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Palm Oil Growth

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Table 4.1b: Summary of instantaneous and Compound Growth rate for Palm Oil in Nigeria (Pre-SAP, SAP, and Post –SAP periods) Period Year Instantaneous Growth rate Compound Growth rate Pre-SAP 1970 - 1985 0.70 0.70 SAP 1986 - 1994 -0.20 -0.20 Post -SAP 1995 - 2013 -1.50 -1.51 All Period 1970 - 2013 0.70 0.70 The compound growth rates for output of palm oil in the Pre -SAP, SAP and the Post -SAP were 0.70%, -0.20% and -1.51%, respectively. This implies a relatively slow process of growth in output of palm oil particularly during the period 1970 - 1985. However during the SAP and Post -SAP period the result indicates a decline in output for 1986-1994 and 1995 - 2013.. This calls for concerted effort to reverse the process of decline to increase the process of growth in output. The process of decline in output could be reversed through expansion of area devoted to palm oil production by making use of land that is put to fallow. It was observed that the compound growth rate of palm oil output in …show more content…

For instance, outputs of groundnut, cocoa and coffee indicated an improved growth rate compared to the previous policy period. Contrarily Cotton, Rubber and palm Oil output growth rates deteriorated during this period., but their findings is at variance with result from the Structural Adjustment Programme (SAP) period (1986-1993), where some cash crops production (cotton, groundnut, cocoa, rubber and Oil palm) witness improved positive growth rate compared to the immediate previous policy period. Despite this result, coffee output had a negative growth rate during this period with the outputs of cotton (38.7%) and Rubber (35.7%) highly unstable. However palm oil (6.6%) exhibited minimal instability compared to other cash crop during this

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