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Profitability Analysis of all-male Tilapia Farming in Sekyere South and Bosomtwe Districts of Ashanti Region
Abstract
All-male tilapia production is an emerging market in Ghana and a potential source of employment for the people. Despite the increase in livestock and poultry industries, the problem of protein deficiency continues unabated. The contribution of the fishing industry to solving the protein deficiency problem is important. Using data from eighty randomly sampled fish farmers in the Ashanti Region, the profitability of all-male tilapia farming was assessed and the determinants of all-male tilapia output examined. Gross margin analysis and production functions were estimated. Comparing costs and returns, a gross margin of GH¢ 5,797.56 and profit of GH¢ 2,282.17 were realized per annum. The rate of return on investment of 1.86 implies that for each Ghana cedi invested in this enterprise, a return of GH¢ 1.86 was obtained. Regression analysis revealed that all-male tilapia output was significantly determined by feeding, cost of fingerlings, pond size, sex and experience in fish farming. It is concluded that all-male tilapia production is economically rewarding and capable of creating employment, augmenting income and improving living standards of people. Government participation in all-male tilapia farming can boost the quantity of fish available for consumption in the country.
... Several studies have focused on productive efficiency and profitability analysis of aquaculture in Sub-Saharan Africa at the farm level [7][8][9][10][11][12][13][14][15][16]. These studies used stochastic frontier analysis (SFA) or data envelopment analysis (DEA) to estimate the efficiency score and its determinants. ...
... Boateng et al. [15] evaluated the profitability of 80 fish farmers of male tilapia in the Ashanti Region of Ghana. They employed gross margin analysis. ...
... Some studies in Ghana and Nigeria have shown that fish farming is a profitable business. Boateng et al.[15] found in the Ashanti Region of Ghana that fish farmers ...
In Côte d'Ivoire, fish farming is seen as a supplement to fish production. A more efficient use of resources in the production process would assure sustainable fish production. Using a data envelopment analysis (DEA) model and cost-benefit analysis, this study examines the resource efficiency and economic efficiency of 32 fish farms in the southeast of Côte d'Ivoire. The results revealed that fish farmers showed low performance, with average technical efficiency scores of 0.738 (CRS) and 0.575 (SBM) and an average economic score of 0.553. The most technically and economically efficient fish farmers use industrial feed. The study found that fish farmers caused excesses in resource utilization, resulting in a shortfall in output utilizing DEA model scenarios. Scenario-3, based on the slack-based model, minimizing resources while maximizing output, revealed that reducing resource excesses would have increased output by 16.18%. Based on the cost-benefit analysis, fish farms produced a positive gross and net profit margin. According to the findings of this study, policymakers should play a significant role in improving fish farmers' access to quality feed and fingerlings. Furthermore, fish farmers must be trained in sustainable production and pond management procedures.
... Several studies have focused on productive efficiency and profitability analysis of aquaculture in Sub-Saharan Africa at the farm level (Bukenya et al. 2013; Ougandari and Akinbogun 2010; Onumah Acquah 2010; Kareem et al. 2009;Brummett et al. 2004;Kaliba et al. 2006;Kaliba et al. 2007;Hyuha et al. 2011;Boateng et al. 2013;Ideba et al. 2013). These studies used stochastic frontier analysis (SFA) or data envelopment analysis (DEA) to estimate the efficiency score and its determinants. ...
... In addition, for each pond, 1 USD invested gives a return of 0.05 USD. Boateng et al. (2013) evaluated the profitability of 80 fish farmers of male tilapia in the Ashanti Region of Ghana. They employed gross margin analysis. ...
... Some studies in Ghana and Nigeria have shown that fish farming is a profitable business. Boateng et al. (2013) found in the Ashanti Region of Ghana that fish farmers realized on average a net profit margin of 65% and a return on investment (ROI) of 0.91. Ideba et al. (2013), in Calabar Cross Rivers State in Nigeria, found an annual profit ranging from 1250 USD to 21875 USD. ...
