Economic Efficiency and Profitability of Catfish (Clarias gariepinus) Production in Isoko Area of Delta State, Nigeria.
Nkamigbo, D.C1, Ovuomarie, O.S2, Maduka, J.U.3 and Isibor, A.C.4
1Anambra State Ministry of Agriculture, Awka, Anambra State, Nigeria.
2Agricultural Economics and Extension Department, Delta State University, Asaba Campus, Nigeria.
3Agricultural Technology Department, Federal Polytechnic Oko, Anambra State, Nigeria.
4Agricultural Economics and Extension Department, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.
E-mail: chinezenkamigbo@yahoo.com
ABSTRACT
The study specifically examined the economic efficiency and profitability of catfish production in Isoko area of Delta. Purposive and simple random samplings were respectively used to select data for the study. Descriptive statistics and net margin analysis were used in analyzing the data. The results show that feed, fingerlings, pond size and water were statistically significant. The results further revealed that feed and fingerlings pond size were some of the factors that influence profitability of catfish production in the study area as a 10% increase in feed will lead to 2.06% increase in output while a 10% increase in fingerlings will lead to 2.1% increase in output. The response of output to pond size was however low as 10% increase in pond size resulted in a partly 1.2% increase in fish production. Results also indicated a gross margin of ₦424,190.00, net margin of ₦224,020.00 and gross return to cost ratio as 1:31:1 per hectare. Estimates of allocative efficiency were 0.0004 for feed, 0.655 for fingerlings, -4.126 for labour and 6.412 for pond size. Feed, fingerlings and labour were over utilized while pond size was underutilized. This shows that farmers were inefficient in resource utilization. It is suggested that there should be a decrease in the use of labour and increase in pond utilization. Commercial fish mill and modern hatcheries should be established in the study area to address the problem of high cost of feed and availability of quality fingerling.