3. FINDINGS (Contd.)

3.10 Profitability

Tables 11.A and 11.B below show the estimated annual net financial returns from semi-intensive fish farming in Subira and Ihanda Villages. The estimates are based on the data collected during the study. The farmers' recalls on inputs used, costs and yield may not be very accurate. Nevertheless, the estimates are the first step in examining the profitability of fish farming. Figures on net return for other farm activities were not collected. Hence a comparison of the viability of various farm activities among semi-intensive fish farmers, and of interlinkages, was not possible.

The study indicates that those respondents in Subira who perceive fish farming as the most profitable activity also experience a relatively high net financial return per m² (Table 11 A). Farmer no. 4, however, who obtains a high net return, regards fish farming only as a medium-profit activity. This might be because other farm activities yield a higher profit.

In Ihanda, fish farming is ranked as a medium-profit activity among the three respondents who actually sell fish (Table 11B). Two of these (farmers no. 1 and 5), nonetheless obtain a higher net financial return per m². For farmer no. 1 (the farm cooperative), this can be explained by the scale on which the cooperative is operating with a number of other crops (maize, beans, groundnuts, vegetables and chicken) being produced in large quantities. Some of these crops (i.e. maize and beans) are perceived as more profitable than fish. Somewhat more surprising are the figures for farmer no. 5 as well as no. 6 as hardly any fertilizer is applied. The relatively high net return per m² of pond may reflect the poor estimation of yield.

Table 9.B. Ranking of immediacy of reward of farm activities among respondents in Ihanda Village.

Farmer no. →	1	2	3	4	5	6
1.	Vegetables (3 months)	Beans (2 months)	Vegetables (3 months)	Beans (2 months)	Beans (2 months)	Beans (2 months)
2.	Beans (3 months)	Vegetables (3 months)	Beans (3 months)	Vegetables (2 ½ months)	Maize (6 months)	Vegetables (3 months)
3.	Fish (3 months)	Hybrid maize (3 months)	Maize (7 months)	Maize (6 months)	Fish (1 year)	Maize (6 months)
4.	Eggs (6 months)	Fish (6 months)	Groundnuts (7 months)	Fish (1 year)		Groundnuts (6 months)
5.	Maize (7 months)	Maize (6 months)	Fish (1 year)	Coffee (3 years)		Fish (6 months)
6.	Groundnuts (8 months)	Coffee				Coffee (3 years)
7.	Wheat (8 months)

Table 10.A. Ranking of risks encountered in farm activities among respondents in Subira Village.

Farmer no. →	1	2	3	4	5	6
1.	Maize	Maize	Maize	Maize	Maize	Maize
2.	Vegetables	Rice	Sweet potatoes	Rice	Livestock	Vegetables
3.	Fish	Fish	Fish	Fish	Fish	Fish
4.		Vegetables			Vegetables

Table 10.B. Ranking of risks encountered in farm activities among respondents in Ihanda Village.

Farmer no. →	1	2	3¹⁾	4	5	6
1.	Maize	Coffee	Maize	Maize, coffee and vegetables	Beans	Maize
2.	Coffee	Maize	Vegetables		Maize	Beans
3.	Wheat	Beans	Beans and groundnuts		Chicken	Fish
4.	Vegetables	Livestock	Beans and groundnuts	Beans	Fish	Livestock
5.	Fish	Fish		Groundnuts		Coffee
6.				Fish		Groundnuts

¹⁾ Fish farming was not mentioned by the respondent, although his pond was flooded in 1991.

Table 11.A. Estimated annual net financial returns from semi-intensive fish farming, Subira Village (August 1993 prices).

Farmer no.	1	2	3	4	5	6
Total pond area	320 m²	150 m²	2,500 m²	300 m²	300 m²	70 m²
Cost of pond construction × 10% (T.shs.)	750	400	7,000	750	750	200
Cost of fingerlings (T.shs.)¹⁾	640	300	7,000	600	600	140
Cost of feeds (T.shs.)	²⁾	²⁾	²⁾	0³⁾	10.400	5.200
Cost of fertilizer (T.shs.)	²⁾	1,200	180,000	0³⁾	0³⁾	2,600
Total costs (T.shs.)	1.390	1,900	194.000	1.350	11.750	8.140
Total yield (no. of fish)	1.000	200⁴⁾	3.000⁵⁾	450	300	100
Total weight (kg)⁶⁾	160	20	400	60	40	10
Yield per hectare (kg)	5,000	1,333	1,600	2,000	1,333	1,429
Average weight per fish (gram)	160	100	133	133	133	100
Average price per fish (T.shs.)⁷⁾	175	100	150	150	105	100
Revenue (T.shs.)	175,000	20,000	450,000	67,500	31,500	10,000
Net return (T.shs.)	173,610	18,100	256,000	66,150	19,750	1,860
Net return per m² (T.shs.)	543	121	102	221	66	27
Perceived profitability (from Table 5.A)	High	High	High	Medium	Low	-⁸⁾

