Palm fruits processing is an age-long agricultural activity in Imo State especially in rural areas such as Umuagwo in Ohaji egbema Local government area (L.G.A), Imo State. There have been some documented researches an the profitability of the palm fruits processing enterprise, but little or nothing had been recorded on the use of the profits accruing from the enterprise. This research was carried out to ascertain the extent agricultural benefits from palm fruits processing has improved the study area. The study area is Umuagwo in Ohaji Egbema L.G.A, Imo State. Primary and secondary sources of date were used. A total of 60 respondents were sampled for the study and well structured questionnaire served as instrument of data collection which bothered on age and experience of the processors, sources of palm fruits, costs of palm fruits processing and the benefits or profitability which was estimated with gross margin analysis. The constraints of palm fruits processing was determined with the use of regression analysis (OLS). The result revealed that experience of the processors had direct relationship with age and most of the processors (30%) sourced their palm fruits from their own plantation and through purchase of fresh bunch of palm fruits. The gross margin per 100 fresh bunches processed was N50, 500 and net margin was N10, 890. Some of the positive and significant determinants of palm fruits processing were quantity of palm fruits processed, cost of processing and processing experience. High cost of palm fruits, poor feeder roads, fluctuation in prices and electricity supply were major constraints to palm fruits processing. The profits from the enterprise were used in market development, construction of village hall, renovation of schools, churches and equipment of rural clinic. The study concludes that palm fruits processing is profitable and benefitable in rural development in the study area. It recommends that processors should form cooperative associations to pool their resources together and establish palm plantations for palm fruits as well as buy in large scale to reduce costs of palm fruits and cost of processing marketing
