Economic Analysis and Adaptation Measures of Small-Scale Aquaculture in Roxas City, Capiz

ECONOMIC ANALYSIS AND ADAPTATION MEASURES OF SMALL-SCALE AQUACULTURE IN ROXAS CITY, CAPIZ

A Research Paper Submitted to the Faculty of the Division of Social Sciences, College of Arts and Sciences University of the Philippines Visayas Miagao, Iloilo

In Partial Fulfillment of the Requirements in Economics 199.2 (Economics Research II)

MARLA MAY A. BAES

JUNE 2015

APPROVAL SHEET

The undergraduate research paper attached hereto entitled, “Economic Analysis and Adaptation Measures of Small-Scale Aquaculture in Roxas City, Capiz” prepared and submitted by Marla May A. Baes to the Division of Social Sciences, University of the Philippines Visayas, in partial fulfillment of the requirements for the degree of Bachelor of Science in Economics, is hereby recommended for acceptance and approval.

______PROF. GAY DEFIESTA, PhD Adviser

ACCEPTED AND APPROVED in partial fulfillment of the requirements for the degree of Bachelor of Science in Economics.

______PROF. PEPITO R. FERNANDEZ JR. Chairperson Division of Social Sciences College of Arts and Sciences University of the Philippines Visayas Miagao, Iloilo

ACKNOWLEDGEMENTS

I would like to take this opportunity to thank the following:

Almighty God, thank you for always guiding me and strengthening my soul. You were always there for me, never leaving my side, in every waking day. Thank you for enriching my soul with positivity and full of hope. I love you and I will praise you forever.

Professor Gay Defiesta, thank you for being such an excellent professor to me and my classmates ma’am! Thank you for being my guiding hand all throughout this process of making my thesis. Thank you for making me realize that I can do so much more than I what I expect of myself to be. Because of you I know now that I can do whatever I will if only I believe in myself and continue to take the challenges in life as a stepping stone into becoming a better person.

To my parents, no words are enough to express how thankful I am to have you both in my life. You two are my ears that listen to my problems, my shoulder to cry on, my rocks, and my inspirations in life. You were always ready to jump in and help me with whatever I need to do and conquer. Thank you for being proud of me with my achievements. Thank you for always being there for me. I hope I made you both happy. I love you. I love you always and forever.

To my classmates in Econ 199.2, Rizel, Nang Joyce, Nang Lyrin, and Bob, thank you for all your help and words of encouragement friends! Strong! Strong!

To my Econ batch mates, most especially to my supermodel friends (Argena, Paolo and Kuya Carl), and to my roommates (Jill and Nang Rhema) thank you making me happy whenever I am sad and boosting my spirits up whenever I am down. I will always treasure you friends! I am definitely looking forward to more adventures with you!

To all the special people who have been with me in every step of the way, thank you. Thank you for all the laughter and joys. Life has been truly more meaningful with all of you there. Thank you for all the memories that I will forever cherish.

And to myself, thank you for hanging in there. You’ve always been so strong. Always remember that everything happens for a reason and God has a wonderful plan for you. Good job! Go forth and reach for your dreams!

ABSTRACT

This research was conducted to find out the contribution of the aquaculture industry to the city and to the small-scale farmers of Roxas City. It also determined the socio-economic impacts brought by the hydrometeorological events and identified the adaptation measures employed by the local government and the aquaculture operators. This study used cost and returns analysis, market based approaches and OLS regression to analyze the data gathered from the 187 small-scale milkfish, mussel, and oyster farmers in Roxas City. The findings showed that the aquaculture industry significantly contributed to revenue, employment, production and profit. However, the industry was affected by hydrometeorological events which brought about significant damage cost. Most of the aquaculture operators employed various adaptation strategies to cope with these hydrometeorological occurences. Some of them, however, did not find it necessary to adapt because either they do not have enough money to finance adaptation strategies or they perceive that the impacts are not that significant. This study recommends that the government should provide other alternative climate-resilient livelihoods to the small- scale operators. It should also employ sustainable adaptation measures aside from providing trainings and seminars about aquaculture operation such as by integrating climate change adaptation techniques to aquaculture farming.

TABLE OF CONTENTS

Page

ABSTRACT ii LIST OF TABLES iii LIST OF FIGURES vi

I. INTRODUCTION 1 Background of the Study 1 Statement of the Problem 3 Objectives of the Study 6 Significance of the Study 7 Hypothesis 7

II. REVIEW OF RELATED LITERATURE 8

III. THEORETICAL AND CONCEPTUAL FRAMEWORK 16 Economic Impacts 16 Cost and Return Analysis 18 Regression Analysis 22 Conceptual Framework 23

IV. METHODOLOGY 25 Research Design 25 Study Site 25 Respondents and Sampling Procedure 26 Data Collection Method 28 Tools of Analysis 28

V. RESULTS AND DISCUSSION 33 Study Area 33 The Seafood Industry of Roxas City 35 The Aquaculture Industry’s Contribution to Governement 37 Revenue, Employment and Production Hydrometeorological Events in the Aquaculture Industry of 40 Roxas City Socio-Economic Profile of Respondents 41 Aquaculture Operation 44 Socio-Economic Impacts of Different Hydrometeorological 74 Events Adaptation Measures 85 Regression Analysis 96

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VI. SUMMARY, CONCLUSION AND 99 RECOMMENDATIONS Summary 99 Conclusion 103 Recommendations 106

BIBLIOGRAPHY 108

APPENDICES

LIST OF TABLES Table Page

1 Summary of dependent and independent variables 32 2 Employment generated by the aquaculture industry, 2010 – 2014 37 3 Total production of the aquaculture industry, 2010 – 2014 39 4 Hydrometeorological events that occurred in Roxas City, 2008 – 40 2014 5 Frequency and Percent Distribution of Aquaculture Operators in 41 Roxas City by Sex, 2015 6 Frequency Distribution of Aquaculture Operators in Roxas City 42 by Other Demographic Characteristics, 2015 7 Frequency and Percent Distribution of Aquaculture Operators in 43 Roxas City by Sources of Income, 2015 8 Frequency and Percent Distribution of Aquaculture Operators in 43 Roxas City by Attendance to Trainings and/or Seminars, 2015 9 Summary of the initial investment of small-scale milkfish 46 brackish water operators in Roxas City, Capiz 10 Annual depreciation cost of small-scale milkfish brackish water 47 operators in Roxas City, Capiz 11 Total fixed cost of small-scale milkfish brackish water operators 48 in Roxas City, Capiz 12 Total variable cost of small-scale milkfish brackish water 50 operators in Roxas City, Capiz 13 Total production of small-scale milkfish brackish water operators 51 in Roxas City, Capiz 14 Average price for different types of sale of milkfish 52 15 Total revenue of small-scale milkfish brackish water operators in 52 Roxas City, Capiz 16 Opportunity cost of small-scale milkfish brackish water operators 53 in Roxas City, Capiz 17 Summary of the initial investment of small-scale mussel 54 mariculture operators in Roxas City, Capiz 18 Annual depreciation cost of small-scale mussel mariculture 55 operators in Roxas City, Capiz 19 Total fixed cost of small-scale mussel mariculture operators in 56 Roxas City, Capiz 20 Total variable cost of small-scale mussel mariculture operators in 57 Roxas City, Capiz 21 Total production of small-scale mussel mariculture operators in 57 Roxas City, Capiz 22 Average price for different types of sale of mussel 58 23 Total revenue of small-scale mussel mariculture operators in 58 Roxas City, Capiz

24 Opportunity cost of small-scale mussel mariculture operators 59

in Roxas City, Capiz 25 Summary of the initial investment of small-scale oyster 60 mariculture operators in Roxas City, Capiz 26 Annual depreciation cost of small-scale oyster mariculture 61 operators in Roxas City, Capiz 27 Total fixed cost of small-scale oyster mariculture operators in 62 Roxas City, Capiz 28 Total variable cost of small-scale oyster mariculture operators in 63 Roxas City, Capiz 29 Total production of small-scale oyster mariculture operators in 64 Roxas City, Capiz 30 Average price for different types of sale of oyster 64 31 Total revenue of small-scale oyster mariculture operators in 65 Roxas City, Capiz 32 Opportunity cost of small-scale oyster mariculture operators 65 in Roxas City, Capiz 33 Cost and return analysis of small-scale aquaculture operators in 67 Roxas City, Capiz 34 Rate of return of investment of the small-scale aquaculture 68 operators in Roxas City, Capiz 35 Rate of return on variable cost of the small-scale aquaculture 69 operators in Roxas City, Capiz 36 Benefit-cost ratio of the small-scale aquaculture operators in 70 Roxas City, Capiz 37 Rate of return on total cost of the small-scale aquaculture 70 operators in Roxas City, Capiz 38 Gross profit margin of the small-scale aquaculture operators in 71 Roxas City, Capiz 39 Payback period of the small-scale aquaculture operators in Roxas 72 City, Capiz 40 Number of small-scale aquaculture operators in Roxas City that 73 were affected by different hydrometeorological events in 2008 to 2013 41 Average occurrence of hydrometeorological events in 2008 to 73 2013 42 Socio-economic impacts of flood to small-scale milkfish brackish 75 water operators in Roxas City, Capiz 43 Socio-economic impacts of heavy rainfall to small-scale milkfish 75 brackish water operators in Roxas City, Capiz 44 Socio-economic impacts of typhoon to small-scale milkfish 76 brackish water operators in Roxas City, Capiz 45 Socio-economic impacts of drought to small-scale milkfish 77 brackish water operators in Roxas City, Capiz 46 Socio-economic impacts of flood to small-scale mussel 78 mariculture operators in Roxas City, Capiz 47 Socio-economic impacts of heavy rainfall to small-scale mussel 78

mariculture operators in Roxas City, Capiz 48 Socio-economic impacts of typhoon to small-scale mussel 79 mariculture operators in Roxas City, Capiz 49 Socio-economic impacts of drought to small-scale mussel 80 mariculture operators in Roxas City, Capiz 50 Socio-economic impacts of flood to small-scale oyster 80 mariculture operators in Roxas City, Capiz 51 Socio-economic impacts of heavy rainfall to small-scale oyster 81 mariculture operators in Roxas City, Capiz 52 Socio-economic impacts of typhoon to small-scale oyster 82 mariculture operators in Roxas City, Capiz 53 Socio-economic impacts of drought to small-scale oyster 82 mariculture operators in Roxas City, Capiz 54 Summary of the cost of the socio-economic impacts incurred by 83 the small-scale aquaculture operators in Roxas City, Capiz from the different hydrometeorological events 55 Cost of the major socio-economic impacts incurred by the small- 83 scale aquaculture operators in Roxas City, Capiz from the different hydrometeorological events 56 Government-led adaptation measures from 2011 to 2013 86 57 Sources of information of the small-scale aquaculture operators in 87 Roxas City, Capiz 58 Number of milkfish brackish water operators that employed 88 different adaptation strategies 59 Different adaptation measures applied by the small-scale milkfish 88 brackish water operators in Roxas City after flood 60 Different adaptation measures applied by the small-scale milkfish 89 brackish water operators in Roxas City after heavy rainfall 61 Different adaptation measures applied by the small-scale milkfish 89 brackish water operators in Roxas City for typhoon 62 Different adaptation measures applied by the small-scale milkfish 90 brackish water operators in Roxas City after the drought 63 Number of mussel mariculture operators that employed different 91 adaptation strategies 64 Different adaptation measures applied by the small-scale mussel 92 mariculture operators in Roxas City for flood 65 Different adaptation measures applied by the small-scale mussel 92 mariculture operators in Roxas City for typhoon 66 Number of oyster mariculture operators that employed different 93 adaptation strategies 67 Different adaptation measures applied by the small-scale oyster 94 mariculture operators in Roxas City for flood 68 Different adaptation measures applied by the small-scale oyster 95 mariculture operators in Roxas City before heavy rainfall 69 Regression analysis showing the factors affecting the adaptation 96 cost of the small-scale aquaculture operators in Roxas City, Capiz

vii

LIST OF FIGURES

Figure Page

1 A conceptual framework showing the contributions of the 23 aquaculture industry and the socioeconomic impacts and adaptation measures that are applied to the industry due to occurrence of hydrometeorological events 2 Map of Roxas City, Capiz 34

viii

CHAPTER I

INTRODUCTION

Background of the Study

The Philippine Fisheries Code of 1998 or RA 8550 defines aquaculture as the fishery operations involving all forms of culturing and raising fish species in marine, fresh, and brackish water marine areas. Aquaculture may be in the form of shrimp farming, fish farming, algaculture, growing of cultured pearls, and shellfish farming

(Schwartz, 2008).

In the year 2005, capture fisheries and aquaculture had a global production of 108 million tons of fish resources; 45 percent of which was contributed by the aquaculture industry. From the 0.7 kg of per capita supply of fish from aquaculture in 1970, it grew up to 7.8 kg of per capital supply of the fishery stocks.

Global aquaculture fisheries are mostly dominated by Asia-Pacific countries.

Asian countries produce almost 75 percent of the total fish aquaculture supply and generate 80 percent of the global aquaculture production value. China dominates as it produces two-thirds of the global supply. In 2004, it was able to produce as much 69.6 percent of the total world production or 41.3 million tons of fishery resources from aquaculture. The Philippines is also a big player as it ranked seventh in terms of aquaculture production (BFAR, 2007). The seven major marine species that are utilized in the aquaculture industry of the country are seaweed, milkfish, tilapia, shrimp, carp,

1 oyster, and mussel. The total aquaculture production in the country in 2012 is 2,541,965 metric tons. This includes yield from brackish water and freshwater fishponds, mariculture of oyster, mussel and seaweeds, fish pens and fish cages in fresh and marine waters. Approximately 26% of Philippine fisher folks are engaged in aquaculture activities (Lopez, 2008). To be specific, the 2002 Census of Fisheries in the National

Statistics Office showed that the country has a total of 226,195 aquaculture fishers. Of which, 126,894 are fishpond operators, 2,422 are mussel farmers, 73,549 seaweed farmers, 3,041 are oyster farmers, 5,325 are fish pen operators and 14,969 are involved in other aquaculture activities. In 2005, aquaculture provided the highest share in the total fisheries production of the country, providing 46% of the fish production. Among the other fisheries subsector, aquaculture also had the highest growth rate at 8.7% increase from 2003. Aquaculture has been identified as a sector that will enhance food security and increase growth for employment. The total value of aquaculture production in 2012 is

P 92,289,924,700 (FAO, 2005).

In the country, the highest aquaculture producer is the Autonomous Region of

Muslim Mindanao (ARMM) with a production of 638, 552 metric tons. Western Visayas

(Region VI) ranked sixth with 179, 231 metric tons. Aquaculture output from ARMM, however is much lower in value at P 3,340,995,400 compared to Region VI with P

6,897,616,300.

Productivity of aquaculture is threatened by the impacts brought about by climate change. This may directly affect the industry by influencing the volume of fish stocks and the global supply of the fishery products. The WorldFish Center (2007) illustrates some of the implications of climate change on the aquaculture industry. Changes in

2 precipitation and water variability may have an impact on seed availability for the industry. It may also increase the costs of maintaining pond water levels from stock loss, reduce production and capacity, change culture species, may create conflict with other water users. The implications of these biophysical effects to aquaculture are loss of stock and damage or loss of aquaculture facilities and fishing gear.

Statement of the Problem

Aquaculture has great potentials in ensuring the country’s food security and decreasing poverty incidence. It also has the potential to supply the demand of the local people and export market with different fish products. The industry is still faced with variety of issues and problems; one of which is the lower profit margins and increasing costs of operations compared to the other agriculture farmed animals such as livestock and poultry. Because of the continuous growth of the aquaculture industry and the erratic market prices of harvested wild fish, the aquaculture industry’s effort has become more competitive (FAO, 2005). Other problems that the aquaculture industry is facing are environmental degradation, lack of availability of high-quality brood stock, high input costs, data gaps, inadequate regulatory framework, lack of aquaculture information management system and lack of focused research and protocol (Lopez, 2008)

Despite the industry’s potentials, there has been little research on how the aquaculture industry can concretely improve the lives of people and reduce poverty.

Furthermore, very few studies have been taken up so far in Philippines to study the social and institutional issues that govern the participation of the poor in Aquaculture (Lopez,

2008).

Aside from the abovementioned issues and concerns, the aquaculture farmers are also faced with climate change. Some of the effects by climate change in the fishing industry are the distribution of marine and freshwater aquatic organisms, displacement of warm-water species, changes in the physiological processes of fishes due to an increase in temperature, possibility of fish invasions, and changes in biological processes

(Cochrane, et.al., 2009).

Roxas City, the Seafood Capital of the Philippines, is also affected by adverse effects of climate change specifically the aquaculture industry. However, the city has limited records regarding the adaptation measures employed by aquaculture farmers.

There are also limited records as to what are the factors that affect and facilitate the efforts made by these farmers to adapt.

The main purpose of this study is to determine the direct contributions of aquaculture fisheries, determine the socio-economic impacts brought about by hydrometeorological events, and provide information about the adaptation measures employed by the aquaculture operators. Specifically, the study sought to answer the following questions:

1. What are the contributions of the aquaculture industry to the economy of Roxas

City and to the aquaculture fishpond operators of Roxas City, Capiz?

2. What are the hydrometeorological events from 2008 to 2013 that affected the

aquaculture industry in Roxas City, Capiz?

3. What are the socioeconomic impacts of these hydrometeorological events on the

aquaculture industry of Roxas City, Capiz?

4. What are the adaptation measures employed by the government and the

aquaculture fishpond operators of Roxas City, Capiz to hydrometeorological

events?

5. How much adaptation costs were incurred by the aquaculture fishpond operators

of Roxas City, Capiz?

6. What are the factors affecting the adaptation cost of the aquaculture fishpond

operators of Roxas City, Capiz?

Objectives of the Study

1. To determine the contributions of aquaculture fisheries to the economy and to the

aquaculture fishpond operators of Roxas City,

2. To determine the hydrometeorological events from 2008 to 2013 that affected the

aquaculture industry of Roxas City, Capiz

3. To determine the socioeconomic impacts of these hydrometeorological events on

the aquaculture industry of Roxas City, Capiz

4. To determine the adaptation measures to these hydrometeorological events that

were employed by the government and the aquaculture fishpond operators of

Roxas City, Capiz

5. To determine the adaptation costs that were incurred by the aquaculture fishpond

operators of Roxas City, Capiz

6. To determine the factors affecting the adaptation costs of the aquaculture fishpond

operators of Roxas City, Capiz

Significance of the Study

This study is beneficial to both the government and fishpond operators of Roxas

City, Capiz. It determines the direct economic contributions of the aquaculture industry to the city, specifically its contributions to the revenues, employment, and production. The study also guides the fishery operators in deciding to pursue the business or not base on the calculated profits. Furthermore, the study can give a valuable input to the government of Roxas City in planning, formulating and/or employing policies and strategies that can improve the adaptive capacity of the city’s aquaculture industry to the different hydrometeorological events. It can also serve as a reference to the fishpond operators to identify other adaptation measures that they may employ in their own fishpond operations and the cost that the these measures may incur.

Hypothesis

Based on the foregoing questions the hypothesis is given:

Size of the fish farm, type of culture (milkfish brackish water, mussel mariculture or

oyster mariculture), frequency of hydrometeorological event (heavy rainfall, flood,

typhoon, drought), years of experience as an operator, years of education, and

revenue does not affect the aquaculture operators’ adaptation cost.

