Analysis Of Value Addition In Commercial Catfish (Clarias Gariepinus Heterobranchus Spp.) Production In Rivers State, Nigeria.

ABSTRACT

The study analysed value addition in commercial catfish (Clarias gariepinus Heterobranchus spp) production in Rivers State. The specific objectives were to: examine the socioeconomic characteristics of catfish producers in the study area, determine the costs, returns and profit to the various actors in the value addition, determine other sources of income to the catfish producers in the area and identify the constraints faced by the catfish producers in the area. Data were collected with questionnaire from eighty (80) randomly selected catfish value chain actors, out of which seventy-five (75) questionaire were found usable, this composed of 32 catfish producers, 15 processors and 28 marketers. The null hypothesis stated and tested in this study was Ho: Profits made by the different actors along the value addition chain do not differ significantly. Data collected were analysed using percentages, mean, gross margin, net income as well as profitability indices/ratio and Analysis of variance. The results obtained showed the mean age of the catfish farmers, processors and retailers as 42.7 years, 35.5 and 38.0 years respectively. This study identified the percentage of women to men as 88%, 87%, 61% for catfish producers, processors and retailers respectively, this implies that women were so much involved in catfish value addition/processing than their male counterparts. The average mean of household size of these catfish value addition players was six (6) persons, since it requires some form of assistance. The result also showed that majority of the catfish actors were educated having a minimum academic qualification of first school leaving, this implies that the catfish farmers could read and are able to adopt new innovations as pertains catfish value addition. The primary occupation of the respondents were shown to be farming, having their primary source of income as personal savings. The results also showed that the catfish farmers had an average farming experience of 11years and above. Most of the respondents inherited/personally owned their own piece of land for farming, this will reduce cost of production and processing. The constraints encountered by the catfish respondents include: Irregular electricity, cannibalism, high cost of management, inputs and feeds, inadequate infrastructure etc with cannibalism and high costs of feeds ranking most as (93%) and (91%) respectively. A cost and return analysis of the catfish producer for a 3000kg/production cycle gives a gross margin sum of N966,500 and a net profit of N782,936, catfish processors had a gross margin of N2,428,800 with a net income of N1,269,944.92 while the retailers/marketers had a gross margin of N225,000 with a corresponding net income of N222,396.94 this implies that the catfish value addition business is profitable. The hypothesis was tested using a oneway ANOVA POST HOC SCHEFFE TEST showing differences in the profit margin of the three value actors (producer, wholesaler/processors and retailers/marketers) and how they significantly differ from one another, using an F-test, the result showed a critical value of 4.14 at 5% level of significance. Thus; the null hypothesis was rejected implying that there is significant difference in profit of value addition chain players. The undiscounted benefit cost ratio (BCR) for catfish producers, wholesalers/processors and marketers are 1.59, 1.92 and 1.08 respectively. The catfish processors ranked highest with an undiscounted BCR of N1.98 this implies that for every N1.00 invested in catfish processing yields a return of 98kobo as against the N1.60 of producers and the N1.08 of marketing. Also the return per capital for catfish producers, processors and retailer/marketing are 59%, 92% and 8.5% respectively with catfish processors ranking most. The study concluded that catfish value addition has helped increase shelf-life, open new market opportunities for producers by increasing job creation down the value-addition chain this directly reduces rural poverty, since a higher profit margin was made from sales of processed fish than in selling the catfish in its fresh form. Based on the findings of this study, it was recommended that government should improve on infrastructures in the rural areas, Active use of extension agents to bring to the farmers innovative ideas and technologies like packaging of catfish for increased value addition. Finally, it is very pertinent for farmers to form synergies and create more co-operative societies inorder to access loans from government or non-governmental organizations.