Work Plan Implementation (Working Paper) SCS/76WP/39 SOUTH CHINA SEA FISHERIES DEVELOPMENT AND COORDINATING PROGRAMME Follow-up Programmes on Economics of Aquaculture in the South China Sea Region |
Based on the work of Y.C. Shang, Consultant* July 1976
Project Document Identification
Work Plan Activity: 4(a)(i, iv and v
and (c)(ii, iii and iv)
Determination of the particular systems most likely to be profitable in each country
Detailed descriptions and analysis of the existing aquaculture industry in each country - animals cultured, quantities produced, areas in use, numbers of farms, numbers of persons employed, etc.
Examine market potentials for products of promising types of aquaculture
Plan programmes of research and pilot scale operations for the promising types of aquaculture.
Examination of factors affecting productivity and profitability of existing and future aquaculture operations
Examine cost and benefits of different sizes of farms, with special reference to supplies and uses of materials and labour.
Evaluate effects of pollution on productivity and profitability of operations.
This paper contains suggestions for follow-up work on the economics of aquaculture in the South China Sea Region.
Support is recommended for carrying out the following aquaculture work programmes: socio-economic evaluation, economic feasibility, commodity demand, and economic losses due to pollution. Suggestions are made for conducting a workshop on the economics of aquaculture, collection of economic data from experimental and demonstration farms, and for strengthening fish farmers' cooperatives.
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(ii) Summary of recommendations
4. Regional workshop on economics of aquaculture
5. Improvement of collecting economics data from experiment or demonstration farms
6. Socio-economic feasibility of establishing (or strengthening) fish farmers' cooperatives
7. Economic loss of fish culture due to aquatic pollution
Appendix A Sample questionnaire for socio-economic survey
Appendix B Instruction for sampling in aquaculture socio-economic survey
Appendix C Method for final data analysis
Appendix D Major items to be included in the prospectus for a workshop on economics of aquaculture>
The following suggestions for follow-up action in aquaculture economics in countries of the South China Sea Region are based on observations made during a recent field trip to the Philippines and Indonesia; discussions with the government fishery officials and related specialists interested in fisheries economics; and desk reviews of reports and papers relating to aquaculture situation in this region.
A basic constraint to the economic study in aquaculture in most of the countries in this region is the lack of reliable economic data for analysis. Therefore, a sound development policy cannot be formulated. A socio-economic survey of the aquaculture industry is considered of high priority. This survey should be designed to provide information for the following economic analyses:
To examine the economic status and practice of the aquaculture industry (by species) from fry gathering through pond rearing, harvesting, processing and marketing.
To analyze details of costs (fixed and operating costs) and returns of fish culture for different techniques (intensive and extensive) and systems (monoculture and polyculture); for various farm sizes; and in different locations.
To identify the major factors affecting the productivity (both land and labour) and profitability of aquaculture operation by species.
To examine the market structures and channels.
To identify the socio-economic constraints for development.
Questionnaire design, sampling, and final analysis can be done by aquaculture economist(s) with the cooperation of local economists and appropriate government employees. It is suggested that this survey be done in all the countries in this region. Thailand had one in 1972; a survey of this nature is now in progress in the Philippines. Likewise some data have also been collected in Indonesia for which analysis has yet to be made.
Appended to this report are: Type questionnaire (APPENDIX A), Instructions for sampling (APPENDIX B), and suggested Method for final analysis of data (APPENDIX C).
The economic feasibility of a given aquaculture practice (or technology), or a given development policy, or a new species is dependent upon many social and economic factors that are peculiar to a country, even though culture is technically feasible. The blueprint of a profitable operation in one country is no guarantee of its successful application in another economy. A given practice or policy should be adopted only if it is more profitable than the alternative practices or policies, and a given species should be selected for development only if it could yield a reasonable return on the investment. An economics consultancy is needed to help each of the countries in this region evaluate and revise their recently drafted aquaculture development plan for the next ten years.
The demand for shrimps and prawns continues to outpace supply and boost prices. The economics of shrimp and prawn farming in the region should be evaluated in relation to the expected higher prices of shrimp. Such a study could have a bearing on the bank's willingness to loan money for developing shrimp farms.
