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Philippine Tilapia Economics

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Philippine Tilapia Economics .',~~-~ ....- "I ICLARM CONFERENCE PROCEEDINGS 12 Philippine Tilapia Economics Edited by I. R. Smith, E. B.Torres and E.O. Tan ~ II I I' I 'a III I. I .. l'! f PHILIPPINE COUNCIL FOR AGRICULTURE AND RESOURCES RESEARCH AND DEVELOPMENT INTERNATIONAL CENTER FOR LIVING AQUATIC RESOURCES MANAGEMENT ,. ,i". I .. ,..I 9P ilippine Tilaph Economics Edited by Ian R. Smith Enriqueta B. Torres and Elvira 0.Tan PHILIPPINE COUNCIL FOR AGRICULTURE AND RESOURCES RESEARCH AND DEVELOPMENT INTERNATIONAL CENTER FOR LIVING AQUATIC RESOURCES MANAGEMENT Philippine Tilapia Economics Proceedings of a PCARRD-ICLARM Workshop LOPBaiios, Laguna, Philippines 10-13 August 1983 IAN R. SMITH ENRIQUETAB. TORRES AND ELVIRA0. TAN Printed in Manila, Philippines Published by the Philippine Council for Agriculture and Remurces Research and Development, Los ~azos,Laguna, Philippines and the International Center for Living Aquatic Resources Management, MC P.O. Box 1501, Makati, Metro Manila, Philippines- Publication was made possible by grants from Planters Products lnc. and San Miguel Corporation. Smith, I.R., E.B. Torres and E.O. Tan, editors. 1985. Philippine tilapia economics. ICLARM Conference Proceedings 12,261 p. Philippine Council for Agriculture and Resources Research and Development, Los Baiios, Laguna and International Center for Living Aquatic Resources Management, Manila, Philippines. Cover: Tilapia fishfarmers stocking fingerlings in a pond in Sto. Domingo, Bay, Laguna, Philippines. Photo by Jose Noel A. Morales. lSSN 0115-4435 ISBN 971-1022-18-4 ICLARM Contribution No. 254 Contents Preface ...................................................... v Introduction .................................................. 1 Session 1 : Overview Tilapia Farming in the Philippines: Practices, Problems and Prospects. R.D. Guerrero I11 ............................. 3 Session 2 : Tilapia Hatcheries Economics of Private Tilapia Hatcheries in Laguna and Rizal Provinces, Philippines. L.R. Yater and I.R. Smith ............... 15 Cost Analysis of a LargeScale Hatchery for the Production of Oreochmmis niloticus Fingerlings in Central Luzon, Philip- pines. M.C.Broussard, Jr. and C.G. Reyes .................... 33 The Adoption of Tilapia Farming and Its Impact on the Community of Sto. Domingo, Bay, Laguna, Philippines. M.C.B.Gaite, J.N.A. Moralea, O.C.R.Orilla and B.B. Pili. ................... 44 Session 3 : Cage Culture Systems The Economics of Tilapia Cage Culture in Bicol Freshwater Lakes, Philippines. E.M. Escover and R.L.Claveria ................... 50 Economics of Tilapia Cage Culture in Laguna Province, Philippines. C.T. Aragon, M.M. de Lim and G.L.Tioseco ................... 66 Economics of Tilapia Cage Culture in Mindanao, Philippines. L.P.Oliva. ......................................... 83 Financial and Economic Analyses of Grow-Out Tilapia Cage Farming in Laguna de Bay, Philippines. J.F. Lazaga and L.L.Roa.. ........................................ 107 Session 4: Land-Based Culture Systems Tilapia Production in Freshwater Fishponds of Central Luzon, Philippines. R.C. Sevilleja . 1 15 J Economics of Rice-Fish Culture Systems, Luzon, Philippines. R.N. Tagarino. - . 127 J~heIntroduction of Integrated Backyard Fishponds in Lowland Cavite, Philippines. F. Fermin . 15 1 Status, Potential and Needs of Tilapia Culture in Panay Island, Philippines. V.L.Corre, Jr. 165 Transfer of Fish Culture Technology in Central Luzon, Philippines. W.R.Rosario . 174 Session 5 : Tilapia Marketing Tilapia Marketing in Central Luzon and Metro Manila, Philippines. E.B. Torres and E.R. Navera . , . 180 Tilapia Marketing in Bicol, Philippines. E.M. Escover, O.T. Salon and C.P. Lim . 192 Tilapia Marketing in Laguna Province, Philippines. C.T. Aragon, J. Cosico and N. Salayo . 206 Tilapia Marketing in Mindanao, Philippines. L.P. Oliva . '. 219 Philippine Tilapia Marketing in the Context of Structural Demand for Protein: A Comment. L.A. Gonzales . , . 232 Working Group Reports . 238 Final Discussion and Recommendations of the Workshop. 254 ... Program of Activities. 256 List of Participants . 