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International Journal of Applied Research and Technology 23

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International Journal of Applied Research and Technology


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Economic Analysis of Catfish Farming in Four Selected


Local Government Areas of Kaduna State, Nigeria
Olukotun, O., Aaron, J. A., Morgan, V. O., Isola. B. F., Bala, U. J., and Ayodele, J. T.

Federal College of Forestry Mechanization, Afaka-Kaduna, Kaduna State

Available online: August 31, 2013

To cite this article:

Olukotun, O., Aaron, J. A., Morgan, V. O., Isola. B. F., Bala, U. J., and Ayodele, J. T. (2013). Economic Analysis of
Catfish Farming in Four Selected Local Government Areas of Kaduna State, Nigeria. International Journal of Applied
Research and Technology. 2(8): 23 – 28.

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International Journal of Applied Research and Technology 24

International Journal of Applied Research and Technology Esxon Publishers


Vol. 2, No. 8, August 2013. 23 – 28.

Economic Analysis of Catfish Farming in Four Selected Local Government


Areas of Kaduna State, Nigeria
Olukotun, O., Aaron, J. A., Morgan, V. O., Isola. B. F., Bala, U. J., and Ayodele, J. T.

Federal College of Forestry Mechanization, Afaka-Kaduna, Kaduna State

(Received: 28 July 2013 / Accepted: 13 August 2013 / Published: 31 August 2013)

Abstract

This study examined the economic analysis of catfish farming in four selected local government areas of Kaduna State. It
identified some socio-economic characteristics of the respondents and examined their profit from catfish production.
Random sampling method was used to select 168 catfish farmers and structured questionnaire administered on them.
Descriptive statistics, Gross Margin Analysis, Net returns analysis and profitability ratio were used to analysed the data
obtained. The result revealed that female (61.90%) dominated the catfish farming enterprise; 100% of the respondents are
in their working age group of 21-60 years. The study also revealed that the average total cost per kg of catfish was N449.59
and the average total revenue per kg of catfish was N790.00. This gives net returns (profit) of N340.41 per kg of catfish
produced. The profitability ratio of BCR = 1.76, ESR = 0.13 ROR = 0.76% and GR = 0.57 indicated that catfish farming is
highly profitable in the study area. However, the enterprise is faced with constraints such as high cost of feed, fluctuation
in selling price, deficiency in supplying of fingerlings and theft/poaching. The study therefore recommended that research
should be carried out in area of quality local feeds production at reduced cost price and farmers should be encouraged to
use the local feed in place of expensive imported feed and formation of marketing cooperative society by farmers to
establish an acceptable unit selling price.

Keywords: Economic, Analysis, Catfish, Farming, Kaduna State.

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International Journal of Applied Research and Technology 25