Estimates of market potential of a given species for domestic consumption or for export would be a preliminary step in planning for development. There are many factors affecting the demand for a given species, such as level of price, prices of competing products, level of income, consumers preferences, etc. Demand study will provide information on how much consumption changes as the price of a fishery product changes. If the policy is to expand output of a given fishery product, the increased output will result in some decrease in price. An evaluation on how much price will drop because of increased supply in the market has to be made. This is an important consideration in determining the rate at which a given fishery could best be developed. The availability of competing product and its price are also an important consideration in determining the market potential. The market potential for a given species in a given period could be estimated if the trend of increase in population and if the income elasticity were known, assuming all other elements remain unchanged. New developments in product form or in processing and distribution may expand the market potential.
The SCSP has made commodity studies of major species (shrimp, crab, lobster, tuna, mackerel, cephalopods) for the ADB.
Demand studies should also be done for other species with potential for aquaculture development. This could be done by an economics consultant with the cooperation of local economists (university staff) and appropriate government officials in each country of the region.
The primary objectives of the workshop will be:
To exchange views and pool experiences on current economic investigations related to aquaculture development in the different countries, attempts will be made to standardize sampling programmes and interviewing techniques;
To review economic factors affecting aquaculture development in each country;
To examine the constraints on aquaculture development specifically with respect to production, marketing, processing and distribution in each country; and
To formulate strategies to overcome the major constraints on aquaculture development and provide guidance for rapid growth of the industry.
The participants should have background in economics. Each participant will be required to write a paper on the economics of aquaculture in his own country, and these papers will be discussed during the workshop. The specific subject of the papers to be prepared should be assigned to each participant at least six months ahead of the workshop so that they will have to write a good report. An economics consultant should work as a coordinator of the workshop. Instructions for preparing the prospectus for such a workshop are included as APPENDIX D.
The input-output data from experimental or demonstration farms for improved (or new) culture techniques or systems can be very valuable for practicable application and for economic analysis. This is especially true for new types of culture when there may be only a limited number of profitable operations which could be used by banks to evaluate loan proposals for new farms. Experiments should be carried out and detailed records should be kept to determine the optimum level of fertilizer input under different types of soil, stocking rates, and prices of fertilizer that would permit financial institutions to evaluate the profitability of the operation.
Fish farmers are usually in a weak bargaining position in buying and selling. Improvement of market infrastructures are needed for increased production. Active fish farmers' cooperatives or associations can help in these areas. The socio-economic feasibility of establishing fish farmers' cooperatives should be evaluated.
Aquatic pollution may seriously affect aquaculture and should receive attention in development planning. A preliminary estimate of the economic loss of different types of fish culture due to water pollution is needed in order to formulate appropriate control measures.
Date of Enumeration
Enumerator
A. General information
1 | Location of pond: | Owner/Operator | Caretaker Operator |
2 | Name of respondent: | ||
3 | Address of respondent: | ||
4 | Pond ownership: |
Owned Area (ha)
Leased from (Private) (Government) Area(ha) annual rent
Duration of lease (yrs) renewable: Yes No
Percent of owners income from pond ; Source of other income
Experience:
Years farm in operation Years experience of operator
Where fishpond experience acquired
Species cultured:
Major species
Minor species
Reason for choice of major species
Pond area:
Nursery pond(s) Area(ha) Depth
Rearing pond(s) Area(ha) Depth
Type of pond: Excavated Ditch & Levee Other
B. Management
Growing period Frequency of water change
How water supplied: Tide Pump Other
Days per year without cultured organism in pond
Reason for inactivity (specify)
Is pond bottom dried? Frequency Duration
C. Stocking
Stocking rate of rearing pond/ha/crop
Species | Fry | Fingerlings | No. of crops/yr. |
Factors influencing the quantity and frequency of purchase:
Price of fry/fingerlings
Availability of fry
Anticipated supply of fry/fingerlings
Anticipated demand for species at harvest
Weather conditions Others (sp.)
