Improving Employment and Income through Development of Egypt’s Aquaculture Sector (IEIDEAS) project

The Swiss Agency for Development and Cooperation (SDC)-funded Improving Employment and Income through Development of Egypt’s Aquaculture Sector (IEIDEAS) project was implemented by WorldFish in partnership with CARE Egypt and the Egyptian Ministry of Agriculture and Land Reclamation from 2011 to 2014 and later extended to November 2015. The project focused on four governorates with significant aquaculture production (Kafr El Sheikh, Behera, Sharkia and Fayoum) and one governorate (El Mineya), where aquaculture was a new activity. The project was based on a value chain analysis conducted by WorldFish in September 2011 that identified the aquaculture value chain as a significant employer, particularly in rural areas. The analysis suggested that there was scope to increase employment of youth and women in the aquaculture sector The main objective was to increase aquaculture production by 10% and create 10,000 jobs. Other objectives included improving profitability for existing producers, securing employment for women fish retailers, expanding aquaculture in El Mineya and improving the policy environment for aquaculture.

Edible seaweeds: an important source of food and income to indigenous Fijians

The increasing harvest of 7 edible seaweeds in Fiji and their importance to the economy of indigenous Fijians are discussed. Traditional methods in the collection, preparation and consumption of seaweeds by the Fijians are also presented.

Year 1 operational report: Improving employment and income through development of Egypt’s aquaculture sector(IEIDEAS) project

Implementation of the SDC funded project ‘Improving Employment and Income through Development of Egypt’s Aquaculture Sector’ commenced on 1st December 2011 and will continue until late 2014. This report summarizes the results of the first 10 months until 30th September 2012. The project was based on a value chain analysis carried out by WorldFish in September 2011. The information in the VCA acts as the baseline for the main project parameters. It established that the aquaculture value chain is a significant employer (14 FTE per 100 tonnes of annual production), particularly in rural areas and there was scope to increase employment of youth and women.

Income, inequality, and criteria air pollutants in the CAMA counties

Socioeconomic factors have long been incorporated into environmental research to examine the effects of human dimensions on coastal natural resources. Boyce (1994) proposed that inequality is a cause of environmental degradation and the Environmental Kuznets Curve is a proposed relationship that income or GDP per capita is related with initial increases in pollution followed by subsequent decreases (Torras and Boyce, 1998). To further examine this relationship within the CAMA counties, the emission of sulfur dioxide and nitrogen oxides, as measured by the EPA in terms of tons emitted, the Gini Coefficient, and income per capita were examined for the year of 1999. A quadratic regression was utilized and the results did not indicate that inequality, as measured by the Gini Coefficient, was significantly related to the level of criteria air pollutants within each county. Additionally, the results did not indicate the existence of the Environmental Kuznets Curve. Further analysis of spatial autocorrelation using ArcMap 9.2, found a high level of spatial autocorrelation among pollution emissions indicating that relation to other counties may be more important to the level of sulfur dioxide and nitrogen oxide emissions than income per capita and inequality. Lastly, the paper concludes that further Environmental Kuznets Curve and income inequality analyses in regards to air pollutant levels incorporate spatial patterns as well as other explanatory variables. (PDF contains 4 pages)

Fishery Management and Local Communities: The Case of Madeira Beach, Florida

This paper uses an industrial organization approach to trace the impact on Madeira Beach, Fla., and surrounding areas of a 1-month closure of the grouper fishery from 15 February 2001 to 15 March 2001. A proposed 2-month closure is also evaluated. This approach identifies the economic relationships in the industry based on both product and place. The empirical analysis measures the losses in employment and income, information that enriches social and anthropological research on fishery-dependent communities. The 1-month closure is estimated to have reduced annual catches landed in Madeira Beach by 9.7–10.1% and annual revenues by 9.3–11.5%. These reductions are associated with a direct loss of about 33 full-time (annualized) jobs and personal income losses between $8 and 12 million in Madeira Beach and Pinellas County over a 10-year period. If the closure occurs for 2 months, annual landings and revenues will be reduced an estimated 17–21% and 20–23%, respectively.