Fish farming is considered a complement to fish production in Côte d’Ivoire. Better use of resources in the production process would ensure sustainable fish production. This study analyzes the resource efficiency and economic efficiency of 32 fish farms in the southeast of Côte d’Ivoire using a data envelopment analysis (DEA) model and cost-benefit analysis. The results revealed that fish farmers showed low performance, with average technical efficiency scores of 0.738 (CRS) and 0.575 (SBM) and an average economic score of 0.553. Fish farmers using industrial feed are the most technically and economically efficient. Through DEA model scenarios, the study shows that fish farmers generated excesses in resource utilization, causing a shortfall in output. Scenario-3 based on the slack-based model minimizing resources simultaneously with a maximization of output indicated that a reduction of excesses in resources would have increased the output by 16.18%. Finally, the cost benefit analysis shows that, overall, fish farms achieved a positive gross and net profit margin. This study suggests that policy actors should play an important role in facilitating fish farmers’ access to feed and quality fingerlings. In addition, fish farmers must be trained on good practices for sustainable production and pond management.
... Several studies have focused on productive efficiency and profitability analysis of aquaculture in Sub-Saharan Africa at the farm level (Bukenya et al. 2013; Ougandari and Akinbogun 2010; Onumah Acquah 2010; Kareem et al. 2009;Brummett et al. 2004;Kaliba et al. 2006;Kaliba et al. 2007;Hyuha et al. 2011;. Boateng et al. 2013;Ideba et al. 2013). These studies used the Stochastic Frontier Analysis (SFA) or Data Envelopment Analysis (DEA) to estimate efficiency score and its determinants. In contrast to these approaches, our study analyzes the resource efficiency and economic efficiency. It aims first to identify the efficiency of the use of resources, the slac ...
... In addition, for each pond, 1 USD invested gives a return of 0.05 USD. Boateng et al. (2013) evaluated the profitability of 80 fish farmers of male tilapia in the Ashanti Region of Ghana. They employed the gross margin analysis. ...
... Some studies in Ghana and Nigeria have shown that fish farming is a profitable business. Boateng et al. (2013) found in the Ashanti Region of Ghana that fish farmers realized on average a net profit margin of 65% and a Return on Investment (ROI) of 0.91. Ideba et al. (2013) in Calabar Cross Rivers State in Nigeria found an annual profit ranging from 1250 USD to 21875 USD. ...
Fish farming is considered as a complement to fish production in Côte d’Ivoire. Better use of resources in the production process would ensure sustainable fish production. This study analyzes the resource efficiency and economic efficiency of 32 fish farms in the South East of Côte d’Ivoire using Data Envelopment Analysis (DEA) model and Cost-Benefit Analysis. The results revealed that fish farmers showed a low performance with an average technical efficiency score of 0.738 (CRS) and 0.575 (SBM) and an average economic score of 0.553. Fish farmers using industrial feed are the most technically and economically efficient. Through DEA model scenarios, the study shows that fish farmers generated excesses in resource utilization causing a shortfall in output. The scenario-3 based on slacked-based model minimizing resources simultaneously with a maximization of output indicated that a reduction of excesses in resources would have increased the output of 16.18%. Finally, the cost benefit analysis shows that, overall, fish farms achieved a positive gross and net profit margin. This study suggests that policy actors should play an important role in facilitating fish farmers’ access to feed and quality fingerlings. In addition, fish farmers must be trained on good practices for sustainable production and pond management.
... One of the most highly traded commodities in the world is fish and its related products. The contribution of the fisheries sector to Ghana's economy cannot be overemphasized, and this is mostly due to the fact that the sector performs a major role in the sustainability of households (Boateng et al., 2013). Ghana's fisheries sector contributes about 3% of the nation's Gross Domestic Product (GDP) and 5% of the agriculture GDP (FAO, 2007). ...
... Heterotis niloticus are the common fish species cultured in the country. They are mostly reared in earthen ponds and concrete tanks (Boateng et al., 2013). Abban (2008) intimates that Ghana continues to experience a growing interest in the cage culture system of aquaculture. ...
... Approximately 65% of farmers had formal education including 15% and 35% with primary and tertiary education respectively. About 35% of the farmers interviewed had no Boateng et al. (2013), higher education among fish farmers will accelerate the development of the aquaculture industry enhancing the implementation of appropriate programs for the industry. ...
