Costs and returns analysis or artisenal fish farming(lates) in Kedetifin district of Mokwa Local Government Area of Niger State, Nigeria

Abstract

The paper examined the profitability of small-scale fish farming sub sector, by determining the cost and returns in artisanal fish farming in Keke-Tifin district of Mokwa Local Government Area of Niger State, Nigeria. Primary data were collected for the study with the aid of structured questionnaire. Multi-stage sampling technique was used to samples for the study. The first stage involves the purposive sampling of Kede-Tifin district of the state, as fishing is the principal occupation of more than 90 percent of the inhabitants of the area. The second stage involves the selection of 5 fishing communities, followed by selection of 4 fishing locations and finally the selection of 12 fish farmers from the 20 fishing localities to give a sample size of 240 respondents. However, only 198 respondents were used for the analysis, due to incomplete information and non-response. The result of analysis of the study showed that Average fixed cost (AFC) and Average Variable Costs (AVC) were Nii6,005.1.4/ fish farmer/year and N 181,877.56/fish farmer/year respectively. Fishing crafts and gears accounted for 35.16% of the total cost of production, while labour input cost, fuel/lubrication and repairs of equipment made up to 46.92% of the total costs of production. While Net Margin/fish farmer/year was N 111,677.62 for the study area, it was N140.74 among aerator/pump machine units and N 84,012.15 for fish farmers in the non-aerator/pump machine segments.Net Margin to cost ratio was 34% in the aerator/pump machine sector, 45% in the non aerator/pump machine segment, and 37% for the entire area studied. Return on sale sales were 25%, 31% and 27% respectively, among aerator units, non-aerator units and entire area of study. Results of regression analysis showed that demographic and economic variables such as households’ size, gender of respondents, labour and non-fish farming income significantly determine(p<0.05) fish output in consonance with a priori expectations. While the elasticity of fish harvested(output) with respect to labour utilization was strong and positive, it was negative for non-fish farming income. Furthermore, constraints to fish farming in the study area include, inadequate capital, lack of access road, high transportation cost, lack of preservation and processing facilities etc, it was therefore concluded that though, fish farming in the study area is profitable, but can be made more lucrative if the identified problems can be adequately addressed in the study area.