Introduction
About 25 % of the estimated 840 million people that lack adequate access to food by FAO (2002) lived in sub- Saharan
Africa in which Nigeria is among. Nigeria is faced with several problems such as persistent political instability, poor
nutrition, economic stagnation, low agricultural production, environmental pollution and high vicious cycle of poverty
resulting in low intake of animal protein. According to Abu et. al. (2008), the Food and Agriculture Organization (FAO)
recommends a minimum of 70 g of protein daily per caput, out of which at least 35 g (50%) should come from animal
proteins, but the average Nigerian consumes less than 10 g of protein with only 3.2 g of this amount from animal protein.
Pathetically, Nigeria with a population of about 140 million, the highest in Africa, has the highest number of under-five
child mortality. These deaths occur because of low animal protein intake (Abu et al., 2008). Inoni (2007) reviewed that
aquaculture is seen as one of the means of efficiently increasing food production in food-deficit nations such as Nigeria.
Although the situation of aquaculture production in Nigeria is of great concern to stakeholders due to the growing demand
for fish and the decrease in yield of natural fish stocks as a result of over-exploitation, fish still remains the greatest
potentials to supply the animal protein need of Nigerians .Fish is an important source of animal protein in Nigeria.
According to Eyo (1992) fish constitute 40% of protein intake in Nigeria. It provides employment opportunities to many
rural populaces. Nigeria is rated to be the largest African aquaculture producer, with production output of over 15,489
tonnes per annum [F.A.O, 2007], which constitutes about 4% of the nation’s agricultural G.D.P. However, F.A.O[2007]
estimated that Nigeria imports about 560,000 tonnes of fish estimated at about $400 million annually while annual
domestic fish supply in Nigeria stands at about 400,000 tonnes. This makes Nigeria one of the largest importers of fish in
the developing world. To solve the country’s high demand for fish, Nigerians must turn to their under-utilized in-land
water for improved fish production and aquaculture.
However, aquaculture expansion has been a slow process as private sector fish farmers have faced major
constraints including lack of seed and quality feed (Akolisa and Okonji, 2005). Number of studies reported on the
economics of fish production around the world. Olukotun et al.(2011) assessed profitability and constraints of fish farming
in Igabi local government area of Kaduna state. The study revealed that fish farming is profitable with a profit of N254 .73
per kg of fish cropped. The profitability ratios obtained from the study were BCR=1.57, ESR=0.11, ROR=0.57 and
GR=0.64 which indicated that aquaculture is highly profitable in the study area. Islam et al. (2002) in a study in three
selected villages of Ditpur union under Baaluka Upazila of Mymensingh district found that rice production with fish was
more profitable than without fish in rice-cum-fish farming. Yesuf et al. (2002) assessed the economics of fish farming in
Ibadan Metropolis. The study revealed that most farmers with secondary education and above operate at small-scale level
with an average of three (3) ponds. Fish farmers practiced polyculture fish farming. Clarias spp is the most raised fish
species followed by Heteroclarias spp. The gross margin analysis revealed that medium scale farmers derived the highest
return of N1.55 for every one naira expended. This is followed by large-scale farmers at N 1.52 for every 1 Naira
compared with only N 1.34 for every 1Naira spent by small-scale farmers. Ajao (2006), found that 80% of fish farmers in
Oyo state, Nigeria, operated less than two (2) ha which could not capture economy of size. More than 90% of the
respondents distributed their fish at the site while 60% had little access to extension agents. Meanwhile fish farming was
found to be profitable. From the literature review aquaculture is a profitable venture, but inland fishing profitability is still
questionable. This study analyzes the economics of fish farming in four selected local government area of Kaduna State.

Materials and Methods


The study was conducted in four selected local Government Areas of Kaduna state. The local government areas are
Kaduna North, Kaduna South, Chikun and Igabi which constitute Kaduna metropolitan city, an important commercial and
administrative centre in Northern Nigeria and comprises of different sets of people with diversified socio-cultural
characteristics. Eight fish farming locations per each local government area were purposively selected within the
metropolis because of the prevalence of the catfish farmers in these areas. This was arrived at from the information
obtained on catfish farmers from the Kaduna State Agricultural Development Project Office, Random Sampling
Techniques was used to select 168 respondents at 21 respondents per each location and data were collected through the use
of structural questionnaires. Descriptive statistics, Gross Margin Analysis, Net Returns Analysis and Profitability ratio
were used the analysed the data obtained.

Results and Discussion


The analysis in Table 1indicated that majority (61.90%) of fish farmers are female which shows that females dominated
the business. The study revealed that 66.67% of the fish farmers fall within the age of 31-40 years with a mean age of
36years. This indicates that majority of the fish farmers fall within the working age group which shows that they are young
and active and can easily carried out their work effectively. However, the data revealed that there is no age discrepancy
among catfish farmer in the study area, meaning that anybody could practice catfish farming regardless of their age. The
educational attainment of the respondent reveals that 55.95% had tertiary education. The high level of the education might
be due to the metropolitan nature of the study area which means that the fish farmers will easily adopt new innovations in
their method of fish farming. The table also reveals that 92.86% of the fish farmers are married which may account for
high house size obtained. The large family size means that most of the labour may be sourced from the family members
which will reduce cost of production thereby increasing their net income.
Table 2 revealed that mean total revenue of N3, 142,112.14.00 was obtained by a fish farmer given an average
total revenue of N790.00 per kg of catfish while the total variable cost for a catfish farmer was N1, 577,282.77 and
N396.57 per kg of catfish. The gross margin for a farmer was N1, 564,829.37 given N393.43 per kg of catfish. According
International Journal of Applied Research and Technology 26

