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REASONS FOR LOW PRODUCTIVITY IN AGRO-BASED INDUSTRY IN NIGERIA. (A CASE STUDY OF SUNRISE FLOOR MILL EMENE)

CHAPTER ONE

1.1            THE GENERAL BACKGROUND OF THE STUDY:

The history of Agro-base Industries in Nigeriais relatively long. According to J.E. Botton Industrial Revolution in 19th century gave birth to the existence of Agro-base Industries of the world, most the colonial master.

 In late 19th century, the number of Agro-base Industries were increasing in a faster rate due to the improvement in mechanization of agriculture. At that time, there was no laws governing the industries, no ministry of agriculture until later at the end of 20th century when our indigenous entrepreneurs began to set up some of the present industries.

 Between 1959 and 1977, the large the large number of companies were registered and been approved by the ministry of Agriculture of which one of them is Livestock Mill Plc. I was founded in 1947 by a group of individuals who combined as a partnership. It was also incorporated in 1955 with shareholders. At times they were combining the production of feeds and poultry farming now they have numerous branches all over the country with their main branch atAba.

 Flourmill which specializes in the extraction of flour for production of chocolate was founded in 1964. the company was incorporated in 1972 and undertake the production of flour as from time to time, the company has been performing fine in the production process until 1982 to 1985 when it was faced a lot of problem.

The Premier Cashew Industries was also among the Agro-base establishments in the late 19th century. It was founded in 1952 as “Oghe Cashew Industry” by the former Eastern Nigeria Development Corporation (E.N.D.C)

 The first cashew plantation of the industry was established at Akama Oghe. Subsequently,OjiRiverand Mbala Isuochi Cashew plantation were established.

The plantation at Oghe has an area of 470 hectares which was divided into 5 fields and 150 plots with a total of 36,486 cashew trees. TheOjiRiverplantation has an area of no hectares of plots with 8,100 cashew trees; The Mbala Isuochi plantation (now in Abia state) has an area of 150 hectares of 31 plots with the total of 9,300 cashew trees.

 The cashew tree in the plantation started to bear fruits in 1957 (five years after they were planted) from 1957 to 1964. Then the nuts were shelled and pealed manually obtain cashew kernels. However in 1965 the method of processing cashew nuts were mechanized following the procurement of a medium seized processing plant fromGreat Britain. The plant was installed at Akama Oghe and was producing both kernels and cashew nut shell liquid.

 The kernels which is generally known as the fruit of cashew is delicious and nutritious. It is highly esteemed as food stuff. Cashew nuts is as large as the tip of a finger in a shape of crescent fade us kidney shaped and is made up of spongy mesocarp of about 1/8 inch or 4cm in thickness. It consists of a network of honey comb cell which contain dark brown viscous resinous liquid called cashew nut shell liquid. This liquid is obtained by extracting through the process of roasting the nut shell to obtain the kernels.

 The cashew nut shell liquid consist chiefly of the naturally produced phenolic compounds, one is anacardic acid and the other is carol. Both of them are of non-drying in nature. They cannot be dried unless by means of either the process of chemical reactions. Every activity of the industry stopped at the outbreak of the Nigerian Civil war of 1967 and expatriates employees of the industry all fled to their home countries.

 The industry and its three plantations were severely devastated by the civil war. The processing plant as completely vandalized so also were the building and other infrastructural facilities. As the plantation were not proud or wedding during the war years, they grew into forest thus providing good habitat for antelopes and monkeys.

At the end of the war in 1970, then East central state owned Agricultural Development Corporation (A.D.C.) attempted to reactivate much success.

Following the creation of additional states in 1996 th former East central state was split into two states,Enuguand Imo, Mbala Isuochi was carved into Imo state. Consequently the cashew plantations at Mbala became vested in Imo state government.Enugustate government was thus left with Oghe andOjiRivercashew plantation. The two plantations have a total land area of 580 hectares of 179 plots and 44,586 cashew trees.

