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The following report presents the findings of a cost-benefit analysis of fish-farming activities within the area covered by UNDP/FAO project DEVELOPMENT OF SMALL-SCALE FISH FARMING IN THE LAKE BASIN AREA - PHASE II.

The preparation of such cost-benefit analysis was included in the project document and the last tripartite review meeting held earlier this year reinstated the importance of carrying this study. It was found important that the results of such a study could be available for the project evaluation mission held this month.

The mission was held in Kenya between the 22 September and the 12 October 1991. During this period, working discussions were held with project management and a questionnaire was prepared covering most significant aspects of cost-benefit analysis for fish-farming activities in the project area. A field survey was then carried out among a group of 23 fish farmers and 4 fry production centers operating in the Nyanza province and Western province within the project area. A preliminary analysis of the results was prepared and presented to the project evaluation mission as it was beginning its discussions and field trips.

It should be clear that this study is limited to the financial aspects of fish-farming operations, that is the costs and benefits as incurred by the fish-farmers themselves. The purpose of such a study is to help improve the economic management of fish-farming.

An economic cost-benefit analysis would have to take into account the extension costs incurred by the Government.

The consultant expresses his gratitude to all project personnel who provided information and in particular to Miss Pamela Achieng for her help during the survey.

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