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Market Chain Analysis of Koka Reservoir Fish in Ethiopia

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Market Chain Analysis of Koka Reservoir Fish in Ethiopia Cheffo et al., AJSRE, 2016; Vol. 1(1): 0042-0053 Research Article AJSRE (2016), Vol. 1, Issue 01 American Journal of Scientific Research and Essays (ISSN:2475-7527) Market Chain Analysis of Koka Reservoir Fish in Ethiopia Abebe Cheffo1 , Lemma Zemedu (PhD)2 and Endrias Geta (PhD)2 1 National Fishery and Other Aquatic Life Research Center P.O.Box 64 Sebeta 2 Haramaya University, Department of Agricultural Economics P.O.Box 138 Dire Dawa ABSTRACT This study analyzed the fish market chain of Koka reservoir in *Correspondence to Author: Ethiopia which is found in Oromia Region, East shoa and Arsi Abebe Cheffo, national Fishery and zones. The objectives of the study were to assess the structure, Other Aquatic Life Research Center conduct and performance of fish marketing as well as identify P.O.Box 64 Sebeta, factors affecting fish market supply. The study was based on the data obtained from a sample of 104 fishers and 36 traders in the Email: [email protected] fish market chain. Both descriptive and econometric methods were employed to analyze the data. About 65% Tilapia (Coroso), 21% Catfish (Ambanza) and 14% Carp (Abasamuel) were the type of fish which dominantly appear in the day to day marketing How to cite this article: activities of the fishers. The major determinant factors of mar- Cheffo et al. Market Chain Analysis ket supply were estimated by using multiple linear regression of Koka Reservoir Fish in Ethio- models. The fish market performance was also measured using pia. American Journal of Scientific indicators of marketing margins. According to the results, there were three kinds of fish marketing channels i.e fishers to con- Research and Essays, 2016,1(1): sumers, fishers to retailers then consumers, fishers to fishery 0042-0053. cooperatives, wholesalers then consumers. The result showed that transportation and filleting costs were the largest costs of marketing followed by gutting cost. The price of a kilogram of filleted tilapia varied from 18 birr at landing site to 75 birr at Atiklt Tera in Addis Ababa. The Ordinary Least Square results indicated that education level, availability of credit facility and eSciPub LLC, Houston, TX USA. ownership of fishing license significantly affected the amount of fish supplied to market by fishers in the study area. Expanding Website: http://escipub.com/ adult education in fishery community, facilitating access to credit facility and encouraging fishers to be legal is very important for better harvesting and marketing of fish. Key words: Tilapia, catfish, carp, marketing channels, marketing cost AJSRE: http://escipub.com/ajsre/ 0042 Cheffo et al., AJSRE, 2016; Vol. 1(1): 0042-0053 1. INTRODUCTION lakes, except Lakes Tana, Ardibo and Lugo are 1.1 Background of the Study found in the rift valley (FAO, 2003). The country has huge potential of fish production by which Globally, fish is a valuable traded commodity, the production of fish from major lakes reaches representing a significant source of foreign up to 23,342 ton per year, from major reservoir exchange earnings, in addition to its important and dams 4,399 ton per year, from small water contributions to employment creation, income bodies 1,952 ton per year and from rivers 21,788 generation and food security. In 2008, about 39 ton per year (Bernard et al, 2003). percent (live weight equivalent) of world fish and fishery products was internationally traded as various food and feed products, compared with 1.2. Trends in Fish Production and 25 percent in 1976 (FAO, 2010a).This increase Consumption in Ethiopia in volume is a reflection of the sector’s growing degree of openness to and integration in, After the departure of Eritrea from Ethiopia in international trade. Some of the specific factors 1993 and the resulting loss of its coastline, that have contributed to this rise are: growing Ethiopia has only inland freshwater capture globalization of the fishery and aquaculture fisheries. In Ethiopia, the current annual per value chain; outsourcing of processing to capita fish consumption is less than 240 gram countries where comparatively low wages per year .At Addis Ababa, the figure is about and production costs provide a competitive 1 Kg per year, while in towns located in fish advantage; increasing consumption of fishery production areas (Bahirdar, Ziway, Arbaminch, commodities; favorable trade liberalization Hawassa and Gambella per capita fish policies; and technological innovations, including consumption is estimated at 10 Kg per year ( improvement in processing, packaging, Solomon, 2009).Despite this based on only a transportation and changes in distribution and single factor - population-current annual demand marketing that have significantly changed the for fish in the country is estimated at 65,344 ton, way fishery products are prepared, marketed equivalent to 0.797 kg/person. Future demand and delivered