Famers' Socio-Economic Characteristics, Cost and Return of Catfish Farming in Delta North Agricultural Zone of Delta State, Ni
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International Journal of Innovative Food, Nutrition & Sustainable Agriculture 8(3):43-50, July-Sept., 2020 © SEAHI PUBLICATIONS, 2020 www.seahipaj.org ISSN: 2467-8481 Famers’ Socio-Economic Characteristics, Cost and Return of Catfish Farming in Delta North Agricultural Zone of Delta State, Nigeria *Oyibo, Amaechi, A., Okechukwu, Frances. O & Onwudiwe, Elizabeth O Department of Agricultural Education Federal College of Education (Tech), Asaba, Nigeria *Corresponding Author: [email protected]; 0815592500 ABSTRACT This study was carried out to famers’ socio-economic characteristics, cost and return of catfish farming in Delta North Agricultural Zone of Delta State, Nigeria. Specifically, the study described the socioeconomics characteristics of catfish farmers and determined the cost structure and returns of catfish farming. A multistage sampling procedure was used to select 240 catfish farmers. Primary data were used for the study. Data were collected using structured questionnaire. Descriptive statistics and gross margin analysis were used to achieve the objectives while ANOVA was used to test the hypothesis. The result of the study revealed that 75.84% of the fish farmers were males while females constituted 24.16%. Total cost, total revenue, mean gross margin and mean net profit realized from catfish production in the study area were ₦2,505,128.58, ₦2,670,133.33, ₦725,213.08 and ₦165,004.75 respectively. The return on investment (ROI) for the study area was N1.07: N1. The study concluded that catfish farming was profitable in the study area. The study recommended among others that the farmers should be trained on how to formulate their own feed especially with cheaper feed components to reduce the cost of feed in catfish farming operations Keywords: catfish farming, technical efficiency, , cost and returns INTRODUCTION In Africa, the governments of the continent under the tutelage of the African Union, have identified the great potential of fish farming and are determined to encourage private sector investment (NEPAD, 2005). The potential exists for fish farming to make a difference as shown by pilot projects, although these pilot projects fail when they are scaled up (New Agriculturists, 2005). In Africa, the fish sector provides income for over 10 million people engaged in fish production, processing and trade (New Partnership for African Development, 2005). Fish has also become a leading export commodity for Africa with an annual export value of $2.7 billion (U.S.). Yet these benefits are 2004 (FAO, 2007). Prior to the 1990s, aquaculture development in Nigeria was driven by socio-economic objectives including, nutrition improvement of rural communities, generation of additional family income, creation of employment and diversification of income generating activities; and was promoted by International Organizations and agencies and the government at Federal, State and Local Government levels. Nigeria has over 18 million hectares of inland water surface, out of which about 1.75 million are available and suitable for aquaculture (FAO, 2015). In Nigeria, aquaculture is predominantly an extensive land- based system, practiced at subsistence levels in fresh waters (Anyawu-Akeredolu, 2005). Commercial farming has yet to become widespread (Fagbenro, 2005). At present, most fish farmers operate small- 43 Oyibo et al ….. Int. J. Innovative Food, Nut. & Sust. Agric. 8(3):43-50, 2020 scale farms ranging from homestead concrete ponds (25 – 40 meters) to small earthen ponds (0.02 - 0.2 hectares). The industry produced over 85,000 tonnes of fish in 2017 (FDF, 2018). Fish is the most essential animal protein food accessible in the tropics (Amos, 2006). It supplies about 40% of the dietary intake of animal protein of the typical Nigerian (Federal Department of Fisheries (FDF, 1997). Apart from human consumption, fish is vital for animal feed, a source of raw materials in allied businesses and a source of employment opportunities for many Nigerians (Esu, Asa & Iniedu, 2009). The most regularly cultured species of fish in Nigeria include catfish, carp and tilapia (Olagunju, Adesiyan & Ezekiel, 2007). Though, many fish farmers in Nigeria center on catfish for the reason that it acclimatizes well to culture environment, can easily be sold live and it attracts premium price. Catfish are appropriate for stocking in ponds and they endure low dissolved oxygen better than other ordinary species in the country. Also, catfish has wide acceptability as food in Nigeria. Despite these considerably high potentials, in local fish production, the existence of a demand-supply gap of at least 0.7 million metric tonnes in Nigeria. Increased catfish