Transcript AQUACULTURE ECONOMICS

AQUACULTURE ECONOMICS
Review and Analysis Method at Farm Level
Pongpat Boonchuwong
Fisheries Economic Division
Department of Fisheries
Contents
• Introduction
• Economics of Aquaculture:
Classification and Factors
Affecting
• Tools of Research: Record,
analysis, and Survey
INTRODUCTION
• Half of the world’s population depends on
fish as a principle source of animal
protein.
• In many country, people derive more than
50 percent of their daily animal protein
requirements from fish.
• Fish is also second only to rice in the diets of
low-income people of many developing
country.
• Fish is an importance component of total
human food consumption and, to a lesser
degree, of animal feed.
• It is nutritionally equivalent to meat in
protein, high in essential minerals, and low in
saturated fats.
ADVANTAGE AND IMPORTANCE
OF AQUACULTURE
First :
Fish culture is stock raising, as opposed to
hunting. Stock raising is more efficient than
hunting in harvesting a resource because
extensive search efforts are not required;
thus, harvest is proportional to effort and be
predicted.
Second :
Environmental conditions can be largely
controlled and genetics can be manipulated to
improve yield.
World Aquaculture
70,000
60,000
World Fisheries
Aquaculture (1,000
tons)
50,000
40,000
World Fisheries Catch
(1,000 tons)
30,000
20,000
10,000
0
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
hi
na
ne
sia
Fr
an
ce
Th
ai
la
nd
or
ea
,R
ep
.
Ta
iw
an
B
an
gl
ad
es
h
K
ine
s
Pl
ilip
p
U
SA
In
do
Ja
pa
n
In
di
a
C
World Aquaculture
(1,000 Tons)
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
ECONOMICS OF AQUACULTURE:
Classification and Factors Affecting
Contents
• Classification of Aquaculture
System
• Factors Affecting the Economics of
Aquaculture
Classification of Aquaculture System
Criteria
Kinds
1. Purpose of
culture
Human food, Improvement of natural stock, Ornamental Fish,
Sports and recreation, Bait, and Industrial product
2. National of
enclosure
Pond Culture, Cage and Pen culture, Raceway Culture, Raft
Culture, and Closed high-density culture
3.Food habit
Herbivorous Species, Carnivorous Species, and Omnivorous
Species
4. Sources of fry
Natural waters, Captured gravid females, and Hatching
5. Level of
management
intensity
Extensive Farming, Semi-intensive-Farming, and Intensive
Farming
Criteria
Kinds
6. Number of
species stocked
Monoculture (single species), and Polyculture (more than one
species)
7.Water salinity
Fresh water, Brackish water, and Marine water
8. Water
movement
Standing Water, and Running Water
9. Water
temperature
Cold water, and Warm water
10. Combination
with agriculture
production
Rice-fish farming, Poultry-fish farming, and Pig-fish farming
Factors Affecting the Economics
of Aquaculture
The producers’ profit or net income per
unit (Y) of land or water area is mainly
affected by production (Q), the cost of
production and marketing (C), and the price
received (P), as shown in the basic equation
below:
Y = Q.P - C
Y=Q
.
P - C
(Increase in Production)
Stocking
Rate
Survival
Rate
(Reduction in Cost)
Growth
Rate
(Increase in farm Prices)
• Quality of fish
Fertilization
& Feeding
Polyculture
Aeration
• Seasonality and
social customs
Stock Manipulation
• Cooperative
marketing
- Multiple size
- Same size in a system
- Double cropping
• Different
markets and
products
• Cost of
construction
• Cost of fertilizer
and feed
• Cost of seed
• Cost of labor
• Cost of water
• Interest
• Marketing cost
• Land lease
Good pond Management
Correct
stocking
rate
Right kind and
amount
feed/fertilizer
Proper
water
quality
Prevent
diseases &
parasites
Elimination
of predators
INCREASE IN PRODUCTION
1. Increasing Stocking Rate
• Fertilization and supplementary feeding
• Polyculture
• Stock manipulation
Multiple-size stocking
Same-size stocking in a system of ponds
Double cropping
• Aeration:
Running water and aeration can also increase
the dissolved oxygen of the pond water, and hence
the stocking rate
2. Increasing Survival and Growth Rates
• Correct stocking rate
The general formula for determining
the appropriate stocking rates and
stocking ratios is as follows:
S = [A.Q/(W2 –W1)]/H
S = stocking rate (number)
A = size of fish pond (ha)
Q = expected yield per ha based on experiences of previous
years (kg)
W1= average weight of individual fry or fingerling when
stocking ( kg)
W2= expected average weight of individual fish
when harvesting ( kg)
H = harvesting rate (percent)
• Proper water quality
Water temperature and dissolved oxygen are
two major factors that affect the water quality, and
hence the survival and growth rates of fish.
