Research on World Agricultural Economy

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

Julius Emeka Omeje

Division of Socio-economics and extension services, National Institute for Freshwater Fisheries Research, P.M.B. 6006, New Bussa, Niger State, Nigeria

Anthonia Ifeyinwa Achike

Department Agricultural Economics, University of Nigeria, Nsukka, 410105, Nigeria

Godfrey O Nwabeze

Division of Socio-economics and extension services, National Institute for Freshwater Fisheries Research, P.M.B. 6006, New Bussa, Niger State, Nigeria

Lenient Mercy O Ibiyo

Fish Nutrition Unit, National Institute for Freshwater Fisheries Research, P.M.B. 6006, New Bussa, Niger State, Nigeria

Samuel Preye Jimmy

Department of Agricultural Economics, Extension and Rural Development, Niger Delta University, Bayelsa State, 560103, Nigeria

DOI: https://doi.org/10.36956/rwae.v4i1.785

Received: 6 December 2022; Received in revised form: 3 March 2023; Accepted: 10 March 2023; Published: 17 March 2023

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Abstract

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.

Keywords: Aquaculture; Feed; Plant; Fishmeal; Economics

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