The Socio-Economic Analysis Of Small Scale Fish Farming Enterprise In Lagos State Fish Farm Estate, Ikorodu, Nigeria

Project and Seminar Material for Fishery and Aquaculture

The Socio-Economic Analysis Of Small Scale Fish Farming Enterprise In Lagos State Fish Farm Estate, Ikorodu, Nigeria


Abstract


This study was conducted to evaluate the socio-economic analysis of small scale fish farming enterprise of the Lagos state fish farming estate in Ikorodu, Nigeria. The primary data were obtained from 60 respondents with structured interview guides, which were selected using simple sampling techniques. The results reveals that the majority (88.3%) of the fish farmers are male while (31.40%) are in the active age distribution of 31-40 years, university education (63.0%) and (58.3%) were married, majority (73.4%) of the respondent had a household size that range between 3 -5 persons. Results of the Descriptive analyses and tests of significance however showed that there was is a significant relationship between socio-economic characteristics and constraint of fish farming in the estate, there is also a significant relationship between income of fish farmers and constraints of the fish farm enterprise. Implications of these findings were critically examined, and pertinent recommendations were proffered based on the salient findings in the study.


Table of Contents


Preliminary Page(s)

  • Title page
  • Declaration
  • Certification
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of Content

Chapter One

1.0 Introduction

  • 1.1 Background of the Study
  • 1.2 Problem Statement
  • 1.3 Objectives of the Study
  • 1.4 Hypotheses
  • 1.5 Justification of the Study
  • 1.6 Limitation of the Study

Chapter Two

2.0 Literature Review

  • 2.1 An overview of Aquaculture in Nigeria
  • 2.2 An overview aquaculture in Lagos state
  • 2.3 Current Situation of aquaculture in Nigeria
  • 24 Aquaculture in Nigeria Economy
  • 2.5 Fish Demand and Supply in Nigeria
  • 2.6 Major Constraints of Aquaculture Development
  • 2.7 An overview of small-scale fish farming
  • 2.7.1 Problems faced by small-scale enterprises
  • 2.7.2 Challenges faced by small-scale fish farming
  • 2.8 Advantages of fish farming
  • 2.9 Contribution of Fisheries to National Economy
  • 2.10 Lagos State and Its Growth
  • 2.10.1 Geology and Relief
  • 2.10.2 Development Programmes of Lagos State

Chapter Three

3.0 Material and Method

  • 3.1 Source of data
  • 3.2 Collection of Data:
  • 3.3 Validation of research instrument
  • 3.4 Reliability of the instrument
  • 3.5 Description statistical tool

Chapter Four

4.0 Result

  • 4.1 Demographic Characteristic of Respondent
  • 4.2 Continuation of the Demographic Characteristics of Respondent
  • 4.3 Nature of fish farming production
  • 4.4 Type of culture system used
  • 4.5 Culturing structure
  • 4.6 Reason for Fish farming and total number of ponds/tanks
  • 4.7 Fish Farm Size (plot)
  • 4.8 Level of Fish Production
  • 4.9 The type of record kept
  • 4.10 Reason for Keeping Records
  • 4.11 Production Information
  • 4.12 Form of Selling Fish
  • 4.13 Problems encountered with labour accusation
  • 4.14 Harvest per year
  • 4.15 Average weight per fish
  • 4.16 Factors determining yield
  • 4.17 Market structure
  • 4.18 Do you process the fish before Sales
  • 4.19 Level of production
  • 4.20 Constraint/problems encountered by the respondent in the fish farming Estate
  • 4.21 Hypotheses testing

Chapter Five

Summary, Conclusion and Recommendation

  • 5.1 Discussion
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation
  • References
  • Appendix

Chapter One


Introduction

1.1 Background of the Study

Presently, fish as an important component of the population‟s diet in many parts of the world has increased rapidly over the past hundred years due to improved technology, which showcases powerful engines and sonar equipment and led to over fishing, causing a worldwide decrease in wild stocks. Accounting for the decline in the fish population dynamics. The need to increase fish production by farming became an urgent matter.

