merit Research Journal of Agricultural Science and Soil Science (ISSN: 2350-2274) Vol. 5(9) pp. 175-180, September, 2017

Copyright © 2017 Merit Research Journals


Analysis of Profitability and Determinants of Profit in Raphia Palm Wine Tapping and Marketing in Nigeria


B. Adakaren1*, S.A.N.D. Chidebelu2, C.J. Arene2 and O.J. Ekhator1


1Nigerian Institute for Oil Palm Research (NIFOR), Benin City, Edo State, Nigeria
2Department of Agric. Econs., University of Nigeria, Nsukka, Nigeria

*Corresponding Author’s E-mail: soblessed4real@yahoo.com
Phone: 07033334838

Accepted September 17, 201




Raphia palm (RP) exploitation and utilization have yielded direct and immediate micro level benefits to economically disadvantaged rural communities in Nigeria. Over the years, the level of the importance of RP as a resource to the rural communities was not fully appreciated. The study thus examined the level and determinants of profit in Raphia palm wine (RPW) tapping and marketing in Nigeria using Niger Delta Area (NDA) of the country as a case study. Multi-stage random sampling technique was used to select the respondents for the study while primary data was used to source information from the respondents using pre-tested, structured questionnaire. Data were analysed by means of gross margin, efficiency ratio, profitability ratio, operational efficiency and regression analysis. The results obtained from the study showed that RPW tapping and marketing in Nigeria had a gross margin, total variable cost, profit ratio and efficiency ratio of N81 286.5, N34 990, N232.3 and 3.323, respectively, for the tappers and N36 616.92, N132 619.74, N28 and 1.276 for the marketers, respectively. Therefore, both tapping and marketing of RPW in the country were profitable and can be used to reduce poverty level of participants’ through job creation and economic empowerment of the rural populace. Further analysis of the data showed that input and output prices influenced the profit level of the tappers and marketers.

Key words: Raphia palm, Raphia palm wine, efficiency, profit, exploitation, Nigeria







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