7.1 Summary
The Asian countries selected for the present study have similarities as well as dissimilarities as far as fisheries and fish farming are concerned. Fisheries are a priority area in all the countries. Broad macro-policies for aquaculture or for fisheries are largely the same, although the strategies for achieving targeted objectives are different. All countries have the common objectives of increasing fish production, improving export earnings, providing more animal protein and expanding employment opportunities in the fisheries sector.
In general, while agriculture's contribution to the GDP is declining in all the countries, the contribution of fisheries is increasing except for in Thailand. In particular, while freshwater fish production has been increasing in these countries, the contribution from India, Indonesia, the Philippines and Thailand to total world freshwater production is gradually decreasing. Freshwater fish from inland water in Bangladesh contributes most of the fish produced in the country. In China, cultured fish now dominates aquatic production.
Of the different aquaculture production systems, freshwater ponds are by far the largest contributors to fish production in these countries - supplying low-priced food fish for household consumption. In the Philippines, cage culture is as popular as the pond.
Farm/pond sizes are quite high for China (averaging 2.3 ha for individual household farms and 43 ha for state-owned farms) and for the Philippines (3.53 ha), while they are much smaller in Bangladesh (0.22 to 0.30 ha), India (about 1 ha) and Thailand (0.49 ha). Water bodies for aquaculture are largely owner-operated in Bangladesh, India, Thailand and the Philippines, unlike in China. While polyculture is a general practice in all the countries, monoculture is widely practised in China and the Philippines for cage culture and in Thailand for culture of carnivorous species such as walking catfish. Integration of animals with fish is also common in China, Thailand and Viet Nam. Rice-fish farming is also practised in these last two countries as well as in Indonesia and to some extent in the Philippines. Culture of fish (common carps) in running water systems is unique to Indonesia.
As regards species, Bangladesh and India have major (Indian) carp (rohu, catla and mrigal) and silver carp as the dominant species. A good deal of similarity exists between Thailand and the Philippines in terms of tilapia. While milkfish and seaweeds are dominant in the Philippines, walking catfish and Thai silver barb are some other dominant species in Thailand. China is different from the rest of the countries in many respects namely, species composition, culture intensity, productivity and marketing. Chinese carps such as silver carp, big head, grass carp, and crucian carp are the most important in this country. Fish farmers in Viet Nam on the other hand, culture both Indian major carps (rohu) and Chinese carps (common carp, silver carp and silver barb). Interestingly, while silver rohu and silver carps are the dominant cultured species in northern Viet Nam, common carp and silver barb are the dominant species in the southern part of the country.
High stocking density and low use of supplementary feed and fertilizer are characteristic features of the aquaculture practices of Bangladesh and India in general, and to some extent of Thailand and the Philippines. Although feed and fertilizer use is high for countries such as China, Indonesia, Thailand and Philippines, nevertheless a good number of the fish farmers use low inputs in these last three countries. Cultured ponds in Bangladesh, India and Viet Nam make use of relatively lower inputs and thus the operations can be regarded as semi-intensive or improved extensive. Freshwater farms are more of a subsistence nature in Bangladesh and Viet Nam, where aquaculture has developed mainly as a rural activity integrated into existing farming systems. On the other hand, in China, India, Indonesia, Thailand, and Philippines aquaculture is largely a commercial activity. China in particular uses high stocking density and feed fertilizers and does not have any practice of extensive farming. Cage culture has the most intensive application of inputs and stocking.
Yields, costs and returns vary considerably among countries. This can be attributed to the variation in intensity levels, production environments and systems and culture practices. On average, China showed significantly higher yields and profits, while India showed lower yields and profits. Cage culture in Indonesia produced significantly higher yields than running water systems. Rates of return and break-even prices are lowest in Bangladesh and Thailand, which suggests that farmers from these countries are more cost-effective. After accounting for the differences in input prices, interspatial TFP computation showed that farmers in northern Viet Nam are more productive among the pond operators, based on quantity and value of production. This finding contradicts an earlier study conducted using dual cost indices based on production value, which showed Thailand as the most productive in terms of production quantity, followed by China and Bangladesh. For tilapia monoculture both in ponds and cages, China is more productive than the Philippines.
Feed costs account for most of the variable costs for pond operation in China and Thailand and in Indonesia's running water and cage systems. For all countries except India, the cost share of fingerlings to total cost ranked after feed cost.
Women's participation is high in general in production activities in Bangladeshi aquaculture, and low in marketing, although it is high in marketing activities for all other countries. In general, involvement of womenfolk in the fields of fish production, processing and marketing has been on the increase in all the countries, although their participation is highest in fish marketing.