How is price of fry/fingerlings determined?
revailing price bidding
dictated by seller others
bargaining
Source of stock:
Location pick-up delivered
distance travelled
D. Fertilizer, pesticides, supplemental feed.
Fertilizer/ha
kg/ha/crop | cost/kg | frequency of application | |
organic | |||
inorganic |
Pesticides/ha
Items | kg/ha/crop | cost/kg |
Supplementary feeding/ha
Items | kg/ha | cost/kg |
Factors affecting the quantity of fertilizer, pesticide, and supplementary feed applied:
Availability if not available, tell why
Price of fertilizer
Stocking rate
Anticipated demand for crop at harvest
Others (sp.)
How knowledge of fertilization/feeding/pesticide technique acquired:
self | extension agent | ||
neighbors | reading | ||
other |
E. Labour
Labour required for pond area of hectares/crop
Family | Caretaker | Hired | Others | |
pond preparation | ||||
stocking | ||||
fertilization | ||||
feeding | ||||
weeding | ||||
repairs and maintenance | ||||
harvesting | ||||
others (specify) |
Payment
Rate/man/day | Food | Share of cropping | others | |
caretaker | ||||
hired | ||||
others |
F. Harvesting
production/ha/crop
SOLD | |||||
kg | price received/kg | Eaten | Given | Others | |
major species | |||||
minor species | |||||
others (specify) |
How do you crop your stock?
Section Total Other
What cropping method do you use?
Seining gill net pond draining
Others (specify)
Number of harvests per crop
Reason for harvesting schedule
To optimize production
Marketing strategy to get highest price
Availability of fry for restocking
Need for money
Other (specify)
G. Mortality rate
What is the mortality rate:
Average | Highest | Lowest | |
From purchase to stocking | |||
From stocking to harvesting |
What are the possible causes of mortality?
Sudden change of weather lack of proper food
Water condition (specify) overstocking
typhoon others (specify)
disease
H. Marketing
Selling arrangement
Pick-up or delivered | Marketing cost or commissions | Location of outlet | ||
place | distance | |||
Direct sale | ||||
Wholesale retail | ||||
Cooperative sale | ||||
contract | ||||
consignment | ||||
others (specify) |
Method of payment
Cash
Credit for how long interest
Installment How many
Others (specify)
I. Loans
Need loan for
Expansion purchase of: | fry |
Repair/maintenance | supplies |
food |
Sources of loans
Amount | Annual interest | Maturity | Purpose | |
Relatives | ||||
Brokers | ||||
Government | ||||
Banks | ||||
Others (specify) |
What factors accounted for the choice of the particular source?
Accessibility simple procedures
Fast credit extention services offered
Only source available others (specify)
What problems do you encounter in borrowing?
Too much paper work Delayed release of loan
High interest rate Others (specify)
Lack of collateral
Does source of loan affect sale of product? If yes, how
J. Other farm expenses
Other farm expenses/crop for entire farm
Amount/crop | Annual expenses | |
Taxes | ||
Insurance | ||
Permits | ||
Ice | ||
Electricity | ||
Water | ||
Fuel and oil | ||
Supplies | ||
Maintenance and repair | ||
Equipment and machinery | ||
Ponds and levees | ||
Others (specify) |
K. Inventory of assets
Acquisition | Years more to last | Prevailing market value | ||
Year | Unit cost | |||
Land | ||||
Pond | ||||
Residential | ||||
Idle | ||||
Buildings | ||||
Caretaker's house | ||||
Storage | ||||
Others (specify) | ||||
Improvements | ||||
Levees | ||||
Sluice gates | ||||
Water canals | ||||
Pond excavation | ||||
Other (specify) | ||||
Transportation | ||||
Motor boat | ||||
Truck | ||||
Others (specify) | ||||
Nets | ||||
Gill net | ||||
Seine net | ||||
Others (specify) | ||||
Others | ||||
Pump | ||||
Bags | ||||
Tanks | ||||
Baskets | ||||
Generator | ||||
Personal | ||||
Radio | ||||
Television | ||||
Motorcycle | ||||
Type of cooking stove | ||||
Other (specify) |
K. Problems and other information
What problems are encountered in the industry?