The value added along the tilapia value chain is hardly defined in Ghana, and as such, the benefits associated with the various costs along the chain are not fully documented and realized. The study sought to assess and analyze the tilapia value chain by assessing the profile of the actors, existing linkages and value added at each stage of the chain. Also, the profitability of chain activities pertaining to tilapia as well as constraints faced by the actors in the pursuit of their business were determined. The study was carried out in the Eastern and Greater Accra regions of Ghana and primary data was collected from 100 respondents, made up of 40 tilapia producers (farmers), 30 tilapia processors and 30 tilapia distributors. Returns on Investment (ROI), Net Farm Incomes (NFI) and profit margins were estimated and used to measure the distribution of benefit along the chain. Actors along the tilapia value chain were found to add a substantial amount of value, with producers contributing the highest (GHS 2449.65). Also, returns were found to be unequally distributed along the chain with producers having the greatest margin of 5.17/kg. The determinants of profitability for actors include pond size, belonging to an association, time of harvesting, extension officer visits, farm ownership, gender, experience, availability of a ready supplier, ability to buy tilapia on credit, household size, experience and premium.
... combined digital dissolved oxygen meter (YSI Model 57, Yellow Spring Ohio) was used to measure water temperature and dissolved oxygen; pH meter (Mettler Toledo -320, Jenway UK) was used to monitor pH weekly. Bioeconomic analysis was done following the methods explained in Faturoti (1989), Abu et al. (2010), Boateng et al. (2013) and Jimoh et al. (2015b); Straight line method of depreciation was used to evaluate the cost of Aquaria tanks with the following properties. ...
... The (Boateng et al., 2013) reported a positive operating profit when all variable cost of production of all male tilapia was covered by the gross revenue as an indicator of profitability of all male tilapian aquaculture enterprise in Ghana. Jimoh et al. (2014) reported similar trends of results on incidence of cost analysis when C. gariepinus was fed diets containing Chrysophyllum albidum seed meal. ...
... The ESR value reported in this study is lower than the value reported by Adebayo and Daramola (2013). The rate of return recorded in this study is higher than what Boateng et al. (2013) reported on return on investment for all male tilapia farming in Ghana. Adebayo and Daramola (2013) reported ROR value of 0.62 for catfish production. ...
Original Article Toasted Jatropha curcas seed meal in Nile tilapia (Oreochromis niloticus) diet: Effect on growth, economic performance, haematology, serum biochemistry and liver histology Abstract: The effect of dietary inclusion of differently timed dry heat-treated Jatropha curcas on the growth and economic performance of Nile tilapia, Oreochromis niloticus, was evaluated in a 56-day feeding trial. Five isonitrogenous and isolipidic dietary treatments (35% crude protein and 10% crude lipid) were made consisting of soybean meal (control) which was replaced by J. curcas seed meal toasted either 5 min or 10 min at 20 and 40% to make other four test diets. A total of 225 juveniles of O. niloticus were acclimatized for a week, weighed and allotted into five dietary treatments. Each treatment was replicated three times with fifteen fish per replicate. Fish were fed 5% body weight on two equal proportions per day for 56 days. Growth data were collected at two-week intervals. The results from the study indicated that there was significant difference (P<0.05) in the growth and economic performance parameters among the fish exposed to different dietary treatments. However, there was no significant variations (P>0.05) in the different growth and economic performance parameters of fish fed CTR and fish fed D520T (5 min toasted, 20%). There was significant reduction in haematological and biochemical parameters of the blood of O. niloticus fed the different dietary treatments containing J. curcas seed meal. Based on economic and physiologic performance, soybean meal in Nile tilapia diet could be replaced up to 40% by 5-minute toasted J. curcass seed meal.
... In the present study the similar kind of observation found in both GIFT tilapia and IMC poly-culture. Followed by labor & transport cost (Boateng et al., 2013) [63] . The benefit cost ratio specify that IMC poly-culture was able to recover Rs. 0.81 in T1 whereas, GIFT tilapia mono-sex culture was get back a return of Rs. 1.22 per Rs. ...
... In the present study the similar kind of observation found in both GIFT tilapia and IMC poly-culture. Followed by labor & transport cost (Boateng et al., 2013) [63] . The benefit cost ratio specify that IMC poly-culture was able to recover Rs. 0.81 in T1 whereas, GIFT tilapia mono-sex culture was get back a return of Rs. 1.22 per Rs. ...
... Economic analyses were done following the methods explained by Abu et al. (2010), Boateng et al. (2013), andJimoh et al. (2015). The analyses include the incidence cost, profit index, profit/kg, total cost, total variable cost, total fixed cost, total revenue, gross margin, the net return, expense structure ratio, and benefit-cost ratio. ...