The amount of dissolved oxygen needed by fish
usually varies according to the species. The oxygen
content of a pond depends on the quantity of organic
matter, the submerged aquatic vegetation, and the
water temperature.
Diseases, parasites, predators, and competitors
are factors that inhibit successful pond production.
Certain diseases cause considerable losses of the crop,
especially under intensive farming. High-stocking
density, water pollution, and inefficient farming
conditions promote fish diseases.
REDUCTION COSTS OF
PRODUCING AND MARKETING
1. Cost of Construction
• The primary considerations in site selection are
topography, water supply, and soil quality. The ideal
location for a fish pond is on flat land.
• The size, shape, and depth of the pond and the
clearing work required also affect the cost of
construction.
• As costs of construction increase in proportion
to depth, excavation should be minimized.
2. Cost of Feed and/or Fertilizer
• Feed and/or fertilizer are probably the most
important cost items for intensive aquaculture. In
many cases they compose more than 50 percent of the
total cost of production.
• Cost of feed per unit of fish production (Cf) depends
primarily on two elements: the conversion ratio of fish
to flesh (R) and the unit price of feed (Pf) as shown in
the following simple formula:
Cf = RPf
• The cost of feed can be reduced by an improvement
in the conversion ratio or by lowering the unit price of
feed, or by a combination of these two factors.
• The economic principle of feeding is that the amount
of feed should be at a level where the additional cost of
feed equals its additional revenue.
• The relationships between the effectiveness of
different kinds of feed or combination of feed and their
costs should be studied in order to determine the
optimum level of feeding or the least-cost combination
of feeds.
• It would not be economically feasible to produce
larger sizes if the increased cost of feed could not be
offset by the increased unit price of larger fish.
Cost of Feed and Fertilizer as Percentage
of Total Production Cost for Selected Species
Species
Country
%
Reference
Sepat Siam
Rohu
Silver Barb
Catfish (Pangasius)
Nile Tilapia
Catfish (Clarias)
Striped Snake-head
Thailand
Thailand
Thailand
Thailand
Thailand
Thailand
Thailand
11
28
35
38
39
73
74
OAE, 1995
OAE, 1995
OAE, 1995
OAE, 2000
OAE, 2000
OAE, 2000
OAE, 2000
3. Cost of Seed
• A reliable supply of good quality fish seed (fry,
fingerlings, etc.), obtained at a reasonable cost, is one
of the most important requirements for aquaculture.
• The price of fingerlings is higher than that of fry, but
the survival rate of fingerlings is also relatively
greater. Under certain conditions, the cost of seed per
unit of marketable fish would be lower and growth
period shortened if one starts with larger fingerlings
rather than small fry.
• Large fish farms may benefit from their own
hatcheries and small fish farms would benefit from
central hatcheries operated either by government or
by cooperatives.
4. Cost of Labor
• Labor cost is one of the major expenses of
aquaculture because, in most cases, mechanization
has not yet been inefficiently developed to replace the
intensive use of labor. Harvesting, feeding, and
maintenance are the major time consuming tasks.
Therefore, efficient management and use of labor are
essential in reducing the cost of production.
• When capital is limited and family labor is relatively
abundant—which is true in many developing
countries.
• Both labor and capital can vary, which is usually true
in the long run, substituting one for the other might be
desirable. Of course, the rate of substitution is related
to their relative productivities and prices.
5. Cost of Water
• In many places good quality water, especially
freshwater, is one of the major limiting factors for
aquaculture because it is in great demand for other
uses.