CHAPTER II

REVIEW OF RELATED LITERATURE

A case study was conducted by Jharendu Pant, Benoy Kumar Barman, Khondker

Murshed E-Jahan, Benjamin Belton, and Malcom Beveridge (2013) to determine whether aquaculture is beneficial to the extreme poor, most especially to the landless and socially marginalized Adivasi communities in Bangladesh. The main purpose of the paper is to challenge the view that aquaculture is an inappropriate livelihood option for the ultra poor and the socially marginalized. Discussions were based on the Adivasi Fisheries

Project. In which, the Project sets out to devise and adapt different aquaculture technologies to build more productive livelihood assets, improve the knowledge and skills of the people, focus more on the needs, resources, and capabilities of Adivasi households. The paper also shows the results of the different interventions that were implemented to the marginalized Adivasi households. The interventions that were determined were divided into three groups: the aquaculture activities, aquaculture value chain related activities, and community-based fisheries management. Included in the aquaculture activities are pond culture, rice-fish culture, and cage culture. On the other hand, the aquaculture value chain related activities are food-fish trading, fingerling trading, and pond netting.

The paper was based on the principle of the Sustainable Livelihood Approach

(SLA) that states that the increasing access to livelihood assets or capital is essential to reduce variability and increase adaptive capacity of resource poor, marginalized communities.

The study was conducted in the five districts in North and Northwestern

Bangladesh. Before the project was conducted in 2007, a pre-project study was conducted by WorldFish, Caritas, and the Bangladesh Fisheries Research Forum to assess the initial livelihood context of Adivasi communities and other key stakeholders. From the 5, 337

Adivasi households, 3, 594 households were chosen to become project participants based on income, size of landholdings, and food security status. A random selection of 657 households (with 148 non-participant households) was chosen to answer the baseline and end-line surveys; the end-line surveys were answered two years after the implementation of the different interventions. Furthermore, a study of sustainability was also conducted in 2012, 30 months after the project. Random visitations of the interdisciplinary team were made. They used different participatory tools and techniques to determine the sustainability of the projects. Such methods include focus group discussions (FGDs) with farmer field school (FFS) members, key informant interviews (KIIs), observations, and consultations. Results show that aquaculture intervention had a positive effect on the livelihood assets of the Adivasi households. The households were provided support for their livelihood asset development. The number of land and land holdings improved because the number of landless households slightly decreased in 2009 because the different technology interventions gave the households opportunities to earn sufficient income for them to reclaim their previously mortgaged lands. There was also an increase in the number of livestock and poultry holdings and physical assets (such as mobile phones, bicycles, and rickshaws), the change in the number of holdings of livestocks was most especially evident to those who are involved in pond culture.

The results of the study have been beneficial in showing the different positive economic and social effects brought about by aquaculture activities to the lives of the marginalized. In the Philippines, it has been proven that the fisher folks are one of the poorest, if not the poorest, sector groups of the country. The different aquaculture and aquaculture related activities such as food-fish trading, pond culture, rice-fish culture and the like may be used as an alternative livelihood by the coastal households.

An article written by Feng Cai, Xianze Su, Jianhui Liu, Bing Li, and Gang Lei

(2008) highlighted the relationship of the effects of climate change such as the increase in sea level and global warming to the coastal erosion along the coastal zone of China.

The locale of study is primarily the coastline of China that extends for 18,000 kilometers. Just like China, Philippines, an archipelagic country that is composed of

7,100 islands, is surrounded by water. Its total coastal area is 266,000 km2 and oceanic area is 1,934,000 km2. If climate change will continue to negatively affect countries with vast coastlines, Philippines could be in danger of experiencing these negative impacts.

The results showed that two main causes of coastal erosion are human activities and natural causes such as land subsidence, reclamation, sand mining, and dam construction. On the other hand, natural causes are sea level rise, aggravation of surge storm, tectonic subsidence, decrease of dike stability, and river watershed changes.

Because of human activities and natural causes, the three major challenges that China is facing due to coastal erosion are “threats of global warming and rising sea level to coastal plains”, “variation of sediment charges”, and “impacts of improper coastal explosion”.

A numerical simulation, case analysis, and results of inter-annual variation have showed that there is a positive correlation between the sea surface temperature and global

10 climate changes. In which, these climate changes have effects on tropical cyclone activity. Results have shown that there had been an increase in hurricane frequency and intensity of cyclone activity.

Furthermore, Cai, Su, Liu, Li, and Lei have identified different coastal protection measures. These measures may be in the form of conducting basic research of coastal erosion and assessment of its impacts, intensify research on coastal protection measures and proper protection of typically eroded coast, improvement of the integrated coastal zone management, and development of new coastal protection measures and a management system. While the article successfully shows the different effects of climate change to the coastal erosion of China, the methodology in finding such were not clearly identified.

In the Philippines, most, if not all, fishermen are highly dependent on the aquatic natural resources for their main source of livelihood and income. And it is known for a fact that among the many different communities, those living in the coastal area will be one of the most affected communities when the impacts of climate change will arise. J.

Forster, I.R. Lake, A.R. Watkinson, and J.A. Gill (2013) conducted a study to determine the social-resilience to environmental change of the livelihoods that are dependent to the marine resources. The purpose of this study is to determine the impacts of hurricane to the marine-dependent livelihood of the island of Anguilla, their perceptions as resource- users of the marine resources, and their potential adaptability to these environmental changes. The social-resilience of the livelihoods are determined by identifying the characteristics of marine and coastal resource users and livelihoods, by assessing the

11 impacts of hurricanes events, and by determining future environmental changes on the livelihood security of these households.

The study took place in Anguilla, an island relies that heavily on coastal and marine resources for the income and livelihood of the people. Snowball sampling was used to determine the 24 Marine-resource fishers and 13 marine-based tourist operators that were interviewed. The interviews were consisted of structured closed questions and open-ended semi-structured questionnaires. Responses were analyzed using ‘open- coding’ method. Additionally, triangulation and spearman rank correlations were also used for the analysis of the responses gathered.

Results have shown that the direct effects of environmental changes such as hurricanes to the marine-resource livelihoods are increasing in the degradation of the marine environment, loss of fishing gear, reduced catch rates, and damage to business infrastructures. Among the environmental changes, hurricanes are the ones that can severely affect the livelihoods of these marine-resource dependent households; of which, hurricanes may cause both short-term and long-term impacts. On the other hand, overexploitation of the marine resources and coral bleaching are both an important issues for both the fishermen and fish operators. Yet despite the apparent effects of the severe

“1995 hurricane” to the fishermen and operators, they were still able to respond to these impacts by changing their fishing strategies or finding an alternative source of income.

Also, the households were able to adapt different livelihood strategies to withstand these uncertainties. Forster, Lake, Watkinson, and Gill were also able to identify factors that may restrict the development of resilience by these marine-resource dependent livelihoods. These factors could be family status, education, and “fisher ethic”.

The results conclude that both the fishermen and operators in Anguilla were heavily dependent on aquatic natural resources. Although both the fishermen and operators were greatly affected by environmental changes such as hurricanes, they were also able to respond to these impacts and perform different adaptation measures.

A study written by Suan Pheng Kam, Marie-Caroline Badjeck, Louise Teh, Lydia

Teh, and Nhuong Tran (2012) aims to find the different autonomous adaptation to climate change of shrimp and catfish farmers in Vietnam’s Mekong River delta. The primary objectives of the paper are to present an analysis regarding the direct costs of implementing a more effective and adaptive fish farm and to discuss important issues that needs to be considered when undertaking an economic analysis about the different adaptation options in the aquaculture industry. The study focuses on the different autonomous adaptation at the farm level operations of aquaculture and the implications for carefully planned adaptation measures to address issues in the farm-level aquaculture ponds. This study can serve as a reference to the different aquaculture fish pond operators in the Philippines as to how much will it cost them to improve their farms to a more adaptive area that will be able to withstand climate variability.

The research site is also in Vietnam’s Mekong River delta. 80% of Vietnam’s total shrimp production came from the delta. The researchers used both qualitative and quantitative assessment methods in determining the different bio-physical impacts of climate change to the industry. Likewise, the increase in salinity and flooding in the said area has been modeled using the Vietnam River System and Plain (VRSAP) hydraulic and salinity model by the Sub-Institute for Water Resources Planning (SIWRP) and the

Geographic Information Systems (GIS) overlay has also been used. Three steps are

13 involved in the traditional approach in establishing the economic analysis: (1) establishing a baseline with no planned adaptation, (2) estimates are made for the impacts of climate change to farms with no planned adaptation, and (3) estimates are made for the impacts of climate change to farms with implemented adaptation policies and measures.

However, this type of approaches may also encounter several issues such as the difficulty in distinguishing the difference an adaptation measure or impacts of climate change and it does not take into account a sufficient consideration on the cost for the planned adaptation measures.

Results have shown that catfish farming operators are unable to keep up with the sudden increase in the input costs for both the absence and presence of climate change; as such, only 3% to 5% are able to effectively adapt with the impacts of the said phenomenon. This may result to a lower discounted net income for the years 2010 –

2020. Furthermore, impacts of climate change may lead to a decrease in the net income even for the newly improved and effectively adaptive extensive shrimp culture. In line with this result, if there is an absence of government intervention in helping different aquaculture operators to adapt to the different impacts of climate change, the shrimp industry will most likely spend more and experience the highest increase in the input costs. The total estimated fund needed for developments to be done due to climate change, such as dike upgrading and payment for increased costs for electricity and fuel, is approximately USD 191 million.

Kam, Badjeck, et. al., also suggested several policy implications and strategies for a more improved adaptive capacity of the aquaculture farmers in Vietnam. Adaptation measures led by the government or any private sector for these farmers can play a

14 significant role in increasing their profits; such policy implications may be improving the feed conversion ratios and increasing the margins that will benefit the farmers more compared to the retailers in importing. On the other hand, adaptive strategies may be reducing electricity and fuel, decreasing direct and indirect fossil fuel, usage of energy- efficient machinery, and low sourcing of inputs. With these planned adaptation measures, benefits to other sectors and future uses will also follow. A government-led program will not only improve the aquaculture sector and positively affect other agricultural sectors

(such as agriculture) but it will also foster protection for both the land and the people.

Also, developments in the coastal areas will further reduce the risk of salinity intrusion.

CHAPTER III

THEORETICAL AND CONCEPTUAL FRAMEWORK

Economic Impacts

Economic Impacts, as defined by Glen Weisbrod and Burton Weisbrod (1997), are the results on the level of economic activity in a certain area. Economic impacts may be measured in terms of total employment, aggregate personal income, value added or gross domestic product, business output, or property values. Total employment determines the additional jobs brought about by economic growth. Aggregate personal income measures rise of the personal income of the workers. Value Added is equivalent to Gross Domestic Product or Gross Regional Product. It measures the profit and wage income fostered in the area being studied. Business output includes the sales volume or business profit. Property values are indications of income and wealth acquired.

These economic impact measures should be appropriately identified depending on the purpose of the paper. Four types of study that can be used as guides on what measures should be used. These are public information study, economic portion of a formal

“environmental impact assessment”, cost-benefit analysis, and a “retrospective” research study (Weisbrod and Weisbrod, 1997). A public information study aims to present the economic impacts of an existing project or planned activity. This study uses measures such as Total Employment and Value Added. The economic portion of a formal

“environmental impact assessment” represents the future economic impacts of a proposed project. Cost-benefit analysis compares the benefits and costs of a project. Measures such

16 as personal income, value added, and property values can be used. Lastly, a

“retrospective” research study measures benefits based on historical data.

Economic impacts may be in the form direct economic effects or indirect economic effects. Direct economic effects are the direct consequences brought about by a certain project or program. The factors that may affect this kind of economic effects are facility investment and operations, non-facility spending program, cost shift, and locational competitiveness. On the other hand, indirect economic effects may take in the form of indirect business impacts, induced business impacts, and dynamic economic effects.

Moreover, the Food and Agriculture Organization of the United Nations (FAO-

UN); Fisheries and Aquaculture Department conceptualized a framework showing commercial aquaculture’s contribution to the dynamic performance of the economy.

Commercial aquaculture economic impacts to economic growth can be classified according direct contributions and indirect contributions.

The direct contributions are classified according to value added and employment.

These are the contributions of the sector’s production to the economy. Value added can be measured according to labour incomes, business profits, and tax revenues. Indirect contributions show that aquaculture can also affect the other sectors stimulate their output. In the report made by FAO, indirect contributions are analyzed through the input- output linkages

Cost and Returns Analysis

Cost and returns analysis is often used to show the different levels of costs, returns, and profit that an aquaculture operation incurs. The profitability of the fish farm determined will show the strength and/or weakness of an aquaculture operation.

To determine the profitability the total cost and revenue is determined. After which, the total costs incurred is subtracted to the total revenue gained. The difference will become the profit gained by the aquaculture operator.

Cécile Brugère (2006) defines total capital as the initial amount of money that the owner invests to start and operate a business project. This is computed as the sum of the initial investment and the equipment cost. Mathematically:

where:

TC = Total Capital

I = Initial Investment

EC = Equipment Cost

Total operating costs are the summation of all the either the fixed or variable cost.

Initial capital costs are excluded in operating cost. The fixed cost are the total costs employed that do not vary with the level of production. It can either be the maintenance, the depreciation or even the opportunity cost of other factor of production. Variable costs on the other hand are costs that do vary with the level of production. It includes hired labor and other equipment used in production.The total operating cost is then determined by adding the total fixed costs and total variable costs. The formula is given as:

where:

TOC = Total Operating Cost

TFC = Total Fixed Cost

TVC = Total Variable Cost

The Straight-Line Method is used in solving for the annual depreciation. It can be solved by subtracting the salvage values of an item to its acquisition cost and then divide its difference by the expected years of useful life of that item. The annual depreciation of that item is then determined. Mathematically annual depreciation is computed by:

where:

AD = Annual Depreciation

C = Acquisition Cost

SV = Salvage Value

L = Expected Years of Useful Life

Opportunity costs (OC) are implicit costs. It is the value forgone in choosing an activity over the next best alternative. Opportunity cost indicates the level of alternative loss or forgone to the aquaculture fishpond operators if the land for example is used in residential or sold. It is the main distinction between economic and accounting analysis.

In the former, OC is important to evaluate the economic viability of a certain business and in the latter opportunity cost is excluded.

To solve for the opportunity cost multiply the total land area in square meters to its price. Mathematically:

where:

OC = Opportunity Cost

TL = Total Land Area in square meter

P = Price of Land in square meter

Gross revenue is the total income generated from aquaculture operations. This may include those that are sold directly to market and given away and consumed. The gross revenue is the product of the total production and of the unit price. It can be expressed as:

where:

GR = Gross Revenue

TP = Total Production

UP = Unit Price

Profitability is the main goal of a firm or an individual when establishing a business. It is defined as the ability of a given investment by firm or an individual to earn and a return from its purpose or use (Murthy, 1978). It may also be defined as a firm’s ability to generate earning (Gibson & Boyer, 1979). Don Hofstrand (2009) identifies two types of profitability namely the accounting profit and economic profit. Accounting profits, also called as the net income, provide a firm or an individual an overview of the business. It is the difference between the sale/income gained from the total costs of

20 producing a certain good or service. Furthermore, it is divided into three categories: gross profit, operating profit, and net profit. Gross profit is measured as the difference between the total gross revenue and revenue expenditure. Mathematically, it is computed as:

Gross Profit = Total Gross Revenue – Revenue Expenditure

Operating profit is difference between total operating revenue and total cost of operation. It is computed as:

Operating Profit = Total Operating Revenue – Total Cost of Operation

Net profit is the difference between total gross revenue and total cost of operation.

Mathematically,

Net Profit = Total Gross Revenue – Total Cost of Operation

Meanwhile, economic profits are computed through subtracting the “implicit costs” or opportunity cost from the business’s net worth. Mathematically, it is computed as (Hicks, 1939):

Economic Profit = Accounting Profit – Implicit Costs

Economic Profit = Total Revenue – (Explicit Costs + Implicit Costs)

Regression Analysis

Regression analysis “studies the dependence of the dependent variable, on one or several other explanatory variables” (Gujarati, 2004). The view of such analysis is to estimate the average value of the dependent variable in terms of fixed values of the explanatory variables. Furthermore, in regression analysis the researcher is concerned with the statistical dependence among the involved variables and not their functional or deterministic relationship.

In this analysis, there are three types of data that may be utilized for empirical analysis; namely, time-series, cross-section and pooled data. Time-series data is analyzing a set of observation with different values and different times. The data collected will be at different regular time intervals (examples of which of the data may be daily, weekly, monthly, and annually. Whereas, cross-section data are values that were collected by the researchers at the same point in time. On the other hand, pooled data are consisted of both of those in time series and cross-section data.

Conceptual Framework

From the foregoing theoretical concepts, the conceptual framework of this study is shown in the paradigm in Figure 1

Figure 1. A conceptual framework showing the contributions of the aquaculture industry and the socioeconomic impacts and adaptation measures that are applied to the industry due to occurrence of hydrometeorological events

The figure above shows the different contributions of the aquaculture industry to the city of Roxas and its aquaculture fishpond operators. The industry’s direct contributions to the economy of the city are estimated through its contributions on the revenue, the total employment and total production. Its direct contributions to the Roxas

City’s aquaculture fishpond operators are estimated by calculating the operator’s business profit.

However, the aquaculture industry of Roxas City may be hindered by the occurrence of different hydrometeorological events. These incidences include hydrological, meteorological, and climate phenomena that may pose a threat to the aquaculture farms and endanger the lives of the fishpond operators (United Nations,

1997). Hydrometeorological incidences may take in the form as tropical cyclones,

23 thunderstorms, typhoons, storm surges or storm tides, drought, flash floods. In this study, the impacts of such phenomena are measured through determining the different socioeconomic effects of such to the aquaculture industry of Roxas City. These socioeconomic impacts include lost income, disruption in operations, damaged irrigations, and reduction in land and property values in damaged areas. With these impacts, the adaptation measures employed by the local government and its aquaculture operators to the industry are then determined. Of which, examples of these adaptation measures are improvement of water efficiency, emergency harvest, improvement of pond infrastructures and buildings, and repair of transportation vessel used in the aquaculture operation.

CHAPTER IV

METHODOLOGY

Research Design

This study sought to determine the different contributions of the aquaculture industry to the economy of Roxas and its aquaculture operators, the socioeconomic impacts of hydrometeorological events to the industry, the adaptation measures employed by the local government and the aquaculture farmers, and the adaptation costs incurred by the operators. This study used both primary and secondary data. The primary data was collected through key informant interviews and surveys from the sample aquaculture fishpond operators of Roxas City, Capiz. The collected data was analyzed using descriptive analysis, cost and returns analysis, market based approaches, and OLS regression.

Study Site

Roxas City is located at the Northeastern tip of Panay Island. It has a total land area of 10,196 hectares and a total coastline area of 22.2 kilometers. The city is classified as a third class component city with 47 barangays; 31 urban barangays and 16 rural barangays. Many barangays in Roxas City are prone to natural hazards such as severe flooding and tsunamis.The barangays that are located in hilly and steep slopes such as

Lawaan, Bolo, Lanot, Dinginan, Sibaguan, Balijuagan, Cabugao and Lonoy are prone to severe erosion. The barangays of Bago, Lanot, Adlawan, and Loctugan are prone to

25 flooding. The coastal barangays may experience tsunamis due to the Visayan Sea (Cities

Alliance Project Output, 2009).

Roxas City, Capiz was chosen because of its importance to the national aquaculture industry. The city provides quality and big bulks of fish to other provinces and other regions of the Philippines. Yet despite the valuable contribution of the city to the aquaculture industry, many fishing households are affected by the impacts of hydrometeorological events.

Respondents and Sampling Procedure

Based on the 2012 Municipal Fisheries Profile of Roxas City, there are 715 aquaculture fish operators in the city. This study focused on the small scale aquaculture operators, specifically the small scale milkfish, oyster, and mussel operators. In Roxas

City, there are 43 small scale milkfish brackish water operators, 149 oyster mariculture operators, and 171 mussel mariculture operators (City Agriculture Office, 2014). The average range of a small scale aquaculture farm is from 1 hectare to 2 hectares (FAO,

2010). This study focused on the aquaculture fishpond operators whose average farm size is below 2 hectares.