Unfavourable price structure Lack of proper
infrastructure
Unavailability of credit Shortage of fry
Unavailability of supplies High price of supplies:
Fuel
Fertilizer
Feed
Unavailability of technical support
Unavailability of skilled workers
Others (specify)
Can the government help to improve the industry? Yes No
If yes, in what way
If no, why not
Can cooperation among fishpond operators help to improve the industry?
Yes No
If yes, in what way
If no, why not
Have you been reached by extension worker? Yes No
If yes, what information was provided for
Do you attempt to improve your culture practices? Yes No
How
What problems do you have in order to improve your culture practices?
Does your income from fish farming meet your needs? Yes No
If no, how do you meet?
Number of dependents supported by this farm
Fish culture can be classified into brackishwater culture, freshwater culture, and shallow sea culture. It can be also classified by species cultured. Each type of culture can be grouped into several farm sizes. The percentage of sample should be taken from the population depending on the resources availability. The number of samples selected from each region for particular species in a particular farm size group should be proportional to its total acreage. Samples should be selected by random sampling method in each farm size group.
The data collected in each region can be analyzed and tabulated by farm sizes, types of operation (intensive vs. extensive), management systems (monoculture vs. polyculture), land ownership (owned vs. leased), pond ownership (owner-operator vs. caretaker-operator), etc. Data can be analyzed by computer.
1. | Annual operationg cost/ha | ||
Quantity | Cost | ||
Stock of fry/fingerlings | |||
Fertilizer | |||
Organic | |||
Inorganic | |||
Feed | |||
Pesticide | |||
Labour | |||
Land lease | |||
Interest | |||
Taxes | |||
Insurance | |||
Depreciation | |||
Marketing | |||
Electricity | |||
Water | |||
Supplies & materials | |||
Others | |||
Total | |||
2. | Production/ha | ||
Quantity | Cost | ||
By species | |||
3. | Profit/ha | ||
4. | Rate of return on operating cost | ||
5. | Cost of production/kg | ||
6. | Rate of return on capital |
Justification and objectives
Organization of the workshop
Sponsors and location
Financial obligations
Participation
Programme
Overview paper on the economics of aquaculture
Participant papers and discussions
Discussion on regional research needs on economics of aquaculture
Discussion on future research projects and coordination
Conclusions and recommendations
Instruction for preparing research papers
WORKING PAPERS OF THE SOUTH CHINA SEA FISHERIES DEVELOPMENT
AND COORDINATING PROGRAMME
SCS/74/WP/1 | Rabanal, H.R. The potentials of aquaculture development in the Indo-Pacific Region. Manila, 1974. 34p. |
SCS/74/WP/2 | Crutchfield, J.A., D.A. Lawson and G.K. Moore. Malaysia - Legal and institutional aspects of fisheries development. Manila, 1974. 27p. |
SCS/74/WP/3 | Marr, J.C. Republic of Vietnam - Legal and institutional aspects of fisheries development. Manila, 1974. 20p. |
SCS/75/WP/4 | Larsson, S.O.R., G.C.A. Van Noort and E. O. Oswald. Malaysia - A report on artisanal fisheries of Peninsular Malaysia with particular reference to Kuala Besut. Manila, 1975. 58p. |
SCS/75/WP/5 | Rabanal, H.R. Irian Jaya, Indonesia - Survey of possibilities and recommendations for development of brackish water fish production. Manila, 1975. 27p. |
SCS/75/WP/6 | Tussing, A.R. Fishery development perspectives. Sub-Region V: South China Sea. Manila, 1975. (IPFC/74/Sym/7) 23p. |
SCS/75/WP/7 | Murdoch, W.R. and M.A. Myers. Republic of Singapore - An assessment of the Jurong Fishing Harbour complex and expansion site on the east bank of the Jurong River. Manila, 1975. 46p. |
