Profitability and Viability Analysis of Aquaculture Production in Central Uganda: A Case of Urban and Peri-Urban Areas

Namatovu Safina, Atukunda Gertrude, Obeti Lawrance, Walozi Ronald, Candia Alphonse, Onep Samuel, Bwambale Mbilingi and Andrew A. Izaara

Asian Journal of Agricultural Extension, Economics & Sociology, 2018, vol. 22, issue 4

Abstract: Aquaculture sector if fully exploited has great potential of boosting foreign exchange, household nutritional and income levels. However, not much has been done regarding economic analysis of aquaculture production to attract and guide investment. This study was carried out to assess the profitability and viability of the aquaculture enterprises in central Uganda. The study focused on the socioeconomic and production characteristics, profitability indices and significant challenges experienced by the fish farmers. The fish farmers were selected using simple random and purposive method from the farmers’ lists provided by the Aquaculture Research Centre. The study was carried out in Kampala, Mukono and Wakiso districts between July and August 2015 using well structured questionnaire complemented with interview schedule. The collected data were analysed using descriptive statistics and pseudo-profit function. The results indicated that male aquaculturists owned the majority (86.8%) of the farms. On the average, a majority (77.4%) of the respondents’ cultured tilapia as the primary species. The Tilapia and African Catfish culture periods lasted for 8 and 9 months to attain an average body weight of 0.5kg and 1kg, respectively. The operational costs accounted for 2736000 and 2865960 Uganda shillings of the total tilapia and catfish production cost. A kilogram of tilapia and catfish were sold at 10800, and 9360 Uganda shillings, respectively and positive gross margins were reported for both species. The fish farmers still faced challenges of expensive fish feeds, predators and water quality problems due to increasing urbanisation. The study recommended the need for farmers to re-organise themselves into cooperatives to collectively purchase inputs, train farmers in business management skills to run aquaculture as sole business entities, stocking of monosex tilapia for easy control of tilapia populations and efficient feed utilization to reduce the current feed conservation ratios.

Keywords: Community/Rural/Urban; Development (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:ajaees:356992

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