Participants were selected using a random sampling method. Solving for the sample size, the researcher used this formula:

Where:

N = 363 p = 0.5 d = 5% z = 1.96

Solving for the sample size, the total number of small-scale aquaculture operators that were interviewed are 187. To determine the number of small-scale aquaculture fish operators to be interviewed from each type of culture, the following formula was used:

Where: n = sample size

Ni = population of the strata

N = population

Using the formula the following number of small-scale aquaculture operators that were interviewed are: 22 milkfish brackish water operators, 88 mussel mariculture operators, and 77 oyster mariculture operators.

Data Collection Method

This study used both primary and secondary data to achieve its objectives. The secondary data that was gathered for determining the direct contributions to the economy of Roxas City were collected from the City Development Planning Office and Bureau of

Fisheries and Agriculture Office. Furthermore, the data regarding the hydrometeorological events from 2008 to 2013 that occurred in Roxas City was gathered from the office of PAG-ASA; the following years were chosen so the respondents will accurately remember the different socioeconomic impacts and easily identify the adaptation measures that they employed to cope with the events. The socioeconomic impacts to the aquaculture industry were gathered from the Department of Agriculture’s office. Likewise, the adaptation measures employed by the government were gathered from the same office and the Department of Social Welfare and Development (DSWD) office. The primary data used was collected through a survey using a structured questionnaire.

Tools of Analysis

Descriptive Analysis

This study used descriptive analysis to discuss the contributions of the aquaculture industry to the revenue, total employment and total production of Roxas City and the profit of the aquaculture farmers. It was also used to discuss the different hydrometeorological events from 2008 to 2013. Furthermore, it was also used to discuss the socioeconomic impacts of the said weather events and the adaptation measures employed by the government of Roxas and the aquaculture fishpond operators.

Cost and Return Analysis

This study used Cost and Return Analysis (CRA) to determine the direct contribution of the aquaculture industry to the aquaculture fishpond operators’ business profit. The profitability of the fish farm was computed by determining the difference between the total revenue and total costs of production. Mathematically,

Business Profit = Total Revenue – Total Costs

The revenue of the aquaculture operator was computed by multiplying the quantity of the harvest and the price of which it was sold. Mathematically, the total revenue was computed through:

Total Revenue = Price x Quantity of fish harvested

Meanwhile, the total costs were computed by computing the sum of the fixed costs and variable costs that were incurred by the aquaculture operator. The costs were computed by identifying the amount of initial capital, acquisition cost if the farm is owned, annual lease if the fish farm is rented, pond structures, buildings, transportation vessels, machineries, tools and equipments, fish farm inputs, fixed costs, and other production costs.

Mathematically, the total costs were computed through:

Total Costs = Total Fixed Costs + Total Variable Costs

In this study, the profit was measured according to its accounting profit and economic profit. The primary difference between the two types of profit is that the economic profit uses opportunity cost of the fish farm. Mathematically, the opportunity cost was measured through:

Opportunity Cost = Total Land Area (in hectares) x Price of the land per hectare

Market Based Approach

The Market Based Approach is an economic valuation method that was used to compute the costs of the socio-economic impacts of the different hydrometeorological events and of the adaptation measures. Examples of the socio-economic effects are decrease/reduction in volume of stock, changes/decrease in price of harvest, increase in labor usage, damage in pond infrastructures, damage in buildings in the fish farm, damage in the transportation vessels, and losses in farm inputs.

Meanwhile, the costs that were measured for the adaptation measures employed by the aquaculture operators were computed are from materials or supplies that they used and additional labor. Examples of the adaptation measures are improvement in water efficiency, improvement in pond infrastructures, improvement in the fish farm buildings, employment of new strategies to monitor upcoming hydrometeorological events, and repair of transportation vessels.

OLS Regression

This study used OLS Regression to determine the factors affecting the adaptation cost of the operators. The independent variables are the size of the fish farm, type of culture of the fish farm, frequency of the occurrence of the hydrometeorological events, the years of experience in the aquaculture industry, the aquaculture operator’s highest educational attainment in years, and the revenue generated from the aquaculture operation and the independent variable is the adaptation cost spent by the operator.

The empirical model of the study is:

In summary, the dependent and independent variables are:

Variables Description Measurement Dependent Variable:

Adaptation cost Independent Variables:

Size of the fish farm In Hectares

Milkfish brackish water 1 = If the type of culture of the fish farm is milkfish brackish water 0 = If otherwise

Oyster mariculture 1 = If the type of culture of the fish farm is oyster mariculture 0 = If otherwise

Frequency of heavy Number of times the fish farm was rainfall affected by heavy rainfall from 2008-2013

Frequency of flood Number of times the fish farm was affected by flood from 2008-2013

Frequency of typhoon Number of times the fish farm was affected by typhoon from 2008-2013

Frequency of drought Number of times the fish farm was affected by typhoon from 2008-2013 Years of experience In years of experience as an operator

Years of education In years the operator attended school

Revenue Revenue generated from the aquaculture farm

Table 1. Summary of dependent and independent variables

Chapter V

RESULTS AND DISCUSSION

Study Area

Roxas City is the capital of the province of Capiz. Its total land area is 10,196 hectares or 101,96 sq.km. From the total land area, 6,418.70 hectares are considered as urban areas and 3,777.30 hectares are rural areas.

The city’s land are utilized for agriculture, fishpond areas, swamps and marshes, forests, parks and other recreational activities, transport utilities, residential areas, socialized housing, commercial uses, industrial uses, institutions, special institutional areas, grassland and pasture, mining and quarrying, agro-industrial uses, tourist zones, water zone/rivers and creeks, cemeteries, and roads. Among the land uses of the city,

3,535.46 hectares are utilized for agricultural purposes and 2,068.80 hectares are used as fishpond areas.

Roxas City is considered as the center of trade and commerce in the province of

Capiz and the northern part of Panay Island. It has an agri-based economy; of which,

54.96% of the city’s total land area is utilized in farming and fishing activities. The city’s major agricultural crops are rice, assorted leafy vegetables, citrus, pineapple, root crops, plantation crops, watermelon, peanut, and coconut. Although the city has been mainly producing agricultural crops, it is now moving towards industrialization and commercialization.

Figure 2. Map of Roxas City, Capiz Source: City Tourism Promotion and Development Office of Roxas City

The Seafood Industry of Roxas City

Roxas City is considered as the Seafood Capital of the Philippines mainly because of the abundant supply of seafood at the same time the quality of such products which are unaffected by red tide for more than three decades. The total fisheries production of

Roxas City is 30, 053.66 metric tons; 8,000 metric tons are produced by the municipal or city fisheries, 5,336.24 metric tons are from the aquaculture production, and 16, 717.42 metric tons are from the commercial fisheries production (City Agriculture’s Office,

2012)

There are approximately 3,500 municipal fishermen in the city. The average catch of fishers with motorized fishing crafts is 20.0 kilograms and the average catch of the fishers with the non-motorized fishing crafts is 1.5 kilograms. The major fishing methods or gears used by the said fishers are gill nets, hook and line, long line, crab pot, pukot, likos, punot, taba, spear fishing, paanod or palutaw,bakong, shellfish gathering, and seaweed gathering. Fishers using long line method generate the highest production. The major species being caught through the long line method are gingaw, mangagat, nipa- nipa, and pagi.

There are 251 licensed commercial fishermen in Roxas City. All year round, various fishing methods are being practiced in order to catch 16, 717.42 metric tons of tabagak, sapsap, salay, hasa, and hortidos.

Roxas City has a total aquaculture area of 1,949.389 hectares. 1,898.39 hectares are utilized as brackishwater fishpond areas, 8.0 hectares are the freshwater fishpond areas, and 43.0 hectares are mariculture areas. Brackishwater fishponds approximately

35 produce 5,336.24 metric tons of milkfish, brackishwater tilapia, shrimps, prawns, crabs, grouper, and red snapper. Freshwater fishponds produce 56.0 metric tons of freshwater tilapia and catfish. Mariculture areas produce 512.5 metric tons of grouper, oyster, and mussel. The city annualy produces 20,000 – 50,000 pieces of tilapia fry, 100,000 – 200,

000 catfish and tilapia fry, 5,000 – 10,000 pieces of grouper fingerling, and 500 – 5,000 pieces of kikilo or danggit fry.

The quality and safety margin of fish products from the area made Roxas City a sought-after supplier of various markets in the neighboring provinces, Manila and abroad.

Some 1, 992 residents engaged themselves in fish processing or value adding of different fishery products of the city. The different species that are being processed into different post harvest products are sardines, mackerel, milkfish, blue crabs, anchovy, slip mouth, oyster, squid, red belly fusilier, mullet, prawns, and scallops. The said species are being deboned, smoked, dried, made into shrimp paste, and fillet dried. The city’s marine products are being exported by the city through its national port and the port of Iloilo.

Smoked sardines, dried tabagak, dried mackerel, canned blue crabs, dried squid, and half-shelled or frozen scallops are usually being exported while all the other post harvest processed products are being sold in the local and domestic markets.

The Aquaculture Industry’s Contribution to Government Revenue, Employment and Production

The revenue being generated from the 1,898.39 hectares of brackish water fishponds is approximately P 6, 329, 841.95 per year. According to Mr. Sammuel

Narcisso of the City’s Assessor’s Office, the revenue comes from the payments of the fishpond owners of land tax which is 2.5% of the market value of their ponds. Whereas, the revenue generated by the government from mariculture aquaculture is P 20,280.00 for the years 2009 to 2014. According to the Ordinance No. 016-2007, licenses and/or permits shall be paid or renewed on or before January 31st of every year. Included in the

City Fisheries License fees are the Individual Fees worth P 70.00, Mayor’s Permit worth of P 100.00, and Inspection or Miscellaneous Fees worth P 40.00. As per statement of the

Department of Agriculture’s office the mariculture operators should also pay a P 1.00 rental per square meter every year.

In 2010, the employment generated for maintaining brackish water fishponds is

1,000 laborers; of which, there are 190 caretakers, 760 fishworkers and/or laborers, and

50 carpenters and/or helpers. However, the total employment declined to 930 workers in

2011 and 2012 but in 2013 and 2014 this increased to 1, 032 and 1,060 workers, respectively. On the other hand, the workers for the oyster and mussel mariculture are usually the owners and their family members but 150 carpenters and/or helpers are employed every year for the repairs of the pond structures. Furthermore, the operators of freshwater aquaculture are mostly just being handled by the operators themselves and their family.

Table 2. Employment generated by the aquaculture industry, 2010 – 2014 Aquaculture Employment generated per year 2010 2011 2012 2013 2014 Brackish water Fishponds 1,000 930 930 1,032 1,060 A. Caretaker 190 180 180 180 190 B. Fishworker/laborer 760 720 720 792 800 C. Carpenter/helper 50 30 30 60 70 Oyster/mussel 150 150 150 150 150 A. Caretaker Owner Owner Owner Owner Owner B. Fishworker/laborer Family Family Family Family Family C. Carpenter/helper 150 150 150 150 150 Freshwater A. Caretaker Owner Owner Owner Owner Owner B. Fishworker/laborer Family Family Family Family Family C. Carpenter/helper - - - - -

From the three classifications of aquaculture, the highest contributors to the said industry are the brackish water fishponds producing more than 70% of the total production every year. The said fishponds were able to produce 3, 307.09 metric tons of milkfish, brackish water tilapia, shrimps, crabs, and grouper in 2010. In 2011 and 2012 it was able to produce 4, 768.74 metric tons of fish but in 2013 the annual production declined to 3, 842.42 metric tons due to the damages brought about by Typhoon Yolanda.

Fortunately, in 2014 the annual production increased to 5, 336.24 metric tons.

Mariculture, the second top producer of the aquaculture industry, was able to produce 918 metric tons of grouper, oyster, and mussel in 2010. Among the three species that are cultured in mariculture, oysters have the highest production with 12, 800 sacks or

640 metric tons of it were produced in the said year. However, due to a tropical depression and typhoon the production of mariculture species declined to 512.5 metric

38 tons in 2011 and 2012. In 2013, the production further declined to 130 metric tons but significantly increased to 512.5 metric tons in 2014.

Freshwater fishponds were able to produce 30 metric tons of tilapia and catfish in

2010. The said fishponds were unaffected by the different hydrometeorological occurrence from the years 2011 to 2014 as it consistently produced 56 metric tons of the said cultured species for four (4) years.

Table 3. Total production of the aquaculture industry, 2010 – 2014 Aquaculture Production per year (in MT) 2010 2011 2012 2013 2014 Brackish water Fishponds 3,307.085 4,768.74 4,678.74 3,842.42 5,336.24 A. Milkfish 3, 001.355 3,985.8 3,985.8 3,188 4,085.8 B. Brackish water tilapia 150.05 199.25 199.25 159.4 299.25 C. Shrimps 121.180 398.50 398.50 320.0 398.50 D. Prawns 2.5 11.370 11.370 1.2 11.370 E. Crabs 30.0 170.82 170.82 170.82 170.82 F. Grouper 2.0 3.0 3.0 3.0 2.0 Freshwater Fishponds 30.0 56.0 56.0 56.0 56.0 A. Tilapia 3.0 6.0 6.0 6.0 6.0 B. Catfish 27.0 50.0 50.0 50.0 50.0 Mariculture 918.0 512.5 512.5 130 512.5 A. Grouper 50.0 70.0 70.0 30 75.0 B. Oyster 640.0 150.0 150.0 50 175.0 C. Mussel 228.0 292.5 292.5 50 300.0

Hydrometeorological Events in the Aquaculture Industry of Roxas City

The total production of the aquaculture industry can be greatly affected due to the occurrence of different hydrometeorological disasters. PAG-ASA presented the different tropical depressions, tropical storms, and typhoons that occurred in 2008 to 2014. In

2008, Roxas City was affected by the typhoon Frank and tropical depression Quinta. In

June of 2009, Typhoon Peria also affected the city. In 2010, 11 cyclones occurred in the

Province of Capiz but these did not affect Roxas City. Also, there was a tropical depression that occurred in 2011. In 2012, typhoon Pablo occurred. In 2013, the deadly typhoon Yolanda greatly damaged the city. And in 2014, Roxas City experienced an El

Nino, the tropical storm Basyang, typhoon Ruby, and tropical depression Seniang.

From the cited hydrometeorological events, Typhoon Yolanda greatly affected the aquaculture industry of Roxas City. 31.33% of the total value of losses amounting to

P 77,094,600.00 of the fisheries sector accounted the value of losses of the aquaculture sector. The total value of losses of the brackish water fishponds is P 4,904,600.00; of which, the milkfish brackish water fishponds operators incurred the highest value of losses amounting to P 2,342,600.00. Freshwater fishponds incurred a total loss

P 450, 000.00; while, mariculture had a total value of losses of P 18,800,000.00.

Table 4. Hydrometeorological events that occurred in Roxas City, 2008 – 2014 Hydrometeorological Year Event 2008 2009 2011 2012 2013 2014 Typhoon Frank Peria Pablo Yolanda Ruby June 18 June 23 December2 November6 December4 Tropical Quinta Ramon Seniang Depression November 6 October10 December28 Tropical Basyang Storm January1

Socio-Economic Profile of the Respondents

In order to determine the importance of the aquaculture industry and how it may be beneficial to the small-scale operators of Roxas City, twenty-two (22) milkfish brackish water operators, eighty-eight (88) mussel mariculture operators, and seventy- seven (77) oyster mariculture operators were interviewed.

It was found out that the aquaculture operator respondents were mostly male.

More than 90% of the milkfish brackish water and mussel mariculture and more than

60% of the oyster mariculture farmers were male. The reason for the dominance of the male operators is most probably because the operation of the aquaculture farms are labor intensive; thus, are handled mostly by male.

Table 5. Frequency and Percent Distribution of Aquaculture Operators in Roxas City by Sex, 2015 Sex Milkfish brackish Mussel operators Oyster operators water operators Frequency Percentage Frequency Percentage Frequency Percentage Male 20 90.91 81 92.05 47 61.04 Female 2 9.09 7 7.95 30 38.96 TOTAL 22 100 88 100 77 100

An aquaculture operator in Roxas City can be as young as 17 years old and as old as 72 years old. The average age of the milkfish brackish water operators is 53 years old while the average age for both the mussel and oyster mariculture operators is 46 years old.

In general, milkfish operators have higher educational attainment compared to the other operators. The average educational attainments for a milkfish, mussel, and oyster

41 operator are 13, nine, and nine years, respectively. Furthermore, the average household size for the three types of aquaculture operation is four. However, among the three aquaculture operations the farming with the highest number of household members is oyster mariculture with a maximum of 10 household members living together. Aside from having the highest educational attainment, the milkfish operators also have the highest average level of aquaculture operation experience. The least number of years engage in aquaculture farming is one year while the longest number of years is 54.

Table 6. Frequency Distribution of Aquaculture Operators in Roxas City by Other Demographic Characteristics, 2015 Demographic Milkfish brackish Mussel operators Oyster operators Characteristics water operators Age Min 30 25 17 Max 70 67 72 Mean 53 46 46 Educational attainment* 10 6 3 Min 16 14 14 Max 13 9 9 Mean Household Size Min 2 1 1 Max 7 7 10 Mean 4 4 4 Years engaged in aquaculture farming Min 5 1 2 Max 54 20 30 Mean 19 11 11 *in years with 1st grade as year 1

Among the respondents, oyster operators are highly dependent on their aquaculture farming as their source of income as 73 of them depend on such livelihood.

Mussel operators, among the others, are the least dependent on aquaculture farming as their source of income as 56 (63.64%) of them have other livelihoods.

Table 7. Frequency and Percent Distribution of Aquaculture Operators in Roxas City by Sources of Income, 2015 Sources of Income Milkfish brackish Mussel operators Oyster operators water operators Frequency % Frequency % Frequency % Aquaculture Farming 13 59.09 32 36.36 73 94.81 as primary source of income With other source of 9 40.91 56 63.64 4 5.19 income TOTAL 22 100 88 100 77 100

Other sources of income of the milkfish operators are from their salaries of being a teacher, security agency head, business consultant, government employee, cook, and poultry farmer. Mussel and oyster operators, on the other hand, engage in other fishing- related and labor activities.

Despite the high dependency of the respondents to aquaculture farming as their source of income, most have not attended trainings and/or seminars regarding aquaculture farming because only less than five percent of the total respondents have attended such.

Only one milkfish operator, two mussel operators, and four oyster operators have attended trainings and/or seminars. The trainings that the aquaculture operators were able to attend were either about prawn culture or mussel and oyster farming.

Table 8. Frequency and Percent Distribution of Aquaculture Operators in Roxas City by Attendance to Trainings and/or Seminars, 2015 Attendance to trainings Milkfish brackish Mussel operators Oyster operators and/or seminars water operators regarding aquaculture farming Frequency % Frequency % Frequency % Have attended 1 4.55 2 2.27 4 5.19 Have NOT attended 21 95.45 86 97.73 73 94.81%

Aquaculture Operation

The aquaculture fishponds of Roxas City have three types of culture methods; these methods may be extensive, semi-intensive, and intensive. The species used for the extensive culture may either be monoculture or polyculture while for the semi-intensive and intensive monoculture species are used. Intensive culture methods have the highest stocking rate compared to the other culture methods as the fishponds used for such are usually small with an average size of 0.5 – 1 hectare. As this study focused more on the small-scale aquaculture operators, the culture method of the milkfish brackish water operators is usually semi-intensive. The ponds that they used are sized two hectares and below. These ponds must be fully cleaned out before they can start their stocking process.

Lime is used as the pond’s fertilizer. The average cropping frequency of an aquaculture fishpond is 2.5 cropping per year; however, in this study the average cropping frequency is three.

The mariculture industry of Roxas City has two types of culture methods; namely, the stake and raft method. Among the two, the stake method is more widely practiced by the mussel and oyster operators. The stake method utilizes mature bamboos and the stakes are usually ranged at a 1.0 meter interval. Whereas, the raft method uses raft structures made out of bamboos. Unlike milkfish, mussel and oyster shellfishes have a natural spawning season. This season is usually where the salinity and temperature of

Roxas City’s riverines are most favorable. The culture period of oysters are between six to eight months that is why other oyster operators of the city have two cropping while others only have one. Meanwhile, mussels are being harvested at an average of four times a year.

