Ayodeji Bolaji Ilori, Akinloye Lawal and Olayemi Oladehinde Simeon-Oke
This study aims to examine the innovations available in the small-scale palm kernel processing firms in southwestern Nigeria. The sample population of 265 respondents was obtained…
Abstract
Purpose
This study aims to examine the innovations available in the small-scale palm kernel processing firms in southwestern Nigeria. The sample population of 265 respondents was obtained through respondent-driven sampling tools. The research tools used were questionnaire, personal observations, interviews and secondary data collection approach. The questionnaire was administered to palm kernel processors and elicited information on innovations available in the firms. Both descriptive and inferential statistical techniques were used for data analysis.
Design/methodology/approach
The study area consisted of Oyo, Ogun, Osun and Ondo states in the southwestern Nigeria, because of the abundant supply of palm kernel as well as the presence of small and medium palm kernel oil (PKO) processing firms. The study population consists of all small palm kernel processing enterprises in these states. A total of 265 firms were purposively selected for the study. The sampling procedure involved the initial purposive selection of a palm kernel processing firm in a location, from where other firms within the locality were then identified. The primary data were collected through the use of questionnaire, interview and personal observation.
Findings
The results of the study showed that only process, organisational and market innovations were recorded by the palm kernel processing firms. Apart from the sieving operation where majority of the firms (91.30 per cent) used manual method, other unit operations were done mechanically. There was evidence of one or two innovation(s) available in the unit operations of these firms. Also, improvements were carried out occasionally in the process and marketing operations; the major sources of ideas for innovation were from related firms and customers. The organisations where majority of these firms had linkage with were Nigeria Palm Kernel Processing Association, government agencies and customer/suppliers.
Research limitations/implications
The findings are limited to the south-western part of Nigeria, there is need to extend the study to other states in the southern part where palm produce is the major cash crop. This will assist in making better generalisation on the innovation and innovation capability of the processors in Nigeria.
Practical implications
The study showed that the palm kernel processing firms experienced low innovation capability which could be due to their weak interactions with the knowledge institutions. Hence, there is need for these palm kernel processing firms to establish strong linkage with the knowledge institutions where their innovation capability can be enhanced.
Social implications
The findings in this paper can serve as an input to the design of policies that can enhance the innovation capability of the various actors in the value chain. This will assist in preventing wastages, increasing the quantity and quality of products and creating job opportunities. This is because the quality of PKO depends on the processing method; hence, better process innovation will improve the characteristics of the oil and widen its application.
Originality/value
Much has been written about palm kernel processing in medium and large enterprises, but information is still scanty on the small-scale processing enterprises. This paper contributed to knowledge by examining the innovations existing in the palm kernel processing enterprises in the south-western part of Nigeria and the innovation capability possessed by these enterprises.
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Ogechi Adeola, Ifedapo Adeleye, Garzali Muhammed, Babalola Josiah Olajubu, Chijioke Oji and Oserere Ibelegbu
Abstract
Details
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Ayodeji Ogunleye, Mercy Olajumoke Akinloye, Ayodeji Kehinde, Oluseyi Moses Ajayi and Camillus Abawiera Wongnaa
A correlation has been shown in the literature between credit constraints and the adoption of agricultural technologies, technical efficiencies and measures for adapting to…
Abstract
Purpose
A correlation has been shown in the literature between credit constraints and the adoption of agricultural technologies, technical efficiencies and measures for adapting to climate change. The relationship between credit constraints, risk management strategy adoption and income, however, is not well understood. Consequently, the purpose of this study was to investigate how credit constraints affect the income and risk management practices adopted by Northern Nigerian maize farmers.
Design/methodology/approach
Cross-sectional data were collected from 300 maize farmers in Northern Nigeria using a multi-stage sampling technique. Descriptive statistics, seemingly unrelated regression and double hurdle regression models were the analysis methods.
Findings
The results showed that friends and relatives, banks, “Adashe”, cooperatives and farmer groups were the main sources of credit in the study area. The findings also revealed that the sources of risk in the study area included production risk, economic risk, financial risk, institutional risk, technological risk and human risk. In addition, the risk management strategies used to mitigate observed risks were fertilizer application, insecticides, planting of disease-resistant varieties, use of herbicides, practising mixed cropping, modern planning, use of management tools as well as making bunds and channels. Furthermore, we found that interest rate, farm size, level of education, gender and marital status were significant determinants of statuses of credit constraints while the age of the farmer, gender, household size, primary occupation, access to extension services and income from maize production affected the choice and intensity of adoption of risk management strategies among the farmers.
Research limitations/implications
The study concluded that credit constrained status condition of farmers negatively affected the adoption of some risk management strategies and maize farmers’ income.
Practical implications
The study concluded that credit constrained status condition of farmers negatively affected the adoption of some risk management strategies and maize farmers’ income. It therefore recommends that financial service providers should be engaged to design financial products that are tailored to the needs of smallholder farmers in the study area.
Originality/value
This paper incorporates the role of constraints in influencing farmers’ decisions to uptake credits and subsequently their adoption behaviours on risk management strategies. The researcher approached the topic with a state-of-the-art method which allows for obtaining more reliable results and hence more specific contributions to research and practice.