To estimate the investment costs of women's activities, current market prices of the different items were used as reference. Table 2 and 3 show the investment costs of fishing units and smoking units respectively.
Table 2 Investment costs of the different fishing units (in N*)
Investment Costs | |||||
planked canoe |
dugout canoe |
fishing gear |
engine (25 hp) |
TOTAL | |
gillnet |
21 000 |
- |
14 500 |
130 000 |
165 500 |
hook and line |
21 000 |
- |
4 000 |
130 000 |
155 000 |
crayfish (conical trap) |
- |
3 500 |
1 500 |
- |
5 000 |
periwinkle |
- |
3 500 |
- |
- |
3 500 |
crab ("bicycle wheels") |
- |
3 500 |
500 |
- |
4 000 |
* 1 US$ = N85
The investment cost of fishing units varies from N3,500 to N165,500, depending on the type of gear used. Investment costs are highest for gillnet (N 165,000) and hook and line units (N155,000). This can be easily explained by the fact that these are the only fishing units operated by women, equipped with a planked canoe and an engine. Besides, the gillnet is a relatively expensive gear. All other fishing activities of women are characterized by much lower investment costs, requiring only a dugout canoe and relatively cheap fishing gear. Investment costs are lowest for periwinkle picking (N3,500) which does not require any fishing gear at all, meaning that women only need a dugout canoe for their operations.
Apart from demersal and pelagic species targeted by gillnet and hook and line units, crayfish is also targeted by both women and men. However, women exclusively engage themselves in the low cost alternative, using conical traps that only require a dugout canoe, while men use active stow nets requiring a planked canoe and an engine. In case women own stow net units, they prefer to hire them out to men.
A gillnet and hook and line fishing unit consists of at least one 9-planked canoe, at least one engine, one or more gillnets and about 200 hooks with a life span of 7, 5, 4 and 2½ years respectively. The life span of the smaller gears used varies from 4 months for conical traps, 2 years for the traps attached to fences, to 3 years for "bicycle wheels". A dugout canoe generally lasts for about 7 years.
The investment cost for fish processing is constituted by the cost of a smoking unit on average containing four ovens and the cost of a dugout canoe to transport fish to and from the market Table 3 shows the investment cost of fish processing and marketing
Table 3 Investment cost of fish processing and marketing (in N*)
Investment Cost (IC) |
Life Span | |||
In Years |
In Months |
IC/Month | ||
wooden structure |
400 |
8 |
96 |
4 |
zinc for the roof (1/2 bundle) |
2 500 |
2 |
24 |
104 |
wire (1/3 bundle = 12) |
2 000 |
2 |
24 |
83 |
math |
600 |
1/2 |
6 |
100 |
drums (16) |
11 200 |
2 |
24 |
466 |
zinc to cover the sides (16) |
3 200 |
2 |
24 |
134 |
sticks |
1 000 |
1 |
12 |
83 |
costs of labour |
1 000 |
- |
- |
- |
dugout canoe |
3 500 |
7 |
84 |
42 |
baskets (4) |
600 |
1/3 |
4 |
150 |
TOTAL |
26 000 |
- |
- |
1 166 |
* 1 US$ = N85
Since most women are involved in several activities at the same time, three combinations of activities have been distinguished: fishing-processing-marketing; fishing-marketing, and processing-marketing. Table 4 gives an overview of the total investment cost of different combinations of fishing and fishing-related activities. If the cost of a dugout canoe is already included in the smoking unit, it is left out in calculating the investment cost of the fishing unit (like in the case of the fishing, processing and marketing of crayfish).
Table 4 Total investment cost of different combinations of fishing and fishing-related activities of women (in N*)
Investment Costs (in | |||
Smoking Unit |
Fishing Unit |
TOTAL | |
Fishing - Processing - Marketing | |||
gillnet + hoof; and line |
26 000 |
359 875 |
385 875 |
crayfish (conical trap) |
26 000 |
1 500 |
27 500 |
Fishing - Marketing | |||
periwinkle |
- |
3 500 |
3 500 |
crab ("bicycle wheel") |
- |
4 000 |
4 000 |
Processing - Marketing | |||
fish |
26 000 |
- |
26 000 |
crayfish |
26 000 |
- |
26 000 |
periwinkle |
- |
3500 |
3 500 |
* 1 US$ = N 85
All women involved in fishing use more than one piece of gear. Besides, gillnet fishing and hook and line fishing are combined. On average, the gillnet/hook and line units in the sample consist of 1 2/3 canoes, 1 2/3 engines, 2 1/3 gillnets and 200 hooks In crayfish and crab fishing women averagely use 5 conical traps and 5 "bicycle wheels" respectively. The investment cost in the table above are based on these numbers.
