Economic profitability of Nile tilapia (Oreochromis niloticus L.) production in Kenya

Economic profitability of Nile tilapia production in Kenya was analysed using a model that simulated individual fish growth and took fish population dynamics in the pond into account. The results suggest that the currently practiced mixed‐sex tilapia culture is economically unsustainable. It is suggested that research and extension efforts be geared towards developing monosex Nile tilapia production systems. Nile tilapia culture with African catfish predation should be viewed as an intermediate step towards all‐male Nile tilapia culture. This will allow accumulation of both physical and human capital to support all‐male tilapia culture. Under all‐male culture, economic returns are high enough to justify investment in Nile tilapia culture using borrowed capital. However, the success of monosex culture will depend on the availability and affordability of quality fingerlings and low‐cost fish feeds. The results have a wide application in Sub‐Saharan Africa where mixed‐sex Nile tilapia culture is common.     

ARKANSAS CATFISH FARMERS AND MARKETING CONTRACTS: SOME INSIGHTS INTO MOTIVATIONS

Interest in sales contracts in the catfish industry increased in the late 1990s and early 2000s as a result of increased import pressures and lower product prices. The study uses survey data fitted to a probit model to examine the motivations for contracting sales, and whether farm size is an important determinant of sales contracts usage. The article concludes that Arkansas catfish farmers with large acreages and therefore large volumes of production have a high probability of utilizing contracts to handle their sales but not necessarily with privately-owned independent processors. The farmers are not motivated to engage in sales contracts by reduction in income or price risks. They are motivated by production and management issues, which appear consistent with reductions in transactions costs relating to asset specificity and quality measurement as the reason for contracting.     

Analysis of the use of credit facilities by small-scale fish farmers in Kenya

The government of Kenya encourages aquaculture development by offering credit facilities through the government agricultural finance institution, Agriculture Finance Corporation. Nevertheless, the level of credit use in fish farming is very low. Access to credit is among several factors that affect farmers’ decision of whether to use particular technology or services. The study examined factors that affected the decision of fish farmers in Kenya to utilize credit facilities in fish production using a probit model. The analysis suggests that farmers in the Western province will have a 19% more probability of using credit facilities for their fish farming operations than farmers from the other provinces such as the Rift Valley, Central, and the Eastern province. The effect of tilapia sales on the probability of credit use by fish farmers is more than three times that of catfish sales. Total pond acreage owned by fish farmers had a positive effect on credit use but the effect was very small and negligible. The level of fish farmers’ use of credit facilities is very low, and there is probably the need to educate farmers on credit use and for the government agricultural lending agency and other commercial agricultural lenders to invest in this enterprise. Kenyan lending institutions have financed traditional agricultural enterprises, and with the growing production of farmed fish, more research is needed to document the aquaculture business model to assist in assessing the profitability potential in aquaculture.     

A LATENT CLASS MODEL FOR ANALYZING PREFERENCES FOR CATFISH

ABSTRACT

Using a latent class model of structural heterogeneity in the multinomial logit framework, this study examined catfish preferences of Arkansas restaurateurs from stated choice data. The results suggest two latent classes of restaurateurs that are fairly distinct and have some degree of overlap. Managers in both classes are sensitive to prices and prefer catfish products that have mild flavor and soft texture. When preference for dryness, flavor and texture are assumed equal for both classes, one class becomes very sensitive to price but unconcerned with color while the other class becomes insensitive to price but very concerned with color.     

Impact of aquaculture feed technology on fish income and poverty in Kenya

ABSTRACT

The impacts of improved agricultural technologies on smallholder households in Africa are well documented in the literature. However, the literature on the welfare impacts of aquaculture technologies, especially in the context of smallholder households, is very scanty. This paper applies the propensity score matching technique to household survey data to examine the impact of improved feed technology on fish income and poverty in Kenya. After controlling for observable household characteristics, the results indicate that improved feed technology increases aquaculture income and reduces poverty among fish farming households. Specifically, the income effect of the technology is 23–37%, with resultant poverty reduction effect of 19–23% points. Evidence from the study indicates that the likelihood of adopting improved feed in Kenya will surge with improved extension service delivery, access to government subsidized feed, and easy market access for purchasing improved feed and sale of mature fish.     

Economic Analysis of Nile Tilapia (Oreochromis niloticus) Production in Tanzania

In Tanzania, Nile tilapia culture is a promising aquaculture enterprise. Information on production costs could assist fish farmers in economic and financial planning. Economic profitability of small‐scale Nile tilapia production in Tanzania is analyzed using a model that simulates individual fish growth and takes into account fish population dynamics in the pond. The results suggest that the current practiced mixed‐sex tilapia culture without predation is not economically sustainable. Extension efforts should be geared toward developing a Nile tilapia production system that is based on a hand‐sexed all‐male tilapia. Meanwhile catfish can be introduced in ponds to control overcrowding in mixed‐sex tilapia culture without predation. Studies to determine optimal pond sizes, availability of feed, and a quality fingerling supply chain are also fundamental for developing a sustainable Nile tilapia production system in Tanzania. Under improved Nile tilapia production systems, returns are high enough to justify investment through borrowed capital from formal institutions.     

