ECONOMICS OF FISH FARMING IN ONDO STATE, NIGERIA: A PROFIT FUNCTION APPROACH

The study focused primarily on economic analysis of fish farming without ignoring constraints that could diminish farmer’s profit level in Akure South Local Government Area of Ondo State. A multi stage sampling technique was used to select fifty fish farmers for the study during the 2013 production season. Data obtained were subjected to descriptive statistics and profit function analysis. Results of the study showed that an average quantity of 2297.88 kg of table size fish was harvested from an average pond size of 266.10 m2 in one production cycle. The net farm income analysis indicated that fish farming was profitable in the study area with a mean profit of N497,865.00 being realised at the end of the production cycle. Further economic analysis showed that return to naira invested was N0.75. The profit function analysis indicated that the significant determinants of profit realised from culturing fish were quantity of table size fish harvested, price per kilogramme of fish, cost of feed, cost of stocking, labour cost and farmer’s status of education. Major constraints to fish production were high cost of fish feed, inadequate capital and market. Profit margin of farmers could increase significantly if farmers are trained on how to compound fish feed instead of relying on rather expensive commercial feed. It is also recommended that financial institutions should be more pro-active in granting loan to fish farmers at a reduced interest rate.