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An Economic Analysis of Fish Production in the Dai Fisheries in Phnom Penh and Kandal Province, Cambodia

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An Economic Analysis of Fish Production in the Dai Fisheries in Phnom Penh and Kandal Province, Cambodia An Economic Analysis of Fish Production in the Dai Fisheries in Phnom Penh and Kandal Province, Cambodia by Hap Navy and Ngor Peng Bun Fishery Officer, Department of Fisheries, and Counterpart of the MRC/DoF/Danida Fisheries Project in Cambodia ABSTRACT Fishing with dais or bag nets is a form of commercial fishing in the Tonle Sap River. It accounts for 5% of the total annual fish catch in Cambodia. The term dai describes a form of anchored bag net or stationary trawl fishing technique designed to capture fish migrating downstream through the Tonle Sap River. Both dai fishery units and fishing lots are leased out for two years. The dai fishery tends to be controlled by highly experienced fishers and their relatives/agents. In this study, data on cost and return per dai operation in the 1999–2000 fishing season were analyzed. The study was conducted in Phnom Penh and Kandal Province. Approximately 25% of the total dai fishery units within two strata were randomly selected for sampling. Three of the dai units sampled belonged to the high-catch and 13 to the low-catch stratum. The total sample of 16 dai fishery owners were interviewed using a structured questionnaire to obtain information on various aspects of dai fisheries such as the socio-demographic characteristics of dai fishery owners, fishing activities, income, financial investment and fish marketing. The results of a "cost and return or profitability" analysis of the dai fisheries showed that the gross returns or total revenues per dai unit were 183,857,000 Riel, whereas total costs were 131,092,000 Riel. This implies that dai fishing was profitable, and is expected to continue to operate. In addition, profitability may be expressed in terms of the rate of return to capital, which was 59.75%. This means that the rate of return to capital in the dai fishery was higher than the opportunity cost of the capital (8– 10% in Cambodia). The dai unit is therefore considered to be profitable. Moreover, the operating profit margin ratio was also used to test the profitability. This ratio was 56.03%, which means that, on the average, for every 1000 Riel of revenue 560.30 Riel remained as profit after paying the operating expenses. 1. INTRODUCTION The Cambodian freshwater fisheries are organized on three levels: 1) family (subsistence) fishing, 2) medium-scale (artisanal) fishing, and 3) large-scale (industrial) fishing. The state recognizes the right of families to fish at all times of the year, imposing restrictions mainly on the fishing equipment, such as type, length and mesh size of gears etc. The fishing calendar is divided into two seasons: open (October–May) and closed (June–September). Medium-scale and large-scale fishing are allowed only in the open season. Large-scale fishing takes place in 279 fishing concessions (known as fishing lots and dai fishery) located along the periphery of the Great Lake and the Tonle Sap and Mekong-Bassac Rivers (Ly et al., 2000). There are 63 dai fishery lots in Phnom Penh and Kandal Province. The term dai describes a form of anchored bag net or stationary trawl fishing technique used in Kandal Province and Phnom Penh and designed to capture fish migrating downstream through the Tonle Sap River. Both dai fisheries and fishing lots are leased out for two years, however concessions for dai fisheries tend on average to be much cheaper than for fishing lots. The dai fisheries are located in the lower part of the Tonle Sap River, 4–30 km north of Phnom Penh, and are generally controlled by rich, highly experienced fishers. Dai fishing operations start from October to March, in the open season, when the water flows out of the Great Lake to the Mekong River. The vast wetlands and flooded forests around the Great Lake sustain a very high species diversity and high fish productivity. - 207 - Generally, the peak period for the dai fishery is in December–January during the full moon (Lieng et al., 1995). The dai fishery plays an important role in the annual supply of both fresh and processed fish for human consumption, especially for rural people. Moreover, during the peak period dai fisheries also supply fish for animal food. The ‘Project for the Management of Freshwater Capture Fisheries of Cambodia’ reported the annual catch from dai fisheries in the 1999–2000 season to be 11,438 tons (Van Zalinge et al. 2000a). Dai fisheries contribute a significant proportion of the total annual catch of freshwater capture fisheries in Cambodia, at about 4–5% in 1994–97 (Van Zalinge et al., 2000b). The present study examined the variations in the fish productivity of dai fisheries in terms of socio- economic factors and the relative income levels of dai lot-owners. In particular, the study focused on an economic analysis of dai fisheries operations in the 1999–2000 fishing season. An analysis of social and economic factors affecting the production and benefits as well as the effectiveness of the present management regime are considered important factors in making any policy and legislative changes for the fishery sector (Fernando, 1985; Panayotou, 1985). 