The Annual Economic Survey of Federal Gulf Shrimp Permit Holders: Report on the Design, Implementation, and Descriptive Results for 2006

This technical memorandum documents the design, implementation, data preparation, and descriptive results for the 2006 Annual Economic Survey of Federal Gulf Shrimp Permit Holders. The data collection was designed by the NOAA Fisheries Southeast Fisheries Science Center Social Science Research Group to track the financial and economic status and performance by vessels holding a federal moratorium permit for harvesting shrimp in the Gulf of Mexico. A two page, self-administered mail survey collected total annual costs broken out into seven categories and auxiliary economic data. In May 2007, 580 vessels were randomly selected, stratified by state, from a preliminary population of 1,709 vessels with federal permits to shrimp in offshore waters of the Gulf of Mexico. The survey was implemented during the rest of 2007. After many reminder and verification phone calls, 509 surveys were deemed complete, for an ineligibility-adjusted response rate of 90.7%. The linking of each individual vessel’s cost data to its revenue data from a different data collection was imperfect, and hence the final number of observations used in the analyses is 484. Based on various measures and tests of validity throughout the technical memorandum, the quality of the data is high. The results are presented in a standardized table format, linking vessel characteristics and operations to simple balance sheet, cash flow, and income statements. In the text, results are discussed for the total fleet, the Gulf shrimp fleet, the active Gulf shrimp fleet, and the inactive Gulf shrimp fleet. Additional results for shrimp vessels grouped by state, by vessel characteristics, by landings volume, and by ownership structure are available in the appendices. The general conclusion of this report is that the financial and economic situation is bleak for the average vessels in most of the categories that were evaluated. With few exceptions, cash flow for the average vessel is positive while the net revenue from operations and the “profit” are negative. With negative net revenue from operations, the economic return for average shrimp vessels is less than zero. Only with the help of government payments does the average owner just about break even. In the short-term, this will discourage any new investments in the industry. The financial situation in 2006, especially if it endures over multiple years, also is economically unsustainable for the average established business. Vessels in the active and inactive Gulf shrimp fleet are, on average, 69 feet long, weigh 105 gross tons, are powered by 505 hp motor(s), and are 23 years old. Three-quarters of the vessels have steel hulls and 59% use a freezer for refrigeration. The average market value of these vessels was $175,149 in 2006, about a hundred-thousand dollars less than the average original purchase price. The outstanding loans averaged $91,955, leading to an average owner equity of $83,194. Based on the sample, 85% of the federally permitted Gulf shrimp fleet was actively shrimping in 2006. Of these 386 active Gulf shrimp vessels, just under half (46%) were owner-operated. On average, these vessels burned 52,931 gallons of fuel, landed 101,268 pounds of shrimp, and received $2.47 per pound of shrimp. Non-shrimp landings added less than 1% to cash flow, indicating that the federal Gulf shrimp fishery is very specialized. The average total cash outflow was $243,415 of which $108,775 was due to fuel expenses alone. The expenses for hired crew and captains were on average $54,866 which indicates the importance of the industry as a source of wage income. The resulting average net cash flow is $16,225 but has a large standard deviation. For the population of active Gulf shrimp vessels we can state with 95% certainty that the average net cash flow was between $9,500 and $23,000 in 2006. The median net cash flow was $11,843. Based on the income statement for active Gulf shrimp vessels, the average fixed costs accounted for just under a quarter of operating expenses (23.1%), labor costs for just over a quarter (25.3%), and the non-labor variable costs for just over half (51.6%). The fuel costs alone accounted for 42.9% of total operating expenses in 2006. It should be noted that the labor cost category in the income statement includes both the actual cash payments to hired labor and an estimate of the opportunity cost of owner-operators’ time spent as captain. The average labor contribution (as captain) of an owner-operator is estimated at about $19,800. The average net revenue from operations is negative $7,429, and is statistically different and less than zero in spite of a large standard deviation. The economic return to Gulf shrimping is negative 4%. Including non-operating activities, foremost an average government payment of $13,662, leads to an average loss before taxes of $907 for the vessel owners. The confidence interval of this value straddles zero, so we cannot reject, with 95% certainty, that the population average is zero. The average inactive Gulf shrimp vessel is generally of a smaller scale than the average active vessel. Inactive vessels are physically smaller, are valued much lower, and are less dependent on loans. Fixed costs account for nearly three quarters of the total operating expenses of $11,926, and only 6% of these vessels have hull insurance. With an average net cash flow of negative $7,537, the inactive Gulf shrimp fleet has a major liquidity problem. On average, net revenue from operations is negative $11,396, which amounts to a negative 15% economic return, and owners lose $9,381 on their vessels before taxes. To sustain such losses and especially to survive the negative cash flow, many of the owners must be subsidizing their shrimp vessels with the help of other income or wealth sources or are drawing down their equity. Active Gulf shrimp vessels in all states but Texas exhibited negative returns. The Alabama and Mississippi fleets have the highest assets (vessel values), on average, yet they generate zero cash flow and negative $32,224 net revenue from operations. Due to their high (loan) leverage ratio the negative 11% economic return is amplified into a negative 21% return on equity. In contrast, for Texas vessels, which actually have the highest leverage ratio among the states, a 1% economic return is amplified into a 13% return on equity. From a financial perspective, the average Florida and Louisiana vessels conform roughly to the overall average of the active Gulf shrimp fleet. It should be noted that these results are averages and hence hide the variation that clearly exists within all fleets and all categories. Although the financial situation for the average vessel is bleak, some vessels are profitable. (PDF contains 101 pages)