As the table shows, total investment cost is highest for women involved in fishing, processing and marketing of demersal and pelagic species (N385,875). Second are women involved in smoking fish and crayfish and thus requiring a smoking unit. Women involved in fishing and marketing periwinkle and crab bear the least investment cost (N3,000 and N4,500 respectively). Since periwinkle and crab are sold fresh, no smoking unit is needed. - The low cost of periwinkle processing and marketing (N3,500) can be explained by the fact that this activity does not require smoking. Processing in this respect refers to parboiling to loosen the muscle and extraction from the shell.
The starting capital of women in the sample varies from N50 to N25,000, depending on the type of activity and when they started their activities. Women in the sample started 2-60 years ago with an average experience of 16 years. Most of the women started their activities with a loan (32%). For 43% of them the initial capital was a gift from their parents or husband, while 25% used personal savings to start their activities.
The variable costs of women's activities refer to operating costs. These depend on the level of activity and on the combination of activities they are involved in. Table 5 gives an overview.
Table 5 Average monthly variable costs of women's activities (in N*)
Average Monthly Variable Costs (in | ||||
Fishing |
Processing |
Marketing |
TOTAL | |
Fishing - Processing Marketing | ||||
gillnet+ hook and line |
49 794 |
73 127 |
3 710 |
126 631 |
conical trap (crayfish) |
50 |
1 800 |
0 |
1 850 |
Fishing - Marketing | ||||
periwinkle picking |
0 |
- |
0 |
0 |
"bicycle wheels" (crab) |
40 |
- |
0 |
40 |
Processing - Marketing | ||||
fish |
- |
59 585 |
786 |
60371 |
crayfish |
- |
230 553 |
0 |
230 553 |
periwinkle |
- |
0 |
0 |
6 400 |
*1 US$ = N85
The variable costs of fishing consist of the cost of fuel, the cost of labour (crew member) and the cost of repairs and maintenance. The cost of fuel and labour only apply to gillnet and hook and line units. On average, these units spend 66% of their operating cost on fuel, 25% on labour and 9% on repairs and maintenance. The cost of labour is equivalent to 1/3 of the catch and constitutes 25% of the total average variable cost.
The cost of fish bought, fire wood and hired labour constitute the variable costs of processing. The cost of labour highly depends on the type of fish smoked. Assistants in smoking fish earn N50-60 a day, costing women averagely N1,694 per month, while assistants in smoking crayfish get paid per basket (N50-60 per basket), costing women averagely N12,920 per month. The difference can be explained by the intensity of the work. Smoking crayfish includes cleaning, sun drying and smoking, and fish only needs to be smoked. Furthermore, smoking crayfish requires continuous supervision and turning which makes it difficult to combine with other activities.
The variable cost of marketing refers to the cost of transport from and to Ogheye. Most women sell their product in Ogheye, but since the ethnic conflict between the Ijaw and the Isekiri, they are afraid to go out and sell their products in Koko, Sapele or Warri. When they sell elsewhere, it is often their customers who bear the cost of transportation. This explains the low cost of marketing.
The total variable cost is highest for processing and marketing crayfish (N230,553). Second are gillnet and hook + line units (N126,631). In the first case it is mainly the quantity of fish bought for smoking that results in the high figures, while in fishing the high figure is due to high expenses on fuel. In the case of processing and marketing only, it must be noted that most women are involved in different arrangements that entitle them to buy fish on credit (see section 5.4). The variable cost is lowest for fishing and marketing; N40 for crab, while periwinkle fishing and marketing has no variable cost at all.
The monthly sales in women's activities depend on the total catch, quantity of fish bought, and the prevailing price of fish. The total monthly sales for each combination of activities are given in Table 6.