• In selecting sites for freshwater fish culture, effort
should be made to locate the ponds in areas accessible
to the water supply, e.g., near streams, rivers,
groundwater, etc.
• In many cases, water recycling or water treatment
for reuse is necessary and would increase the
quantity of a given water supply many times.
6. Interest
• The rate of interest varies with the supply of and
demand for capital and with the risks involved in an
operation.
• The risks involved in aquaculture are relatively high
because of several factors: 1) the limited knowledge
about controlling diseases and parasites; 2) the
difficulty of reproducing species in captivity and
controlling predators; 3) the lack of experience in
managing dense populations of aquatic animals; 4)
water population and storm and flood damage are also
risks involved in fish culture.
• Investors in aquaculture encounter high interest
rates because of the shortage of capital and the high
risks involved.
7. Land Lease
• The value or the rental price of land varies mainly
with its quality and its alternative uses. In selecting
a construction site for a pond, effort should be made
to avoid choosing valuable lands that could have
competing or conflicting uses.
• Government intervention either by laws and
regulations or by leasing public lands suitable for
aquaculture may improve the situation.
8. Marketing Costs
• Marketing costs include preservation, processing,
storage, transportation, commission, and waste.
• Fish is a highly perishable commodity. Poor
transportation and marketing facilities also decrease
farm price because they result in poor quality and
oversupply.
• Government support for improved transportation,
storage, and ice plants, marketing cost can be
substantially reduced; consequently, production,
either through direct or indirect effect of higher
profits for producers, can be increased.
• The development of cooperatives or associations
might increase marketing efficiency and lower
marketing costs.
Market Structure : 3 Levels
• Primary market
farm gate
• Intermediate market
assembly market ,
wholesale market
• Terminal market
retail market ,
export
CHART: MARKETING CHANNEL OF CULTURED FRESHWATER
FISH IN THAILAND (From survey, 1999)
FISH FARMERS
35%
PRIM A RY
M A RKET
FISH COLLECTORS/
ASSEMBLERS
33.2%
1.8%
12.1%
6. 8%
15. 8
%
21.1%
23.5%
PRIV
AT
E
PRIVA
TE
FISH
F ISH
AGE
NT S
A GENT
FM O
FISH
A GENT S
FM O
M ARKET
C OL L EC TOR S
15. 4%
3 .5 %
PRIV AT E M ARKET S
ASSEMBLY MARKETS =74.3%
INT ERM EDIA T E
M A RKET
PR OC ESSOR S
AN D
C OL D
STOR AGES=25%
43. 9%
14.3%
3.9%
W H OL ESAL ER S
(F I R ST AN D SEC ON D )
=59. 3%
13. 4%
16. 1%
54. 7%
W H OL ESAL ER S
5. 7%
13.4%
T ERM INA L
M A RKET
R ETAI L ER S
(F R ESH
F I SH )
R ETAI L ER S
(PR OC ESSED )
5. 9%
0. 7%
7 4 .3 %
19.1%
D OMESTI C
C ON SU MPTI ON
(PR OC ESSED
F I SH )
=19. 1%
EXPOR T
=6. 6%
D OMESTI C
C ON SU MPTI ON
(F R ESH F I SH )
=74. 3%
Marketing Margin
Differences b/t prices paid by
consumer (retail P.) and prices
received by the producers
(farm gate P.)
Nile
Tilapia
Silver Barb
Walking
Catfish
Striped
Snakehead
Striped
Catfish
9.7 %
14.0 %
14.0 %
9.9 %
14.0 %
Salted and
Dried Sepat
Siam
5.4 %
7.3 %
13.1 %
4.5 %
5.2 %
5.4 %
10.2 %
12.4 %
6.2 %
13.7 %
8.6 %
5.4 %
9.3
15.7 %
10.8 %
13.6
59.9 %
Fish
Farmers’
Share
13.6 %
51.4 %
Fish
Farmers’
Share
12.9 %
51.4 %
76.0 %
75.0 %
51.4 %
Retailers’ Profit
Collectors’ Profit
Wholesalers’ Profit
Marketing Cost
Fish Farmers’ Share
CHART 2 : ILLUSTRATION OF PERCENTAGE OF MARKETING
MARGIN,BY SPECIES
INCREASE IN FARM PRICES
1. Improvement in the Quality of Fish
• Most of the production from fish ponds in Asia
countries is sold while the fish are still fresh.
