A techno-economic analysis of aquaculture business in Ogun State,Nigeria |
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Authors: | Kareem R O Williams S B |
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Institution: | (1) Department of Agricultural Economics, Faculty of Agriculture, Obafemi Awolowo University, Ile-Ife, Osun State, Nigeria |
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Abstract: | Fish supplies 25% of the total protein source in developing countries. A techno-economic analysis was performed for developing
a good business proposal for aquaculture loans to enhance aquaculture development in Nigeria. A case study of catfish Clarias gariepinus framing was conducted in Abeokuta North Local Government of Ogun State, Nigeria. The results show that the fixed cost is
N18 338 per year, and the variable cost is N459 700 per year, accounting for the largest amount of the total; therefore, a
profit of N43 289 per month can be made. Sensitivity analysis was performed to assess any risk(s) that associated with unfavorable
changes in government policy with particular reference to monetary policy. Positive net present value shows that the investment
in fish farm is economically feasible and the net investment ratio is 3.52. Also, the benefit-cost ratio is 2.17. The internal
rate of return (IRR) is 21% showing that the enterprise is able to offset the interest being charged on the loan. It is therefore
worthwhile to invest into fish farm business in the study area. The study suggests that to better sustain the local aquaculture
business, the government should create a good conducive environment to foster development of the fish farming. Government
intervention is urgently needed to solve problems such as in traditional land tenure, grant credit facilities and subsidies,
to enhance the aquacultural development in the country. |
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Keywords: | Keyword" target="_blank">Keyword aquaculture net present value B-C ratio net-investment-ratio internal rate of return |
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