SCS/75/WP/8 | Peterson, C.L., K.J. Rosenberg and A.C. Simpson. Regional - Trip reports of chartered purse seine vessels Royal Venture and Southward Ho covering voyages I and II. Dec. 1–13, 1974 and Jan. 5 – Feb 3, 1975. Manila, 1975. 37p. |
SCS/75/WP/9 | Oswald, E.O. and R.E.K.D. Lee. Regional - A proposal for a live bait pole and line tuna fishing survey in the South China Sea and adjacent waters. Manila, 1975. 38p. |
SCS/75/WP/10 | Rosenberg, K.J. and A.C. Simpson. Regional - Trip reports of chartered purse seine vessels Royal Venture and Southward Ho covering voyage 3. 9 February to 26 March 1975. Manila, 1975. 28p. |
SCS/75/WP/11 | Peterson. C.L. Regional - Resource survey of larger pelagic fish. Manila, 1975. 32p. |
SCS/75/WP/12 | Rosenberg, K.J., A.C. Simpson and C.M. Renwick. Regional - Trip reports of chartered purse seine vessels Royal Venture and Southward Ho covering voyage 4. 9 April to 24 May 1975. Manila, 1975. 36p. |
SCS/75/WP/13 | Baum, G.A. Kuala Besut II - A supplementary report on selected socio-economic aspects and problems in a fishermen's community on the East Coast of Peninsular Malaysia. Manila, 1975. 43p. |
SCS/75/WP/14 | Cuerden, C. Library services for the South China Sea Fisheries Programme and its participating countries. Manila, 1975. 48p. |
SCS/75/WP/15 | Lawson, R.M. Malaysia - an interim report on socio-economic aspects of the development of artisanal fisheries on the East Coast of Malaysia. Manila, 1975. 29p. |
SCS/75/WP/16 | Jamandre, T.J. and H.R. Rabanal. Engineering aspects of brackish water aquaculture in the South China Sea Region. Manila 1975. 96p. |
SCS/75/WP/17 | (not used) |
SCS/75/WP/18 | Cleaver, W.D. Malaysia - A preliminary design and general arrangement for an offshore purse seine vessels for the East Coast of West Malaysia. Manila, 1975. 35p. |
SCS/75/WP/19 | Pischedda, J.L. Republic of the Philippines - Legal and institutional aspects in the development of the fishing industry. Preliminary observations and identification of the main obstacles. Manila, 1975. 35p. |
SCS/75/WP/20 | Simpson, A.C. Regional - Acoustic surveys of pelagic resources, Report No. 1. Gulf of Thailand, July 1975. Manila, 1975. 28p. |
SCS/75/WP/21 | Cintas, D. and C.M. Renwick. Regional - Report of aerial survey for schooling pelagic fish. 1. Philippine waters, 12–29 June 1975. Manila, 1975. 28p. |
SCS/76/WP/22 | Baum, G.A. and J.A. Maynard. Tobuan/Sual, Pangasinan Province Central Luzon - A socio-economic study on a rural fishing population in Central Luzon in connection with the Municipal Fisheries Pilot Programme. Manila, 1976. 44p. (country - Philippines) |
SCS/76/WP/23 | Baum, G.A. Panigayan, Lampinigan, Baluk-Baluk and Manangal - Basilan Province - A socio economic study on four fishermen's communities affiliated to the Basilan Fishing Association (BFA)/Isabela in connection with the Municipal Fisheries Pilot Programme. Manila, 1976. (in press) (country - Philippines) |
SCS/76/WP/24 | Barica, J. Nutrient dynamics in eutrophic inland waters used for aquaculture in some countries bordering the South China Sea, with particular reference to mass fish mortalities: Proposal for monitoring programmes, Philippines, Thailand and Hong Kong. Manila, 1976. 42p. |
SCS/76/WP/25 | Rosenberg, K.J., A.C. Simpson and J.A. Maynard. Regional - Trip reports of chartered purse seine vessels Royal Venture and Southward Ho covering voyages 5 and 6. 13 June to 10 September 1975. Manila, 1976. 52p. |
SCS/76/WP/26 | Moore, G.K. Malaysia - Legal and institutional aspects of fisheries development. (2nd working paper) Manila, 1976. 38p. |
SCS/76/WP/27 | Wheeland, H.A. Malaysia - Preliminary observations and recommendations concerning the fisheries statistics programme of Peninsular Malaysia. Manila, 1976. 22p. |