Costs and Returns of Milkfish Brackish Water Aquaculture

Initial Investment

Initial investments and other capital costs are two of the important factors in starting an aquaculture farming business. The average initial investment of small-scale milkfish brackish water operation is P 561,309.00. The capital for starting a milkfish brackish water farm incurred the highest capital cost with P 304,694.00 followed by the average acquisition cost of the land worth P 112,807.00

The average cost for pond structures is P 113,227.00. Among these, the establishment of dikes incurred the highest cost of P 46,619.05 and establishment of pond excavation as the least with P 450.00. The pond structures of a milkfish brackish water pond are as follows: dikes, leeves, sluice gates, pond excavation, guard or caretaker’s house, raft, and personal residence. Dikes are used as enclosures to the entire pond compartment, leeves are the “safety measure” of the pond as it holds water back during the flood stage and sluice gates are structures that regulate the entry and exit of water in the pond. Furthermore, the average cost for transportation vessels and machineries is

P 22,292.00. Only one operator, however, owned a boat with an acquisition cost of

P 16,667.00 and also one operator owned a generator with an acquisition cost of

P 5, 625.00.

The following tools and equipments that are needed for milkfish brackish water farming are nylon cords, shovel, spade, fish nets, bamboo hooks, hammers, and saw. The average cost for tools and equipment is P 8,288.00.

Table 9. Summary of the initial investment of small-scale milkfish brackish water operators in Roxas City, Capiz A. Initial Investment Investment Cost Land P 112, 807.00 Capital Personal Source P 138, 077.00 Loaned P 166, 617.00 SUBTOTAL P 417, 501.00 B. Structures Structures Average Quantity Acquisition Cost Dike 1 P 46, 619.00 Leeves 1 P 2, 447.00 Sluice Gates 2 P 21, 287.00 Pond Excavation 1 P 450.00 Guard or caretaker’s house 1 P 33, 625.00 Raft 1 P 800.00 Personal Residence 1 P 8, 000.00 SUBTOTAL P 113, 228.00 C. Transportation Vessels and Machineries Transportation Vessels and Average Quantity Acquisition Cost Machineries Boat 1 P 16, 667.00 Generator 1 P 5, 625.00 SUBTOTAL P 22, 292.00 D. Tools and Equipments Tools and Equipments Average Quantity Acquisition Cost Nylon 1 roll P 1, 500.00 Shovel 2 pieces P 1, 240.00 Spade 2 pieces P 936.00 Fish Net 3 meters P 3, 067.00 Bamboo Hook 2 pieces P 635.00 Hammer 2 pieces P 450.00 Saw 1 piece P 250.00 SUBTOTAL P 8, 288.00 TOTAL COST OF INITITAL INVESTMENT P 561, 100.00

Depreciation Cost

The average annual depreciation for the pond structures, transportation vessels and machineries, and tools and equipments incurred by the milkfish brackish water aquaculture operators is P 15, 192.00.

The structure with the highest annual depreciation is dike as it has a depreciation cost of P 5,896.00. Saw, on the other hand, incurred the lowest depreciation cost with

P 140.00.

Table 10. Annual depreciation cost of small-scale milkfish brackish water operators in Roxas City, Capiz A. Structures Structures Economic Useful Years Annual Depreciation Dike 5 P 5, 896.00 Leeves 2 P 317.00 Sluice Gates 5 P 961.00 Pond Excavation 2 P 225.00 Guard or caretaker’s house 5 P 2, 124.00 Raft 1 P 800.00 Personal Residence 5 P 1, 278.00 SUBTOTAL - P 11, 601.00 B. Transportation Vessels and Machineries Transportation Vessels and Economic Useful Years Annual Depreciation Machineries Boat 4 P 417.00 Generator 6 P 854.00 SUBTOTAL - P 1, 271.00 C. Tools and Equipments Tools and Equipments Economic Useful Years Annual Depreciation Nylon 5 P 255.00 Shovel 2 P 488.00 Spade 5 P 150.00 Fish Net 3 P 838.00 Bamboo Hook 2 P 295.00 Hammer 3 P 154.00 Saw 2 P 140.00 SUBTOTAL - P 2,320.00 TOTAL ANNUAL DEPRECIATION P 15, 192.00

Fixed Costs

Fixed costs are costs paid by the operators annually even without production.

These costs may be payments for permanent caretakers, taxes, Barangay permits and payments for loaned capital. Included in fixed cost are the depreciation costs of the pond structures and tools and equipments.

The average fixed cost by the milkfish brackish water operators is P 92,748.00.

The highest contributor to this cost is the annual payment for the permanent caretaker which is P 29,314.00. The annual depreciation constitutes 16.38% of the total fixed cost or P 15,192. 00. The repair cost for the structures, transportation vessels and machineries, and tools and equipments is P 20,949.00. The taxes being paid by the milkfish brackish water operators on average is only P 4,233.00.

Table 11. Total fixed cost of small-scale milkfish brackish water operators in Roxas City, Capiz Item Average Value Value/kilogram Percentage Permanent Caretaker P 29, 314.00 P 5.09 31.61 Taxes P 4, 233.00 P 0.73 4.56 Loaned Capital P 23, 059.00 P 4.00 24.86 Annual Depreciation P 15, 192.00 P 2.64 16.38 Repair Cost P 20, 949.00 P 3.63 22.59 TOTAL FIXED COST P 92, 748.00 P 16. 09 100

Variable Costs

Variable costs are composed of the inputs, materials, and hired labor that are being utilized by the operators every production cycle. For milkfish brackish water operation variable cost consists of hired labor, fry, fingerling, haterin, feeds, fertilizers, lime, dried chicken manure, fuel, containers, transportation costs, and commuting costs.

The average total variable cost by the said operators is P 84,788.00. Of which, the highest contributor for the variable cost are the containers or banyeras used for the harvested milkfish. The total average cost for the containers is P 18,590.00 (21.93%). The average hired labor per year is approximately 24 people; they are in charge for the stocking, feeding, marketing, and most especially for harvesting. The milkfish inputs may be fry, fingerlings, or haterin. On average, 7,372 fry, 6,000 fingerlings, and 10,000 haterins are being displaced on the milkfish farm. The total average cost for these inputs are P 12,

000.00, P 12, 000.00, and P 9,250.00, respectively. Thirteen sacks of Tateh feeds and one sack of Aqua feeds is being utilized every year. The feeds constitute 13.41% of the total variable cost. The fertilizers used are Urea and 16-20. Seven sacks of Urea amounting to

P 5,080.00 and six sacks of 16-20 worth P 5, 168.42 are used every year. Furthermore, apog and dried chicken manure are used after harvest and before seed stocking.

Approximately P 3,761.67 is spent on 14 sacks of lime or apog and P 326.28 for five sacks of dried chicken manure. In transporting the harvested milkfish, the operators spend

P 1,625.00 for rented transportation and P 300.00 for commuting costs.

Table 12. Total variable cost of small-scale milkfish brackish water operators in Roxas City, Capiz Item Average Qty. Average Value Value/kg Percentage Hired Labor 24 P 4,909.00 P 0.85 5.79 Fry 7, 372 P 12, 000.00 P 2.08 14.15 Fingerling 6, 000 P 12, 000.00 P 2.08 14.15 Haterin 10, 000 P 9, 250.00 P 1.60 10.91 Feeds Tateh 13 sacks P 10,577.00 P 1.84 12.47 Aqua 1 sack P 800.00 P 0.14 0.94 Fertilizer Urea 7 sacks P 5, 080.00 P 0.88 5.99 16 – 20 6 sacks P 5, 168.00 P 0.90 6.10 Lime or apog 14 sacks P 3, 762.00 P 0.65 4.44 Dried chicken manure 5 sacks P 326.00 P 0.06 0.38 Fuel (Vehicle) 12.5 L P 400.00 P 0.07 0.47 Containers 9 pieces P 18, 590.00 P 3.23 21.93 Transportation Cost 15 rentals P 1, 625.00 P 0.28 1.92 Commuting Cost 5 one-way P 300.00 P 0.05 0.35 trips TOTAL - P 84, 788.00 P 14.71 100 VARIABLE COST

Production

The total quantity of production is being divided by the operator into three uses: sold, own consumption, and given away. There are three types of sales in which the aquaculture species can be sold; these are contract sale, auction sale, and direct sale.

Furthermore, the total quantity of those that are to be given away is divided into the share of laborers and relatives.

On the average, milkfish brackish water farming has three production cycles. The average total production of milkfish is 5, 763.29 kilos a year. Among the three production cycles, the third harvest has the highest total production with 2, 043.43 kilos of milkfish being harvested. On the first harvest 1, 726.70 kilos of milkfish is being harvested while on the second harvest 1, 993.16 kilos of milkfish is being harvested. These harvested fish

50 are usually being brought at a contract sale. 900 kilos on the first harvest and 1, 056.25 kilos are being sold through contract sale. 705.62 kilos, 736.38 kilos, and 789.42 kilos of milkfish are directly sold at the market on the first, second, and third harvest respectively.

Meanwhile only 90 kilos on the first harvest and 170 kilos on the second and third harvest are being sold through auction sale.

Furthermore, the quantity of milkfish that is being consumed by the operator and his family are 3.89 kilos on the first harvest, 3.3 kilos on the second harvest, and 2.62 kilos on the third harvest. The production cycle in which laborers are being given the highest quantity of milkfish is on the second harvest where they receive 14.62 kilos of milkfish as their share. Also, on the first and second harvest the relatives of the operators receive 12.78 kilos of milkfish on average.

Table 13. Total production of small-scale milkfish brackish water operators in Roxas City, Capiz First harvest Second harvest Third harvest Sold Contract Sale 900 kilos 1, 056.25 kilos 1, 056.25 kilos Auction Sale 90 kilos 170 kilos 170 kilos Direct Sale 705. 62 kilos 736. 38 kilos 789. 42 kilos Own Consumption 3. 89 kilos 3. 13 kilos 2. 62 kilos Given Away Laborer’s Share 14. 41 kilos 14. 62 kilos 12. 57 kilos Relative’s Share 12. 78 kilos 12. 78 kilos 12. 57 kilos Sub-total 1, 726. 70 kilos 1, 993. 16 kilos 2, 043. 43 kilos TOTAL PRODUCTION 5, 763.29 kilos

In general, the average per kilo of milkfish is P 95.00 for the three types of sale.

However, on the first harvest of milkfish that was sold through contract sale the price per kilo of milkfish is lower at P 92.50.

Table 14. Average price for different types of sale of milkfish Type of sale Price First harvest Second harvest Third harvest Contract Sale P 92.50 P 95.00 P 95.00 Auction Sale P 95.00 P 95.00 P 95.00 Direct Sale P 95.00 P 95.00 P 95.00

Revenue

The total revenue generated from an aquaculture farm is computed by multiplying the total output with the unit per price of the said good. In this study, the total output is classified into three categories, there are those that are sold, personally consumed, and given away.

The average total revenue that the milkfish brackish water operators are able to acquire is P 545, 237.00. The third harvest is able to raise the highest revenue with P 194,

126.00. Furthermore, contract sale is the highest revenue generating type of sale as it is able to raise P 83, 250.00 on the first harvest and P 100, 344.00 each on the second and third harvest.

Table 15. Total revenue of small-scale milkfish brackish water operators in Roxas City, Capiz First harvest Second harvest Third harvest Sold Contract Sale P 83, 250.00 P 100, 344.00 P 100, 344.00 Auction Sale P 8, 550.00 P 16, 150.00 P 16, 150.00 Direct Sale P 67, 034.00 P 69, 956.00 P 74, 9945.00 Own Consumption P 366.00 P 297.00 P 249.00 Given Away Laborer’s Share P 1, 357.00 P 1, 389.00 P 1, 194.00 Relative’s Share P 1, 203.00 P 1, 214.00 P 1, 194.00 Sub-total P 161, 761.00 P 189, 350.00 P 194, 126.00 TOTAL REVENUE P 545, 236.75

Opportunity Cost

On average, the opportunity cost of a milkfish operator is P 365, 259.00.

Opportunity cost of land obtained the highest cost with P 200, 000.00. Opportunity cost of capital followed with P 138,077.00. Lastly, the value foregone of family labor is P

26,182.00

Table 16. Opportunity cost of small-scale milkfish brackish water operators in Roxas City, Capiz Item Opportunity Cost Capital P 138,077.00 Land P 200,000.00 Labor P 26,182.00 TOTAL OPPORTUNITY COST P 364,259.00

Costs and Returns of Mussel Mariculture

Initial Investment

The average initial investment of small-scale mussel mariculture operators is

P 69, 072. 00. Mussel operators incurred no acquisition costs for their farm land because they are utilizing the city waters. The average capital for starting a mussel farming operation is P 21, 447. 00. This capital is used to buy the initial structures, transportation vessels and machineries, and tools and equipments to start their mussel farming.

The structures used by the mussel farmers are stakes and raft. The average number of stakes being utilized is 778 bamboo poles. It has total cost of P 6, 697.00.

Among the 88 mussel mariculture operators, only nine own a raft with an average cost of

P 61.00. The average acquisition cost for the transportation vessel is P 3, 557.00

Table 17. Summary of the initial investment of small-scale mussel mariculture operators in Roxas City, Capiz A. Initial Investment Investment Cost Land P 0.00 Capital Personal Source P 2, 410.00 Loaned P 19,038.00 SUBTOTAL P 21, 448.00 B. Structures Structures Average Quantity Acquisition Cost Stakes 778 P 6, 697.00 Raft 1 P 61.00 SUBTOTAL - P 6, 757.00 C. Transportation Vessels and Machineries Transportation Vessels and Average Quantity Acquisition Cost Machineries Boat 1 P 3, 557.00 5 HP engine 1 P 4, 400.00 10 HP engine 1 P 12, 000.00 12 HP engine 1 P 12, 500.00 SUBTOTAL - P 32, 457.00 D. Tools and Equipments Tools and Equipments Average Quantity Total Cost Bolo 2 pieces P 272.00 Binder 8 rolls P 895.00 Rope 5 rolls P 1, 548.94 Gloves 5 pairs P 121.08 Nylon 6 rolls P 689.00 Sacks 49 pieces P 310.00 Pail 3 pieces P 105.00 Fish Net 20 meters P 2, 160.00 Thermo chess 6 pieces P 1, 200.00 Shovel 1 piece P 154.67 Scrap 21 kilos P 351.48 Spade 4 pieces P 593.13 Rubber 1 piece P 5.00 Hat 1 piece P 5.00 SUBTOTAL - P 8, 410.30 TOTAL COST OF INITIAL INVESTMENTS P 69, 072.46

Depreciation Cost

The average annual depreciation cost incurred by the oyster mariculture operators is P 13, 039.00. Stakes incurred the highest annual depreciation cost of P 5, 106.00 while rubber and hat incurred the lowest annual depreciation cost of P 5.00 each.

Table 18. Annual depreciation cost of small-scale mussel mariculture operators in Roxas City, Capiz A. Structures Structures Economic Useful Years Annual Depreciation Stakes 1 P 5,106.00 Raft 1 P 43.00 SUBTOTAL - P 5, 149.00 B. Transportation Vessels and Machineries Transportation Vessels and Economic Useful Years Annual Depreciation Machineries Boat 3 P 885.00 5 HP engine 4 P 600.00 10 HP engine 6 P 1, 668.00 12 HP engine 5 P 1,400.00 SUBTOTAL - P 4,553.00 C. Tools and Equipments Tools and Equipments Economic Useful Years Annual Depreciation Bolo 1 P 225.00 Binder 1 P 844.00 Rope 3 P 498.00 Gloves 6 months P 121.00 Nylon 4 P 169.00 Sacks 8 months P 310.00 Pail 1 P 105.00 Fish Net 8 P 145.00 Thermo chess 2 P 540.00 Shovel 5 P 21.00 Scrap 6 months P 351.00 Spade 4 P 141.00 Rubber 1 P 5.00 Hat 1 P 5.00 SUBTOTAL - P 3,338.00 TOTAL ANNUAL DEPRECIATION P 13,039.00

Fixed Costs

Mussel mariculture operators have an average total fixed cost of P 46, 860.00.

Payments for the permanent caretaker amounting to P 30,800.00 constitute the highest amount of fixed cost. Among the 88 mussel mariculture operators interviewed, only 38 were paying for their annual Barangay Permit which ranges from P 50.00 to P 100.00. On average, payment for loaned capital is P 1,187.00 (2.53%). The repair cost incurred by the mussel mariculture is P 1, 701.00. The annual depreciation for mussel mariculture is

P 13, 039.00 (27.83%).

Table 19. Total fixed cost of small-scale mussel mariculture operators in Roxas City, Capiz Item Average Value Value/sack Percentage Permanent Caretaker P 30, 800.00 P 540.35 65.73 Barangay Permit P 133.00 P 2.33 0.28 Loaned Capital P 1, 187.00 P 20.82 2.53 Repair Cost P 1, 701.00 P 29.84 3.63 Annual Depreciation P 13, 039.00 P 228.75 27.83 TOTAL FIXED P 46, 860.00 P 822.11 100 COST

Variable Costs

The average variable cost of mussel mariculture operators is P 3,020.00. Hired labor, fuel, transportation cost, and commuting cost constitute the total variable cost.

Commuting cost is the highest variable cost as P 1, 135.00 (37.59%) is being spent on this by the operators. 6 laborers are being hired mostly to help the operator during harvest season. The total payment for this hired labor is P 785.00 (26%). Fuel is the second highest variable cost as P 915.00 (30.29%) is being spent on six liters of fuel.

Table 20. Total variable cost of small-scale mussel mariculture operators in Roxas City, Capiz Item Average Qty. Average Value Value/sack Percentage Hired Labor 6 P 785.00 P 13.77 26 Fuel 6L P 915.00 P 16.05 30.29 Transportation Cost 2 rentals P 186.00 P 3.26 6.12 Commuting Cost 1 one-way trip P 1, 135.00 P 19.91 37.59 TOTAL - P 3, 020.00 P 52.99 100 VARIABLE COST

Production

On average, a mussel mariculture operator produces 56.89 sacks of mussel every year. The average production cycle of mussel farming is four cycles a year. The first harvest have the highest production with 23.73 sacks of mussel. On the second harvest

17.73 sacks of mussel is being harvested, on the third 7.4 sacks, and on the fourth 8.03 sacks of mussels.

Mussel mariculture operators only engage in two types of sale: contract sale and direct sale. Among these types of sale, the said operators engage in contract sale more often. The operators only engage in direct sale during the first and second harvest.

Table 21. Total production of small-scale mussel mariculture operators in Roxas City, Capiz First harvest Second harvest Third harvest Fourth harvest Sold Contract Sale 12 sacks 13 sacks 7 sacks 8 sacks Direct Sale 11 sacks 4 sacks Own 0.6 sacks 0.6 sacks 0.4 sacks 0.03sacks Consumption Given Away Laborer’s 0.1 sacks 0.1 sacks Share Relative’s 0.03 sacks 0.03 sacks Share Sub-total 23.73 sacks 17.73 sacks 7.4 sacks 8.03 sacks TOTAL PRODUCTION 56.89 sacks

Moreover, among the types of sale of the harvest mussel, the fourth harvest of contract sale incurred the highest price with a pricing of P 1,780.00 per sack. Whereas, the lowest price for mussel is on the second harvest sold directly to the market with a price of P 378.00 per sack.

Table 22. Average price for different types of sale of mussel Type of sale Price First harvest Second harvest Third harvest Fourth harvest Contract Sale P 981.00 P 985.00 P 1,542.00 P 1,780.00 Direct Sale P 406.00 P 378.00 - -

Revenue

On average, the total revenue of a mussel mariculture operator is P 57, 006.00. On the first harvest the said operators are able to acquire their highest revenue of

P 16,736.00. On the third and fourth harvest no revenue were being generated from the laborer’s share and relative’s share as all the harvested mussel are being sold through contract sale. Furthermore, the revenue generated on the second harvest is P 14, 813.00,

P 11, 411.00 on the third harvest and P 14, 045.00 on the fourth harvest.