¹⁾ As fish farmers usually keep the fingerlings after harvesting and only buy new fingerlings when they are assumed to have stunted or the pond is drained, it is assumed that new fingerlings are bought every five years and stocked at a rate of 2 per m². The cost is consequently depreciated over five years.

²⁾ Cost of this input was not obtained and is therefore left out of the estimation.

³⁾ This input is obtained free of charge.

⁴⁾ Farmer no. 2 was not in the village at the second harvest, thus yield figures only cover first harvest.

⁵⁾ The yield estimate from farmer no. 3 (20 buckets @ 300 hand size fish) was not considered reliable. Hence, each bucket is assumed to contain 150 fish.

⁶⁾ The total weight is estimated from the number of buckets harvested. Each bucket contains 20 litres ≃ 20 kg and were assumed to be full.

⁷⁾ Price of fish is a weighted average based on the percentage of fish sold in the village and in the town. Fish consumed within the household are assumed to have the value obtainable at the village market. Price in the village: fish >20 cm: T.shs. 150; fish <20 cm: 100 T.shs. Price obtained in town (fish >20 cm): T.shs. 200.

⁸⁾ Farmer no. 6 only grows fish for home consumption and has no perception of profitabilibity.

Table 11.B. Estimated annual net financial returns from semi-intensive fish farming, Ihanda Village (September 1993 prices).

Farmer no.	1	2	3	4	5	6
Total pond area	800 m²	250 m²	370 m²	280 m²	50 m²	70 m²
Cost of pond construction × 10% (T.shs.)¹⁾	2,000	625	925	700	125	175
Cost of fingerlings (T.shs.)²⁾	3,200	500	740	560	100	140
Cost of feeds (T.shs.)	36,500	3,900	5,200	5,400	3,900	2,600
Cost of fertilizer (T.shs.)	37,500	20,900	520	1,800	-³⁾	150
Total costs (T.shs.)	79,200	25,925	7,395	8,460	4,125	3,065
Total yield (no. of fish)	2,000	168	250	120	200	700
Total weight (kg)⁴⁾	160	28		20	20
Yield per hectare (kg)	2,000	1120		714	4,000
Average weight per fish (gram)	125	167		167	100	(10cm)
Average price per fish (T.shs)⁵⁾	150	150	150	150	100	30
Revenue (T.shs.)	300,000	25,200	37,500	18,000	20,000	21,000
Net return (T.shs.)	220,800	- 725	30,105	9,540	15,875	17,935
Net return per m² (T.shs.)	276	- 3	81	34	318	256
Perceived profitability (from Table 5.B)	Medium	⁶⁾	Medium	⁶⁾	Medium	⁶⁾

¹⁾ As pond construction is mainly carried out by the fish farmers themselves, the cost was not estimated by them. Hence the figures are based on the cost of pond construction in Subira Village, i.e. approximately T.shs. 5.000 for a 200 m² pond.

²⁾ As fish farmers usually keep the fingerlings after harvesting and only buy new fingerlings when they are assumed to have stunted or the pond is drained, it is assumed that new fingerlings are bought every five years and stocked at a rate of 2 per m². The cost is consequently depreciated over five years. Farmer no. 1 sell fingerlings at T.shs. 10; hence this price has been used here, while the general price in Ihanda (T.shs. 5) is applied for other fish farmers.

³⁾ This fish farmer has never applied fertilizer to the pond.

⁴⁾ The total weight is estimated from the number of buckets harvested. Each bucket contains 20 litres ≃ 20 kg and were assumed to be full. Farmers no. 3 and 6 did not estimate size of harvest by buckets.

⁵⁾ Fish consumed within the household are assumed having the value obtainable at the village market where price were: >20 cm: T.shs. 150; <20 cm: T.shs.: 100. Very small fish (≃ 10 cm): T.shs. 30. No fish farmers sell their fish in the town.

⁶⁾ Farmers no. 2, 4 and 6 grow fish only for home consumption and have no perception of profitability.