Economic Analysis of Palm Oil Processing Enterprises Among Rural Women in Ondo State, South West Nigeria

Palm oil processing is a significant livelihood activity for rural women in the oil palm belt of South West Nigeria, providing both income and food security benefits at the household level. In Ondo State, small-scale palm oil processing enterprises are predominantly operated by women using traditional manual methods, yet their economic performance remains inadequately documented. This study conducted an economic analysis of palm oil processing enterprises among rural women in Ondo State. A sample of 92 women processors was selected through purposive sampling from four palm oil producing communities across three local government areas. Data on processing inputs, output volumes, revenues, and processing method types were collected using structured questionnaires. Farm budgeting, gross margin analysis, and benefit-cost ratio were applied. Results revealed a mean gross margin of N118,000 per processing cycle, indicating economic viability. However, traditional manual presses produced significantly lower oil extraction rates of approximately 14 percent compared to 22 percent achieved by semi-mechanised processors. High labour input requirements constrained the profitability of manual processing enterprises. The benefit-cost ratio of 1.28 reflected adequate returns but indicated limited profitability compared to mechanised alternatives. The study recommends promoting access to improved semi-mechanised processing equipment through cooperative acquisition schemes and providing business development support to women palm oil processors in Ondo State. Keywords: palm oil processing, women enterprises, gross margin, Ondo State, mechanisation.