... However, in fish fed with PD + CSCEE and PD + CSP, the total variable and total cost were negative. Positive results indicated that the feed was profitable, and this was in accordance with the study of Jimoh et al. (2015) and Boateng et al. (2013). The cost and return of tilapia production using practical supplements with I. batatas shoot powder and extract were determined using gross margin analysis and profitability ratio. ...
The study aims to determine the growth performance and economic viability of the dietary supplementation of camote i.e., Ipomoea batatas L. powder and extracts in the diets of the Nile tilapia. The fish were reared in twelve 1 m³ hapa nets installed in a 500 m² pond. Four groups of fish were used in the experiment; the control group was fed with formulated practical diets (PD), and diets supplemented with either camote shoot powder (PD + CSP), hot-water extract (PD + CSHWE), and crude ethanol extract (PD + CSCEE). The feeding trial lasted 12 weeks. The weight gain (WG), feed conversion ratio (FCR), feed efficiency ratio (FER), protein efficiency ratio (PER), specific growth rate (SGR), and condition factor (CF) were studied. The economic viability was determined through the cost of production, gross profit, cost-and-return, and profitability analyses. The fish fed with PD + CSHWE exhibited improved growth performance as evidenced by an increase in WG, FER, PER, SGR, and CF, while showing low values of FCR. The economic analyses also revealed that PD + CSHWE was the most economically feasible diet based on the cost of production, gross profit, cost-and-return, and profitability analyses. The study had proven that the incorporation of CSHWE in practical diets could improve the growth performance and increase profitability if used for tilapia culture.
... In tilapia farming, variable costs accounted for 94% (Ahmed, 2007) and 81.83% (Boateng et al., 2013) of total cost. Present survey also revealed the similar findings. ...
... On the other hand, labor cost was found the second major cost. Boateng et al., (2013) also observed labor cost (10%) as second major proportion of the total of tilapia production following feeding cost. However, labor cost would vary under each particular case, location and season. ...
The study was conducted to assess the cost and return from tilapia farming. Fifty homestead aquaculture ponds practicing monoculture and polyculture of tilapia (25 farmers from each category) were selected for this study. Data had been collected through face to face interview by using a structured questionnaire during April to September 2015 from the selected farmers of Dinajpur districts. The results from the survey revealed that both the tilapia monoculture and polyculture farming were profitable. However, the average total cost per hectare per production period was found higher (Tk. 332,712.08) in tilapia monoculture than tilapia culture with carps (Tk. 241,722.34). Moreover, the net margin was also found higher in tilapia monoculture with benefit cost ratio 1.51. Whereas, the benefit cost ratio in polyculture farming was 1.34. J. Bangladesh Agril. Univ. 17(1): 117–121, March 2019
... This means that Gari business is dominated by people in the economically active population bracket age group of 20 to 65 years in the study area. This is consistent with observations made by Boateng et al., (2013) that economically active age group in Ghana is between 14 and 66 years. ...
Packaging does not only protect a product but also provides directions for using the product, as well as relevant information about its content and nutritional value. This study was undertaken to assess Granulated Cassava (Gari) sellers’ perception, profitability and determinants of packaging in Ashanti Region. The study area was purposively selected because of the active participation and contribution of marketing activities. A structured questionnaire was administered in the form of interview to obtain primary data from the respondents. Data was generated using binary and multinomial logit regression model and Garret ranking technique. The results showed that there is 0.11% difference in the gross margin of both ventures which is also statistically significant at 1%. Years of education, legal requirement, and durability of the packaging material and cost of packaging material were the significant factors that influence sellers’ choice of packaging. Lack of technical know-how, cost of capital equipment and lack of knowledge on packaging equipment and/or material were the most limiting constraints affecting Gari packaging. The study recommends that investors should invest in the Gari packaging business since it has a relatively higher rate of returns as compared to the unpackaged one.
... This means that Gari business is dominated by people in the economically active population bracket age group of 20 to 65 years in the study area. This is consistent with observations made by Boateng et al., (2013) that economically active age group in Ghana is between 14 and 66 years. ...