Consumer preferences for farmed tilapia in Tanzania: A choice experiment analysis

ABSTRACT

This study used a choice experiment to analyze the preferences of consumers for the attributes of tilapia (price, mode of production, product form, and size), a major aquaculture product in Tanzania. The results showed that consumers were willing to pay a price 665.020 Tanzanian shillings (TZS) lower for farmed tilapia than for wild tilapia; a price TZS 833.210 and TZS 1799.110 higher for medium-size and large-size tilapia respectively than for small-size tilapia; and a price TZS 1214.090 higher for fresh tilapia than for smoked tilapia. Consumers’ willingness to pay less for farmed tilapia than for wild tilapia is mainly attributed to issues related to taste and availability. It was also found that consumers were heterogeneous in their preferences for all the tilapia attributes (mode of production, size, and form) considered in this study.     

Effect of soybean meal diets on the growth performance,ammonia excretion rates,gut histology and feed cost of Nile tilapia (Oreochromis niloticus) fry

Aquaculture development in Ghana is currently limited by inadequate supply of fingerlings and prohibitive cost of commercial feeds among other challenges. This study tested the feasibility of using low‐cost feeds containing soybean meal instead of fishmeal for nursing Nile tilapia (Oreochromis niloticus) fry. Three isonitrogenous (~48% crude protein) and isoenergetic (~17 kJ/g) diets with increasing inclusions of soybean meal as partial replacements for fishmeal were formulated. A commercial fishmeal‐based fry feed served as the control diet. Triplicate groups of 225 fish per tank (average initial weight: 2.09 ± 0.14 g) were stocked in a recirculating aquaculture system and fed the experimental diets for 21 days. Afterwards, we investigated the postprandial metabolism, nutrient digestibility, growth and gut histology in Nile tilapia fry. Simple economic analyses were also conducted to assess the cost‐effectiveness of the diets used in the feed trial. The dietary inclusions of the soybean meal significantly reduced feed cost by ~43% relative to the control diet. The growth performance and feed utilization parameters did not vary significantly among the different treatments. The soybean diets elicited significant reductions in villi heights and goblet cell numbers, which corresponded with increasing dietary levels of soybean meal. This study confirms the potential of soybean meal as a partial replacement for fishmeal in Nile tilapia fry diets in terms of lower feed costs, fish growth performance, nutrient digestibility and postprandial nitrogenous excretions. The inclusion of soybean, however, affected negatively the gut integrity of the fry.     

CONSUMER ACCEPTANCE OF LOCALLY GROWN FOOD: THE CASE OF INDIANA AQUACULTURE PRODUCTS

Many Indiana small- and medium-sized farm and ranch operators are looking at aquaculture to diversify their operations, but the underlying thought for most of these potential aquaculturists is the feasibility of raising fish, and whether consumers will be interested in Indiana aquaculture products. The study used an ordered probit model to examine Indiana consumers' interests in Indiana farm-raised aquaculture products. The model did not predict any non-interest but predicted 18% probability of consumers that are somewhat interested, 58% for consumers that are interested and 24% for consumers that are strongly interested. Factors that positively affected interest in Indiana aquaculture products were previous purchase of farm-raised aquaculture products, frequent at-home seafood consumption—once per week, and being at least 36 years of age. While consumers in the household income $20,000–$59,999 group showed interest, households with higher incomes were less interested. Prices that consumers are willing to pay for Indiana seafood products are within the range of market seafood prices in Indiana. However, consumers will not be interested in Indiana aquaculture products as premiums for the products increase.     

A dynamic almost ideal demand model for US catfish

Abstract

The study applies a dynamic model of the almost ideal demand system to derive long‐run estimates of demand for catfish products. Adjustment coefficients towards long‐run equilibrium for purchasers of catfish are estimated. The hypothesis that catfish buyers fully adjust to changes in real price and expenditure instantaneously is rejected. Following a deviation from equilibrium, about 16% of the adjustment takes place instantaneously while full adjustment is completed within the subsequent two‐month period. Purchasers of catfish adjust fairly quickly to a new equilibrium after disequilibrium movements suggesting a low cost of adjustment. Elasticity estimates obtained from the model indicate that the dynamic model is well behaved, with negative own‐price effects in the compensated and uncompensated form. In the uncompensated form whole fish is found to be less own‐price inelastic while fillet is found to be own‐price elastic. The sensitive nature of the products to changes in own prices suggests the need for processors to make whole fish and fillets more price‐competitive through efficient production and marketing processes. Expenditure elasticities obtained from the model are also consistent with economic theory.