Table 23. Total revenue of small-scale mussel mariculture operators in Roxas City, Capiz First harvest Second harvest Third harvest Fourth harvest Sold Contract Sale P 11, 767.00 P 12, 801.23 P 10, 794.00 P 14,000.00 Direct Sale P 4, 463.00 P 1, 514.00 - - Own Consumption P 416.00 P 409.00 P 617.00 P 45.00 Given Away Laborer’s P 69.00 P 68.00 - - Share P 21.00 P 20.00 - - Relative’s Share Sub-total P 16, 736.00 P 14, 813.00 P 11, 411.00 P 14, 045.00 TOTAL REVENUE P 57, 006.00

Opportunity Cost The average opportunity cost incurred by the mussel operators is P 5, 730.00. The operators did not incur an opportunity cost for land as the mariculture operators are utilizing the city waters. The foregone capital of the operators is P 2,410.00 while their opportunity cost for labor P 3,320.00

Table 24. Opportunity cost of small-scale mussel mariculture operators in Roxas City, Capiz Item Opportunity Cost Capital P 2, 410.00 Land P 0.00 Labor P 3,320.00 TOTAL OPPORTUNITY COST P 5, 730.00

Costs and Returns of Oyster Mariculture

Initial Investment

In comparison with the mussel mariculture operators, the oyster mariculture operators also incurred no cost for land as the oysters are also being farmed in the city waters. Their average capital is P 15, 233.00. P 2,439.00 of which is personal sourced and

P 12, 794.00 is loaned.

The average cost for pond structures P 65, 315.00. Seventy six of the total respondents for oyster mariculture have 565 stakes with an acquisition cost P 5, 917.00.

The structure that has the highest total cost is the residential house at P 50,000.00.

Furthermore, rafts with drums do not have an acquisition cost as it is given by the local government.

Table 25. Summary of the initial investment of small-scale oyster mariculture operators in Roxas City, Capiz A. Initial Investment Investment Cost Land P 0.00 Capital Personal Source P 2, 439.00 Loaned P 12, 794.00 SUBTOTAL P 15, 233.00 B. Structures Structures Average Quantity Acquisition Cost Stakes 565 P 5, 917.11 Raft 4 P 6, 990.67 Raft w/drums 6 P 0.00 Raft w/floaters 9 P 2, 406.25 Personal residence 3 P 50,000.00 SUBTOTAL - P 65, 314.83 C. Transportation Vessels and Machineries Transportation Vessels Average Quantity Acquisition Cost and Machineries Boat 1 P 6,791.67 5 HP engine 1 P 4, 800.00 12 HP engine 1 P 13, 250.00 SUBTOTAL - P 24, 841.67 D. Tools and Equipments Tools and Equipments Average Quantity Total Cost Bolo 2 pieces P 340.49 Binder 12 rolls P 1, 128.00 Rope 7 rolls P 707.14 Gloves 2 pairs P 91.40 Nylon 5 rolls P 497.69 Sacks 10 pieces P 61.51 Shovel 1 piece P 400.00 Scrap 18 kilos P 254.55 Spade 1 piece P 650.00 Rubber 19 pieces P 283.50 Hat 2 pieces P 33.67 SUBTOTAL - P 4, 447.95 TOTAL COST OF INITIAL INVESTMENTS P 109, 837.70

Depreciation Cost

The average depreciation cost incurred by the oyster mariculture operators is P 20, 177.00 with raft as the structure with the highest annual depreciation at P 6, 792.00. Raft with drums do not have any depreciation cost as the said operators did not spend any monetary amount in buying it.

Table 26. Annual depreciation cost of small-scale oyster mariculture operators in Roxas City, Capiz

A. Structures Structures Economic Useful Years Annual Depreciation Stakes 1 P 4,683.00 Raft 1 P 6, 792.00 Raft w/drums 2 P 0.00 Raft w/floaters 2 P 203.00 Personal residence1 10 P 2, 000.00 SUBTOTAL - P 13, 678.00 B. Transportation Vessels and Machineries Transportation Vessels Economic Useful Years Annual Depreciation and Machineries Boat 6 P 967.90 5 HP engine 5 P 860.00 12 HP engine 7 P 1, 179.00 SUBTOTAL - P 3, 005.00 C. Tools and Equipments Tools and Equipments Economic Useful Yeats Annual Depreciation Bolo 1 P 300.00 Binder 1 P 1, 016. 00 Rope 2 P 330.00 Gloves 2 months P 91.00 Nylon 1 P 449.00 Sacks 6 months P 62.00 Shovel 4 P 91.00 Scrap 1 P 250.00 Spade 1 P 613.00 Rubber 1 P 259.00 Hat 1 P 33.00 SUBTOTAL - P 3, 494.00 TOTAL ANNUAL DEPRECIATION P 20, 177.00

Fixed Cost The average total fixed cost of oyster mariculture is P 23, 804.00. Barangay

Permit, payments for loaned capital, repair cost, and depreciation cost constitutes the oyster mariculture operators’ fixed cost. Only 53 of the 77 oyster mariculture operators pay for their annual Barangay Permit with an average cost of P 80.00. Annual depreciation is accounted for the highest fixed cost with an average cost of P 20, 177.00 or 84.76% while payments for the Barangay Permit incurred the lowest cost with P 80.00 or 0.33% of the total fixed cost.

Table 27. Total fixed cost of small-scale oyster mariculture operators in Roxas City, Capiz Item Average Value Value/sack Percentage Barangay Permit P 80.00 P 1.08 0.33 Loaned Capital P 791.00 P 10.64 3.32 Repair Cost P 2, 757.00 P 37.08 11.58 Annual Depreciation P 20, 177.00 P 271.38 84.76 TOTAL FIXED P 23, 804.00 P 320.16 100 COST

Variable Costs

Meanwhile, the average variable cost of the oyster mariculture operation is

P 2, 378.00. These variable costs are composed of oyster shells, hired labor, fuel, transportation cost, and commuting cost. The oyster shells are being strapped into nylon after which can be used as “poles” for oysters. On average, 19 sacks of oysters worth P

183.00 are utilized every year. Hired labor constitutes the variable cost with P 1, 738.00 or 73.07% of the total variable cost. Seven laborers are being hired to help with harvesting of the oysters. Furthermore, two liters of fuel worth P 140.00 are being used by the operators for their motorized boats. Transportation cost is worth P 218.00 (9.16%) and commuting cost is worth P 120.00 (5.05%)

Table 28. Total variable cost of small-scale oyster mariculture operators in Roxas City, Capiz Item Average Qty. Average Value Value/sack Percentage Oyster Shells 19 sacks P 183.00 P 2.46 7.67 Hired Labor 7 P 1,738.00 P 23.38 73.07 Fuel 2L P 140.00 P 1.88 5.89 Transportation Cost 1 rental P 218.00 P 2.93 9.16 Commuting Cost 2 one-way trip P 120.00 P 1.61 5.05 TOTAL - P 2, 378.00 P 31.98 100 VARIABLE COST

Production

The average total production of oyster mariculture operators is 74.35 sacks of oysters. Unlike the mussel mariculture, the average production cycle of an oyster farm is only twice a year. In which, the first harvest produces more oysters with 50.4 sacks of the total production is harvested during this cycle.

Oyster mariculture operators engage in contract sale and direct sale. 44.42 sacks on the first harvest and 19.89 sacks on the second harvest are being sold through contract sale while 2.24 sacks and 2.27 sacks of oysters are being sold directly on the first and second harvest, respectively.

On both the production cycle, the average quantity of oyster that is being given as relative’s share is approximately 0.8 sacks. 2.74 sacks on the first harvest and 2.27 sacks on the second harvest are being given as laborer’s share.

Table 29. Total production of small-scale oyster mariculture operators in Roxas City, Capiz First harvest Second harvest Sold Contract Sale 44.42 sacks 19.89 sacks Direct Sale 2.24 sacks 2.27 sacks Own Consumption 0.92 sacks 0.52 sacks Given Away Laborer’s Share 2.74 sacks 1.19 sacks Relative’s Share 0.08 sacks 0.08 sacks Sub-total 50.4 sacks 23.95 sacks TOTAL PRODUCTION 74.35 sacks

Moreover, comparing the contract and direct sale prices for oyster, direct sale have higher prices. Oyster is relatively expensive on the direct selling of the first harvest because it is priced at P 586.00 per sack. Meanwhile, the lowest price of oyster is when it is being sold through contract sale on the first harvest as it is only priced at P 407.00 per sack.

Table 30. Average price for different types of sale of oyster Type of sale Price 1st harvest 2nd harvest Contract Sale P 407.00 P 445.00 Direct Sale P 586.00 P 556.00

Revenue

The average revenue generated from the two production cycles of oyster mariculture operators is P 32, 249.00. Among the two harvests, the first harvest is able to generate more revenue with P 21, 244.00. From the types of sale the contract sale on the first harvest generated the highest revenue with P 18, 074.00

Table 31. Total revenue of small-scale oyster mariculture operators in Roxas City, Capiz First harvest Second harvest Sold Contract Sale P 18, 074.00 P 8, 847.00 Direct Sale P 1, 313.00 P 1, 263.00 Own Consumption P 457.00 P 260.00 Given Away Laborer’s Share P 1, 360.00 P 596.00 Relative’s Share P 40.00 P 40.00 Sub-total P 21, 244.00 P 11, 006.00 TOTAL REVENUE P 32, 249.00

Opportunity Cost

The average opportunity cost of the oyster mariculture operators is P 4, 339.00.

P 2,439.00, of which, is the opportunity cost of capital and P 1, 900.00 is of the foregone labor. In comparison with the mariculture operators, oyster operators incurred no opportunity cost for land.

Table 32. Opportunity cost of small-scale oyster mariculture operators in Roxas City, Capiz Item Opportunity Cost Capital P 2, 439.00 Land P 0.00 Labor P 1,900.00 TOTAL OPPORTUNITY COST P 4,339.00

Cost and Returns Analysis

The three types of profit that are discussed in this study are the gross profit, financial profit, and the economic profit. Gross profit is computed by subtracting the total variable cost to the total revenue generated in milkfish brackish water production.

Financial profit is obtained by subtracting the total fixed cost and total variable cost from the total revenue. Lastly, economic profit is obtained by subtracting the total fixed cost, total variable cost, and opportunity cost from the total revenue. The opportunity cost in this study is the value foregone for land, capital, and family labor.

As seen in table 33, the average gross profit, financial profit, and economic profit of the three aquaculture types are positive. A positive gross profit indicates that the milkfish brackish water ponds, mussel mariculture areas, and oyster mariculture areas of

Roxas City are profitable and may continue to operate in the short run. The average gross profit of a milkfish brackish water farm is P 460, 449.00 while the average gross profit of a mussel farm is P 53, 984.00 and the oyster farm is P 29, 911.00.

A positive financial profit means that the variable cost and fixed cost of a milkfish, mussel, and oyster farm are covered and is still profitable. The financial profit of a milkfish farm is P 460, 449.00, for the mussel farm is P 7, 134.00, and for the oyster farm is P 6, 107.00. Furthermore, the positive economic profit for the three types of aquaculture indicates that the said small-scale aquaculture operations are profitable in the long run. The economic profit of the milkfish brackish water aquaculture is P 3, 443.00.

The pure economic profit of the mussel and oyster mariculture is P 1,404.00 and P 1,

768.00, respectively.

Table 33. Cost and return analysis of small-scale aquaculture operators in Roxas City, Capiz Profit Value Milkfish brackish Mussel Oyster water aquaculture mariculture mariculture Revenue P 545,237.00 P 55,004.00 P 32,249.00 Cost P 1,103,103.00 P 124,682.00 P 140,319.00 Initial Investment P 561,309.00 P 69,072.00 P 109,838.00 Fixed Cost P 92,748.00 P 46,850.00 P 23,804.00 Variable Cost P 84,788.00 P 3,020.00 P 2,338.00 Opportunity Cost P 364,259.00 P 5,730.00 P 4,339.00 Gross Profit P 460,449.00 P 53,984.00 P 29,911.00 Financial Profit P 367,701.00 P 7,134.00 P 6,107.00 Economic Profit P 3,443.00 P 1,404.00 P 1,768.00

It can be observed that although the small-scale milkfish brackish water operators incurred the highest cost among the other two types of aquaculture farming, it was also able to generate the highest gross profit, financial profit, and economic profit. Although the small-scale oyster mariculture operators incurred higher fixed and variable cost compared to those of small-scale mussel mariculture operators’ it was able to generate lower gross profit and financial profit. The reason for such is that the oyster operators have higher depreciation cost compared to those of the mussel operators. As such, they own more rafts and has residential houses near their oyster farming area. They also have more inputs compared to the latter because they oyster shells that are to be attached to the binder and used stakes.

Other Measures of Profitability

Rate of return on investment (ROI)

The rate of return on investment is determined by dividing the invested capital from the gross profit taken from the aquaculture farm. Gross profit is profit wherein taxes and other fixed costs are removed from the total revenue and invested capital is the initial capital that the aquaculture farmers spent in starting their aquaculture farming. The rate of return of investment determines the ability of the aquaculture farmers to generate the expected return (required return) based on using and managing their invested capital.

With the computed ROI, the aquaculture farmers became more knowledgeable as to much of their investment (in capital terms) were recovered.

Among the three types of aquaculture, the mussel mariculture incurred the highest rate of return on investment with 2.52. This means that in every year the mussel mariculture operators are able to recover P 2.52 of their invested capital. Meanwhile, milkfish brackish water operators obtained a ROI of 1.51 and oyster mariculture operators obtained a ROI of 1.96

Table 34. Rate of return of investment of the small-scale aquaculture operators in Roxas City, Capiz Aquaculture Type Gross Profit Invested Capital ROI Milkfish brackish P 460, 449.00 P 304, 694.00 1.51 water Mussel mariculture P 53, 984.00 P 21, 447.00 2.52 Oyster mariculture P 29, 911.00 P 15, 233.00 1.96

Rate of return on variable cost (RVC)

The rate of return on variable cost is determined by dividing the total variable cost to the total revenue incurred from the aquaculture farm. RVC enables the aquaculture operators to determine how much of their operating costs are recovered after a year of operation.

Mussel mariculture operators also obtained the highest rate of return on variable cost (RVC). Every year, the said operators are able to recover P 18.21 of their operating cost or variable cost. Meanwhile, the oyster mariculture operators obtained a RVC of

13.79 and the milkfish brackish water operators obtained a RVC of 6.43

Table 35. Rate of return on variable cost of the small-scale aquaculture operators in Roxas City, Capiz Aquaculture Type Total Revenue Total Variable RVC Cost Milkfish brackish P 545, 237.00 P 84, 788.00 6.43 water Mussel mariculture P 55, 004.00 P 3, 020.00 18.21 Oyster mariculture P 32, 249.00 P 2, 338.00 13.79

Benefit-Cost Ratio (BCR)

The Benefit-Cost Ratio (BCR) compares the total expected benefit taken from the aquaculture farm vis-à-vis its total expected costs. This is determined by dividing the costs (total variable cost and total fixed) to the total financial returns or revenue generated from the aquaculture farm.

Milkfish brackish water operators incurred the highest BCR with 3.07. This means that after a year worth of operation. They are able to recover P 3.07 of their financial costs or total fixed and variable costs. The mussel mariculture operators and oyster mariculture operators obtained a BCR of 1.10 and 1.23, respectively.

Table 36. Benefit-cost ratio of the small-scale aquaculture operators in Roxas City, Capiz Aquaculture Type Total Revenue TVC + TFC BCR Milkfish brackish P 545, 237.00 P 177, 535.00 3.07 water Mussel mariculture P 55, 004.00 P 49, 870.00 1.10 Oyster mariculture P 32, 249.00 P 26, 142.00 1.23

Rate of return on total cost (RTC)

The rate of return on total costs (RTC) is determined by dividing the total cost to the total revenue generated from the aquaculture farm. The total cost includes the initial investment, fixed costs, variable costs, and the opportunity cost incurred from the aquaculture farm. RTC determined the rate of how much of the total cost can be recovered in a year worth of operation.

The milkfish brackish water operators had the highest rate of return on total cost as they are able to recover P 3.07 of their total cost every year. Mussel mariculture operators and oyster mariculture operators were able to obtain a ROI of 1.10 and 1.23, respectively.

Table 37. Rate of return on total cost of the small-scale aquaculture operators in Roxas City, Capiz Aquaculture Type Total Revenue Total Cost RTC Milkfish brackish P 545, 237.00 P 1, 103, 103.00 3.07 water Mussel mariculture P 55, 004.00 P 124, 682.00 1.10 Oyster mariculture P 32, 249.00 P 140, 319.00 1.23

Gross Profit Margin

Gross profit margin measures the percentage of how much of the aquaculture operation’s revenue is considered as gross profit. This indicator is measured by dividing the revenue to the gross profit and is then multiplied to 100 turn it to percentage.

Results have shown that from the three types of aquaculture, the mussel mariculture operators incurred the highest gross profit margin of 98.16%. This means that approximately 98% of the total revenue generated from the mussel mariculture farming is considered as gross profit. Furthermore, the gross profit margin of the milkfish brackishwater operators is 84.45% while the gross profit margin of the oyster mariculture operators is 91.82%.

Table 38. Gross profit margin of the small-scale aquaculture operators in Roxas City, Capiz Aquaculture Total Revenue Gross Profit Gross Profit Margin Type Milkfish brackish P 545, 237.00 P 460, 449.00 84.45% water Mussel mariculture P 55, 004.00 P 53, 984.00 98.16% Oyster mariculture P 32, 249.00 P 29, 911.00 91.82%

Payback Period

Payback period determines the number of years it would take for an investment of an aquaculture operator to be paid back through the annual gross profit the aquaculture operation generates (Engle, 2005). Payback period is determined by dividing the gross profit from the initial investment. Results have shown that it will only take one year for the milkfish brackish water operators to pay back for their initial investment. Among the three types of aquaculture the oyster mariculture operators incurred the longest time before they can pay back their initial investment as it will take them five years to do such.

Table 39. Payback period of the small-scale aquaculture operators in Roxas City, Capiz Aquaculture Initial Investment Gross Profit Payback period Type Milkfish brackish P 561,309.00 P 460, 449.00 1 year water Mussel mariculture P 124,682.00 P 53, 984.00 2 years Oyster mariculture P 140,319.00 P 29, 911.00 5 years

Socio-Economic Impacts of Different Hydrometeorological Events

From the aforementioned hydrometeorological events that occurred in Roxas City from 2008 to 2013, the local government only has a comprehensive damage assessment on Typhoon Yolanda. The said typhoon greatly affected the aquaculture industry of

Roxas City as it incurred a total damage cost of P 77,094,600.00 to the different fishing sectors. The brackish water fishponds lost approximately P 4,904,600.00 worth of input variables and infrastructures. The freshwater farms incurred a total loss of P 450,000.00 worth of catfish or tilapia input units. Mariculture farms had a total damage cost of

P 18,800,000.00. The damages in the mariculture operators’ fish cages amounted to P 16,

500, 000.00

From the damage assessment report prepared by the city’s Department of

Agriculture’s office, approximately 75 aquaculture operators were affected and 395 mariculture operators were affected.

Table 40 presents the total number of small-scale aquaculture operators that were affected by the different hydrometeorological events that occurred in 2008 to 2013.

Table 40. Number of small-scale aquaculture operators in Roxas City that were affected by different hydrometeorological events in 2008 to 2013 Milkfish brackish Mussel Oyster Hydrometeorological water operators mariculture mariculture event operators operators No. of % No. of % No. of % affected affected affected Flood 12 54.55% 26 29.55% 6 7.79% Heavy Rainfall 4 18.18% 6 18.18% 30 38.96% Typhoon 22 100% 87 98.86% 77 100% Drought 2 9.09% 2 2.27% 13 16.88%

The table below shows the average occurrence of the hydrometeorological events that the aquaculture operators experienced in 2008 to 2013.