Impact of Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB) loan to artisanal fishermen in Lake Kainji

This study was conducted to assess the impact of Nigerian Agricultural, Co-operative and Rural Development Bank Loan on beneficiaries and non-beneficiaries fishermen in Lake Kainji. A total of fifty fishermen (25 beneficiaries and 25 non-beneficiaries) were randomly selected from five fishing villages along the lake basin. Data collected were scored and the percentages of the parameters were calculated appropriately. The types of loans disbursed to beneficiaries revealed that 52% was cash and 48% was in kind. The credit package ranged between N5, 000 to N150, 000 only. Only 48% of the loans granted were paid while the rest remained unpaid. The results obtained from the membership of fishermen Cooperative showed that 64% of beneficiaries were members while 36% were non-members. Also 36% of non-beneficiaries were members while 64% were not. The Common fishing gears used by the two categories of fishermen include gillnets longline, castnet and driftnets. Sixty percent of beneficiaries and 8% of non-beneficiaries fishermen were using canoe with outboard engines while the rest used canoes with paddles. Beneficiaries earned a higher income (N1, 000 to N9, 000) daily than non-beneficiaries (N1, 000 to N6, 000) daily from sales of fish caught. Major contrainsts to increased catch and income identified include inadequate capital, non- availability of fishing inputs, stealing of fishing gears, lack of access to credit facilities and menace of stump and water hyacinth in the lake. Lastly, recommendation were made for the bank management, government and other lending institutions on how to improve the livelihood of the Artisanal fishermen by increasing the loan usually granted

Aquaculture, fisheries, poverty and food security

Fisheries and aquaculture play important roles in providing food and income in many developing countries, either as a stand-alone activity or in association with crop agriculture and livestock rearing. The aim of this paper is to identify how these contributions of fisheries and aquaculture to poverty reduction and food security can be enhanced while also addressing the need for a sustainability transition in over-exploited and over-capitalized capture fisheries, and for improved environmental performance and distributive justice in a rapidly growing aquaculture sector. The focus of the paper is on the poverty and food security concerns of developing countries, with an emphasis on the least developed. The emphasis is on food security rather than poverty reduction policies and strategies, although the two are of course related. The food security agenda is very much to the fore at present; fish prices rose along with other food prices in 2007-8 and as fish provide important nutritional benefits to the poor, food security has become a primary concern for sector policy.

Changes in consumer tastes in the demand for fish and meat in Malaysia

In this article the demand for fish and its substitute was estimated using a very flexible demand function, the Almost Ideal Demand System (AIDS) developed by Deaton and Muelllbaeur (1980), incorporating the habit formation variable to measure the impact of the changes in tastes in comsumer demand for fish and meat products from 1960 to 1990 in Malaysia. Information on price and income elasticities for these meat groups was also obtained. To incorporate consumption habit variables, the dynamic translating procedure proposed by Pollak (1970) and Pollak and Wales (1981) has been adopted. The overall results of the maximum likelihood estimates of the dynamic AIDS model are quite good where 19 of 30 coefficients are significantly different from zero and the minimum budget shares, the constant, are between zero and one for each meat type. Consumers tend to purchase and consume fish, chicken, and pork almost daily. Beef and mutton are only consumed occassionally since they are relatively more expensive. This finding is consistent with the trend observed in the per capita consumption and budget share where fish, chicken, and pork tended to dominate over beef and mutton from 1960 to 1990.