SCS/76/WP/28 | Maynard, J.A. Regional - Report of aerial survey for schooling pelagic fish. II. Thailand - 20 November to 1 December 1975. Manila, 1975. 20p. |
SCS/76/WP/29 | Baum, G.A. and J.A. Maynard. Salay, Misamis Oriental Province. A socio-economic study on the fishing population of the seven coastal barrios of Salay Municipality in connection with the Municipal Fisheries Pilot Programme. Manila 1976. (in press) (Country - Philippines) |
SCS/76/WP/30 | Murdoch, W.R. Hong Kong - A preliminary feasibility study to prosecute offshore pelagic stocks from Hong Kong. Manila 1976. 27p. |
SCS/76/WP/31 | Johnson, R.F. Consultancy in aquatic pollution findings and recommendations. Philippines, Thailand, Hong Kong, Indonesia, Malaysia, Singapore. Manila, 1976. (in press) |
SCS/76/WP/32 | Wheeland, H.A. Preliminary observations and recommendations concerning the fisheries statistics programme of Singapore. Manila, 1976. (in press) |
SCS/76/WP/33 | Baum, G.A. and J.A. Maynard. Coron/Tagumpay - Busuanga Island/Calamianes Group (Palawan Province). A socio- economic study on two rural fishing populations in northern Palawan in connection with Municipal Fisheries Pilot Programme. Manila, 1976. (in press) |
SCS/76/WP/34 | Jones, R. Mesh regulations in the demersal fisheries of the South China Sea area. Regional. Manila, 1976. (in press) |
SCS/76/WP/35 | Simpson, A. C. and S. Chikuni. Progress report on fishing for tuna in Philippines waters by FAO chartered purse seiners. Manila, 1976. 38p. |
SCS/76/WP/36 | Bonga, O. B. Vessel specifications and drawings for two multi-purpose fishing vessels for Kuala Besut project on East Coast of Malaysia. Manila, 1976. (in press) |
SCS/76/WP/37 | Shang, Y.C. Economics of various management techniques for pond culture of finfish. Manila, 1976. (in press) |
SCS/76/WP/38 | Johnson, H. East Coast Malaysia: Artisanal fisheries. Manila, 1976. (in press) |
NOTE: Copies of these papers can be obtained by writing to the Programme in Manila, Philippines.
COORDINATING COMMITTEE REPORTS
SCSP: | 74/1 | REP | Report of AD HOC Coordinating Committee meeting of the South China Sea Fisheries Development and Co-ordinating Programme. Manila, 18–19 June 1974. Rome, FAO 1974. 22p. |
SCSP: | 74/2 | REP | Report of the first session of the Coordinating Committee of the South China Sea Fisheries Development and Coordinating Programme. Jakarta, Indonesia, 6 November 1974. Rome, FAO, 1974. |
SCSP: | 76/3 | REP | Report of the second session of the Coordinating Committee of the South China Sea Fisheries Development and Coordinating Programme. Manila, 9 April 1976. Manila, South China Sea Fisheries Programme, 1976. 16p. |
WORKSHOP REPORTS
SCS/Gen/74/1 | Report of the workshop on planning and coordination of resources survey and evaluation in the South China Sea. 28 August – 4 September 1974. Manila, South China Sea Fisheries Programme, 1974. 197p. |
SCS/Gen/76/2 | Workshop on resources of the St. of Malacca. 29 March – 2 April 1975. Jakarta, Indonesia. Summary report. Manila, South China Sea Fisheries Programme, 1976. |
SCS/Gen/76/3 | Report of workshop on legal and institutional aspects of fishery development. 5–8 April 1976. Manila, South China Sea Fisheries Programme, 1976. |
PERIODIC PROGRESS REPORTS
SCS/PR/74/1 | Woodland, A.G. Project progress report of the South China Sea Fisheries Development and Coordinating Programme. 1 July – 31 December 1974. Manila, South China Sea Fisheries Programme, 1974. 19p. |
SCS/PR/75/2 | Woodland, A.G. Project progress report of the South China Sea Fisheries Development and Coordinating Programme. 1 January – 30 June 1975. Manila, South China Sea Fisheries Programme, 1975. 40p. |
SCS/PR/75/3 | Woodland, A.G. Project progress report of the South China Sea Fisheries Development and Coordinating Programme. 1 July – 31 December 1975. Manila, South China Sea Fisheries Programme, 1975. 38p. |