Determinants of poverty and welfare among oil palm processors in Osun state

JAMIU OLAKUNLE JIMOH 1, *, OLANIRAN VICTOR OLAGOKE 1, OYEKUNLE OPEYEMI OYEWALE 2 and HAFSAT BISOLA LAWAL 3

1 Department of Agricultural Development Management, Agricultural and Rural Management Training Institute (ARMTI) Ilorin. Nigeria.
2 Department of Rural Development and Gender Issue, Agricultural and Rural Management Training Institute (ARMTI) Ilorin. Nigeria.
3 Department of Agricultural Economics and Farm Management University of Ilorin, Nigeria.
 
Research Article
International Journal of Life Science Research Archive, 2024, 06(01), 080–089​
Article DOI: 10.53771/ijlsra.2024.6.1.0023
Publication history: 
Received on 03 December 2023; revised on 03 February 2024; accepted on 06 February 2024
 
Abstract: 
The study analyzed the determinants of poverty and welfare among oil palm processors in Osun state. The specific objectives were to examine the housing and living conditions of oil palm processors in the study area, study the extent of poverty among oil palm processors in the study area, and determine the factors influencing the welfare of oil palm processors in the study area. Primary data were collected from 160 oil palm processors through purposive and random sampling techniques. Descriptive statistics, FGT measure of poverty, and Tobit regression model were used as analytical tools. The study revealed that about 76.9 percent of the processors were female. Majority (56.875 percent) of the processing households have accommodation of their own. The results of the FGT show that about 93 percent of the respondents were poor with a poverty incidence (P0) of 0.93125, poverty depth (P1) of 0.787129 and a poverty severity (P2) of 0.695926. The Tobit regression model reveal that household size and processing method used contributes positively to the likelihood of being poor and both are significant at 5%. While access to credit, years of processing experience and monthly income contributes negatively to the likelihood of being poor which are all significant at 5%. This study recommends that policies which will reduce household size such as fertility control measures should be the focus upon. Also policy should focus more on providing credit facilities through cooperative societies in other to help them improve their welfare status.
 
Keywords: 
Poverty; Welfare; Oil Palm; Processors
 
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