• Low quality, spoilage, and waste reduce the average
price that the farmers receive.
• The quality of fish can be improved through proper
preservation during transport and storage. Fish
farmers will benefit from preserving their products as
long as the cost of preservation is less than the benefit
they gain. Well-graded fish usually command a higher
price in the market than assorted sizes of fish.
2. Seasonality
• The price of fish usually fluctuates seasonally as a
result of variations in the supply and demand.
• Stability—and perhaps even an increase in the
average price farmers receive for their stock—are
possible with a phased stocking operation, which
promotes harvesting at desirable times with respect to
the demand for and price of fish.
• The demand for and price of fish are usually high
during the off-fishing season and the holidays
associated with the local social customs. This practice
is feasible only if the seasonal high can be predicted
and the costs associated with a change in production
pattern are less than the gains in price received.
3. Cooperative Marketing and Different Markets
and Products
• The small-scale fish operators are usually in a weak
bargaining position and often receive very low prices
for their product. The situation may be improved
through collective bargaining by fish pond operators’
associations or cooperatives.
• A regulated and sorted supply of fish means greater
stability in price and, on the average, higher prices.
• Wasted time and unnecessary transportation costs
can also be eliminated.
• Allocating fish to different markets and selling them
in different forms (fresh, frozen, salted, smoked, etc.)
may also increase the average price and maximize
revenue.
TOOLS OF RESEARCH
Record, Analysis, and Survey
Contents:
Record Keeping and Analysis for Fish Farms
–
–
–
–
Input records
Output records
Annual (or seasonal) records
Analysis of the farm operation
The Socioeconomic Survey
–
–
–
Determining objectives of the survey
Developing sampling methods
Analyzing data
RECORD KEEPING AND ANALYSIS FOR
FISH FARMS
The collection and analysis of data on costs and
earnings based on farm records provide the
information necessary
• To determine the relative profitability of various
production techniques or systems
• To compare the productivity of major inputs, such as
land, labor, and capital, with that of alternative
production activities
• To improve the efficiency of the farm operation
INPUT RECORDS
• Variable inputs : Variable inputs or variable costs are
those varying with the level of production, such as fry,
feeds, fertilizers, labor, pesticides, fuel, electricity, and
water
• Fixed inputs : Fixed inputs or fixed costs are those that
do not change with the level of farming activity, such as
land rent, tax, interests, insurance premiums,
depreciation on fixed assets, salaries of manager, and
technicians
VARIABLE COSTS
•
For instance, if polyculture is practiced, then the
stocking materials should be classified by stocked species
and by size of the stocking materials, such as fry or
fingerlings.
•
Feed used should be specified by particular kind, such
as pellet, rice cake, soybean cake, and trash fish. When
fertilization is involved, the kind of fertilizer used should be
specified, such as poultry or pig manure, tobacco waste or
inorganic fertilizer. Each item, its amount, its unit cost, and
its total cost should be recorded.
•
Fish farming activities require labor, and it is better to
keep a separate record for labor. Wage should include both
in-cash and in-kind payments. The farmer must also record
his family members’ labor as input.
FIXED COSTS
• Fixed costs are usually payable on an annual, quarterly, or
monthly basis and should be record separately
• A list of fixed assets with their initial or current costs and their
estimated years of economic life is required to calculate
depreciation.
Depreciation = (Initial cost – Salvage)/ economic life
• The current replacement cost, instead of the original cost of fixed
assets or items that were constructed or purchased long ago,
should be used for computing depreciation.
•
It is important to note that land is not depreciable.
• If the fixed assets are shared between aquaculture and
other farm activities, an appropriate proportion should be
determined before computing depreciation.
• If the farmer takes a loan to build fish ponds and/or buy
equipment, it is important to keep a separate record for
each loan, i.e., a record stating the purpose of the loan, the
outstanding amount, and the interest payment.