to consumers (FAO, 2010a). at the present population growth rate will reach 94,526 ton in 2015 and 117,586 ton in 2025. Fish and the fisheries sector are of great social This is the minimum demand, since factors other and economic importance to Malawi. The than population are not considered here. These sector plays a very significant role as a source positive factors which activate demand include of nutrition, income and employment. Fish the relatively low price of fish or the increasing provides over 60% of the dietary animal protein prices of its substitutes; a rise in income; and intake of Malawians and 40% of the total protein improvement and expansion in fish distribution supply. Much of the fish is consumed in rural or supply networks and improvement in fish areas thereby contributing significantly to daily product quality. These factors may increase nutritional requirements of poor rural masses. the projected demands by as much as 15 to Fish acts as a source of income for the people 20 percent. Those factors that retard effective of Malawi, generating beach price local revenue demand for fish require to be addressed through of about MK2.6 billion (US$24million) annually. education, fish consumption promotion and (Letson et al., 2012). product development (FAO, 2008). 1.3. Objectives of the Study Ethiopia covers a total area of 1.1 million km2 and an estimated population of 82 million in The general objective of the study was to assess 2010 (Belay, 2010). The total water bodies have 2 market chain of fish from Koka reservoir. surface area estimated at 7334 km of small The specific objectives were: water bodies and 7185 km long rivers. Nearly To identify the major fish marketing half of the area is covered by major lakes and 2 channels, reservoir around 3500km is covered by Lake To identify the role and conduct of Tana, which is the largest lake in the country and marketing agents source of Abby river in the Nile basin. All major To quantify costs for key marketing actors AJSRE: http://escipub.com/ajsre/ 0043 Cheffo et al., AJSRE, 2016; Vol. 1(1): 0042-0053 To quantify margins for key marketing actors 2.1. Description of the Study Area To identify factors affecting fish supplied Koka reservoir is found in Oromiya Regional to the market by fishers in the study area State, East Shoa Zone (Lome and Bora Weredas), and Arsi Zone (Dodota Wereda). The 1.4. Factors Affecting Market Supply of Fish reservoir has 255km2 area, maximum depth of 14 meters, minimum depth of 9 meters, maximum Post harvesting and marketing activities are length of 20 kilometers, maximum width of 15 critical factors for the supply of fish included daily kilometers, shore line of 195-205 kilometers and and seasonal price fluctuations due to changes water temperature of 20 0c. It is located at 8026´N in supply volume; poor health and hygiene in latitude, 39010´E longitude and an altitude wholesale and retail markets; limited experience elevation of 1660 meters above sea level. and knowledge about export markets; lack of There are many species of fish in the reservoir value-addition and processing; and steady while Orechromis niloticus (Tilapia), Cyprinus increases in fish supply coupled with poor Carpio (Common Carp), Clarias gariepinus consumer perceptions of farmed fish quality (Catfish),and Barbus intermedius (Barbus) are leading to declining consumer prices (Ahmed commercially important species. The reservoir etal.2012). was constructed in late 1950s for hydroelectric power generation purpose on Awash River. It The flow of market information is essential is situated at around 90 kilometers southeast of to promote a fair and transparent market Addis Ababa (Gashaw.2006). mechanism. An increase in supply of raw fish may depress prices on the local markets due 2.2. Types and Sources of Data to the limited purchasing power of consumers (Soobasch ,2009). According to Rab et al (2006), The sources of data for this study were both fish harvested by fishers was immediately landed primary and secondary data sources. Secondary (i.e. at the landing site or harbor), and transferred data were collected from different published to fish collectors and/or fish processors. and unpublished sources, such as government Sometimes, harvested inland fishes were kept institutions, research reports, bulletins, and alive in pens or cages for sale during periods, websites. when supply was scarce and prices were more satisfactory. Before reaching the consumer, fish The primary data that were collected from fishers and fish products would have passed through by using questionnaire include factors affecting a number of transactions including fisher, fish fish market supply, size of catch, market collector, landing site owner, fish processor, information, credit access, and access to market, distributor, retailer etc. number of gillnet owned, fish harvesting cost, annual return from fish, agricultural extension In fish harvesting and marketing, there are a service, time of sale, license possession and variety of forms of rent.
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