Packaging does not only protect a product but also provides directions for using the product, as well as relevant information about its content and nutritional value. This study was undertaken to assess Granulated Cassava (Gari) sellers’ perception, profitability and determinants of packaging in Ashanti Region. The study area was purposively selected because of the active participation and contribution of marketing activities. A structured questionnaire was administered in the form of interview to obtain primary data from the respondents. Data was generated using binary and multinomial logit regression model and Garret ranking technique. The results showed that there is 0.11% difference in the gross margin of both ventures which is also statistically significant at 1%. Years of education, legal requirement, and durability of the packaging material and cost of packaging material were the significant factors that influence sellers’ choice of packaging. Lack of technical know-how, cost of capital equipment and lack of knowledge on packaging equipment and/or material were the most limiting constraints affecting Gari packaging. The study recommends that investors should invest in the Gari packaging business since it has a relatively higher rate of returns as compared to the unpackaged one.
... In terms of variable cost, the feed cost is the major cost and varies slightly in different species. Some other studies (Ahmed, 2007;Boateng et al., 2013) [3,5] also reported that feed cost is the highest cost in the culture of tilapia in different systems, which is similar to the findings of this survey. In Biofloc, it is said to reduce at least 30% of the feed cost by utilizing wasted feed and faces, but it's needed to have good skills for feeding fish and forming Biofloc in the system. ...
study, the socio-economic status of Biofloc fish farmers and the cost-benefit of Biofloc fish farming were assessed in the greater Sylhet Region of Bangladesh. A total of 23 randomly selected farmers were interviewed through a structured questionnaire. The study revealed that educated people (60.9%) are becoming more interested in technology-based fish farming and investing their own money (56.5%) in farm setting. No female Biofloc fish farmers were identified in the study area. It's also observed that all the interviewed farmers (100%) have a secondary option of earning and Biofloc fish culture is considered an easy option to get higher revenue. Most of the farmers (65.2%) belong to the age category of 30-40 and around 61% have an additional monthly income of 30000-50000 BDT/month. The cost-benefit analysis showed that the success of Biofloc depends on the quality of fish seed and feed and also the efficient management of the Biofloc system. The BCR of culturing tilapia and shing are 0.55 and 0.61 respectively while the BCR of Pabda was 1.04. As Biofloc is a new type of fish farming and the farmers are not well adapted to this technological advancement of fish farming technique, they faced multi-factorial problems from getting quality fish seeds to selling the product on the market. Social media such as YouTube and Facebook had a great impact on disseminating Biofloc technology at the field level, especially encouraging young educated people to get involved in Biofloc-based fish farming. However, more research should be taken to find out the best suitable species and profitability of Biofloc technology in aspects of Bangladesh.
... Jimoh et al. (2015) and (2016) reported similar trends of results when watermelon and Jatropha curcass seedmeal was fed to O. niloticus. Boateng et al. (2013) reported a positive gross margin as an index of profitability of all male tilapia aquaculture enterprise in Ghana. When variable cost of production is covered by gross revenue, the profit margin will be positive. ...
... It implied that male managers might get more net farm income from fish production. This finding was against the finding of Boateng et al. (2013) that although sex was significantly related to output from fish farming, the direction was negative. The findings might be different because the effect was checked on output, while the present study was checked on net farm income, and also the significant level was at OLS while this study was at 75 th quantile level. ...
The study determined the socioeconomic factors of fish pond production by assessing cost and returns, and the effect of socioeconomic factors on net-income from fish ponds, as well as its constraints. Primary data
were used for the study. A systematic random sampling technique was employed to select 120 fish farmers from the list provided by the Fish Farmers Association in the State. Data collected were analyzed using descriptive statistics, budgeting analysis, Ordinary Least Square (OLS) and Quantile regression. The study revealed that the mean age, household size, years spent in school and fish farming experience were 41 years, 5 people, 15 years and 3.6 years, respectively. The result showed that the average net farm income of
fish farmers in the State was $41,902 and gross margin was $46,635. The profitability indices such as
benefit-cost ratio (1.4), return on investment (1.45), return on variable cost (2.58), net farm income margin (0.58) and gross ratio (30.64) were positive. The result of multiple regression showed that fish pond production experience and number of ponds per farmer were significant at OLS and all the quantile levels. Size of ponds was significant at OLS and 75th quantile. Likewise, access to credit and male household sizewere significant at OLS, and 55th and 75th quantile. Results indicate that government and private sectors should invest in fish pond production to subsidize costly inputs in fish production and important socioeconomic factors should be institutionalized.
... Fish production is economically rewarding and profitable. It is capable of creating employment, augmenting income, reducing malnutrition and improving the living standards of fish farmers (Boateng et al. 2013). ...