Over the last decade fish has become an increasingly important source of protein in most of these countries, except in the Philippines where fish food protein is being replaced by other animal food protein sources. The annual rate of per caput fish consumption is likewise increasing in most of these countries except in the Philippines, which used to be the leader in per caput annual fish consumption. In most of these countries, especially Bangladesh, freshwater fish contribute significantly to the total per caput fish consumption. On the other hand, the ever-expanding export market for aquatic products, specially those from marine sources, combined with rapid population growth, have led to reduction in supplies for local markets, one of the reasons for the declining fish consumption in the Philippines.
Fish consumption preferences vary across countries. A few common characteristics in all the selected countries include: (a) people of higher income groups consume more fish than those of the lower income groups, though the proportion of the food budget allocated to fish expenditure is higher among low income groups; (b) rural people consume more than urban dwellers; (c) fish producers in general consume more fish than non-producers; and (d) demand for fish is very sensitive to price changes. Religious beliefs and ethnic and geographical differences also explain variations in fish consumption across countries. For instance, vegetarians in India avoid fish in their diet. Coastal communities have strong preferences for marine species.
Freshwater aquaculture has had a positive impact both in terms of production and prices. In general, freshwater fish, which is cheaper, is an indispensable source of animal protein, as it is preferred among the lower income groups in this these countries. However, in spite of the production increase for freshwater fish in particular and total fish supply in general in the past decades, prices of aquatic products have increased in all the countries.
Marketing is organized almost entirely by the private sector, although some degree of government intervention exists in China and the Philippines. Market structure, conduct and performance are poor in Bangladesh and India, but moderate in Thailand, China and the Philippines. Markets are poorly competitive in Bangladesh, India and the Philippines, but relatively more competitive in China and Thailand. Marketing channels are generally short due to the perishable nature of the product, but relatively longer in Bangladesh and Thailand. Marketing functions are smoother in Thailand as compared to Bangladesh.
Marketing infrastructures are poor in Bangladesh and India and fairly reasonable and hygienic in China, Thailand and the Philippines. Transport appears to be a very big problem for the movement of fish from the producing centres or assembly points to other parts (markets) in Bangladesh and India. This is worse in remote villages with poor road connections with urban markets. Most rural markets in Bangladesh and India operate under the open sky without any facilities for stalls, electricity, water and parking. Barriers to entry are present in Bangladeshi and Indian fish markets, particularly at the primary assembly points. Producers' bargaining power is low in Bangladesh and India as compared to other countries. Intermediaries operating at the primary markets tend to cheat producers by agreeing fish prices among themselves. There is no apparent transparency in price negotiation in Bangladeshi, Indian and Filipino fish markets. Marketing margins are usually high in fish trading. In general, the producers' share in the price paid by the consumer is more than 50%.
Flow of institutional credit for production and marketing of fish is low in most of the countries, mainly because it is dominated by the private sector, although influential and big farmers do get production credit from institutional sources. Market intermediaries usually provide marketing credit. The intermediaries often also provide production credit to the producers linked with marketing. The aqua producers receiving production credit from the intermediaries are obliged to sell their produce to the supplier of credit, who often pays slightly less than the market price. Loans for investment in fisheries infrastructure, such as fish factories, processing plants and transport are usually provided by the public sector.
The common constraints faced by freshwater fish farmers in most of these countries, and especially in Bangladesh and India, include: pluralities of ownership, lack of credit facilities, lack of technical know-how, illegal poaching, deliberate poisoning and inadequate marketing opportunities. In addition, problems like multiplicity of pond ownership, non-recognition of aquaculture as a land-based activity, the absence of long-term leasing policies and non-assurance of seed supplies at appropriate times constrains the receipt of credit in India. In addition, the country is to some extent characterized by a social taboo against stocking community ponds. In general, common water bodies have been shrinking through degradation, encroachment and siltation, and industrial pollution is another problem for fish culture.
7.2 Conclusions and policy recommendations
As in other parts of the world, freshwater aquaculture is of major importance to these countries. It contributes to higher fish production, increasing supplies of animal protein and generation of employment, and is also a means of improving farm income. It has been recognized that freshwater aquaculture can make a significant contribution to bridging the widening gap between demand for and supply of fishery products in Asia, in the face of declining capture fisheries production and growing populations. It is therefore vital for these countries to review and formulate policies for the sustainable development of aquaculture. These policies should relate to the use of natural resources, research, inputs and outputs and pricing, and they should also be able to address the problems in marketing, credit, trade, investment and exchange rates.
