Determinants of Output and Profitability of Aquaculture Fish Farming in Burutu and Warri South West Local Government Areas of Delta State, Nigeria

Abstract

The study analyzed the determinants of output and profitability of aquaculture fish farming in Burutu and Warri South local government areas (LGAs) of Delta State, Nigeria. A multi-stage sampling procedure was adopted for this study. Eight communities were randomly sampled from the two LGAs and twenty aquaculture fish farmers were sampled from each of the selected communities to give 160 respondents that were utilized for analysis. Data were collected from both primary and secondary sources. The primary data were obtained using structured questionnaire and interview schedules and analyzed through the use of descriptive statistics (mean, percentages and tables) and inferential statistics (Ordinary Least Square (OLS) Regression Analysis and Farm Budget Analysis). The enterprise proved to be a profitable enterprise from the positive mean gross margin and mean net incomes recorded. Cost of feeds was the most sensitive cost item in aquaculture fish production. Maximum variable profit would be increased by the adoption of measures that would reduce the price of feed. The age of farmers, level of educational attainment, and farming experience as well as farming status were significant variables that affected output of fish. As aquaculture fish farming has been found to be a profitable enterprise, the Delta State government should increase the budgetary provisions to provide more funds through her already existing microcredit programme to accommodate more entrepreneurs interested in aquaculture fish farming. Through this way, more new investors will be attracted into aquaculture business. This will ultimately lead to mopping up of the teaming unemployed youths in the State and making the State the hub of fish production in the country.

Keywords: Aquaculture, Determinants, Output, Profitability, Burutu and Warri South