... Positive gross margin and net returns are indication that it is profitable to feed Oreochromis niloticus with diets containing watermelon seedmeal. Boateng et al (2013) reported a positive operating profit when all variable cost of production of all male tilapia was covered by the gross revenue as an indicator of profitability of all male tilapian aquaculture enterprise in Ghana. ...
The nutritive potential of watermelon (Citrullus lanatus) seedmeal as dietary protein source in the diet of Nile tilapia (Oreochromis niloticus) using economics was evaluated in a 56 day feeding trial. One hundred and fifty tilapia fingerlings of 6.12±0.05g average weight were acclimatized for a week, weighed and allotted into five dietary treatments; containing 0, 15, 30, 45 and 60% Citrullus lanatus replacement levels with soybean meal. The diets were isonitrogenous and isolipidic. Each treatment was replicated three times with ten fish per replicate. Fish were fed 5% body weight on two equal proportion per day. Economic analysis was carried out using incidence of cost, profit index, profitability ratio, cost and return analysis as analytical tools. The results of the study indicated the profitability of using watermelon seedmeal with positive gross margin and net returns. The average gross ratio, benefit cost ratio, return on investment (ROI) and the Rate of Return (ROR) values on capital invested on producing O. niloticus with diets containing watermelon seedmeals across the different dietary treatment groups were 0.57, 1.76, 0.77 and 0.55 respectively. It can be concluded from this study that it is economically viable to produce Nile tilapia with diets containing watermelon seedmeal.
... Positive gross margin and net returns are indication that it is profitable to feed Oreochromis niloticus with diets containing watermelon seedmeal. Boateng et al (2013) reported a positive operating profit when all variable cost of production of all male tilapia was covered by the gross revenue as an indicator of profitability of all male tilapian aquaculture enterprise in Ghana. ...
The nutritive potential of watermelon (Citrullus lanatus) seedmeal as dietary protein source in the diet of Nile tilapia (Oreochromis niloticus) using economics was evaluated in a 56 day feeding trial. One hundred and fifty tilapia fingerlings of 6.12±0.05g average weight were acclimatized for a week, weighed and allotted into five dietary treatments; containing 0, 15, 30, 45 and 60% Citrullus lanatus replacement levels with soybean meal. The diets were isonitrogenous and isolipidic. Each treatment was replicated three times with ten fish per replicate. Fish were fed 5% body weight on two equal proportion per day. Economic analysis was carried out using incidence of cost, profit index, profitability ratio, cost and return analysis as analytical tools. The results of the study indicated the profitability of using watermelon seedmeal with positive gross margin and net returns. The average gross ratio, benefit cost ratio, return on investment (ROI) and the Rate of Return (ROR) values on capital invested on producing O. niloticus with diets containing watermelon seedmeals across the different dietary treatment groups were 0.57, 1.76, 0.77 and 0.55 respectively. It can be concluded from this study that it is economically viable to produce Nile tilapia with diets containing watermelon seedmeal.
ALLOCATIVE EFFICIENCY IN POND FISH PRODUCTION IN DELTA STATE,
NIGERIA: A PRODUCTION FUNCTION APPROACH
INONI O.E.
Abstract
The paper examined the efficiency of resource utilisation in pond fish production in Delta State, Nigeria, using a
production function approach. Data for the study were obtained from a cross section of 72 farms using a multi-stage
sampling procedure. The farms had a total water surface area of 101.15 hectares. Regression results indicated that
pond size, feeds, fingerlings, and labour were significant (p < 0.05) determinants of output in pond fish production.
The index of resource-use efficiency revealed that fish farmers were not only inefficient in the allocation of
productive resources, but grossly over-utilised feeds, fingerlings, fixed costs, and labour with an allocative
efficiency index of 0.0025, 0.00064, –0.00017, and 0.00025 respectively. Pond size was however, under-utilised with
an allocative efficiency index of 3.22. Given the under-utilisation of pond size, strategies aimed at increasing farm
size will thus significantly improve efficiency of utilisation of other resources. This, in addition to enhanced access
to current technical and price information by farmers, will raise output and net returns in small-scale fish farming
enterprises.
