Analysis Of Profitability And Determinants Of Adoption And Disadoption Of Cage Tilapia (Oreochromis Niloticus) Farming In Southern Ghana

Abstract

Ghana’s national annual fish deficit was 550,000 tons in 2018 leading to persistent increase in fish importation due to decline in capture fisheries. Adoption of aquaculture technologies has the potential to improve fish productivity, but the decision to adopt new technologies by fish farmers is rather complex and influenced by many factors including demographic, socioeconomic and institutional factors. Cage fish farming was introduced along the Lake Volta as a means of improving fish productivity. However, low adoption and disadoption of the technology raises reservation about its appropriateness, especially among small scale producers. Further, profitability of cage tilapia farming has not been comprehensively documented. This study therefore analyzed profitability and determinants of adoption and disadoption of cage tilapia aquaculture. The study was conducted in Eastern and Greater Accra regions of Ghana. Three districts and 11 communities along the Lake Volta known for cage fish farming were selected. Multistage sampling was used to select 206 respondents. Data were obtained through face to face interview with a semi-structured questionnaire. Gross Margin and Net Fish Income were used to estimate the profitability of cage tilapia aquaculture. The Heckprobit model was employed to identify determinants of adoption and disadoption of cage tilapia aquaculture. On profitability, Gross Margin of Gh₵2,550 (USD 520) and Net Fish Income of Gh₵829 (USD 169) were realized. This is an indication that cage tilapia aquaculture in the study area is profitable. The selection equation of the Heckprobit results revealed that access to credit, policy information and extension services increased the likelihood of adopting cage tilapia aquaculture. On the other hand, the outcome equation results showed that age of the respondent and distance from the Lake Volta positively correlated with disadoption of cage tilapia farming. Further, market price of tilapia, membership of farmer groups and cost of fingerlings reduced the likelihood of disadopting cage tilapia farming. Stakeholders in the industry should promote cage tilapia farming to v attract potential financiers and investors, especially the youth to venture into cage tilapia aquaculture. The study also recommends supporting policies leading to input reduction and training of fish farmers. Enhancement of access to aquaculture policy and regulations is required to improve adoption of cage tilapia aquaculture. Improvement in the extension services is required to enhance the capacity of extension programs to efficiently support fish farmers. Fish farmers should be encouraged to form farmer associations to facilitate access to information and credit facilities.