The term „Aquaculture‟ covers all forms of cultivation of aquatic animals and plants in fresh brackish-and marine. Aquaculture can be seen as an aspect of agricultural practices, mainly to increase the production of food above the level that would be produced naturally. Today, aquaculture is responsible for an ever-increasing share of global aquatic food production, which has increased from 3.9 percent in 1970 to 31.9 percent in 2003 (FAO, 2005).

In Nigeria, Agriculture provides between 80 to 90 percent of the country‟s food needs (Odife,

2002). It however has diverse aspects and this includes fish farming which involves the rearing of fish for the purpose of consumption or sale. Fish is acclaimed to be the principal source of animal protein for over one billion people globally and provides many important nutritional and health benefits. Fish has the highest level of easily metabolisable proteins; it is reputed for its high quality proteins, fats, vitamins, calcium, iron and essential amino acids. The per capital consumption of animal protein in the country has been put at 5gm per day. This is a far cry from the FAO‟s recommended level of 35gm per day (Afolami and

Oladimeji, 2003).

Fish farming is a profitable venture and it is rapidly expanding and it will continue to be profitable if the planning and management are well taken care of. Fish farming started in Nigeria over 40 years ago (Ekwegh, 2005). The Nigerian government has recognized the importance of the fishery sub-sector and it has made several attempts over the years to increase their productivity through institutional reforms and the various economic measures. Some of these measures provided subsidy for inputs and exemption from tax for fishermen. Despite the efforts of government, there is still a deficit in the supply and demand for fish by the population (Dada, 2004). Most of the fish farming in Nigeria is carried out by small scale operators in small fresh water ponds (UNDP). Nigeria has a population of over one hundred million people and has her national fish demand at over 1.5 million metric tones. The current annual aquaculture production hovers around 500,000 metric tonnes. These combined with ever decreasing catch (due to over exploitation) from the capture fisheries have not been able to meet the ever-increasing protein demand of the country. Thus the challenge to increase protein consumption in Nigeria appears to be more urgent now than ever (Mbanasor, 2002). Poor people are facing new barriers in both their production and returns on fish. Even by the standards of developing countries, artisanal fishers and fish workers are often among the poorest people and they generally operate on a small scale and use traditional fishing practices yet new technologies and environment requirement favour large scale capital intensive operation at the expense of traditional and small scale commercial fishing (Delgado et al., 2003). Whereas small scale fish farming supplies the greatest percentage of the Nigerian‟s annual fish production output (FDF, 1995).


1.2 Problem Statement

In Nigeria, the first trace of aquaculture was the practice by some missionaries in the early

1920‟s in Ilora, Oyo state, where fish was raised to supplement the protein intake of pregnant women. Conventional fish farming in Nigeria, however, falls into two distinct periods; between 1950 – 1970 and 1970 – 1992. The first period popularised fish farming while the second phase concentrated on expansion and establishment of demonstration of fish farms in addition to bold attempts at reducing the major constraints for rapid aquaculture development (Omitoyin, 2007).

Aquaculture the farming of aquatic organisms in controlled environment was introduced to Nigeria in the early 1950‟s and fish production through aquaculture has risen steadily from a few hundred kilograms to over 45,000 metric tonnes in 2004 (FAO, 2007.). Prior to the 1990s, aquaculture development in Nigeria was driven by socio – economic objectives including, nutrition improvement of rural communities, generation of additional family income, creation of employment and diversification of income generating activities; and was promoted by international organization and agencies and the government at Federal, State and Local Governments levels. Today, aquaculture is the fastest growing livestock production sector in Nigeria, with a growth of about 29% in 2006 alone, and with prospects of continued growth. This is because demand for fish is on the increase line with population growth, while catches from fisheries are on the decline, even globally (Delagado et al., 2003)

The following research questions emanated from the socio – economic analysis of small scale fish farming enterprise in Lagos state fish farming estate, Ikorodu, Nigeria.

