Abstract
Segmented markets of sub-optimal size existing in fishery value chain do not ensure sizeable private investment in the different stages of the value chain in Nigeria. Supply-demand gaps are increasingly being filled by imports, thus dampening prospects for increased revenue generation by actors in the chain. Market failures in the fish value chain limited capability and performance of small scale fish enterprises at the various stages of the chain. As such this study is prompted by the need to determine and compare profitability of actors along the fish value chain with the use of survey data collected from fishery farmers, marketers and processors. Budgetary framework was used to estimate cost and returns to actors while regression framework was used to estimate determinants of profit at the small scale farm level. The results showed that lowest level of profitability was associated with the producers of fish at farm level. Across all stages, profitability was affected by changes in the cost of labour more than any other costs. In addition, the results showed that profit level declined by 0.04%, 0.51%, 0.01%, and 0.13%, respectively, for every one percent increase in the cost of labour, fertilizer and liming, feed and pond construction at the small scale farm level. Findings suggest that emphasis of new agricultural promotion policy should be on strengthening linkage and access of small scale operators in fishery subsector to adequate inputs, information, and innovation at reduced costs so as to drive increased investments and profitability in fishery value chain.
Highlights
A new medium-term agricultural promotion policy (APP) for implementation in Nigeria from 2016 to 2020 has laid emphasis on achievement of food security, import substitution, job creation, and economic diversification
The analysis focuses on key indicators of profitability in the fishery value chain which includes production, processing, and trading
Magnitude and structure of financial costs are important in the analysis because the magnitude of cost will affect the performance of the actors at various stages of the chain while the structure will provide the opportunity to identify specific cost items that can be targeted by actors in a bid to improve the performance of the chain
Summary
A new medium-term agricultural promotion policy (APP) for implementation in Nigeria from 2016 to 2020 has laid emphasis on achievement of food security, import substitution, job creation, and economic diversification. Aquaculture is the only sustainable source of fish and has great potential for growth in Nigeria due mainly to the presence of a wide variety of water sources such as rivers, springs, dams, lakes and the oceans. Nigeria has a land area of 923,768 km with a length of coastline of 853 km. It has a vast network of inland waters like rivers, flood-plains, natural and man-made lakes and reservoirs (Shimang, 2010)
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