2. OBJECTIVE OF THE STUDY The general objective of the study was to analyze cost and return per dai operation in the 1999–2000 season. The specific objectives were: 1. To describe the social and economic status of dai fisheries owners; and 2. To determine the cost structure and profitability of dai fisheries. 3. METHODOLOGY AND DATA COLLECTION The dai fishery interviewees were selected at random within two strata. 3.1 Sampling method There are 63 dai units, arranged in 15 rows. Of these, 25 dai units are located in rows numbered 1–6 in Phnom Penh, and 38 units are in rows numbered 7–15 in Kandal Province. The dai fisheries are divided into two strata based on data from the dai fisheries census that was carried out during the 1996–97 fishing season. Ten of the dai units are considered to be ‘high catch’ and the remainder to be ‘low-catch’ operations. Approximately 25% of the total number of dai fishers were randomly chosen for interview; three from the ‘high catch’ and 13 from the ‘low catch’ stratum, a total of 16 samples. 3.2 Data collection The primary data were collected in Phnom Penh and Kandal Provinces during the 1999–2000 season. A questionnaire was used to obtain information on various aspects of the dai fishery such as the socio- demographic characteristics of the owner, fishing activities, income, financial investment and marketing system employed. 3.3 Data processing and analysis The data obtained from the questionnaire were computerized using Microsoft Access, SPSS, and Excel software. The Microsoft Access program was used for data entry and processing. SPSS and Excel were used for simple descriptive statistics, graphics, and tabulation. 3.4 Limitation of the study It is difficult to obtain accurate data on the fish catch made by the dai fisheries and the annual income derived from it through personal interviews; we had the strong feeling that both catch and income were under-reported. However, independent data on the fish catch and its value were obtained from the database maintained by the ‘MRC/DoF/Danida Project of the Freshwater Capture Fisheries of Cambodia’. These data are collected seasonally using a stratified random sampling method. - 208 - 4. RESULTS AND DISCUSSION 4.1 Socio-demographic characteristics of dai fisheries owners 4.1.1 Distribution of age, gender, and place of birth The age distribution of dai fishery owners ranged from 29 to 57 years, with an average age of 41 years. In terms of gender and marital status, all dai operators were male and married. Of the 16 interviewees, 13 (81%) were living in the province in which they had been born. The remaining three (19%) owners came from different provinces but had lived in their present province for between 7 and 21 years. 4.1.2 Education, ethnic origin, and occupation Seven (44%) of the dai fishery owners had had either no education at all or primary education only; six (38%) had received secondary education; only three (19%) had received higher secondary education. On average the dai owners had attended school for six years. This implies that most of the dai owners did not have high levels of education. The dai operators belonged to three ethnic groups: Khmer (7; 44%), Cham (5; 31%), and Vietnamese (4; 25%) (see Tables 12.1 and 12.2). Table 12.1: Education levels of dai fishery owners, 1999–2000 fishing season Education level Dai fishery owners (samples) No. % No education 2 12.50 Primary 5 31.25 Secondary 6 37.50 Higher secondary 2 12.50 Bachelor and above 1 6.25 Total 16 100.00 Table 12.2: Ethnic origin of dai fishery owners, 1999–2000 fishing season Ethnic origin No. of dai fishery Percentage(%) owners (n=16) Khmer 7 44 Cham 5 31 Vietnamese 4 25 Fishing was the principal occupation of most of the dai owners; they had long experience of fishing and had inherited their knowledge from their parents. Furthermore, most the owners practiced caged- fish culture as their secondary occupation. Fifteen (94%) of the sample claimed fishing as their principal occupation, and only one (6%), who operated a dai fishery belonging to the Department of Fisheries that was used for research, was a government staff member. Most, i.e. 14 (88%) of the samples, had fish culture (i.e. fish cage culture) as a secondary occupation. 4.2 Borrowing practices Borrowing and lending of money are common practices in Cambodia. The most common sources of borrowed funds are relatives and friends, who may or may not charge interest.
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