Economic Analysis of Locally Produced Aquaculture Feeds with Complements of Plant-based Ingredients in Kainji Lake Basin, Nigeria

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Optimization through cost minimization is a key strategy aquaculture feed producers adopt to ensure a continuous supply of fish in the global market. In light of this consideration, the study analyzed the economics of locally produced aquaculture feeds by complementing fishmeal with plant-based sources of ingredients. Specifically, the study estimated the cost and returns, socio-economic determinants of net income, and challenges of local feed production. Using a survey design, a case study approach was used to collect data from 36 aquaculture feed producers/millers. The data were presented using descriptive statistics, budgetary techniques, and two-stage least squares regression analysis. Key findings established that the majority (78.12%) of aquaculture local feed producers were men, and 43.75% had tertiary educational qualifications with a good number of years of experience. The profitability indicators show that aquaculture local feed production is profitable with 3.24% net returns on investment. The result further indicates that the incorporation of plantbased sources of ingredients reduced the utilization of Fishmeal (Clupeids) by 50%. Also, the regression analysis shows that the years of experience and initial capital investment were statistically significant (p < 0.05) determinants of net income while the major challenges in aquaculture local feed production were lack of perfect substitute for Fishmeal ( =2.94), government regulations on the harvest of Clupeids used for Fishmeal ( =2.91), poor access to capital ( =2.88) and high cost of machine spare parts ( =2.88). Based on the findings, it is recommended that fish nutritionists should intensify research on the production of fish feeds with a sole plant source of ingredients.