Table 41. Average occurrence of hydrometeorological events in 2008 to 2013 Hydrometeorological Milkfish brackish Mussel mariculture Oyster mariculture event water operators operators operators

Flood 1 3 1 Heavy Rainfall 2 4 3 Typhoon 2 1 1 Drought 1 2 1

As what can be seen in the table 40, the hydrometeorological event that affected almost all of the small-scale aquaculture operators in Roxas City is typhoon. All of the milkfish brackish water and oyster operators and 87 of the mussel operators were affected by the said hydrometeorological event. In line with this, the reason why a mussel operator was not affected by a typhoon is because he’s only been a mussel operator for a year. As this study only focuses on the hydrometeorological occurrences from 2008 to 2013, the

2014 impacts of a typhoon to the said operator was not computed.

More than 50% of the milkfish brackish water operators were affected by the occurrence of flood. From the said years, the average number of times a milkfish operator

73 is affected by a flood is one. Meanwhile, 26 or 29.55% of the mussel operators and only six out of the 77 oyster operators were affected by the said hydrometeorological event.

Among the three aquaculture operators, the oyster mariculture operators were affected by the heavy rainfall the most. The average number of times an oyster operator was affected by a heavy rainfall in the years 2008 to 2013 is three times.

Furthermore, it can be seen that a small majority of the total aquaculture operators were affected by drought. Only two milkfish operators, two mussel operators, and 13 oyster operators have stated that they were affected by drought.

Socioeconomic Impacts of Hydrometeorological Events to Small-Scale Milkfish Brackish Water Operators

As mentioned, the production of the aquaculture industry may be altered because of the occurrence of different hydrometeorolgical events. The socioeconomic impacts brought about by flood to the said operators from 2008 to 2013 are increase in labor usage, losses in fry, damage in dike, damage in guard house or caretaker’s house and damage in sluice gates.

Out of the 12 affected milkfish brackish water operators, six incurred a loss of

P 400.00 from their capital as they had to increase their labor usage for the repairs and reconstructions in the pond structures. All the affected operators obtained a loss of

P 554.00 for to the mortality of fry as during flood significant amount of fry overflowed from the fish ponds. In general, the average total cost of the socio-economic impacts per occurrence of flood is P 19,372.00

Table 42. Socio-economic impacts of flood to small-scale milkfish brackish water operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Increase in labor 6 P 400.00 2.06 Losses in fry 12 P 554.00 2.86 Dike damage 8 P 8,418.00 43.45 Damages on 3 P 5, 000.00 25.81 caretaker/guard house Damage on sluice gates 3 P 5, 000.00 25.81 TOTAL COST OF IMPACTS P 19, 372.00 100

Three milkfish brackish water operators experienced a decrease in the quantity of harvest due to excessive heavy rainfall. The average cost for this socioeconomic impact is

P 6,333.00. Meanwhile, the damage in dike incurred a total cost of P 9,400.00.

The average loss for a milkfish operator due to the occurrence of heavy rainfall is

P 15, 733.00.

Table 43. Socio-economic impacts of heavy rainfall to small-scale milkfish brackish water operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 3 P 6,333.00 40.25 Dike damage 4 P 9, 400.00 59.75 TOTAL COST OF IMPACTS P 15, 733.00 100

The socioeconomic impacts of a typhoon to the milkfish brackish water operators are decrease in harvest, decrease in the price of the harvested milkfish, increase in labor usage, damage in boat, damage in sluice gates, damage in the caretaker’s or guard house, losses in fry, losses in fingerling, and damage in dikes.

Typhoon causes the greatest damage among the hydrometeorological events because it is capable of destroying not only the pond structures but also the structures surrounding the ponds.

Due to the mortality of fry and fingerling, the harvested quantity of milkfish significantly declined causing a loss of P 51,884.00 to a milkfish operator. There were even instances wherein a milkfish operator was not able to harvest as all the seedlings of milkfish overflowed from the pond area. Furthermore, the price of milkfish in the market also declined because the demand decreases due to the perception that the milkfish harvested after a typhoon are of lower quality compared to those harvested before a typhoon occurred. In effect, the price became P 45.00 from the average selling price of

P 95.00. This price decrease is about 52.63%

The damage in the caretaker or guard’s house incurred the highest cost of damage for the pond infrastructures at P 33,000.00. The fish farm inputs that were lost due to the typhoon are fry and fingerlings which amounted to P 4,600.00

In general, the average cost of socio-economic impacts brought about by an occurrence of a typhoon is P 111,706.00

Table 44. Socio-economic impacts of typhoon to small-scale milkfish brackish water operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 13 P 51, 884.00 46.45 Decrease in price of 4 P 13, 113.00 11.74 milkfish Increase in labor 3 P 1, 533.00 1.37 Boat damage 7 P 2, 000.00 1.79 Damage on sluice gates 14 P 11, 826.00 10.59 Damages on 17 P 767.00 0.69 caretaker/guard house Losses in fry 3 P 3, 833.00 3.43 Losses in fingerling 18 P 26, 750.00 23.95 TOTAL COST OF IMPACTS P 111, 706.00 100

There are three socio-economic impacts brought about by drought to a milkfish brackish water pond; namely, decrease in harvest, decrease in price of harvest, and losses in haterin. The socioeconomic impact that contributed the highest loss is decrease in harvest with P 49,000.00 (77.18%) on the average. This socio-economic impact is due to the mortality of fry, fingerling, haterin, or juvenile due to excessive heat. The losses of haterin causes an average damage cost of P 490.00 Furthermore, due to the decrease of price the operators obtained an average loss of P 14,000.00. In totality, the average cost of socio-economic impacts brought about by an occurrence drought is P 63,490.00

Table 45. Socio-economic impacts of drought to small-scale milkfish brackish water operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 2 P 49,000.00 77.18% Decrease in price of 2 P 14, 000.00 22.05% milkfish Losses in haterin 2 P 490.00 0.77% TOTAL COST OF IMPACTS P 63, 490.00 100%

Socioeconomic Impacts of Hydrometeorological Events to Small-Scale Mussel Mariculture Operators

The average cost of damages brought about by flood to mussel mariculture operators is P 32, 891.00. Damage in rafts obtained the highest of losses at P 15, 000.00

Among the 26 affected mussel operators, however, only one incurred damages in his raft.

Moreover, the average cost of losses for decrease in harvest is P 4,540.00, P 7,172.00 for the increase in labor usage, and P 2,029.00 for the damage and destruction on bamboo stakes.

Table 46. Socio-economic impacts of flood to small-scale mussel mariculture operators in Roxas City, Capiz

Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 26 P 4, 540.00 13.80% Decrease in price of 10 P 7, 172.00 21.81% mussel Increase in labor usage 2 P 4, 150.00 12.62% Stake damage 15 P 2, 029.00 6.17% Raft damage 1 P 15, 000.00 45.60% TOTAL COST OF IMPACTS P 32, 891.00 100%

Among the 16 affected mussel mariculture operators by heavy rainfall, 12 experienced a decrease in their total harvest. The total damage cost for this impact is P

120.00. Due to heavy rainfall, the harvested mussel shells were of lower quality; thus, making the purchase price is lower. The average cost of socio-economic impacts brought about by an occurrence of heavy rainfall is P 154.00

Table 47. Socio-economic impacts of heavy rainfall to small-scale mussel mariculture operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 12 P 120.00 77.61 Decrease in price of 4 P 35.00 22.39 mussel TOTAL COST OF IMPACTS P 154.00 100

The average total cost of damages brought about by an occurrence of typhoon to the mussel mariculture operators is P 39,138.00. The socioeconomic impacts of typhoon are decrease in harvest, decrease in price of harvested mussel, increase in labor usage, damage on bamboo stakes, damage on raft, damage on boat, damage on binder holdings on both rafts and stakes, and damage on rope holdings.

Just like the damages incurred by the milkfish brackish water operators, the socioeconomic impacts brought about by a typhoon contributed the highest damage cost

78 to the mussel mariculture operators. It affected the quality and quantity of the mussel shells and it also destroyed the stakes and rafts, transportation vessels, and tools and equipments used in mussel farming.

Decrease in price of the harvested mussel incurred the highest cost of losses at

P 9,197.00 because the harvested mussels were of low quality. Typhoon decreased the contract price to as much as 20%. After the typhoon, the average contract price of P

1,780.00 declined to P 1,430.00. Decrease in the total harvest quantity amounted to

P 7, 849.00. Furthermore, 86 of the affected mussel operators incurred damages on their bamboo stakes which amounted to an average total loss of P 5,848.00.

Table 48. Socio-economic impacts of typhoon to small-scale mussel mariculture operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 81 P 7, 849.00 20.06 Decrease in price of 46 P 9, 197.00 23.50 mussel Increase in labor 12 P 5, 854.00 14.96 Stakes damage 86 P 5, 848.00 14.94 Raft damage 1 P 4, 000.00 10.22 Boat damage 20 P 4, 400.00 11.24 Damage on binder 20 P 975.00 2.49 holdings Damage on rope 16 P 1, 015.00 2.59 holdings TOTAL COST OF IMPACTS P 39, 138.00 100

Two mussel operators were affected due to the occurrence of drought. The socioeconomic impact of this hydrometeorological event is the decrease in the total harvest size of mussels. Due to extreme heat some mussels eventually died and can no longer be sold. With this, the mussel operators incurred an average loss of P 105.00

Table 49. Socio-economic impacts of drought to small-scale mussel mariculture operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 2 P 105.00 100 TOTAL COST OF IMPACTS P 105.00 100

Socioeconomic Impacts of Hydrometeorological Events to Small-Scale Oyster Mariculture Water Operators

The average damage cost to an oyster mariculture farmer per occurrence of a flood is P 24,681.00. The impacts include reduced quality of harvested oysters, damaged rafts and stakes, and damaged transportation vessels used in oyster farming.

The damage on boat per occurrence is the highest damage cost at P 10,000.00, comprising 40.52% of the total losses. Only one of the six affected farmers, however, experienced this impact. Four operators experienced a decrease in the quantity of the harvested oyster, which is equivalent to P 848.00 per incidence of flood.

Table 50. Socio-economic impacts of flood to small-scale oyster mariculture operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 4 P 848.00 3.43 Stakes damage 3 P 6,333.00 25.66 Raft damage 2 P 7,500.00 30.39 Boat damage 1 P 10,000.00 40.52 TOTAL COST OF IMPACTS P 24,681.00 100

The different socioeconomic impacts caused by heavy rainfall are decreased harvest, decrease in the price of harvested oyster, decrease in demand for oyster, and damage on boat. The average damage cost caused by an occurrence of heavy rainfall is

P 18,975.00. Of this amount, 47.73% or P 9,057.00 is contributed by the decrease in demand of oyster. Consumers are no longer willing to buy oysters after excessive rainfall

80 because of the perception of the decline in quality. Out of the 30 affected oyster operators, 10 experienced a decrease in harvest worth P 3,559.00. Nine operators incurred damage worth P 250.00 on their boats. The decrease in price of the harvested oysters, on the other hand, contributed a damage cost of P 6,109.00.

Table 51. Socio-economic impacts of heavy rainfall to small-scale oyster mariculture operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 10 P 3, 559.00 18.76 Decrease in price of 18 P 6, 109.00 32.19 oyster Decrease in demand 22 P 9, 057.00 47.73 for oyster Boat damage 9 P 250.00 1.32 TOTAL COST OF IMPACTS P 18, 975.00 100

The average damage cost brought about by an occurence typhoon to a small-scale oyster mariculture farm is P 81,780.00. The socioeconomic impacts of such hydrometeorological event include decrease in harvest and price of harvested oyster, increase in labor usage, damaged bamboo stakes, rafts, boat, boat engine, binder holdings, residential house, and nylon holdings.

Of the total damage cost per occurrence of typhoon, about half or 45.76% is from the damage on the residential house. Five oyster operators suffered a total damage cost of

P 35,000.00 for this impact. The damage on the boat engine amounted to P 14, 800.00. A total of P 3,985.00 was obtained by each of the 61 affected oyster operators due to the decrease in their harvest.

Typhoons also damaged the tools and equipments used in oyster farming. The average cost of damages for the destruction of the binder holdings and nylon is

P 1, 978.00 and P 2, 000.00, respectively. It also decreased the price of oyster by P 89.00

(20%) per sack, from the average contract price of P 445.00 it declined to P 306.00 after the typhoon.

Table 52. Socio-economic impacts of typhoon to small-scale oyster mariculture operators in Roxas City, Capiz

Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 61 P 3,985.00 4.87 Decrease in price of 8 P 6,688.00 8.18 oyster Increase in labor 5 P 1,340.00 1.64 Stakes damage 62 P 7,342.00 8.98 Raft damage 34 P 3,353.00 4.10 Boat damage 34 P 5,295.00 6.47 Engine damage 1 P 14,800.00 18.10 Damage in binder 8 P 1,978.00 2.42 holdings Damage in residence 5 P 35,000.00 45.76 Damage in nylon 1 P 2,000.00 2.61 TOTAL COST OF IMPACTS P 81,780.00 100

Out of the seventy-seven mariculture operators, 13 oyster operators were affected by drought. An average damage cost of P 4,815.00 was incurred by the operators due to the decrease in harvest arising from excessive heat.

Table 53. Socio-economic impacts of drought to small-scale oyster mariculture operators in Roxas City, Capiz Socio-economic No. of operators Average cost per Percentage impacts affected occurrence Decrease in harvest 13 P 4,815.00 100 TOTAL COST OF IMPACTS P 4,815.00 100

Summary of the Cost of the Socio-Economic Impacts Incurred from the Different Hydrometeorological Events

The table below shows the summary of the average costs incurred by the small- scale aquaculture operators of Roxas City from the occurrence of flood, heavy rainfall, typhoon, and drought. It can be observed that typhoons more than the other three hydrometeorological events inflicted the highest damage cost to all the aquaculture operators. The average damage cost brought about by an occurrence of a typhoon to a milkfish brackish water operator is P 111,706.00, P 39, 138.00 for a mussel mariculture operator, and P 81,780.00 for an oyster mariculture operator.

Mussel operators incurred the highest damage cost for the occurrence of floods at

P 32,891.00. The milkfish operators, on the other hand, incurred the lowest damage costs at P 19,372.00. Among the four hydrometeorological events, the aquaculture operators suffered the lowest damage cost for the occurrence of heavy rainfall. Milkfish operators incurred P 15, 733.00, P 154.00 for mussel operators, and P 18,975.00 for oyster operators.

Milkfish operators incurred the highest damage cost from flood. The excessive heat brought about by the hydrometeorological event increases the mortality rate of fish pond seedlings. The average cost of damage per occurrence of drought to the milkfish operator is P 63,490.00. Mussel and oyster operators, on the other hand, incurred a loss of

P 105.00 and P 4,815.00, respectively.

Table 54. Summary of the cost of the socio-economic impacts incurred by the small-scale aquaculture operators in Roxas City, Capiz from the different hydrometeorological events

Cost of Milkfish brackish Mussel mariculture Oyster mariculture socio-economic water operators operators operators impacts Flood P 19, 372.00 P 32, 891.00 P 24, 681.00 Heavy Rainfall P 15, 733.00 P 154.00 P 18, 975.00 Typhoon P 111, 706.00 P 39, 138.00 P 81, 780.00 Drought P 63, 490.00 P 105.00 P 4, 815.00

Among the major socio-economic impacts of the different hydrometeorological events, decrease in harvest contributed the highest damage cost to milkfish operators at P

107,217.00. Decrease in price of harvest is estimated at P 16,404.00 to the mussel operators. Furthermore, damage on transporation vessels and machineries caused the highest loss to the oyster operators at P 30,345.00.

Table 55. Cost of the major socio-economic impacts incurred by the small-scale aquaculture operators in Roxas City, Capiz from the different hydrometeorological events

Major socio - Milkfish brackish Mussel mariculture Oyster mariculture economic water impacts Cost % Cost % Cost % Decrease in harvest P 107,217.00 50.98 P 12,614.00 17.45 P 13,207.00 9.91 Decrease in price of harvest P 1,933.00 0.92 P 16,404.00 22.69 P 12,797.00 9.60 Damage in structures P 40,411.00 19.22 P 10,004.00 13.84 P 1,340.00 1.01 Damage in transportation P 2,000.00 0.95 P 4,400.00 0.55 P 30,345.00 22.77 vessels and machineries

Adaptation Measures

Government-led adaptation

Several efforts has been made by the local government in order to prepare the fisher folks for upcoming hydrometeorological events and also to help them recover from the socioeconomic impacts they experienced after the occurrence of such.

In 2011, the City Agriculture’s Office proposed a project entitled “Establishment of Floating Mariculture Structures for Oyster/Mussel and Grouper Culture as

Livelihood”. This project was aimed to improve the livelihood of the fish farmers most especially in the financial, technical, and social aspects of their lives. The project is also intended to increase production of oysters and mussels to increase the famers’ capability to adapt to the different hydrometeorological events. The total funding requirement for this project was P 172, 252.00, P 10,000.00 or 6% was spent for the training and orientation on the pre-implementation phase. P 152, 352.00 was utilized on capital assistance for the expenditures of the said operators on their fixed cost. The small-scale mariculture operators are to be granted loan assistance to supply their mariculture farms with floating cages and raft structures.

In 2012, a training was proposed by the City Agriculture’s Office on “Grouper

Cage Culture and Oyster/Mussel Production Training for Small-Scale Fisherfolks

Association”. The training aimed to teach the mariculture operators of Roxas City on how to construct floating structures for their mariculture farms, encourage them to rehabilitate riverine areas, discourage destructive fishing activities, and develop a sustainable management mariculture venture scheme for them. The total training cost amounted to

P 10, 000.00 and its target participants are the small-scale mariculture operators in Lewis

Baybay, Roxas City.

In 2013 before Typhoon Yolanda ravaged Roxas City, the Department of Social

Welfare and Development conducted capability building trainings to the fisher folks of the city. Also, together with the Department of Agriculture they provided different sustainable livelihood programs to the said sector. After the occurrence of Typhoon

Yolanda, 12 barangays of Roxas City were given financial assistance amounting to

P 217, 695.30 each.

Table 56. Government-led adaptation measures from 2011 to 2013 Adaptation Measures Year Estimated Cost  “Establishment of Fishing 2011 P 172, 252.00 Mariculture Structures for Oyster/Mussel and Grouper Culture as Livelihood”  “Grouper Cage Culture and 2012 P 10,000.00 Oyster/Mussel Production Training for Small-Scale Fisherfolks Asscociation”  Financial Assistance to 12 2013 P 2,612,343.60 affected barangays .  Capability building trainings by DSWD  Sustainable livelihood programs by the City Agriculture’s Office

Sources of information about upcoming hydrometeorological events

In general, all of the respondents were knowledgeable about the existence of a weather office in Roxas City. The major sources of information about upcoming hydrometeorological events are television, radio, and the Philippine Atmospheric,

Geophysical and Astronomical Services Administration (PAG-ASA). Among the respondents, only the milkfish operators rely on newspaper for their weather related information. Eight of the milkfish operators and 12 of the oyster operators rely on text messages from their family and friends regarding weather announcements.

Table 57. Sources of information of the small-scale aquaculture operators in Roxas City, Capiz Source of information Aquaculture Television Radio Newspaper PAG-ASA Text Operators Announcements Milkfish brackish 22 22 21 22 8 water operators Mussel mariculture 86 85 24 88 0 operators Oyster mariculture 77 76 1 77 12 operators

Adaptation Measures of Small-Scale Milkfish Brackish Water Operators

All the milkfish operators employ different adaptation measures in order for them to adapt to typhoon. More than half or 59.09% adapt to flood. Only three operators employ different adaptation measures to cope up with heavy rainfall and drought.