• Cost of permanent personnel should include the salary and
cost of fringe benefits, excluding the portion worked at
other activities not related to fish farming.
Table 2.1 Sample Daily Records of Variable Inputs a
Date
Pond
No.a
Itemb
Kindc
Inputs
Quantityd Unit Coste
1
2
3
4
Each fish pond, or group of ponds in similar condition, should have a record of
inputs.
a
Item of variable input, such as seed, feed, fertilizer, electricity, water, fuel,
and oil, etc.
b
Kind of each input item. For instance, kind of send may be tilapia fry, or
Chinese carp fingerlings, etc., or a combination of them; kind of feed may be
rice cake, or soybean cake, or trash fish, etc., or a combination of them. Each
kind of input item should be listed.
d Quantity of each kind of input and its unit used such as kg , ton, etc.
c
Such as cost per kg, per ton, per 1000 fry, etc.
f Quantity multiplied by unit cost equals total cost of each input at a time.
e
Table 2.2 Sample Daily Records of Labor Inputs a
Date
Pond Economic Kind of
No.a Activityb Laborc
Total
Man/Day
or Man/Hrd
Wage
Rate
Cash
And Kinde
1
2
3
Each fish pond, or group of ponds in a similar condition, should have a
record of labor input.
a
Economic activities of fish farming can be classified as: pond preparation,
fertilization, stocking materials acquistion, stocking, feeding, maintenance,
harvesting, and marketing.
b
c Such
as adult, child, male, female, etc.
d Number
e Wage
of man/day or man/hour should be specified.
rate per man/day or per man/hour. Wages in kind should be imputed
into value by using the market price of the product.
Table 2.3 Sample Records of Fixed Inputs
Date
Itema
Monthly
Costb
Annual
Cost
Remark
(pond no.)
1
2
3
Item of fixed input such as rent, tax, salaries of manager and technicians,
insurance premiums, etc.
a
Monthly salaries of the manager and technicians should include the cost of
fringe benefits and exclude the portion worked on other activities not related
to fish farming.
b
Table 2.4 Sample Records of Loans
Date borrowed
Amount borrowed
Source of loan
Purpose of loan b
Terms of loan
- Length
- Interest rate
a
Used for Pond No.
Payment of the loan
Date
Outstanding
Interest
Paid
Repayment
Made
Total Payment
1.
2.
3.
a It
b
is better to keep a separate record of each loan.
Such as pond construction, purchase of particular equipment,
operating expenses, etc.
Table 2.5 Inventory of Assets and Calculation of Depreciation
Pond No.
Pond
Levees
Sluice gates
Water canals
Pond excavation
Well
Other (specify)
Building
Caretaker’s house
Storage
Office
Others (specify)
Transportation
Boat
Truck
Other (specify)
Nets
Gillnets
Seines
Other (specify)
Equipment
Water pump
Electric generator
Feeding machine
Refrigerator
Feed mixture
Other (specify)
(1)
Acquisitio
na Date
Cost
($)
(2)
Prevailing
Market
Valueb
($)
(3)
Savage
Valuec
($)
(4)
Depreciable
balanced
(5)
Estimated
Economic
Life e
(Year)
(6)
Proportion
Used for
Fish
Farming f
(%)
(7)
Depreciationg
($)
Acquisition cost may be used to calculate depreciation for short-lived
assets and for assets constructed or purchased recently.
a
Prevailing market value should be used to calculate depreciation for
those assets that were constructed or purchased long ago.
a
The estimated salvage value of the assets at the end of their economic
life.
c
d
The differences between columns (1) and (3) or (2) and (3)
e
The number of useful years of the asset.
The proportion of the asset used for fish farming or for a given pond
operation.
f
Depreciation is calculated by diving column 4 by column 5 and then
multiplying by column 6.
g
OUTPUT RECORDS
• All the details of the following items should be included in the
record: date of harvesting, species harvested , and the
disposition of the product.
• Gross revenue of the production should include the cash and
credit sales of the products and the imputed values of the
quantities consumed on the farm.
Table 2.6 Sample Records Output
Amount sold
Pond
No.
1.
2.