Integrated resources management, integrated agriculture-aquaculture and the African farmer

Despite the expenditure of huge amounts of money and human effort, the Green Revolution has largely failed to benefit the vast majority of the rural poor in Africa: those smallholding farmers who sell little, if any, of what they grow and rely almost entirely upon natural soil fertility, rainfall and traditional broodstock and seed varieties. New approaches on food production and income generation in the rural areas must be found if this sector of agricultural community is to be assisted. Integrated resources management (IRM) in general, and integrated agriculture-aquaculture (IAA) in particular, may offer some solutions in cases where the classical methods of improving farm output have failed and/or been unsustainable.

Developing aquaculture of Small Native Species (SNS) in Bangladesh: village level agroecological change and the availability of SNS

Small native species (SNS) of fish are important source of protein and income for rural people in Bangladesh. A rapid rural appraisal study was carried out to explore the recent changes in the availability of SNS in relation to agroecology and related issues. Village residents noted that the availability of SNS had declined drastically due to habitat loss related to agricultural intensification and due to the restriction of access to the remaining habitats in the course of aquaculture development. Their perception was that poor people had gained from the intensification of agriculture in terms of rice consumption but had lost in terms of reduced access to fish and other animal products.

Economic and social impacts of Integrated Aquaculture-Agriculture technologies in Bangladesh

This study estimated the adoption rate of integrated aquaculture-agriculture (IAA) technologies in Bangladesh and their impact on poverty and fish and food consumption in adopting households. We used a novel, simulation-based approach to impact assessment called Tradeoff Analysis for Multi-Dimensional Impact Assessment (TOA-MD). We used the TOA-MD model to demonstrate how it is possible to use available data to estimate adoption rates in relevant populations, and to quantify impacts on distributional outcomes such as poverty and food security, thus demonstrating ex ante the potential for further investment in technology dissemination. The analysis used baseline and end-of-project survey data from WorldFish-implemented Development of Sustainable Aquaculture Project (DSAP), promoting IAA. This dataset was used to simulate adoption and assess its impacts on poverty and food security in the target population. We found that, if adopted, IAA had a significant positive impact on reducing poverty and improving food security and income.

Value chain analysis: shrimp, prawn and tilapia from the southern region of Bangladesh & feasibility analysis: brackish water sea-bass in the southern region in Bangladesh

The WorldFish Center is implementing the FtF Aquaculture Project in 20 southern districts in Bangladesh. The project is implemented under USAID’s Feed the Future initiative in collaboration with the Government of Bangladesh. The project contributes to achieving the ‘Feed the Future’ goals through four objectives: (i) dissemination of improved quality fish and shrimp seed, (ii) improving the nutrition and income status of farm households, (iii) increasing investment, employment and fish production through commercial aquaculture and (iv) policy and regulatory reform and institutional capacity building to support sustainable aquaculture growth. The project commissioned this study to gather insights into the value chains of shrimp, prawn and tilapia in the project region and the feasibility of promoting culture of brackish water sea-bass in the region. The findings and recommendations are expected to provide the foundation for the project to design its interventions for achieving its goals.

Institutional, policy and regulatory framework for sustainable development of the Egyptian aquaculture sector

This report presents the findings of a mission to critically review the institutional, policy and regulatory framework for sustainable development of the Egyptian aquaculture sector. The study was undertaken by an International Expert on Aquaculture Policy, and a National Expert on Institutions, on behalf of the Project “Improving Employment and Income through the Development of Egypt’s Aquaculture Sector“, implemented by WorldFish and CARE, and funded by the Swiss Agency for Development and Cooperation(SDC). The objective of the mission was to assess the current status of the Egyptian aquaculture sector, in terms of the policy, legal and institutional environment, with a view to suggesting the major issues to be addressed within a future policy dialogue.

Integrated aquaculture-agriculture adoption and impact in rainfed farming systems in Sakata, Malawi

ICLARM introduced integrated aquaculture-agriculture (IAA) in Sakata, Malawi three years ago. Since that time, and without extension support, the number of farmers with ponds increased from 4 in 1993/94 to 12 in 1995/96. To learn why and how IAA is spreading, a study of impact and adoption was conducted in the 1995/96 production season. Interviews were conducted with farmers to discuss lAA and collect data on farm function through the use of bioresource flow diagrams. Motivations given by farmers as to why they adopted IAA were to improve household nutrition and income. Constraints to adoption identified by farmers were availability of labor and capital to purchase inputs