Table 6 Monthly catch, quantity bought, prices per kilo and monthly sales for the different combinations of women's activities
Monthly Catch |
Quantity Bought |
Buying Price Per Kilo |
Selling Price Per Kilo |
Monthly Sales | |
(kg) |
(kg) |
(in |
(in |
(in | |
Fishing - Processing - Marketing | |||||
fish |
3 267 |
392 |
57.7 |
75.61 |
276 657 |
crayfish |
339 |
- |
- |
45.52 |
15 430 |
Fishing- Marketing | |||||
periwinkle |
5 710 |
- |
- |
2.13 |
12 200 |
crab |
956 |
- |
- |
16.17 |
15 460 |
Processing - Marketing | |||||
fish |
- |
3 230 |
17.37 |
22.83 |
73 754 |
crayfish |
- |
4 333 |
49.8 |
60 |
260 000 |
periwinkle |
- |
1 707 |
3.75 |
6.25 |
10667 |
* 1 US$ = N85
The monthly sales are highest for women involved in fishing, processing and marketing of fish (N276,657) and the processing and marketing of crayfish (N260,000). Both cases are mainly due to the high quantities processed and the relatively high selling price. It must be noted that compared to these two activities the monthly sales in fish processing and marketing are relatively low. This is mainly due to the low selling price. The difference in selling price between fish sold by women involved in fishing themselves and women who are not can be explained by the species processed In the first case, women mainly process their own catch (gillnet + hook and line) In the rainy season (May-October) their catch consists of demersal species, such as croacker, snapper, shinynose, catfish, grunt and grouper. In the dry season (November-April) gillnet fishing units mainly target pelagic species, such as sardinella and bonga. Most women involved in processing and marketing during the rainy season mainly rely on trawler by-catch, consisting of juveniles of species mentioned above and many others. These are generally small fishes not exceeding 35 centimeters. Monthly sales are lowest for women dealing with periwinkle, either processing and marketing (N10,667) or fishing and marketing (N12,000). This is mainly due to the very low selling price per kilo.
Finally, it must be noted that selling prices refer to wholesale prices. When women would take their products elsewhere, prices are higher. At the time of the study crab, for example, gained about N850 per bag (35 kilo) in Koko, Sapele or Warri, which is equivalent to more than N24 per kilo. Comparing this price to the N 16. 17 in the table above, selling outside Ogheye is rather profitable, but due to the ethnic conflict, women are not eager to travel.
The total monthly revenue of women is equivalent to the value of the catch and/or processed fish sold. The net revenue of women is the total revenue minus the variable and monthly depreciation costs. The monthly profit from or profitability of women's economic activities can be defined by their monthly net revenue divided by the investment cost. The investment cost refer to the replacement costs of fishing equipment and material (see Table 2,3 and 4). Table 7 shows the monthly net revenue of women and consequently, the average profitability of their economic activities.
Table 7 Average net revenue of women (in N*) and profitability rates of their activities
Women's Average Monthly Net Revenues |
Women's Yearly Net Revenues (extrapolation) |
Monthly Depreciation |
Profitability (%) | |
Fishing - Processing - Marketing | ||||
gillnet + hook and line |
143 995 |
1 727 940 |
6 031 |
4.5 |
crayfish |
12 039 |
144 468 |
1 541 |
5.2 |
Fishing - Marketing | ||||
periwinkle |
12 158 |
145896 |
42 |
41.7 |
crab |
15 364 |
184 368 |
56 |
46.1 |
Processing - Marketing | ||||
fish |
12 217 |
146 604 |
1 166 |
5.6 |
crayfish |
28 281 |
339 372 |
1 166 |
13 |
periwinkle |
4 225 |
50 700 |
42 |
14.5 |
* 1 US$ = N85
Profitability rates range from 4.5% for women involved in gillnet fishing, processing and marketing to 46.1% for women fishing and marketing crab. The relatively high rates in fishing and marketing periwinkle and crab must mainly be attributed to low investment costs and thus low monthly depreciation costs. Looking at the other figures suggests that the higher the investment cost of the activity, the lower the profitability rate. During the rainy season investment costs become relatively high in relation to production levels. This explains the relatively low profitability rate for gillnet and hook and line operations. However, cash flow analysis suggests that these can be easily compensated during the high season. Gillnet and hook and line units have an average monthly cash flow of N 150,026 which is about fifteen times more than the monthly cash flow in the other combinations of activities
The profitability rates in the table are based on an extrapolation to one year from figures collected during one month in the low season (June 1997). This surely does not give a representative picture of the level of women's activities throughout the year. In gillnet fishing, for example, the inland water pushes marine species far away to sea during the rainy season. Instead of taking the risk of wasting a lot of fuel, women prefer to stay close to the shore and target demersal species. Due to the low level of gillnet production, fish processors and fish traders rely on trawler by catch, resulting in relatively low selling prices. Periwinkle picking becomes difficult during the rainy season due to the high water level Women can either not reach the periwinkle or they can hardly see them, which makes selection difficult.
Apart from the rainy season, the ethnic conflict between the Ijaw and the Isekiri also contributes to the relatively low level of activity Women are afraid to go out on the water, either to fish or to sell their product. This affects both production levels and selling prices This is clearly shown in the production of crayfish. Despite its abundance during the months of June-November, women in the sample set out, on average, only 5 conical traps. However, an earlier study shows that they own between 20 and 60 traps. Women argued that they are afraid to set out more and spend the whole day on the water setting and inspecting their traps.