  1. What are the socio economic characteristics of the fish farmer in the study area? What is the source of water and type of culturing system use in the study area?
  2. What are the various forms in which fish are sold in the study area? What are the constraints militating against fish farming in the study area?
  3. What are the sources of capital and marketing structure of fish farmers in the study area?

1.3 Objectives of the Study

The main objective is to investigate the socio- economic analysis of small scale fish farming enterprise in Lagos state fish farm estate, Ikorodu, Nigeria

The specific objectives are to:

  1. Describe socio-economic characteristics of the fish farmers in the study area.
  2. Determine the major source of water and type of culture system in the study area.
  3. Identify various forms at which fish is sold in the study area
  4. Highlight constraints of sustainability of the fish venture amongst fish farmer in the study area.
  5. Assess the source of capital and marketing structure of fish farmers in the study area

1.4 Hypotheses

The hypotheses tested in the null form, are:

  • H01: There is no significant difference between socio-economic characteristics and constraints faced by fish farmer in the estate.
  • H02: There is no significant difference between income of fish farmers and constraint faced by fish farmer in the estate.

1.5 Justification of the Study

Lagos state has great potentials to develop fish farming to absorb a sustainable fraction of the Nation fish product deficit. Based on World Health Organization (W.H.O) minimum recommendation of 34kg animal protein per caput, Lagos state requires a minimum of 380,000 metric tons annually (LAMAC, 201O). The state is endowed with inland and coastal waters pulse adequate infrastructure; of which there is a high demand for fish and its sale price are favorable. What is lacking is hence the technical know-how, while exploring ways to ameliorate the performance of the sector. The contribution of the fisheries sector to the state and National economy at large is highly positive (if well propelled).

Lately, demand for fish has doubled as other source of animal protein have become expensive due to the ever rising population (demand) and high production cost of other animal protein sources.(Fagbenro et al., 2004 )

Inspite of the potentials of aquaculture there are lots of problems militating against its development. The major constraint to increased fish production in Nigeria is poor rate of capital formation and lack of credit facilities amongst other (FAO, 2005).

In the less developed countries, the rate of credit is closely related to providing needed resources which farmer cannot source from their own capital (Rahji, 2000)

Hence, this study attempts to identify the socio-economic determinant of fish farmer, to identify various sources of capital and water available to farmers, constraints faced by allotees in the farm estate and proffer recommendation to improve the fish farming in the estate


1.6 Limitation of the Study

The study was geographically limited to Ikorodu Lagos state, Nigeria and restricted to the Lagos State fish farm Estate only. Similarly, some problems were faced in data collection from various allot tee (plot) in the study area as they were not willing or ready to release data as they believed it is confidential and most managers demanded to seek authorization from owners, but continuous and flexible visits made them to concur.

Financial constraint was faced as it requires many travelling and phone calls before the successful completion of the project.

Locating the farm estate was not a major problem but arriving/ reaching there was, as the major road along its axis (odoguyoun road) are bad, thereby accounting for traffic and longer time spent travelling.

Respondent were unwilling to disclose the source of capital and number of culture period, but repetition of the same question indirectly gave an actual data needed.


Chapter Five


5.0 Summary, Conclusion and Recommendation

5.1 Discussion

The result assessed the socio-economic analysis of small scale fish enterprise in the Lagos State Fish Farming Estate Ikorodu, Nigeria. Majority of the population in the sample area were men (95%) and (31.7%) within the age of 31-40 of the fraction of the population, an age in which they are considered highly productive and active to undertake strenuous task associated to the farm work, which a line with Bello, (2000) assertation that age has positive correlation with acceptance of innovation and risk taking. The percentage of female (11.7%) in the fish farming estate. This is a throwback to the tradition belief on woman access to productive resources; this is however contrary to Lahia et al., (2000), which suggest that women participated more than man in most farming activities.

However, aquaculture practices were not limited to a particular gender, both male and female were engage in fish farming to increase fish production, reduce hunger and improve food security. The survey revealed that (58.3%) of the respondent were married, while 38.3% were single which is an indication that fish farming in the estate serves as sources of livelihood.

