Rough assessments of the investment requirements made on the basis of the projected increases in production in 32 developing countries of Asia, Africa and Latin America were considered by the meeting. The initial investment for increased production per ton (covering capital construction, including water supply and auxiliary facilities but excluding the cost of land) was roughly estimated at about U.S. $ 1 000 on a global average. This is probably somewhat higher than what is required for equivalent production by fishing, but the economic life of fishing equipment is short and the depreciation therefore high. On the contrary, the economic life of other aquaculture facilities is very much longer and in the case of fish farms, if well maintained, almost unlimited. If the investment cost for production of inputs and for the processing and marketing of produce is added, the total average investment would work out to about U.S. $ 1 235 for a ton of increased production. Based on this the total capital investment requirement of the above mentioned 32 countries works out to about U.S. $ 6 304 million by the year 1985. The operating costs for an initial period may average about U.S. $ 450 per ton. As both the capital and operating costs vary very considerably between countries and even between localities within a country, these figures are to be considered as only indicative and providing a basis for evaluating the magnitude of financial investments involved.
As the foreign exchange component of investments involved is small, some countries may find it possible to raise a good proportion of the required resources internally. However, clear proof of financial profitability will have to be provided if such investments have to be obtained from commercial banks or similar financing agencies. Programmes like rural aquaculture organized for integrated development of rural areas cannot be evaluated purely on the basis of financial benefits as often the social and nutritional benefits derived by a community may even outweigh the financial returns. The meeting noted that the World Bank and regional banks like the Inter-American Development Bank give adequate weightage to social and other benefits in appraisals of projects for financial assistance. This does not, however, minimize the need to demonstrate the financial benefits of aquaculture. In fact there is sufficient evidence available, even though not fully documented, to show the financial efficiency of aquaculture and the superiority of it in this respect in combined operations such as multiple use of water bodies, crop-cum-fish production, etc.