 Between 1980 and 1989, a new factory built at Oghe in which a gigantic processing plant of Japanese make was installed. The plant has the capacity to process up to 1,500 metric tones of cashew nut annually. The factory was officially commissioned in 1989 and it therefore went into processing of cashew nuts harvested at Oghe andOjiRiverplantations. As the plant could not be adequately feed with cashew nuts supplied by the industry arrangement were made for contract processing to meet the optimum capacity utilization level of the plant.

 The industry is fully owned by theEnugustate government following the creation of more states; new Anambra andEnugu. Being immovable assets ownership of the industry and its plantation fell on the government ofEnugustate.

 1.2            OBJECTIVES OF THE STUDY

The title of this project work is “Reasons for low productivity in Agro-base Industries” cashew industry Oghe being the case study.

Management of establishment like this is often characterized by inefficiency and poor administration with the resultant effects of this low productivity and demoralization of employees. A lot of factors could be attributed to these. The objectives of this research work therefore to identify those factors responsible for the inefficiency and ineffective performance of this Agro-base industry and also to find ways of ameliorating them so that the establishment cannot be viable but also be able to face the challenge of the modern establishment. It is my view that if all the problems facing this establishment or industries are addressed that they will start functioning for the overall healthy living of entire populace.

 1.3            PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH.

Productivity in Agro-base industries have been accounting in a small proportions of theNigeriaeconomy. These factors which leads to this condition have been seriously hindering the economic growth and development of Agro-base industries inNigeria.

 Although the Agro-base industries face problems that made them to have low productivity but it plays a strategic roles in the economic well being of the country.

 1.4            SIGNIFICANT OF THE STUDY.

This research work will be of immense important to the masses for a happy life they suppose to enjoy and the government on the other hand for the economic development of the state.

The studying of this area according to Girahen Bannock (1981: p.8) will also help in the following areas.

1)   To examine reasons for low productivity in Agro-base industries with emphasis on feedmill Emene Premier Cashew industry Oghe Ezeagu and Flower mill Emene which touches the areas of financial marketing and production of the Agricultural product.

2)    To enlighten the proprietors and intended ones about the situation of the existing Agro-base industries.

3)   To present to the product the roles played by Agro-base in the economic development.

4)    To gain insight of the survival of existing Agro-base.

The activities of the Agro-base industries are not the same throughout the country. They differ as products differ also policies and management which is at individual company discretion. Since this project express the reasons for low productivity in Agro-base industries. Special reference have been taken from Premier Cashew Industry Oghe Ezeagu Local Government area inEnugustate.

 1.5     SCOPE AND LIMITATIONS OF THE STUDY

It was not possible to carryout this research study wide because of certain limitations. In carrying out a burdensome task like this study, certain constraints are encountered. Even though one tries to give this research study a befitting fight, yet I met with certain setbacks. The first and foremost is lack of financial resources as a result of which I have to contend with the limited financial resources at my disposal.

 Another constraints is that of time. Time factors is an essential element in a study of this magnitude and importance. This became more glaring as I needed sufficient time for traveling and asking question and carrying out interview. As a result of the above constraints, I limited my research study to Oghe Ezeagu Local Government Area inEnugustate.

 1.6     DEFINITION OF IMPORTANT TERMS.

AGRICULTURE:

This is defined as the application of machine in the operation of agriculture.

 MECHANIZATION:

This is defined as the application of machine in the operation of Agriculture.

 PRODUCTIVITY:

Efficiency in industrial production.

 CASHEW APPLE:

Apple is used in the production of table wine apple drink from the extraction of juice from the apple. The industry experiment on how generally acceptability of the apple drink and wine in the first two months of production before embarking on a large scale production of the products.

 REFERENCES

1.       Nwankwo G.O. (1999)NigeriaProduction System,Hong Kong

                                                Macmillan Press limited

 

2.       Asabian S.O. (1992)      Development of Industries inNigeria

                                                Busi2ness Time August 17th p.12.

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