Profitability and consumer preference of pond raised fish among fish farmers and consumers in Northern Malawi

Abstract

The consumption and demand for fish is on the increase in Africa and Malawi in particular. The supply of fish per person in the country has, however, been steadily decreasing such that the per capita consumption of fish is less than 13-15 kg/year/person recommended by the World Health Organisation (WHO). Aquaculture in Malawi stands as a solution to low per capita consumption. The study was conducted in January 2014 to determine the profitability and consumer preference of pond raised fish at Mpamba in Nkhatabay district. Data was collected from groups of 30 fish farmers, 30 consumers, 1 District Fisheries Officer and 2 World Vision Malawi project staff. Stratified random sampling was used to select male and female fish farmers and consumers. Within the stratified groups, a purposive sampling technique was used to select farmers that had sold fish in the previous growing season to capture costs and revenue. Data was collected using structured questionnaires, focus group discussions and key informant interviews. Gross margin analysis was conducted to determine profitability of fish farming. Gini coefficient was calculated to determine income distribution of fish farmers. Descriptive statistics was done to determine consumer preference of pond raised fish. Results suggest that fish farmers generate gross profits of MK32, 222.00 (USD83.78) and economic profits of –MK13, 978.00 (USD36.34). However, projected costs and net cash flows using NPV over a 10-year period show that farmers will start making positive net profits of MK9,279.81 (USD24.36) in the third year of production with highest net profit of MK28,625.16 (USD75.13) in year 10. Gini coefficient of 0.5 was calculated showing that there is unequal distribution of income among fish farmers. Preference analysis shows that 48% of consumers prefer pond raised fish to wild fish. The study therefore recommends that farmers produce more fish in order to increase profits from fish sales and reduce income inequality.