Impact of common interest group participation and aquaculture development programs on fish productivity and net returns: evidence from Nile tilapia farming

Abstract

Development programs have intensified support for the aquaculture sector to improve production and productivity, as well as food security and diet quality for smallholder farmers. This paper examines the impact of farmers’ participation in Common Interest Groups (CIGs) and the effects of aquaculture development support programs on the net returns and productivity of tilapia fish in Kenya. The study used household-level data of 506 members of the CIG who were randomly selected for the treatment group and benefited from Aquaculture Business Development Program (ABDP) interventions. The analysis employed an endogenous switching regression model to account for selection bias. The results reveal that membership in CIGs and receiving fish production interventions have resulted in a 32.3% increase in tilapia fish sales returns and a 6.6% increase in tilapia fish yields. Specifically, ABDP interventions are aimed at providing fish producers with ponds and cages had a significant and beneficial effect on fish yields and income returns. This finding suggests that policies with targeted interventions that support aquaculture infrastructure can play a significant role in increasing the incomes of smallholder farmers and reducing rural poverty in Kenya.