Palm oil markets and future supply

2007 ◽  
Vol 109 (4) ◽  
pp. 307-314 ◽  
Author(s):  
Claire Carter ◽  
Willa Finley ◽  
James Fry ◽  
David Jackson ◽  
Lynn Willis
Keyword(s):  
Palm Oil ◽  
Author(s):  
L. O. E. Nwauwa ◽  
K. O. Adenegan ◽  
M. A. Y. Rahji ◽  
Oluwafemi Zaccheaus Olaniyi

Distribution of agricultural produce is undertaken to bridge the gap between production and consumption arising due to spatial separation between areas of surplus and deficit. An investigation of primal-dual links to spatial equilibrium model and integration of palm oil markets in Nigeria was carried out using transportation model. Two-stage sampling technique was used to collect data from 3 markets and 276 distributors. Data were analyzed using linear programing model. Average cost of transportation per mode was bus (N17,173), truck (N10,357) and lorry (N5,831) respectively. Total transportation cost of N347,809,600.6k was observed compared to a minimized objective cost of N142,536,800.30k produced by the program. Highest optimal allocation to the destination markets using the different mode of transportation were Port Harcourt–Lagos by lorry (103,200 MT), Owerri–Maiduguri by truck (21,200 MT) and Ondo–Lagos by bus (19,800 MT) respectively. Subsidized cost of public transport facilities will reduce high cost of transportation.


Author(s):  
L.O.E. Nwauwa ◽  
K.O. Adenegan ◽  
M.A.Y. Rahji ◽  
T.T. Awoyemi

The poor quality of transportation infrastructure in Nigeria impacts negatively on the competitiveness of palm oil. This leads to increased inter-regional transportation cost, delayed time of arrival to the destination and lowered transaction efficiencies in the distribution chains. Primary and secondary data were used. Random sampling technique was used to collect data from 276 distributors in main palm oil markets. Data were analyzed using linear programming and Ravallion model at 0.05 a-level. Results of the data analyzes show that average cost of transporting palm oil from the production market to the consumption market was N5,831.9 per MT. Observed transportation cost was N60,724,830.5 while the optimal cost was N44,003,500.30 indicating a 38.0% reduction in total cost of transportation. Highest optimal allocations to the destination markets were Owerri-Jos (133,500 MT), Ondo-Lagos (107,200 MT) and Port Harcourt-Kano (82,000 MT) at minimum transportation cost of N5,750, N4000.7and N6500.0 per MT respectively. Two lag periods were identified signifying that it takes about 1-2 months for price information to spread across the markets by the model. Six of the 27 market pairs exhibited high short-run market integration for both lag periods with Port Harcourt-Abuja market pair indicating the highest (0.1 and 0.004). The lowest short-run market integration was recorded in Ondo-Minna market pair indicated by 1.4 and 17.4 respectively. Policies that will enhance redistribution of palm oil supply between producing and consuming regions should be pursued.


1990 ◽  
Vol 24 (2) ◽  
pp. 323-340 ◽  
Author(s):  
James Pletcher

AbstractThis paper explores the goals, nature and results of government interventions into the rice and palm oil markets of Malyasia since independence. Its purpose is to compare the relatively successful way in which the government has promoted the palm oil industry with the failure of interventions in the rice market. The historical comparison of public efforts in these two industries points up the importance of setting consistent goals, of encouraging crops which match the natural resource endowment of the country, of having a private sector which is capable of responding to production incentives, and of letting supply and demand determine prices when designing a strategy of market intervention. Above all, it is important to distinguish programs of intervention based primarily on efficiency criteria from those which seek to perform social welfare (e.g. income support) and political (e.g. food security) functions as well.


Author(s):  
Joseph Davey

Between 1800 and 1900, West Africa’s coastal states struggled to maintain autonomy in the face of imperial overtures from European trade partners. Simultaneously, these states coped with an overwhelming buildup of domestic slaves, some of whom rose to unprecedented higher political and economic positions. One particular individual, King Jaja of Opobo, came to the fore as an extreme example of how slaves became more capable of taking advantage of the changing political, religious, and economic landscape of the Eastern Niger Delta during this period. Born Mbanaso Ozurumba in the Igboland village of Umuduruoha in 1821, Jaja, as he would become known to his European trading partners, traversed the domestic slave systems of Southeastern Nigeria and arrived in the Delta trading state of Bonny in 1833. He obtained tremendous wealth and political influence through the burgeoning palm oil trade, ultimately becoming the head of one of Bonny’s most influential canoe-houses. Due to an internal dispute with a rival canoe-house in the late 1860s, Jaja removed his followers to a previously uninhabited island and cut off Bonny’s access to the lucrative interior oil markets. From 1871 on, Jaja monopolized the palm oil trade in the region to become the most influential trader from his new position as king of the island community, which he would name Opobo. However, by 1884, the relationship between Jaja and his British trade partners deteriorated, leading to Jaja’s exile in the West Indies. Political pressure forced the British to return Jaja to Opobo. Unfortunately, the once-powerful slave-turned-king died while trying to return home in 1891.


2002 ◽  
Vol 16 (5) ◽  
pp. 226-227 ◽  
Author(s):  
L. Mogridge
Keyword(s):  

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