7.2.1 Policies governing the use and management of natural resources
These countries have the natural resources necessary for aquaculture development. Moreover, many ponds and other closed water bodies remain unutilized or under-utilized, and these need to be brought under culture. Untapped water resources should be utilized by expanding integrated fish culture in paddy fields, and cage and pen culture in countries like Bangladesh, India and Thailand. In the Philippines, of the total 106 328 ha of freshwater culture area, only 14 531 ha is utilized for production (Olalo, 2000). Plurality of ownership for closed water bodies that is hindering fish culture should be settled (in Bangladesh and India). Policy measures should also be implemented to ensure equitable access to land and water resources by various groups.
Protecting cultured water bodies from floods is very important for countries like Bangladesh and India. In all countries, water pollution due to discharge of industrial toxic pollutants needs to be minimized if it cannot be stopped. Water use conflicts between crops and aquaculture should be minimized as far as possible. Fertilizers and agro-chemicals should be used judiciously use on crops to protect the natural habitats of fish.
Some countries still have extensive and traditional fish culture practices (Bangladesh, India, and Thailand). Intensive use of inputs should be encouraged to bring all ponds at least under semi-intensive fish culture. Although culturally important, the unscientific beliefs and practices that hinder best use of water bodies for fish culture need to be resolved. Regulations prohibiting culture of species such as tilapia (in India) and African magoor (in Bangladesh) merit careful attention as they could contribute greatly to the fish production. The challenge lies in devising policies to rationalize the present and future use and management of natural resources for aquaculture production, consistent with the development goals of the these countries.
7.2.2 Credit, marketing and infrastructure development
Considerable public investment in infrastructure, capacity building and institutional strengthening is needed for sustainable development of aquaculture in most of these countries. The flow of production credit from institutional sources needs to be increased for the poor fish farmers. The traditional credit system should provide not only lending services but also marketing services, such as product collection, preservation, processing and distribution, without lowering the unit price of harvest. Appropriate programmes that serve these functions need to be devised.
Marketing infrastructures, including physical space in fish markets, need to be provided (Bangladesh, India). Standardization in weighing, open-price bidding (auctioning), quality control measures, necessary grading and pricing and display of prices all need to be introduced. Use of refrigerated transport for carrying fish, as well as adequate icing facilities at markets should be provided in order to reduce spoilage, provide quality fish to the consumers and help producers obtain higher market prices.
7.2.3 Exchange rate policy
A competitive exchange rate is crucial in sustaining the growth and expansion of the aquaculture sector in these countries. Based on a comparative analysis of exchange rates in Bangladesh, the Philippines and Thailand, Dey and Bimbao (1998) reported that many developing countries in Asia need to devalue/depreciate their currency to remain competitive in the export markets. In the context of freshwater aquaculture, where most of the fish are not exportable, the concern is for these countries to remain productive and for expansion of production to remain economically advantageous. It was reported that the high breakeven price in Indonesia was an effect of Indonesian Rupee devaluation during that period, brought about by the Asian financial crisis.
7.2.4 Aquaculture research policy
Research aimed at increasing productivity and sustaining productivity gains in the long run to meet the demand of the growing population should be continued. In order to improve poor people's access to fish consumption, development studies of fast-growing and disease-resistant species should also be continued. Research on fish nutrition should be undertaken in order to develop cheap but quality feed. Identification of potential future constraints to sectoral growth is an equally important area of research.
There is a dearth of fisheries statistics in Bangladesh and India in particular, where serious attention needs to be given to generating missing information and updating old statistics. Also, it has been acknowledged that, given the current capacity of national institutions not only in these countries but also in neighbouring countries, it is clearly not possible to carry the entire gamut of research needed in a decentralized fashion. This implies that system-based networking would be appropriate, as suggested by Dey and Bimbao (1998). Collaboration on capacity building and sharing of information and experiences between research institutions and between countries must be initiated. Policies to foster collaboration among national, international and donor country research centres need to be formulated and nurtured. Policy guidelines involving the participation of the private sector in research areas like fish marketing and processing should also be drawn up and followed through.
For countries like the Philippines, Thailand and Indonesia, where marine fish comprises a significant portion in the total fish consumption, opportunities exist for introducing value-added aquaculture products, and also for marketing and processing initiatives to make more use of under-utilized freshwater species and to optimize allocation of raw materials and supplies (Tietze, 1995). The Bureau of Fisheries and Aquatic Resources (BFAR) of the Philippines for example, has successfully used bighead carp as raw material for artificial crab legs, a surimi product that is very popular in sushi bars (Yap, 1997; Olalo, 2000). Such undertakings provide employment and added income, particularly for women.
