CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Due to the economic situation of the country the writer decided to carryout a comprehensive study to find out those constraints that disrupts the economic situation and the possible solutions. It is obvious that there is no country that can survive without the existence of Agro-based industries. This is owing to the fact that the Agro-based industries play a strategic role to economic growth and development, which come into existence in the country (Nigeria) 20th Century has played an important role in conjuncture with alleviation to satisfy the need of the masses. The products of Agro-based industries are vital because of the role it plays in the domestic and foreign trade. Domestically, the Agro-based industries satisfy the needs of the target audience. Most companies depend to a large extend on the product of the Agro-based industries for it production for example, a company like the FAN which produces food, drinks such as chocolate, depend on cashew nuts for it product, also a company like Temp Mills Limited, which is one of the Agro-based industries producing Flour which are in turn used for the production of other products like bread cake etc.
In the foreign trade, the Agro-based industries have paled an important role in enhancing the balance of trade. This is done through the exportation of Agro-based product to foreign land. Its owing to this need that Phinomar industry Nigeria Limited was established in the year “1958” by the Phinomar Brothers. This Phinomars Nigeria Limited engaged in pricing palm oil. It consist an area of 400 hectares of land, which was divided into four (4) field and 100 plots with a total of 20,486 palm trees. The palm tree plantation started bearing fruits in the year 1993 (that was five (5) years after they were planted). Between 1993 and 1999, the nuts were shelled and peeked naturally so as to obtain oil. The industry is fully owned by individual.
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