Date
Species
Harvested
Quantity
Harvested
(kg)
Amount consumed
on farm
Amount
Given Away
In-kind
Payment
Q
P
V
Q
V
Q
V
Q
V
(kg)
($/kg)
($)
(kg)
($)
(kg)
($)
(kg)
($)
Total
Value of
Production
($)
• When continuous stocking and harvesting is practiced, the change
(increase or decrease) in the value of inventory should be included
in the calculation of the gross revenue.
Table 2.7 Beginning and Ending Inventory
Pond No.
Date
Species
Kind of
Stock a
Numbers
or kg b
Unit
Price
Beginning
Inventory
Ending
Inventory
Change in
inventory c
c
a
Such as fry, fingerlings, growers market size, etc.
b
Number or kg of each type stock in the pond.
Difference between the values of beginning and ending inventories.
Value
ANNUAL (SEASONAL) RRCORDS
• At the end of the year or each production cycle, the
quantity and value of production by species and the
operating costs by item of each fish pond or group
of ponds in similar conditions should be
summarized.
• All factors should be recorded directly from the daily
farm records onto a single-page table so that the
performance over the whole period can be seen at a
glance and evaluated
Table 2.8 Sample Annual (or Seasonal) Fish Farm
Record
1. Quantity
and
Production a
Species
Value
Change in inventory
TOTAL
2. Operating Costs
Variable Costs
Seed (nos.)c
Fertilizer (kg)c
Pesticides (kg)c
Labor d
Fuel/011c
Electricity c
Water c
Other
Fixed Costs
Salaries of mgmt.
Personnel e
Lease e
Tax e
Interest f
Depreciation g
Other (specify)
TOTAL COST
a
b
From Table 2.6
From Table 2.7
c
d
of
Pond No.
--------Area (ha)
--------Kg
Value
Pond No.
----------Area (ha)
----------Kg
Value
Pond No.
---------Area (ha)
---------Kg
Value
Kind Quantity Cost
Kind Quantity Cost
Kind Quantity Cost
b
From Table 2.1
From Table 2.2
e
f
From Table 2.3
From Table 2.4
g
From Table 2.5
ANALYSIS OF THE FARM OPERATION
Based on annual records, several indicators that evaluate
the performance of an operation can be calculated.
- Profit
- Average rate of return on investment
- Average rate of return on operating cost
- Yields (or value of output) per unit of major input
- Cost of input per unit of output
- Amount of major input per unit of land or water
surface
- Amount of major input unit of protein output
Profit
Profit
=
TR – TC
Where;
TR = Gross revenue
TC = Total cost of production
Average rate of return on investment
Average rate of return = Profit/Initial investment
It represents the average earning power for the
investment. This measure is useful for those fish
farmers who invest a substantial amount in capital
items.
Average rate of return on operating cost
Rate of return on operating cost =
Profit/Operating cost
This is a useful measure for those fish
farmers who farm on rental basis.
Yields per unit of major input
– kg/ha or kg/per unit of water surface,
kg/man-hour, kg/unit of feed or fertilizer,
kg/unit of capital, etc.
These indicators can be used to measure the
efficiency of the operation. However, they usually
indicate the relationship of one input to one output
without considering the quality of the major input or
the quantities of the other input.
Amount of input per unit of output
(or cost of input per unit of output)
- cost/kg,
- man-hour/kg,
- unit of feed or fertilizer/kg
These measure capital intensity, labor
intensity, feed and fish conversion ratio
respectively, as well as efficiency. Again, each of
these measures ignores the variation in quality
and quantity of the other inputs.
Amount of Major Input per Unit of Area
- capital/ha,
- man-hour/ha,
- feed or fertilizer/ha
These indicators also measure the intensity
of operation and the possible impact on credit,
employment, and necessary feed or fertilizer.
Amount of Major Input Unit of Protein Output
- cost/unit of protein,
- man-hour/unit of protein
These indicators measure the efficiency of protein
production as compared with alternatives.
Table 2.9
Farming
Annual Revenues and Costs Per Acre of Freshwater Prawn
in Hawaii Based on a 20-acre Farm, 1977
1. Annual Production and Revenue
Production sold
Consumed on farm
Gift
Change in inventory
Total
Quantity
3,000 lbs.