to Adeyeye ad Dittoh (1982) Gross Margin is a good measure of profitability, therefore the study revealed that catfish
production is highly profitable in the study area which was in line with the finding of Ajao (2006) who reported that catfish
production is highly profitable in Oyo State. A net return of N1, 353,949.67 was realized by a farmer given a net return
(profit) of about N340.41 per every kg of catfish raised. This agreed with the finding of Olukotun et al. (2011) that
obtained a net return of N254.73 per kg of catfish raised in Kaduna State.
Benefit Cost Ratio (BCR) was estimated to be 1.76.Since the BCR is greater than one, it shows that catfish
farming is profitable with little capital invested. Expense Structure Ratio (ESR) was 0.13 which implies that about 13% of
total cost of production is made up of fixed cost component. This makes the business worthwhile since increase in the
production with variable cost will increase the total revenue leaving fixed cost unchanged. Rate of Return (ROR) was
estimate to be 0.76. This shows that for every N1.00 invested, 76kobo is gained by the farmer. Gross Ratio (GR) of 0.57
was obtained from the study. This implies that from every N100 returns to the enterprise N57.00 is being spent. All these
profitability ratios were in agreement with Olagunju et al. (2007) which obtained a BCR of 1.50, ESR of 0.43, ROR of
0.51 and GR of 0.662 in their study of catfish production in Oyo State.
The constraints experienced by farmers in catfish production were identified in Table 3. The problems were
revealed using percentage, any problem that is 50% and above is considered as a serious problems. Some of the problems
identified to be very serious and affecting catfish production in the study area were High cost of Feed (83.33%) which
according to the respondents, feeds which forms a major input in catfish farming is very expensive and not readily
available. fluctuations in selling price of catfish (80.95%) and deficiency in supply of fingerlings at the right time (75%).
All these constraints combined together to reduce the total output of catfish in the study area.

Conclusion and Recommendations


The study revealed that catfish farming is highly profitable in the study area with a net return of N340.41 kobo per kg of
catfish produced and a gain of 76kobo from every 100 kobo invested by the farmer. However, the enterprise is faced with
serious constraints such as high cost of feed, fluctuation in selling price and deficiency in supply of fingerlings among
others. Therefore, it is recommended that local quality feed should be produced to replace the expensive foreign feed,
formation of cooperative by catfish farmers to establish an acceptable and standard selling price. Catfish farmers should
also form an Association which can organize training, workshops or seminars for members to be able to access new
improved methods and innovation in fish farming.

References
Abu, O.A., Onifade, A.A., Abanikannda, O.T.F.,& Obiyan, R.I.(2008). Status and promotional Strategies for rabbit
production in Nigeria. 9th World Rabbit Congress – June 10-13, Verona, Italy, 1499-1504.
Adeyeye, A.J. and Dittoh J.S (1982): Essentials of Agricultural Economics. Impact publishers Ibadan, pp113-116
Ajao, A.O. (2006): Economic of Fish Farming inOyo State, Nigeria. Ph.D. Thesis,Department of Agricultural
Economics.Obafemi Awolowo University, Ile-Ife,Nigeria.
Akolisa, O. and Okonji, V.A. (2005). IncreasingFish Supply through Genetically Modified FishStocks: need for caution in
Nigeria. Proceedings ofthe 39th Annual Conference of the AgriculturalSociety of Nigeria, University of Benin.
October9th-13th, pp: 64-66.Oyo State, Nigeria Journal of Human Ecology 21 (2): 121-124.
Eyo, A.A. (1992). Utilization of freshwater fish species in Nigeria. In: Eyo,A.A. and A.M. Balogun (eds.), Proceeding of
the 10th AnnualConference of the Fisheries Society of Nigeria, pp: 32–8
Food Agriculture Organization (2007). State of World Fisheries &Aquaculture
http://www.fao.org/fi/statist/fisoft/fishplu.asp.
Food Agriculture Organization (2002). Food Insecurity: When People must Live with Hunger and fear Starvation. The
State of Food Insecurity in the World. FAO, Rome, Italy. http://www.fao.org/
Inoni O.E.(2007). Allocative Efficiency in Pond Fish Production in Delta State, Nigeria. A Production Function Approach.
Agricultura Tropica Et Spproach. Agricultura Tropica Et Subtropica, 40 (4): 127-134
Islam, N. S.; Murshed, M.; Moniruzzaman, M.and Abdul B. N. (2002): Rice-Cum Fish Farming in Selected Areas of
Nymensingh District. Online Journal of Biological Sciences 2 (10): 715 – 718.
Olagunju F.I, Adesiyan I.O and Ezekiel A.A (2007): Economics viability of catfish production in Oyo State, Nigeria
Journal of Human Ecology, 21 (2): 121-124.
Olukotun, O., Omodona, S., Nwaosuibe, K. E., Ogunlade, F.T., Anamayi, R.M and Morgan, V (2011): Profitability
Analysis and Constraints of Fish Farming in Two Selected Sites of Igabi Local Government Area of Kaduna
State. In Adeniji,A.A., Olatunji, O.A., Olafadehan, O.A and Gana, E.S, (ed.) Book of Proceedings of 35th Annual
Conference of Nigerian Society of Animal Production. Held at Merit House/ Raw Materials Research and
Development Council, Abuja. March 13th-16th, Pp 345-347.
Yesuf, S.A., Ashiru, A.N., Adewuyi S.A. (2003): Economics of Fish Farming in Ibadan Metropolis. Tropical Journal of
Animal Science. ,5( 2): 81-88
International Journal of Applied Research and Technology 27

