Economics of Artisanal Fish Production in Gokana Local Government Area of Rivers State, Nigeria

Abstract

The study economically analyzed artisanal fish production in Gokana Local Government Area (LGA) of Rivers State, Nigeria. Specifically, the study described the socio-economic characteristics of the artisanal fishers; determined the profitability of artisanal fishing; examined the technical, allocative and economic efficiency of artisanal fishers; and identified the constraints militating against artisanal fish production. Multistage sampling technique was employed in selecting cross-sectional data from a total of 140 fishers in the area. Descriptive and inferential statistics were employed in analysing the data for the study. Gross margin analysis indicated that the fishers earned N2, 060,277.50 (5,679.84 USD), per year and net returns of N1, 891,110.83 (5,213.47 USD) per annum with an average of N157, 592.65 (434.46 USD), per month. The benefit-cost ratio was 2.71 with rate of returns as 71%. The maximum likelihood estimated for the technical efficiency of the fishers indicates that gears, kerosene, bait, outboard engine were significant in the fish catch function (P<0.01). Age, gender, household size and mode of operations were significant factors defining the level of efficiency as revealed by the inefficiency functions of the fishers. The mean technical efficiency, average allocative efficiency and average economic efficiency recorded 0.77, 0.91 and 0.82, respectively. The study concludes that artisanal fish production is profitable and lucrative. The study recommends that in order to raise the level of efficiency amongst fishers, government and financial institutions should grant more credit facility to practicing fishers as lack of funds and inadequate capital are constraining factors facing the fishers.