Comparative Analysis of Profitability and Technical Efficiency of Fish Farming Using Different Rearing Techniques in Nigeria

Abstract

In Nigeria, fish farming has emerged as a fast growing sector and a viable alternative to declining capture fisheries. The paper attempts to evaluate and compare the profitability and technical efficiency of different rearing techniques among fish growers in Lagos State, Nigeria using budgetary technique and Stochastic Frontier production model. Concrete tanks system is the dominant form for rearing fish, occupying 58.3% of the total tank and pond area. All the rearing techniques show some level of appreciable profit with concrete tanks delivering the highest net profit. The benefit: cost ratios for different techniques varied between 0.82 in earthen pond to 5.20 in concrete tank. The mean technical efficiencies are 0.84, 0.86, 0.95 and 1.0 in plastic tank, concrete tank, earthen pond and fibre tank respectively. Adhering strictly to the recommended fish management practices were found to be critical for improved fish farming in the country. Efforts should be directed in reducing cost of feed by removing tariffs on imported feed or production of locally fish meal which formed the main cost component of fish feed. This study also compares the technical efficiency of four different rearing techniques. The results of analysis indicate variation in the distribution patterns of technical efficiency estimates from the four techniques. The mean levels of technical efficiency are 86%, 95%, 84% and 100% for concrete tanks, earthen pond, plastic and fibre tanks respectively.