Table 58. Number of milkfish brackish water operators that employed different adaptation strategies Hydrometeorological event No. of operators that Percentage applied different adaptation measures Flood 13 59.09 Heavy Rainfall 3 13.64 Typhoon 22 100 Drought 3 13.64

Milkfish operators employ different adaptation measures following the occurrence of flood. The adaptation measures that were employed by the operators are to replace the fry seedlings and repair the dikes.

During floods, milkfish seedlings overflow from the ponds. When this happens, milkfish operators had to buy new fry seedling which costs P 646.00; hired additional labor to re-stock the fry costs P 183.00. 11 milkfish operators repaired their dikes. They spent P 2,682.00 and P 655.00 for material and additional labor, respectively.

Table 59. Different adaptation measures applied by the small-scale milkfish brackish water operators in Roxas City after flood Adaptation No. of Cost Cost of Source Frequency measures operators Additional Labor that applied this adaptation Buy Fry 12 P 646.00 P 183.00 1 day Personal 1 Repair Dike 11 P 2,682.00 P 655.00 2 days Personal 1 TOTAL COST P 4, 166.00

Damages brought about by heavy rainfall incurred minimal costs to the milkfish operators. The only adaptation measure they employed for this hydrometeorological event is to repair the dikes of their ponds. No materials were used nor were hired labor utilized since the caretaker of the pond is the one that fixes the damages.

Table 60. Different adaptation measures applied by the small-scale milkfish brackish water operators in Roxas City after heavy rainfall Adaptation No. of Cost Cost of Source Frequency measures operators that Additional applied this Labor adaptation Repair Dike 3 P 0.00 P 161.00 1 day Personal 2 TOTAL COST P 161.00

The milkfish operators employ adaptation strategies before and after a typhoon.

Before the occurrence of a typhoon, water is extracted from the pond to avoid flooding.

No materials were used for such adaptation measure; however, additional labor amounting to P 272.00 was utilized. After the typhoon, transportation vessels and pond structures are repaired and milkfish seedlings are bought to replace the ones that died.

The adaptation measure that cost the most is the repair for the caretaker or guard’s houses.

Table 61. Different adaptation measures applied by the small-scale milkfish brackish water operators in Roxas City for typhoon Adaptation No. of Cost Cost of Additional Source Frequency measures operators Labor that applied this adaptation Before the typhoon Reduce water 9 P 0.00 P 272.00 1.5days Personal 2 Sub-total P 0.00 P 272.00 After the typhoon Repair boat 8 P 1, 813.00 P 0.00 - Personal 2 Repair dike 22 P 7, 086.00 P 620.00 3days Personal 2 Repair caretaker 21 P 16,619.00 P 480.00 2.5days Personal 2 or guard’s house Replace fry 16 P 1, 658.00 P 80.00 1 day Personal 2 Repair sluice 14 P 8, 493.00 P 80.00 1 day Personal 2 Gates Fix holes in the 5 P 0.00 P 400.00 2 days Personal 2 Pond Sub-total P 35,669.00 P 1, 500.00 TOTAL COST P 37, 763.00

Due to the high mortality of fry, fingerling, and haterin during droughts, the adaptation measures of milkfish operators usually performs pond clearing, adding of water to the pond, replacing the milkfish seedlings, and application of “lablab”.

After a drought, water is being entered into the pond after it is being cleared and emptied-out. Milkfish seedlings, after which, are stocked into the pond area and are supplied with “lablab”.

Table 62. Different adaptation measures applied by the small-scale milkfish brackish water operators in Roxas City after the drought Adaptation No. of operators Cost Cost of Source Frequency measures that applied this Additional adaptation Labor Empty the pond 2 P 0.00 P 80.00 1 day Personal 1 Add new water 3 P 0.00 P 67.00 1 day Personal 1 Buy haterin 2 P 700.00 P 0.00 - Personal 1 Add “lablab” 2 P 0.00 P 80.00 1 day Personal 1 TOTAL COST P 928.00

Adaptation Measures of Small-Scale Mussel Mariculture Operators

Six mussel operators applied adaptation measures for flood and 87 operators employed adaptation measures for typhoon. The average cost of adaptation for flood is P

6,680.00. In anticipation of a flood, the operators tighten the rope holdings of their stake so that the bamboo structures will be less susceptible to movements. This entailed a cost of P 1,100.00; P 800.00 for the rope and P 300.00 for the additional labor.

After the flood, the operators buy stakes as replacement for the damaged ones.

This is the adaptation measure that cost the highest at P 4, 280.00.

Table 63. Different adaptation measures applied by the small-scale mussel mariculture operators in Roxas City for flood Adaptation No. of Cost Cost of Source Frequency measures operators Additional that applied Labor this adaptation Before the flood Tighten rope 2 P 800.00 P300.00 1.5days Personal 1 Holdings Sub-total P 800.00 P 300.00 After the flood Replace stakes 4 P4,280.00 P 0.00 - Personal 1 Replace scrap 1 P1,500.00 P 0.00 - Personal 1 Holdings Sub-total P5,780.00 P 0.00 TOTAL COST P 6, 680.00

Before a typhoon occurs, mussel mariculture operators add binder to tighten the holdings of the bamboo stakes and buy additional rope to also secure the bindings of the stakes. These adaptation measures’ total cost is P 780.00 for the binder and rope and P

1,575.00 for the additional labor used.

After a typhoon, the operators buy stakes to replace the damaged ones, repair their rafts and boats and buy additional binder, rope, and scrap to tighten the holdings of stakes and rafts. Among these, the adaptation measure that entailed the highest cost is the buying of the rope at P 8,493.00. In general, the average total cost of adapting to typhoon is P 27,751.00

Table 64. Different adaptation measures applied by the small-scale mussel mariculture operators in Roxas City for typhoon Adaptation Operators Cost Cost of Additional Source Frequency measures that Labor applied this adaptation Before the typhoon Add binder to 5 P308.00 P1,000.00 5days Personal 1 tighten the holdings Tighten the rope 18 P472.00 P 575.00 3days Personal 1 of the stake Bindings Sub-total P780.00 P 1, 575.00 After the typhoon Replace stakes 87 P5,759.00 P1, 500.00 6days Personal 1 Repair raft 1 P1,000.00 P 500.00 3days Personal 1 Repair boat 19 P4,195.00 P 600.00 3days Personal 1 Replace binder 20 P1,000.00 P 0.00 - Personal 1 Replace rope 14 P8,493.00 P 0.00 - Personal 1 Buy scrap 2 P350.00 P 0.00 - Personal 1 Sub-total P20,796.00 P 2, 600.00 TOTAL COST P 27, 751.00

Adaptation Measures of Small-Scale Oyster Mariculture Operators

The oyster mariculture operators applied adaptation measures for all hydrometeorological events except for drought. They view the impacts of drought to be less significant compared to the socio-economic impacts brought about by flood, heavy rainfall and typhoon.

Table 65. Number of oyster mariculture operators that employed different adaptation strategies Hydrometeorological event No. of operators that Percentage applied different adaptation measures Flood 24 31.17 Heavy Rainfall 22 28.57 Typhoon 77 100.00

The average cost incurred by the oyster mariculture operators for adapting to flood is P 22, 981.00. Before a flood occurs, the oyster operators tighten the rope holdings of their raft and stakes The average cost of these adaptation measures are

P 2,047.00; P 1,417.00 for the materials and P 630.00 for the additional labor.

Meanwhile, the average cost of adapting after a flood has occurred is P 20,678.00 for the materials and P 267.00 for the additional labor. The operators buy bamboo stakes as replacement and repair rafts and transportation vessels.

Table 66. Different adaptation measures applied by the small-scale oyster mariculture operators in Roxas City for flood

Adaptation Operators Cost Cost of Source Frequency measures that applied Additional this Labor adaptation Before the flood Tighten the rope 18 P 283.00 P130.00 1day Personal 1 holdings of rafts Tighten the rope 3 P 1, 133.00 P500.00 2days Personal 1 holdings of stakes Sub-total P 1, 417.00 P 630.00 After the flood Replace stakes 3 P 7,667.00 P 267.00 1.5days Personal 1 Repair raft 2 P 10,000.00 P 0.00 - Personal 1 Repair boat 1 P 10,000.00 P 0.00 - Personal 1 Sub-total P 20, 667.00 P 267.00 TOTAL COST P 22, 981.00

The adaptation measures employed by the operators for heavy rainfall are usually done prior to the occurrence of the event. These adaptation measures include adding of binder to the stake holdings and tightening of the rope holdings for the rafts. Twenty two

(28.57%) operators added binder to the stake holdings while only 15 tightened the holding of their rafts.

Table 67. Different adaptation measures applied by the small-scale oyster mariculture operators in Roxas City before heavy rainfall Adaptation No. of operators Cost Cost of Source Frequency measures that applied this Additional adaptation Labor Add binder to the 22 P 83.00 P 0.00 - Personal 1 stake holdings Tighten the rope 15 P 100.00 P 0.00 - Personal 6 holdings of the rafts TOTAL COST P 183.00

The adaptation measures that were employed by the oyster operators befor a typhoon are to tighten the rope and binder holding of the stakes and rafts and buying of additional bamboo stakes. After the occurrence of the hydrometeorological event, the operators replace the damaged stakes, repair the rafts, boats, and residential houses, and buy binder, nylon, and rope to tighten the holdings of both the rafts and stakes. The average cost incurred by the operators for adapting to typhoon is P 35, 243.00.

Table 68. Different adaptation measures applied by the small-scale oyster mariculture operators in Roxas City for typhoon Adaptation Operators Cost Cost of Source Frequency measures that applied Additional Labor this adaptation Before the typhoon Tighten the rope 18 P1, 432.00 P200.00 1day Personal 1 holdings of rafts Add stakes 4 P 79.00 P 0.00 - Personal 1 Add binder to the 3 P1,677.00 P 0.00 - Personal 1 stake holdings Tighten the rope 22 P1,152.00 P212.00 1day Personal 1 holdings of stakes Sub-total P4,339.00 P 416.00 After the typhoon Replace stakes 65 P6,205.00 P 108.00 0.5days Personal 1 Repair raft 34 P6,056.00 P 0.00 - Personal 1 Repair boat 34 P5,456.00 P 0.00 - Personal 1 Replace binder 7 P831.00 P 0.00 - Personal 2 Replace rope 3 P5,333.00 P 0.00 - Personal 1 Replace nylon 1 P2,000.00 P 0.00 - Personal 2 Repair 5 P4,200.00 P300.00 2.5days Personal 1 residential house Sub-total P30,081.00 P 408.00 TOTAL COST P 35, 243.00

Regression Analysis

A regression analysis was performed in order to determine the factors that affected the aquaculture operators’ adaptation cost. Specifically, a SEMILOG (log-lin) functional form was used for the OLS regression data analysis in order to determine the growth rate of the variable ADCOST (Adaptation Cost). The result of the data analysis is presented below.

Table 69. Regression analysis showing the factors affecting the adaptation cost of the small-scale aquaculture operators in Roxas City, Capiz Coefficient Std. Error t-ratio p-value Const 7.27156 0.314558 23.1167 <0.00001 *** Size 0.586782 0.4129 1.4211 0.15705 Milk -1.1643 0.770536 -1.5110 0.13257 Oys 0.0914825 0.179862 0.5086 0.61165 Ffreq -0.254287 0.0781543 -3.2537 0.00137 *** Rfreq 0.208016 0.0709244 2.9329 0.00380 *** Tfreq 0.191254 0.166404 1.1493 0.25198 Dfreq 0.0270293 0.234979 0.1150 0.90855 Years 0.0225156 0.00901903 2.4965 0.01346 ** Educ 0.081124 0.0256337 3.1647 0.00183 *** Revenue 3.34412e-06 1.50352e-06 2.2242 0.02741 **

The results showed that the significant variables were CONST (constant), FFREQ

(frequency of flood), RFREQ (frequency of heavy rainfall), YEARS (years of experience as an operator), EDUC (years of education), and REVENUE (revenue generated from the aquaculture farm).

At 1% level of significance, it was determined that a unit increase in heavy rainfall will increase the adaptation cost spent by the operators by 21%. The occurrence of heavy rainfall signifies the forthcoming occurrence of other hydrometeorological events such as typhoon and flood. With this, operators tend to spend more during heavy rainfall so as the impacts of other events will be less damaging and destructive.

Furthermore, it was determined that a unit increase in the frequency of flood the adaptation cost decreases by 25%. As flood may be an after-effect of heavy rainfall, different adaptation strategies has already been employed by the aquaculture operators, that is why further adaptation measures for flood are already deemed as insignificant and not needed.

Moreover at 5% level of significance, it was found out that a one year increase in the experience as an operator of the respondent will increase the adaptation cost by 2%.

This is because with an increased experience in the aquaculture farming, the operator tends to become more knowledgeable as to what are the other possible adaptation measures that they are to employ when adapting to the different hydrometeorological events.

The regression result also showed that at 1% level of significance, a one year increase in the education attainment of the operator will also increase the adaptation cost by 8%. By increasing knowledge through education, the operator is able to determine what adaptation measures will be most effective in adapting to the different hydrometeorological events.

Lastly, at 5% level of significance, a peso increase from the revenue generated from the aquaculture operation increases the adaptation cost by 3.3-06 %. When the operators are able to generate more revenue from the aquaculture farm, they then are capable enough to spend more for their adaptation measures.

The R-squared value of the regression is 0.32401. This indicates that the regression equation explains 32% of the variation of adaptation cost.

CHAPTER VI

SUMMARY, CONCLUSION AND RECOMMENDATIONS

Summary

This study focused on the small-scale aquaculture operators of Roxas City, specifically the milkfish brackish water operators, the mussel mariculture operators, and the oyster mariculture operators. A total of 187 operators were interviewed; of which, 22 were milkfish farmers, 88 were mussel farmers, and 77 were oyster farmers.

Socio-economic profile showed that in all the types of aquaculture, operators were mostly male. Most are, likewise, dependent on aquaculture farming for their primary source of income.

Approximately P 6, 329, 841.95 tax revenues are generated annually by the local government from the fishpond land taxes. Meanwhile P 20, 280.00 was generated from the payments of mariculture operators for licenses. Also, a significant amount of employment opportunities is being generated with more than 1,000 hired laborers employed by the industry. Brackish water fishpond operators hired the highest number of laborers as they were able to employ 1,000 workers in 2010, 930 in 2011 and 2012, 1,032 in 2013 and 1,060 in 2014.

Moreover, in the year 2014 the brackish water fishponds were able to produce

5,336.24 metric tons of milkfish, tilapia, shrimps, prawns, crabs, and grouper. Freshwater

99 fishponds were able to supply 50 metric tons of tilapia and catfish and mariculture farms were able to supply 512.50 metric tons of grouper, oyster, and mussel.

In order to determine the benefits acquired by the small-scale aquaculture operators from the industry, a cost and returns analysis was performed. Calculating for the revenue and costs, the small-scale aquaculture operators obtained positive gross profit, financial profit, and economic profit.

Results have shown that the average gross profit of a milkfish brackish water operator is P 460, 449.00; while the average gross profit of a mussel mariculture operator is P 53, 984.00 and P 29, 911.00 for an oyster maricuture operator. The average financial profit of a milkfish brackish water operator is P 367, 701.00, P 7, 134.00 for a mussel mariculture operator, and P 6, 107.00 for an oyster mariculture operator. Lastly, the average economic profit for a milkfish brackish water operator, mussel mariculture operator, and oyster mariculture operator is P 3, 443.00, P 1, 404.00, and P 1,768.00, respectively.

However, due to the occurrence of different hydrometeorological events in Roxas

City, the small-scale aquaculture operators incurred losses. Between 2008 and 2013, the city experienced nine hydrometeorological occurrences. Typhoon Yolanda is the most devastating as it incurred a total loss of P 77,094,600.00 to the fishing industry alone.

Out of the total respondents, flood affected 12 (54.55%) milkfish brackish water operators, 26 (29.55%) mussel mariculture operators, and six (7.79%) oyster mariculture operators. Heavy rainfall affected four (18.18%) milkfish brackish water operators, six

(18.18%) mussel mariculture operators, and 30 (38.96%) oyster mariculture operators.

Typhoons affected almost all of the respondents except for one mussel farmer who

100 started his aquaculture operation only in 2014. Furthermore, drought affected two

(9.09%) milkfish brackish water operators, two (2.27%) mussel mariculture operators, and 13 (16.88%) oyster mariculture operators.

The average total cost of socio-economic impacts of the different hydrometeorological events to the milkfish brackish water operators are P 19,372.00 for flood, P 15,733.00 for heavy rainfall, P 111,706.00 for typhoon, and P 63, 490.00 for drought. Mussel mariculture operators incurred a total average damage cost of

P 32, 891.00 for flood, P 154.00 for heavy rainfall, P 39, 138.00 for typhoon, and

P 105.00 for drought. Whereas, the average damage cost incurred by the oyster mariculture operators is P 24, 681.00 for flood, P 18, 975.00 for heavy rainfall,

P 81, 780.00 for typhoon, and P 4, 815.00 for drought.

In order to adapt to these hydrometeorological events, the local government of

Roxas City provided the aquaculture operators, specifically the mariculture operators, with trainings and seminars about capability building and skills trainings. However, provision of such only started in 2011. Also, the local government provided a financial assistance to the barangays that were affected by Typhoon Yolanda.

On average, milkfish brackish water operators employ two adaptation measures for flood, one for heavy rainfall, seven for typhoon, and four for drought. Mussel mariculture operators employ three adaptation measures for flood and eight for typhoon.

Whereas, oyster mariculture operators employ five adaptation measures for flood, two for heavy rainfall, and 11 for drought. The adaptation measures that were employed for some hydrometeorological event were practiced before and after the occurrence of the event.

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The total number of milkfish brackish water operators that applied different adaptation measures is 13 for flood, three for heavy rainfall, 22 for typhoon, and three for drought. For mussel mariculture farming, six operators and 87 operators employed different adaptation measures for flood and typhoon, respectively. No adaptation measures were employed for heavy rainfall and drought. Lastly, in oyster mariculture farming the number of operators that employed different adaptation measures are 24 for flood, 22 for heavy rainfall, and 77 for typhoon. In comparison with the mussel mariculture, no adaptation measures were employed for drought.

The average cost spent by a milkfish brackish water operator on the adaptation measures for flood is P 4,166.00, P 161.00 for heavy rainfall, P 37, 442.00 for typhoon, and P 928.00 for drought. A mussel mariculture operator, on average, spends P 6, 680.00 for flood and P 27, 751.00 for typhoon. Meanwhile, oyster mariculture operators obtained an average adaptation cost of P 22, 981.00 for flood, P 183.00 for heavy rainfall, and P

37,763.00 for drought. Accounted in these adaptation costs are the materials and inputs that were brought as replacements and additional usage and labor.

Furthermore, results of an Ordinary Least Square regression analysis showed that the factors that can affect an aquaculture operator’s adaptation cost are the frequency of flood, frequency of rainfall, years as an aquaculture operator, years of education, and revenue generated from the aquaculture farming.

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Conclusion

As shown by the data, the aquaculture industry of Roxas City is a profitable venue for revenue generation. The industry is of big help to the small-scale aquaculture operators because of the profit that they obtained from the aquaculture farms. The result indicated that aquaculture farming is highly profitable in the short run as the operators were able to generate a gross profit of P 460,449.00 for the milkfish operators, P

53,984.00 for the mussel operators, and P 29,911.00 for the oyster operators. The industry is also profitable in the long run because all the operators were able to generate a positive economic profit of P 3,443.00, P 1,404.00, and P 1,768.00 for the milkfish, mussel, and oyster operators, respectively.

Despite the high profitability of aquaculture it is still vulnerable to the different hydrometeorological events because Roxas City is exposed to the said weather-related events. In 2008 to 2014, alone, the city experienced nine hydrometeorological events.

The aquaculture farmers, in general, are also exposed to flood, heavy rainfall, typhoon and drought. Milkfish operators are vulnerable to hydrometeorological events such as flood and typhoon. More than 50 percent of the milkfish farmers were affected by flood and all were affected by typhoon. The hydrometeorological events greatly decreased the harvest of milkfish as the operators incurred a total loss of P 107,217.00 for this impact.

