Analysis of Profitability of Fish Farming in Ogun State, Nigeria

AbstractThis study was conducted in Ogun state, Nigeria and made use of both primary and secondary data. The main instrument for collecting the primary data was structured questionnaire. The descriptive analysis showed that a large proportion (68%) of the fish farmer had formal (tertiary) education and financed their fish production through personal savings. Equally evident from the result is that an average total cost of N394,380 was incurred per annum by fish farmers while gross revenue of N 715030.30 was realized with a gross margin of N 574314 and a profit of N 320650. The rate of return on investment of 0.55 implies that for every one naira invested in Fish production by farmers, a return of N1.55 and a profit of N0.55 were obtained. The multiple regression result revealed that fish output was significantly determined by pond size, labour used, cost of feeds, cost of lime and cost of fingerlings. The coefficient of determination, R2 value of 0.462 indicates that 46.2% of the variation in the value of fish output was explained by pond size, quantity of labour used, cost of feed, cost of lime and cost of fingerlings The degree of responsiveness of the value of fish output to changes in the independent variables shows that a percent increase in the values of pond size, labour, feeds, fertilizer, lime, fixed input and fingerlings will lead to 0.029%, 0.057%, 0.005%, 0.534%,0.007% , 0.79% and 0.001% in the value of fish produced respectively. The study concluded that fish production in the study area is economically rewarding and profitable. It is capable of creating employment, augmenting income and improving the standard of living of the people. Therefore, it recommended government participation in fish farming to boost the quantity of fish available for consumption.Key Words: ProfitabilityFish FarmingGross MarginElasticities