Key words: resource allocation, production function analysis, allocative efficiency index, small-scale fish farming,
Delta state, Nigeria
This study was conducted in Ogun state, Nigeria and made use of both primary and secondary data. The main instrument for collecting the primary data was structured questionnaire. The descriptive analysis showed that a large proportion (68%) of the fish farmer had formal (tertiary) education and financed their fish production through personal savings. Equally evident from the result is that an average total cost of N394,380 was incurred per annum by fish farmers while gross revenue of N 715030.30 was realized with a gross margin of N 574314 and a profit of N 320650. The rate of return on investment of 0.55 implies that for every one naira invested in Fish production by farmers, a return of N1.55 and a profit of N0.55 were obtained. The multiple regression result revealed that fish output was significantly determined by pond size, labour used, cost of feeds, cost of lime and cost of fingerlings. The coefficient of determination, R 2 value of 0.462 indicates that 46.2% of the variation in the value of fish output was explained by pond size, quantity of labour used, cost of feed, cost of lime and cost of fingerlings The degree of responsiveness of the value of fish output to changes in the independent variables shows that a percent increase in the values of pond size, labour, feeds, fertilizer, lime, fixed input and fingerlings will lead to 0.029%, 0.057%, 0.005%, 0.534%,0.007% , 0.79% and 0.001% in the value of fish produced respectively. The study concluded that fish production in the study area is economically rewarding and profitable. It is capable of creating employment, augmenting income and improving the standard of living of the people. Therefore, it recommended government participation in fish farming to boost the quantity of fish available for consumption.
The potential for aquaculture development to make up for an annual 400,000mt shortfall in domestic fish supply was investigated. This involved an overview of the sector to determine its trends and operations and identifying strengths and constraints, a financial viability assessment of the sector, based on mode and levels of operation of existing farms, an assessment of the market and trade for cultured fish with a focus on Oreochromis niloticus, and finally, a GIS approach to update and reassess the potential for aquaculture development in Ghana. Data were obtained from both primary and secondary sources, the former, via fish farmer, dealers and consumer questionnaire surveys. Results of the study showed that interests in fish farming continue to grow with an overall annual average growth rate of 16% since 2000. The existing farms, 1300 in number were however very small with a mean farm size of 0.36ha and a median 0.06ha of which commercial farms accounted for less than 3%. Based on sizes, mode of operation and levels of input and output, five subsistence farm types were identified. Mean production from these pond-based farms ranged from 1436kg/ha/yr- to 4,423kg/ha/yr while that of a medium sized intensive commercial pond farm was 45,999kg/ha/yr. Commercial farming accounted for about 75% of 2006 aquaculture production. The main strength identified was the growing interest in both commercial and non-commercial fish farming and the main constraints were lack of quality seed, low levels of technical support and of knowledge in fish farming practices among non-commercial farmers. Net profits of commercial farms ranged from GH¢ 3,341 (US$ 3480)/ha/yr to GH¢ 51,444 (US$ 53,587)/ha/yr with payback from 1 to 4yrs, IRR at 35% to 105% and NPV from GH¢ 5,898 to GH¢ 236,412. By contrast, only two of the five non-commercial farm types made positive net returns ranging, from GH¢158 to GH¢1100/ha/yr, with minimum payback period of 14yrs, NPVs of less than 1 and the best IRR being just 4%, when initial capital requirements are full costed. Uncosted family labour inputs and negligible land opportunity costs improved viabilities for two farm types, where net returns/ha/yr increased by more than 50%, minimum payback dropped to 2 years, NPV from GH¢ 4839 to GH¢ 9330 and minimum IRR of 45%. Main constraints identified as affecting the profitability of subsistence farming were the relatively low prices of fish and the low levels of output which could be improved through better farming practices. From the market survey, a huge market potential for tilapia was identified with a current supply deficit of 41,000mt. The most preferred sizes by consumers and with potentially good market price for traders were those weighing at least 200g. For dealers, trading in cultured fish was found to be more profitable than trading wild capture tilapia because of lower wholesaler prices, gross profit margins were GH¢ 0.49/kg and GH¢ 0.25/kg respectively. Preference for tilapia was influenced by taste, availability, and its perceived health benefit. A key constraint to the sector was poor post-harvest handling and preservation of the fish resulting in shorter shelf life. From the GIS study, 2% (3,692 km2) of available land area was identified as very suitable for subsistence and about 0.2% (313.8km2) for commercial farming. A further 97.4% and 84.0% were identified as suitable for subsistence and commercial farming respectively. Areas with potential for cage culture were also identified, which were largely in the southern and mid-sections of the country. The overall conclusions are that based on natural resource requirements, market potential and financial viability, Ghana has the potential to totally make up the shortfall in domestic fish supply through aquaculture production. The current 400,000mt shortfall in domestic fish production can be achieved by 2020 by increasing overall aquaculture production by 60% per annum.