Mussel operators were mostly affected by flood and typhoon. The occurrence of such events greatly decreased the profit of these small-scale mussel operators as they incurred a loss of more than P 10,000 for the decrease in harvest, decrease in price of harvested mussels, and damage on their stakes and rafts. Oyster operators, on the other hand, are

103 the most affected among the operators as most of them are highly dependent on aquaculture farming as their livelihood. The operators are highly vulnerable to heavy rainfall and typhoon. Damage on transportation vessels and machineries incurred the highest total loss at P 30,345.00.

Results showed that among the hydrometeorological events, typhoon affected the aquaculture industry the most. The said event significantly affected and damaged the farm structures, transportation vessels, tools and equipments and variable inputs of the aquaculture operators. Heavy rainfall incurred the least cost of damages to the milkfish brackish water operators. Drought incurred the least cost of damages for both the mussel and oyster mariculture operators.

Furthermore, it was observed that the local government does not have a comprehensive adaptation plan for the occurrence of the different hydrometeorological events. It was not until 2011 that that the government started to provide different trainings and programs to the small-scale aquaculture operators.

The adaptation measures employed were mostly reactive as most of these were applied after the occurrence of a hydrometeorological event. All of the operators spent a significant monetary amount on employing different adaptation measures for typhoon as this hydrometeorological event, as stated before hand, inflicted the aquaculture farms the most.

Despite being affected by flood, heavy rainfall, typhoon, and drought, several aquaculture operators do not employ adaptation measures to some hydrometeorological event. One possible reason for this is that some operators, specifically mussel and oyster mariculture farmers, perceived that some of the socio-economic impacts of the events are

104 not highly damaging to their aquaculture farms. Since these farmers are operating a small-scale farm it will not be rational for them to spend a significant amount of money to the employment of adaptation strategies.

The study showed that with an increase in education and years as an operator, the adaption cost also increases. This is because with an additional knowledge regarding the different adaptation techniques the operators are likely to seek better and more effective adaptation measures; thus, incurring a higher cost. Also with an increase in revenue generated from the aquaculture operation, the adaptation cost also increases since the operators are more capable in spending higher monetary amount in employing different adaptation measures.

Lastly, increase in the frequency of heavy rainfall increases the adaptation cost as this is an indication of forthcoming hydrometeorological events such as typhoon and flood. In this regard, the operators tend to spend more on the employment of adaptation strategies for heavy rainfall.

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Recommendations

Since the aquaculture industry is a good source of revenue to the local government and is an effective livelihood source to the small-scale fish operators, the local government should develop the industry by promoting the aquaculture products during different tourism-related activities.

The local government offices should also keep a comprehensive damage assessment reports following the occurrence of a hydrometeorological event as to determine the extent of the vulnerability of the city and the small-scale aquaculture operators.

Moreover, it is recommended that the aquaculture operators should not solely depend on aquaculture farming as their primary source of livelihood but also venture on other alternative livelihoods that are climate-resilient as the results showed that they incurred significant losses from the hydrometeorological events.

However, as with the improvement of the aquaculture industry, the government should also increase the adaptation strategies that they employ and provide the aquaculture farmers with. It should increase its provision of trainings regarding capability enhancement in coping up with the occurrence of weather-related occurrences. In line with this, the local government should not only limit the provision of trainings and seminars to the mariculture operators but also to the fishpond operators. Even though they are capable enough to spend a significant amount of money in the employment of their adaptation strategies they should also be educated as to what are the proper and effective adaptation techniques.

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Lastly, as with the employment of sustainable adaptation measures, the government should employ projects that will enable the operators to integrate different climate change adaptation techniques to their aquaculture farming so as their costs for employment of the adaptation measures to the hydrometeorological events will be lesser.

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Fleming, A., Hobday, A.J., Farmery, A., Van Putten, E.I., Pecl, G.T., & Green, B.S. (2013) Retrieved November 26, 2014, from www.elsevier.com Forster,J., Lake, I.R., Watkinson, A.R., & Gill, J.A. (2013) Marine dependent livelihood and resilience to environmental change: A case study of Anguilla. Retrieved October 29, 2014from, www.elsevier.com/locate/marpol Gujarati, D. (2004) Basic econometrics. McGraw-Hill: New York, NY Hoevenagel, R. (1994) The contingent valuation method: scope and validity. Vrije Universiteit: Amsterdam Hofstrand, D. (2009) Understanding profitability. Retrieved December 19, 2014, from http://www.extension.iastate.edu/agdm/wholefarm/pdf/c3-24.pdf Kam, S.P., Badjeck, M-C., Teh, L., Teh, L., & Tran, N. (2012) Autonomous adaptation to climate change by shrimp and catfish farmers in Vietnam’s Mekong River delta. Retrieved November 27, 2014, from http://www.worldfishcenter.org/resource_centre/WF_3395.pdf Lopez, N. (2008) Sustainable development and trends in the Philippine aquaculture. Retrieved November 24, 2014, from http://www.agnet.org/htmlarea_file/activities/20110719101541/11.pdf Nierentz, J. (2007) Overview of production and trade – the role of aquaculture fish supply. In Arthur, R., & Nierentz, J. (2007) Global trade trends on aquaculture. FAO: RomeMaunder, W.J. (1992) Dictionary of global climate change. UCL Press: London Pant, J., Barman, B. K., E-Jahan, K. M., Belton, B., & Beveridge, M. (2013) Can aquaculture benefit the extreme poor? A case study of landless and socially marginalized Adivasi (ethnic) communities in Bangladesh. Retrieved October 13, 2014, from www. elsevier.com/locate/aqua-online Schwartz, S. (2008) Aquaculture research trends. Nova Science Publishers: New York, NY Sekhar, N. U., Ortiz, I., & BFAR (n.d.) Aquaculture in the Philippines: socio-economics, Poverty and gender. Retrieved November 24, 2014 from http://aquaculture.asia/files/D18_PHILMINAQ_Socio-issues.pdf shodhganga (n.d) Conceptual framework of profitability and capital structure. Retrieved December 19, 2014, from http://shodhganga.inflibnet.ac.in/ Stern, N. (2007) The economics of climate change: The Stern review. Cambridge University Press: London Subashinge, R. (n.d.) Global perspectives and challenges of aquaculture. FAO: Rome Thomas, V., Albert, J.G., & Perez, R. (2013) Climate-related disasters in Asia and the Pacific Asian Development Bank: Mandaluyong, Philippines Ueda, T., Albert, J. R., & Francisco, R. (2012) Intense climate-related natural disasters In Asia and the Pacific. Asian Development Bank: Mandaluyong, Philippines Uddin, M. N., Bokelmann, W., & Entsminger, J. S. (2014) Factors affecting farmers’ adaptation strategies to environmental degradation annnd climate change effects: A farm level study in Bangladesh. Retrieved November 27, 2014, from www.mdpi.com/journal/climate United Nations (1997) International decade for natural disaster reduction: IDNDR early warning programme. Report on early warning for hydrometeorological hazards including drought. Retrieved November 23, 2014, from http://www.unisdr.org/files/1867_VL102134.pdf

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Van Anrooy,R., Secretan,P., Lou, Y., Roberts, R., & Upare,M. (2006). Review of the current state of the aquaculture insurance. FAO: Rome Weisbrod., G., & Weisbrod, B. (1997) Measuring economic impacts of projects and programs Retrieved September 14, 2014, from http://www.edrgroup.com/pdf/econ- impact-primer.pdf Williams, L., & Rota, A. (2012). Impact of climate change on fisheries and aquaculture in the developing world and opportunities for adaptation. Retrieved October 13, 2014, from www.ifad.org/lrkm/pub/fisheries.pdf WorldFish Center (2007) The threat to fisheries and aquaculture from climate change. Retrieved November 25, 2014, from http://www.worldfishcenter.org/resource_centre/ClimateChange2.pdf

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ANNEX A: LETTERS

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UNIVERSITY OF THE PHILIPPINES VISAYAS College of Arts & Sciences Division of Social Sciences Miagao, Iloilo

February 3, 2015

HON. ANGEL ALAN CELINO Mayor City of Roxas

SIR:

I, the undersigned, am a 4th year Bachelor of Science in Economics student from the University of the Philippines Visayas. As a requirement for my Economics 199.2 (Economics Research) course, I am currently on the process of doing my undergraduate research entitled “Economic Analysis and Adaptation Measures of Small-Scale Aquaculture in Roxas City, Capiz”. To which, this research aims to determine the direct contributions of the aquaculture industry to the said city and to the small-scale aquaculture operators, the different socioeconomic impacts brought about by hydrometeorological events, and the adaptation measures and its costs incurred by the small-scale aquaculture operators.

In this light, I would like to request for the following: 1. to be granted permission to conduct my research in your city, 2. to be granted permission to interview and conduct surveys to small-scale aquaculture operators in this city, and 3. to be granted access to different information from related agencies regarding the aquaculture industry of this city.

Rest assured that the information and data that will be gathered will be confidential and solely for academic purposes only. Thank you and hoping for your favorable response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA

Adviser

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UNIVERSITY OF THE PHILIPPINES VISAYAS College of Arts & Sciences Division of Social Sciences Miagao, Iloilo

February 3, 2015

MR. SAMMUEL NARCISSO OIC of City Assessor’s Office Roxas City

SIR:

In this light, I would like to request for the following:

1. to be granted information regarding the revenue, in the form of land tax, contributed by milkfish brackishwater aquaculture operators in Roxas City

Rest assured that the information and data that will be gathered will be confidential and solely for academic purposes only. Thank you and hoping for your favorable response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA Adviser

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UNIVERSITY OF THE PHILIPPINES VISAYAS College of Arts & Sciences Division of Social Sciences Miagao, Iloilo

February 3, 2015

MS. IMELDA OFALLA OIC of PAG-ASA Roxas City

MA’AM:

In this light, I would like to request for the following:

1. to be granted information regarding the different hydrometeorologial events that affected Roxas City for the years 2008 - 2013

Rest assured that the information and data that will be gathered will be confidential and solely for academic purposes only. Thank you and hoping for your favorable response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA Adviser

114

UNIVERSITY OF THE PHILIPPINES VISAYAS College of Arts & Sciences Division of Social Sciences Miagao, Iloilo

February 3, 2015

MR. ROMMEL ROBERTO LASTIMO OIC of DRRM Office Roxas City

SIR:

In this light, I would like to request for the following: 1. to be granted information regarding the different hydrometeorological events, for the years 2008 – 2013, that affected the aquaculture industry of Roxas City 2. to be granted information regarding the socioeconomic impacts of the said hydrometeorological events to the aquaculture industry of Roxas City 3. to be granted information regarding the different adaptation measures employed by the government of Roxas that helped lessen or reduce the damages brought about by the said hydrometeorological events

Rest assured that the information and data that will be gathered will be confidential and solely for academic purposes only. Thank you and hoping for your favorable response.

Sincerely yours, MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA Adviser

115

UNIVERSITY OF THE PHILIPPINES VISAYAS College of Arts & Sciences Division of Social Sciences Miagao, Iloilo

February 3, 2015

MS. ENGELINE AGUIRRE OIC of City Agriculture’s Office Roxas City

MA’AM:

In this light, I would like to request for the following: 1. to be granted information regarding the direct contributions of the aquaculture industry to Roxas City; specifically, its contributions to the total production and total employment to the city 2. to be granted information regarding the total share of the oyster and mussel mariculture operators to the city’s revenue

Rest assured that the information and data that will be gathered will be confidential and solely for academic purposes only. Thank you and hoping for your favorable response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA Adviser

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ANNEX B: QUESTIONNAIRE

117

UNIVERSITY OF THE PHILIPPINES VISAYAS College of Arts & Sciences Division of Social Sciences Miagao, Iloilo

ECONOMIC ANALYSIS AND ADAPTATION MEASURES OF SMALL-SCALE AQUACULTURE OPERATORS IN ROXAS CITY, CAPIZ

I am a B.S. Economics student of the University of the Philippines Visayas and am presently working on an undergraduate research on the economic analysis and adaptation measures of the small-scale aquaculture operators in your city. Through this study, the aquaculture operators will be able to identify their costs and revenues of their farm and they will also be able to determine the costs of damages and adaptation measures to the different hydrometeorological events that occurred in the city. In line with this, I would like to have an interview with you regarding the costs and return of your aquaculture business, costs of damages of the different hydrometeorological events that affected your farm, and the different adaptation measures that you employed. The gathering of data will last for 30 minutes to an hour. I assure you that the data gathered from this interview will remain confidential and for solely for academic purposes. I will be greatly thankful for your participation in this study.

MARLA MAY A. BAES

INTERVIEW SCHEDULE CODE I.S. Number: (To be supplied by the interviewer) M.B. – M.M. – O.M. –

I. GENERAL INFORMATION OF THE OPERATOR

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Name of Respondent : ______Age : ______Sex : ______Civil Status : ______Highest educational attainment : ______Years of experience as an operator : ______

Have you attended any training related to aquaculture operation? ( ) Yes ( ) No

If yes, Title of Year Description Organizer/s Who Days of Place training Attended of training conducted training where it the training was held

a. No. of household members: ______

Name of Relation Age Sex Highest Occupation Contribution to Household to the educational the Household Member Operator attainment Income (per year)

Other sources of income No of Total Amount of Employer/ Source (if years in compensation applicable) the said (per year) choice Occupation a. b. Business a. b. Remittances

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Livestock a. b. Others (specify) a. b.

II. PROFILE OF THE FISHPOND

Questions Answers Type of aquaculture operation: ( ) Milkfish Brackishwater Location/ Site: Total Area of fish farm (ha/sq.m.): Years the fish farm is in operation: Water supply: ( ) Well ( ) Tide ( ) Others (please specify) Type of ownership: ( ) Year Acquisition Owned Acquired Cost ( ) Leased ( ) FLA ( ) Others If the fish farm is owned: If you were to sell your land, how much is the selling price:

If fish farm is leased:

Leased From Private Owner From Public Sources Area (ha/sq.m.) Annual Rent Type of lease: ( ) Fixed Cash ( ) Share of production ( ) Share of revenue and costs Length of lease (yrs) Is the lease renewable? Yes No

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Other provisions:

III. FISHPOND OPERATION

A. Capital

Where did you get your initial capital?

Personal Sourcing: Initial Capital/ Amount:

Borrowed: Total Amount Borrowed:

If initial capital is borrowed:

Source Borrowed Amount Interest Term

Family Friends Bank Others (specify)

B. Pond Structures, Buildings, Transportation Vessels, Machineries

Item Year Quantit Acquisitio Repai Salvag Estimate Prevailin Acquire y n Cost r Cost e d Life g Market d Value Span Value

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(years) Structures: 1. 2. 3. 4. Transportatio n vessels: 1. 2. Machineries: 1. 2.

C. Tools and Equipments

Tools and Year Quantity Price Total Salvage Estimated Prevailing Equipments Acquired per unit Cost Value Life Span Market (years) Value

D. Other Fixed Costs

Fixed costs Quantity Price per unit Total Cost

Maintenance of structures Business Permit Insurance Taxes Others (specify)

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E. Labor Costs

Activity Number of workers Family Permanent Hired Others(specify) Caretaker Pond preparation 1. Stocking 2. Feeding 3. Fertilization 4. Weeding Processing 1. Maintenance 2. Harvesting 3. Marketing Post-harvest 1. Transportation 2. Packing

3. Processing 4. Marketing

Others (specify)

Type of Labor Payment Allowances (salary/day) Family Permanent Caretaker Hired Others (specify)

F. Fish Farm Inputs

No. of production cycles in a year: ______

Inputs/ per production Quantity Price per unit Total Cost Prevailing cycle Market Value Fry Fingerling Haterin Juvenile Feeds

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1. 2. Fertilizers 1. 2. Others (specify) 1. 2.

G. Other Production Costs (per harvest)

Item Quantity Price per unit Total Cost Fuel Oil Electricity Water Ice Containers Transportation Cost Commuting Cost Others (specify)

H. Production

How many times do you harvest in a year : ______

a. Division of production per harvest

Quantity Sold Consumption Laborer’s share For other purposes: 1. 2. 3. 4.

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b. Total production

Production Cycle Time Total Quantity of Output Number Unit of measure Per ton ( ) Per sack ( )

c. Quantity per type of sale

Production Contract Auction Direct Others Market Price per Cycle No. Sale Sale Sale (specify) unit of measure

IV. SOCIO-ECONOMIC IMPACTS OF HYDROMETEOROLOGICAL EVENTS

a. From 2008 to 2013, which of these hydrometeorological events affected your fish farm?

Hydrometeorological Event Number of times it Year/s it occurred affected the fish farm ( ) Flood ( ) Heavy Rainfall ( ) Typhoon ( ) Drought ( ) Others (specify)

b. Where do you get your information about the upcoming hydrometeorological events?

( ) Television ( ) Radio ( ) Newspaper

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( ) Weather Office Announcements ( ) Others (specify) ______c. Does Roxas City have a weather office (PAG-ASA)?

( ) Yes ( ) No d. What are the different socio-economic effects of these hydrometeorological events?

1. FLOOD Year/s occurred: ______

Socio-economic effects Cost of damages Decrease/Reduction in volume of harvest Changes/Decrease in price of harvest Increase in labor usage Damage in structures: 1. 2. 3. Other damages (specify) 1. 2. 3.

2. HEAVY RAINFALL Year/s occurred: ______

Socio-economic effects Cost of damages Decrease/Reduction in volume of harvest Changes/Decrease in price of harvest Increase in labor usage Damage in structures: 1. 2.

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3. Other damages (specify) 1. 2. 3.

3. TYPHOONS Year/s occurred: ______

Socio-economic effects Cost of damages Decrease/Reduction in volume of harvest Changes/Decrease in price of harvest Increase in labor usage Damage in structures: 1. 2. 3. Damage in transport vessels: 1. 2. 3. Losses in inputs Fry Fingerling Juvenile Haterin Feeds / Fertilizers Others (specify) Other damages (specify) 1. 2. 3.

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4. DROUGHT Year/s occurred: ______

Socio-economic effects Cost of damages Decrease/Reduction in volume of harvest Changes/Decrease in price of harvest Increase in labor usage Losses in inputs Fry Fingerling Juvenile Haterin Feeds / Fertilizers Others (specify) Other damages (specify) 1. 2. 3.

V. ADAPTATION MEASURES EMPLOYED BY THE AQUACULTURE OPERATOR Notes:

 For “Source of funds” refer to the following choices: a. Personal Sourcing b. Support from a Local Government Unit c. Loaned (if yes, state how many % is the interest)  Adaptation measures refer to the preparations done whenever a certain hydrometeorological event occurs

1. FLOOD

Do you prepare for floods? Yes ( ) No ( )

If yes, what are your preparations/adaptation measures?

Adaptation Materials/Supplies Additional Other Costs Source Year/s Frequency Measures Labor (no of of applied workers/days/ funds salary Inventory Cost Cost Inventory Cost

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2. HEAVY RAINFALL

Do you prepare for heavy rainfalls? Yes ( ) No ( )

If yes, what are your preparations/adaptation measures?

Adaptation Materials/Supplies Additional Other Costs Source Year/s Frequency Measures Labor (no of of applied workers/days/ funds salary Inventory Cost Cost Inventory Cost

3. TYPHOON

Do you prepare for typhoons? Yes ( ) No ( )

If yes, what are your preparations/adaptation measures?

Adaptation Materials/Supplies Additional Other Costs Source Year/s Frequency Measures Labor (no of of applied workers/days/ funds salary Inventory Cost Cost Inventory Cost

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4. DROUGHT Do you prepare for droughts? Yes ( ) No ( )

If yes, what are your preparations/adaptation measures?

Adaptation Materials/Supplies Additional Other Costs Source Year/s Frequency Measures Labor (no of of applied workers/days/ funds salary Inventory Cost Cost Inventory Cost

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