---3,000 lbs.
Unit Price
$ 3.00
---$ 3.00
Unit Price
Cost
2. Annual Operating Costs
Quantity
Variable costs:
Labor
208 man-hour
5.00
1,040
Feed
10,000 lbs.
0.12
1,200
Electricity
211
Seed
7,000 juveniles 0.16
420
Gasoline & oil
75
Miscellaneous
500
Fixed cost:
Salaries of management Personnel (l man-yr)
900
Lease
100
Interest a
524
Maintenance
150
Depreciation
317
Tax
300
Total cost
$ 5,737
3. Key Economic Indicators
Profit/acre = $ 9,000 – 5,737 = $3,263
Rate of return on investment = 3,263/6,645c = 49%
Rate of return on operating cost = $3,263/5,737 = 56.9%
Production per man-hour = 3,000 lbs/208 man-hour d = 14.4 lbs.
Value of production per man-hour = $9,000/208 d = $43.30
Production per lb. Of feed = 3,000 lbs/10,000 = $0.30 lb.
Value of production per lb.of feed = $ 9,000/10,000 = $0.90
Amount of labor required per lb.of production = 208 d /3,000 = 0.07 hr.
Cost of labor per lb. Of production = 1,040 d /3,000 = $0.35
Amount of feed required per lb. Production = 10,000/3,000 = 3.33 lb.
Cost of feed per lb. of production = $ 1,200/3,000 = $ 0.40
Revenue
$ 9,000
--
--
-$ 9,000
% of
Total Cost
18.13
20.92
3.68
7.32
1.31
8.32
15.69
1.74
9.13
2.61
5.53
5.23
SUMMARY OF KEY INDICATORS
• These key indicators are not only useful for fish farmers but also for
and policymakers who make comparisons among different farm groups
classified by size of farm, farming techniques or systems, location,
pond ownership, and so on.
• In making comparisons, it is important to group the farms by either
one characteristic (size, technology location, ownership, etc.) or a few
characteristics (identical location and size, technology and location, or
ownership and technology).
• For instance, to compare the profitability and efficiency of farms
whose sizes are different, one can group farms using similar techniques
in the same region and having similar kinds of ownership into several
size groups for comparison. It is not necessary to compute all of the
indicators, only those that relates to the specific objectives of the study.
THE SOCIOECONOMIC SURVEY
•
The basic premise of the survey is that the
data furnished by the respondent represents
an honest effort to answer the questions
that are asked in a personal interview or
a mail questionnaire.
•
The survey is an extremely important method
of providing basic information about current
status, problems, and constraints on
aquaculture development and on policymaking.
•
Procedure of Socioeconomic Survey
• Define the problems and objectives
• Determine the sample plan
• Develop a questionnaire
• Gather the data
• Analyze the data
DETERMINING OBJECTIVES OF THE SURVEY
- To examine the socioeconomic status and practice of the
aquaculture industry (by species) from fry gathering (or
production) through pond rearing, harvesting, processing, and
marketing;
- To analyze the details of production costs (fixed and
operating) and the returns from different culture techniques
and systems (intensive versus extensive, monoculture versus
polyculture, etc.) used on various farm sizes and in different
locations;
- To identify the major factors affecting the productivity and
profitability;
- To study the market potential and to examine the market
structures and channels; and
- To identify the socioeconomic constraints on development.
DEVELOPING SAMPING METHODS
The method best suited to the survey should be selected.
1. Simple random sampling. In this approach, a sample
of size n is drawn from a population of size N in such
a way that every possible sample size n has the
same chance of being selected.
2. .Stratified random sampling. The population is first
subdivided into non-overlapping sub-populations or
strata. Then a simple random sample is drawn from
each sub-population or stratum.
3. Cluster sampling. This method may be defined as, a
simple random sample in which each sample unit is
a collection or a cluster of elements.
4. .Systematic sampling. In this method, a sample is
obtained by randomly selecting one element from
the first K elements in a sampling unit and every K
th element thereafter.