Education is an important factor which has influence on farm productivity, level of education according to the study show that over (63%) of the respondent had University education. This is contrary to the general opinion that most farmers had no formal education or were unable to complete either primary or secondary education, school system as evidence from their study of Ozor (1998) and Okwoche et al. (1998).

Majority (73.4%) of the respondent had a household size that ranges between 3 – 5 person, the implication is that the relatively small household size may increase the number of labour needed as against (Adegbite and Oluwalana, 2004; Adegbite et al., 2007) that the larger the household size, the more likelihood of suitable labour efficiency on farmers farm given the constant labour and of which the most common type of labour in the fish farm estate is the high permanent labour (76.7%).

Form the result, one can also inferred that fish farming (50%) was there primary occupation while (33.4%) of the respondent were civil servants. This implies that fish farming is seen as a major source of income.

The survey indicated that (33.3%) of the respondent were fish farmers by secondary occupation and (16.7%) participated in politics. This may not be unconnected with the fact that aquaculture is a new means for sustainability in Nigerian‟s development.

Cooperative society involves a social participation that helps farmers to pool their resources, to have access to fisheries‟ inputs and to have insight in their fishing issues. Membership of cooperative societies are therefore a factor which influences the adoption of improve fishers technologies and poverty alleviation. From the result, it was noted that (71.7%) of the respondent do not belong to any fish farming association while only (18.3%) are members, which may be reasons for not benefitting from any source of credit facility which is in line with the position of (Akinbile, 1998). That group ensures that members drove benefits from the groups such that they will not have derived individually it they were acting alone.

The result revealed that most of the respondent in the fish farming estate had 3 – 4 years of fish farming experience. It believes that this has enhanced their efficiency. This finding is line with Schumpeterian theory of economic development which suggest that technical efficiency is influenced by technical knowledge and understanding in addition to other socio – economic environment with which the farmers must take decision (Kalirajan, 1990).

Most of (43.4%) of the respondent went into fish farming for sustainability and improve protein intake while (31.7%) revealed it was their area of specialization and for profit making. From the result, (80%) of respondent practiced an intensive management system and (95%) of mono species culture of cat fish (Clarias gariepinas), (78.3%) reason being that the spices has a high market value and it can attain market size under few months of culture. The culture medium used by farmers/respondents from the survey (80.0%) used concrete tanks while (20%) used both earthen pond and concrete tanks. This is because concrete tank are part of assets in each plots in the fish farming estate. While (23.3%) had 17 – 20 ponds which is in relation to the number of plot a fish farmer occupies. The result shows that (36.7%) of respondents had 10 – 16 pond/tanks while (28.3%) had 17 – 20 ponds which is in relation numbers of plot a fish farmer occupies. The number of plot occupied by a respondent in the study area from result shows that (71.7%) occupies 2 – 3 plot, while (15%) occupies only one plot.

The stocking density per pond/tank in the fish farming estate shows that (48.3%) of respondent stock 1000 – 1500 fingerlings while (38.4%) stock between 1700 – 2000 fingerlings. Most (68.3%) culture period for four month while (28.3%) used five month, rating their level of production, (63.3%) being medium and (21.7%) accepts the level of production to be large.

From the survey, (100%) of the respondent agreed that there is a ready made market for fish and (53.4%) said the price per kilo of fish ranged from N430 – N450 while (26.7%) of the respondent assumed price range between N400 – N420. This is due to the fact that fish price per kilo vary from place to place and as time changes.

The survey reveal that the strength of fish preservation in the fish farming estate which accounts for (91.7%) of fish farmer who do not process their fish but sell fresh and (8.3%) of respondent process fish by smoking. Therefore there is need of improvement in the processing activities of the estate. The major source of capital in the fish farming estate (73.3%) of the respondent runs the fish farm from personal saving while (25.0%) sourced their capital from friends and family. This is an indication to why there is a decline in level of association of any sort of fish farming organization. From the data collected, it is seen that month of high harvest for most (33.3%) fish farmers in the study area ranges between the months of April and July while that of low harvest were accounted in the months of December, January and February with a uniform agreement (50%) of the respondent.