259 The ,Philippine Council for Agriculture and Resources Research and Development (PCARRD) and thelnternational Center for Living Aquatic Resources Management (ICLARM) co-sponsored a workshop, 10-13 August 1983, on Philippine Tilapia Economics. The workshop brought together Philippine researchers who, with partial financial support from PCARRD and ICLARM during 1982-1983, had conducted an economic analysis of tilapia operations. This volume contams tGeedings of the workshop; which include 18 papers presented, working group reports, discussions and recommendations of the workshop. The workshop was held at the Continuing Education Center on the campus of the University of the Philippines, Los BaAos. Opening remarks for the workshop were given by Dr. Ramon V. Valrnayor, Executive Director of PCARRD. On behalf of PCARRD and ICLARM we would like to express our thanks to all of those individuals who contributed to the success of the workshop. These include not only the re- searchers and other participants, but also those who assisted behind the scene with workshop logistics, rapporteur notes and other administrative matters. As a group we are especially thankful to all of those private tilapia farmers, government officials and middlewomen who so kindly provided much of the information upon which most of the research papers were based. We would also like to acknowledge with thanks the financial support of Planters Products, Inc. and San Miguel Corporation towards publication costs of these proceedings. It is our hope that this workshop proceedings will contribute to an understanding of the Philippine tilapia industry so that its current growth and economic vitality can be maintained and nurtured to the ultimate benefit of producers and consumers alike. Introduction Tilapias (Oreochromis and Tilapia species) drawn to the industry and several ponds are becoming increasingly important as food larger than 100 ha are under development. fish in the Philippines. The industry is growing The increased production resulting from all rapidly as tilapia have become more accepted this enthusiasm will have impacts on market- by consumers. As recently as the mid-1970~, ing systems and perhaps on prices. Depending tilapia (primarily 0. rnossumbicus at that upon economies of scale in production, small time) were generally regarded as a nuisance producers may face future difficulties in com- fish by producers and as a low quality product peting with larger-scale operators. Even in by consumers. In fact, these attitudes still lakes where cages are suitable there is a prevail in certain parts of the country. How- tendency for numbers to proliferate to the ever, elsewhere consumer demand for tilapia eventual detriment of all producers as over- has increased dramatically, due in part to the crowding occurs. Several small lakes in the recent availability of more attractive species, country (e.g., San Pablo Lakes) have passed especially 0. niloticus. In many areas of the through several cycles of profits, overcrowd- country, particularly Luzon, the product ing, withdrawal by marginal producers, profits currently commands prices in retail markets and overcrowding again. that are comparable to those of other promi- Because of the industry's potential for nent food fish such as milkfish. In response providing income to small-scale producers and to this consumer demand, the industry is in a protein to consumers, an economic analysis dynamic growth stage wherein rapid changes was needed to document the industry's cur- in production techniques and organizational rent structure and the response of producers structure of production and marketing are to potential profits and of markets to recent occurring. increases in production. Possible constraints Tilapia production systems appear to be to further expansion of the industry needed well-suited for adoption by mall-scale pro- to be identified, whether they were in the ducers because the initial capital invest- form of input (feed and seed) supply limita- ment, especially for cage culture, is not hlgh. tions and costs, deteriorating quality of Because of declining catch and catch per bmodstock, overcrowding of available pro- effort of numerous inland lake fisheries, large duction areas, distribution bottlenecks or numbers of small-scale fishermen have been limited market absorptive capacity. attracted to cage culture systems and even to Both the Bureau of Fisheries and Aquatic small land-based hatcheries where the invest- Resources (BFAR) and the Philippine Fish ment required is comparable to that of a small Development Authority (PFDA) collect sec- motorized fuhing boat (banca) and gear. ondary data on production and prices that are Larger-scale producers are also increasingly useful as background to an economic analysis of the industry. However, for more complete documentation, an in-depth analysis of selected production and marketing systems based on data provided by private input sup- pliers, producers and marketing intermediaries was necessary. This information is especially important to guide government agencies such as the Ministry of Human Settlements which through its Kilusang Kabuhayan at Kaunlaran (KKK) Program is encouraging private invest- ment by small-scale producers in tilapia production,. particularly in cage culture systems. T6 fulfill this need for an understanding of the industry, during 1982-1983 PCARRD and ICLARM invited individuals from a number of institutions around
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