CREATING A QUESTIONNAIRE
Principles in creating a questionnaire
- Simple words and sentences should be used;
- The questionnaire should be as short as possible;
- The questions should be easy to answer (a check list is
often a useful method of presenting questions); and
- The order of the questions should encourage a direct and
logical flow of thought.
Pre-test
• It is very important that it be tested in the field
before beginning the general survey.
• This initial test will determine the weaknesses in
the questionnaire; thereafter, further testing and
revising should be continued until test
questionnaire is perfected.
COLLECTING DATA
The accuracy of the survey will be enhanced if
the interviewers are well trained. All interviewers
must fully understand the purpose of the survey, the
sample plan, and the questionnaire itself. They
should be carefully instructed on conducting the
interview, the meaning and reasoning behind each
question, and the manner of recording specific
comments.
Most of the operators of small fish farms in the
developing countries do not keep records and their
memories may be faulty. They sometimes give low
figures on production and high figures on cost for tax
collection purposes. In this case, multiple visits may be
necessary to confirm data.
ANALYZING DATA
• Data analysis is the core of a survey. Each specific
objective requires separate consideration and appropriate
analytical techniques. The appropriate analysis need not
be complex; a good description with cross tabulation and
graphs may be adequate in some cases. However,
statistical methods may be necessary for estimating,
predicting, testing significance, etc.
• To test whether a particular performance or two groups is
significantly different, the z-test is usually used for large
samples and the t-test for small samples. The F-test is
frequently used to test the effectiveness of different
treatments in the experiment. Finally, the chi-square test
deals with the analysis of counted data that tests
compatibility of observed and expected outcomes.
Sample List of Items
for Socioeconomic Survey
A. General Information
(1) Name of respondent
(2) Address of respondent
(3) Location of Pond
(4) Pond areas:
(5) Water Supply
(6) Experience: Years farm in operation
(7) Pond ownership
B. Stocking/Pond No.
(1) Beginning inventory
(2) Cost or fry per crop
(3) Source of stocking materials
(4) How is price of fry/fingerlings determined
(5) Number of stocking per crop
C. Feed/Fertilizer/Pesticides/Pond No
(1) Type : Feed, Fertilizer, Pesticides, Supplementary feed
(2) How knowledge of feeding/fertilization/pesticide
technique acquired
D. Labor/Pond No.
(1) Labor (man/hour) required for crop (Family labor)
Pond preparation
Stocking
Feeding
Fertilization
Weeding
Repair and maintenance
Harvesting
Processing
Marketing
Other
(2) Payment (Hired labor)
Caretaker
Hired
(3) Annual salaries and wages of management personnel
Manager
Technician
E. Harvesting/Pond No.
(1) Production/crop
(2).Ending inventory
F. Marketing
(1) Channels and costs
Direct sale
Auction sale
Cooperative sale
(2) Method of payment: Cash, Credit
(3) Sale to same buyers
G. Loans
(1) Loans borrowed for initial capital
(2) Sources of loans , amount of loans and interest
(3) What factors accounted for the choice of the particular source
(4) What problems do you encounter in borrowing
H. Other farm expenses for entire farm
Fuel and oil
Electricity
Water
Supplies
Insurance
Taxes
Others (specify)
I. Inventory of Assets
(1) Pond
Levees
Sluice gates
Water canals
Pond excavation
Well
Other (specify)
(2) Buildings
Office
Residence (on farm)
Caretaker’s house
Storage
Other (specify)
(3) Transportation
Motor boat
Truck
Other (specify)
(4) Nets
(5) Equipment
Pump
Generator
Feeding machine
Refrigerator
Feed mixture
Other (specify)
J. Problems and Other Information
(1) What problems are encountered in the industry?
Unfavorable price structure
Lack of proper infrastructure
Unavailability of credit
Shortage of fry
High price of inputs such as feed, fertilizer, ice, Fuel.
Limited market
Lack of extension service
Lack of skilled workers
(2) Can government help to improve the industry?
(3) Percentage of operator’s income from fish culture
(4) Source of other income (specify)
(5) Mortality rate from stocking to harvesting (percent)
(6) Number of harvests per crop
(7) Reason for harvesting schedule:
To optimize production
To get highest price
Availability of fry restocking
Need for money
(8) Method of harvesting