From the result, (46.7%) of the respondents do not want to disclose that amount of fish produced in previous production cycle while (21.7%) of the respondents produced above 1 ton in the fish farming estate. Due to the fact that most respondent feels it‟s private and personal information and if gotten to the government can be used in taxation. On the other hand the rates of production can meets the objective of establishment of fish farming estate by the Lagos state government and add up to the state fish demand in contribution to the national fish deficit.

The major source of water in the fish farming estate (88.3%) of the respondent, used borehole and factors determining yield of respondent from the result (60%) attributed it to good management practice while (40%) said; “it is water quality and feed intake in culture cycle”.

From table 17 of the result, shows that there is a significant difference between the socio-economic characteristic of respondent and constraints faced by fish farmers at P <0.05= Df =59.

Table18: Decision criterion is reject null hypothesis when P <0.05: Df= Degree of freedom, therefore alternate hypothesis is accepted and there is a significant difference between fish farmers income and constraints faced by fish farmer in the fish farming estate.


5.2 Summary

The study explored the socio-economic analysis of small scale fish farming enterprise, in Lagos state fish farming Estate. Ikorodu, Nigeria. The specific objective was to:

  1. Describe the socio-economic characteristics of the fish farmer in the study area
  2. Identify various forms at which fish is sold in study area.
  3. Highlight constrains of sustainability of the fish farming enterprise among fish farmers in study area.
  4. Assess the source of capital and marketing structure of fish farmers in the study area

Sixty fish farmers were randomly selected using multi-stage techniques and structure interview schedules were used to elicit information from the fish farmers and the data were analyzed using descriptive statistics.

The study reveals that (31.7%) of the fish farmers were within the age group of 31-40 years, and (88.3%) of the respondents were male. Although (58.3%) of the respondents were married, (63%) had university education, while majority of the respondents (73.4%), had a household ranging from 3-4 persons.

(88.3%) of the respondent used borehole (underground) as water source, while 80% used concrete tank as culturing media. The whole respondent (100%) of the fish farming estate agreed that there is ready market for fish, and (53.4%) sold their fish at a rate of N430- N450.

(91.7%) of the fish farmer do not process their fish but sell fresh, while (8.3%) smoked and sell fresh.

Majority of the fish farmer sourced capital from personal savings while (25%), from friend and family. Apart from (70%) of fish farmers that complained of insufficient extension agent visit, other constraint / problem encountered by the respondent in the fish farming estate were non-severe.


5.3 Conclusion

The result of this study revealed that majority of the fish farmer in Lagos state fish farming estate, were male and most of the farmers age range was equal within the economically active range, which favored fish farming development. The source of capital of most fish farmers were personal investment and militating against the output structure in data collection but (21.7%) of the fish farmer produced more than 1 ton in their last production cycle, which is a positive indication with the aim of establishment of the fish farming estate: to produce 10,000 tonnes of fish per annum to improve the welfare of fish farmers and other people, to reduce poverty and increase fish supply to the ever growing population of ikorodu and Lagos state.

Adding to the estimated fish yield potential of aquaculture from 1,313,510 hectares of perennial fresh water, brackish water swamp available in Lagos state placed at 3,940,530 tonnes and generally, to the national fish deficit.


5.4 Recommendation

From the study, the following are recommended to the Lagos state government:

  1. To educate fish farmer and owner on the needs and method of fish processing and preservation
  2. To educate fish farmer on need to feedback government with necessary production data to educate the fish farmers on importance of participation in fish farming co-operatives and organization
  3. To increase the number and frequent visit of extension agents to the fish farming estate

The Socio-Economic Analysis Of Small Scale Fish Farming Enterprise In Lagos State Fish Farm Estate, Ikorodu, Nigeria


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