The purpose of this study is to determine the profitability of culturing tilapia at the Public Authority for Agriculture and Fisheries (PAAF) Experiment Station and in three theoretical scenarios using existing alfalfa farm conditions. The three theoretical scenarios were designed using existing farm resources and cheaper construction materials. Farm 1 and the PAAF Experimental Station had the same amounts of tilapia production. Tilapia production in Farm 2 is double the tilapia production in Farm 1, while Farm 3 had the same production as Farm 2 but it received 50% feed cost government subsidy. The results of this study show that profitability of culturing tilapia under existing alfalfa farm conditions is possible even at an annual production rate of 2,475 kg·farm. Higher profitability may be achieved by doubling the production of the farm to 4,950 kg·farm. With government subsidy on feed costs, additional income of about $7,574 per year per farm is possible if tilapia production is integrated into existing farms. Based on the results of this study, culturing tilapia could be a profitable means of increasing the productivity of an existing agricultural farm.
This is a training manual for use by those raising tilapia, extension agents who assist farmers with managing their businesses in a profitable manner, and those who develop and implement training programs related to aquaculture. The training examples are based on data obtained from a survey of tilapia farmers in Kenya.
The study assesses the economics of fish farming in Ibadan Metropolis. The data for the study were collected from 50 fish farmers with the aid of structured questionnaires. The data were analyses using descriptive, gross margin and regression techniques. The study revealed that most farmers had secondary education and above. Most farmers operate at small-scale level with an average of 3 ponds in this category. Fish farmers practiced poly culture fish farming. Clarias spp is the most raised fish species followed by Heteroclaria spp. The gross margin analysis revealed that medium scale farmers derived the highest return of 1.55 for every one naira expended. This is followed by large scale farmers at l.52 for every one naira compared with only 1.34 for every naira spent by small-scale farmers. Fixed inputs, labour, fertilizers, feeds and finger lings significantly affect the value of fish produced. Fish farmers under utilize both labour and fertilizers while feeds and finger lings are over utilized.
The paper investigated the cost of plantain production with a view to understanding the functional relationship between cost of production and technical efficiency of the plantain farmers as well as some socioeconomic variables. The data used for this study were collected from a sample survey in Ibadan area of Oyo State in the humid forest zone of Nigeria. The survey covered two local government areas and six villages. Stochastic frontier and cost function were fitted to the dataset. The results revealed that plantain production was profitable in the study area. The results further showed that the farmers were fairly efficient in their use of resources and that greater reductions in cost can be achieved through efficiency improvements. The study concluded that improvements in the efficiency levels of farmers appear to be one clear way to improve plantain productivity.
This study was carried out in four regions in Southern Ghana with the objective of assessing the demographic profile of farmers and determining the profitability of the industry. A structured question-naire was used to collect primary data from 74 pond and 13 pen farmers in the selected regions. The results showed that species mostly cultured were tilapia (O. niloticus), catfish (Clarias sp.), Heterotis sp. and snakehead (Parachanna sp.). Descriptive analysis showed the ponds were generally larger than pens. More than 50% of the total farmers had between one and two ponds or pens. The average net returns were US$ 0.55 and US$ 0.42 m À2 for pond and pen culture respectively, making both systems profitable. On a regional basis, pond aquaculture was most profitable in the Western Region. From the results, both pond and pen aquaculture are presently a prof-itable venture in Ghana that will continue to attract more potential investors even in the next decade. Pond aquaculture was classified into small-, med-ium-and large-scale operations. Results indicated that small-scale operations were economically non-viable under the present situation, with large-scale operations being the most profitable. The main constraints affecting production were lack of capital, fish predators and poaching.
For commercial aquaculture to be sustainable the potential for risk‐adjusted profitability must exist. Cultivation must be biologically and technically feasible, and the returns after transport sufficient to compensate for risks. The paper describes prerequisites for successful commercial aquaculture and examines policies at the farm level that governments can pursue to encourage provision of these prerequisites. If inputs are unavailable or at too high a cost, there are incentives that governments can provide. The paper surveys a variety of countries and their policies but the particular focus is on sub‐Saharan Africa and hence on policies that incur few expenditures.
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