farming in the country, according to FAO (1998), can reduce this troublesome demand supply fish breach in the country. Ugwumba and Chukwuji (2010) suggested that greater enhancement in catfish production can be realized with a proper analysis that will pilot to knowledge of the level of profitability of catfish production. Conversely, in spite of this ever-growing biological activity, insufficient attention has been dedicated to the viability of the business itself. According to Mwangi (2007) catfish farming engrosses more than the biological procedures of fish growth. It also comprises paying grave attention to the financial aspects of the production. Efficient financial running of aquaculture can put together the distinction between profits and losses. The poor regard of aquaculture as an economic activity has made it hard to encourage its commercialization, as stakeholders were not persuaded that aquaculture could be a lucrative enterprise (Gitonga, Mbugua & Nyandat, 2004). Lack of economic information on the feasibility of catfish farming has adverse effects. It affects decision making when evaluating possible investment options, accessibility to financing required for investment and it makes insurance of such investments difficult (Pillay & Kutty, 2005). These factors will impact negatively on catfish investment and therefore development (Mwangi, 2007). Hence, this study seeks to examine the technical efficiency of catfish farming in Delta North Agricultural Zone of Delta State, Nigeria with a view to determine its viability or otherwise. Objectives of the Study The main objective of the study is to examine technical efficiency of catfish farming in Delta North Agricultural Zone of Delta State, Nigeria. The specific objectives are to:- i. describe the socioeconomic characteristics of catfish farmers in the study area; ii. determine the cost structure and returns of catfish farming; Research Questions The following research questions guided the study: i. What is the nature of the socioeconomic characteristics of catfish farmers in Delta North Agricultural Zone of Delta State? ii. What is the cost structure and returns of catfish farming? Research Hypothesis H01: There is no significant difference between the gross margin of catfish farmers in the four (4) Local Government Areas selected. METHODOLOGY The Study Area The study area is Delta North Agricultural Zone, Delta State has three agricultural zones, namely Delta South, Delta Central and Delta North. Delta North is made up of nine (9) Local Government Areas (LGAs) viz: Oshimili South, Oshimili North, Aniocha North, Aniocha South, Ika North East, Ika South, Ndokwa East, Ndokwa West and Ukwuani Local Government Area. The zone has a projected population of 1,229,371 (National Bureau of Statistics (NBS), 2007). The agricultural zone has a tropical climate marked by two distinct seasons, the dry and rainy season. The dry season occurs between November and 44 Oyibo et al ….. Int. J. Innovative Food, Nut. & Sust. Agric. 8(3):43-50, 2020 March. The rainy season begins in April and last till October, Arable and permanent crops are cultivated in the various farming communities in the zone. Fish and livestock of various types are also farmed in the agricultural zone. Sampling and Sampling Procedure Multistage sampling procedure was used to draw samples for the study. In the first stage, four LGAs were randomly selected from the nine local government areas that comprise Delta North, Agricultural zone. They were Aniocha South, Oshimili South, Ika North East and Ndokwa West LGAs. In the second stage, six communities were randomly selected local government areas. This gave a total of 24 communities that were used for the study. The third stage involved the selection of 10 catfish farmers from each of the randomly selected communities. This gave a total of 240 sampled catfish farmers. The snow ball or chain sampling technique was used to identify catfish farmers in each community. Data Collection Primary data were used for this study. They were obtained through the use of structured questionnaire. Information solicited from respondents’ catfish farmers include farmer specific information on sex, age, educational level, household size, experience in catfish farming, membership of association, contact with extension workers, access to credit and off-farm income. Farm specific information solicited for include fish output, seed, feed, pond size, pond area, labour use, types of pond, lime use and fertilizer use Data Analysis Descriptive and inferential statistics were used in the study. Descriptive statistics include means, tables, percentages and frequencies while ANOVA statistics was used to test the hypothesis. The costs and return involved in productive activities of fish farming practices was computed using the net income and gross margin budgetary technique.