Tables

Table 1: Socio-economic characteristics of the fish farmers


Socio-economic Frequency Percentage
Variables N = 168 (%)
Sex
Male 64 38.10
Female 104 61.90
Age
21-30 years 24 14.29
31-40 years 112 66.67
41-50 years 28 16.67
51-60 years 4 2.38
Level of Education
Primary 8 4.76
Adult class 10 5.95
Secondary 56 33.33
Tertiary 94 55.95
Marital Status
Single 12 7.14
Married 156 92.86
Household size
1-5 130 77.38
6-10 38 22.62
> 10 0 0
Years of Experience
1-5 136 80.95
6-10 32 19.05
> 10 0 0

Table 2: Gross Margin and Net Return Analysis for Catfish Farmers
Fixed Variable Estimate (N) Mean estimate (N)
Pond construction 14,176,421.08 84.383.46
Pumping Machine 4,997,368.42 29,746.24
Well construction 936,000.00 5,571.43
Cost of Land 11,455.200.00 68,185.71
Water reservoir construction 3,862,800.00 22,992.86
Total Fixed Cost (TFC) 35,427,789,50 210,879.70
Fixed Cost (FC) / Kg of catfish 53.02 53.02
Variable items
Fingerlings 29,937,600.00 178,200.00
Feed 221,926,305.60 1,320,989.91
Fertilizer/lime 3,504,000.01 20.857.14
Labour 7,448,400.00 44,335.71
Miscellaneous 2,167,200.00 12,900.00
Total variable cost (TVC) 264,983,505.61 1,577,282.77
Variable Cost (VC) /kg of catfish 396.57 396.57
Total Cost (TC) 300,411,295.10 1,788,162.42
Total Cost (TC/Kg of Catfish) 449.59 449.59
Total catfish cropped 668,196.00kg 3,977.36kg
Selling Price/Kg of catfish 790.00 790.00
Total Revenue (TR) 527,874,840.00 3,142,112.14
Total Revenue (TR)/Kg of Catfish 790.00 790.00
Gross Margin (GM) 262,891,334..30 1,564,829.37
Gross Margin GM/Kg of Catfish 393.43 393.43
Net Return (NR) 227,463,544.80 1,353,949,67
Average Net Return/Catfish farmer 1,353,949.67 1, 353,949.67
Net Return (NR)/Kg of Catfish 340.41 340.41
International Journal of Applied Research and Technology 28

Table 3: Constraints faced by catfish farmers


Problem Frequency (No.168) Percentage (%)
High cost of feed 140 83.33
High mortality rate 76 45.23
Fluctuation in selling price 136 80.95
Deficiency in supply of fingerling 126 75.00
Theft/poaching 86 51.19
Lack of credit facilities 78 46.43
Inadequate water supply 40 23.81
Farm land scarcity 36 21.43