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VIII. PROJECT BENEFITS AND JUSTIFICATIONS

VIII.I. As an enterprise, this Giant Freshwater Prawn Culture project is relatively small, as only thirty family-heads are involved in this project. However, this project, to be established in Lampung, consitutes a pilot which can be used as a “laboratory” for studying the possibilities, for developing Giant Freshwater Prawn culture operations by the people with guidance from the Government.

Such a project is an endeavour to develop alternative activities for farmers in general and transmigrants in particular, to have their livelihood and occupation in non paddy-field activities. This is in conformity with the direction of Government Policy in the field of transmigration, to develop special transmigration projects with export-oriented activities.

From this point of view, the benefits of this project should not be seen in its present efforts, but should be viewed within a wider framework, as a preparation for developing Giant Freshwater Prawn culture in the future.

VIII.2. The evaluation of the results of the financial analysis should, therefore, be viewed within the above framework.

The low economic rate of return, for example, is primarily caused by the existence of over capacity of the hatchery, which will only accomodate ponds with an areal-extent of 90 hectares to be managed by 30 families.

Consequently, the low financial rate of return can be considered as a consequence of the low overall production (approximately 180 tons a year).

However, if the substantial investment is not charged to the farmers, then it is evident, that a very large increase in the financial rate of return will be gained by the farmers.


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