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Challenges in the Era of Globalization - iaabd

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Proceed<strong>in</strong>gs <strong>of</strong> <strong>the</strong> 12th Annual Conference © 2011 IAABD<br />

Table 4: Constra<strong>in</strong>ts fac<strong>in</strong>g fish farmers <strong>in</strong> <strong>the</strong> study districts (n=197)<br />

Variable Percentages*<br />

Lack <strong>of</strong> water 6.1<br />

Expensive feeds 41.6<br />

Scarce feeds 6.6<br />

Lack <strong>of</strong> market 19.3<br />

Predators <strong>of</strong> fish 50.8<br />

Poor quality f<strong>in</strong>gerl<strong>in</strong>gs 22.3<br />

Lack <strong>of</strong> extension services 14.2<br />

Poor wea<strong>the</strong>r 3.0<br />

Thieves 17.8<br />

Expensive labor 3.6<br />

Lack <strong>of</strong> capital 39.1<br />

Poison 1.0<br />

Pond flood<strong>in</strong>g 7.1<br />

Lack <strong>of</strong> harvest<strong>in</strong>g net 6.1<br />

Insufficient equipment 5.6<br />

Leak<strong>in</strong>g ponds 1.0<br />

Overstocked ponds 1.0<br />

Poor transport 2.0<br />

High ma<strong>in</strong>tenance cost 6.6<br />

*Percentages do not add to 100 due to multiple responses<br />

Conclusion and Implications<br />

Aquaculture is a relatively new technology <strong>in</strong> Uganda <strong>in</strong>troduced <strong>in</strong> 1951. In <strong>the</strong> past it was promoted as<br />

subsistence enterprise and this may have partly brought about slow growth <strong>of</strong> <strong>the</strong> sector. However, <strong>the</strong><br />

sector has gradually ga<strong>in</strong>ed recognition and is currently be<strong>in</strong>g promoted as a sector to provide,<br />

employment, food security and poverty eradication. Due to this recognition, it has become imperative to<br />

provide empirical data to policy makers for <strong>the</strong>m to make <strong>in</strong>formed decisions. Empirical studies,<br />

especially on socioeconomic nature are limited. Thus <strong>the</strong> importance <strong>of</strong> this study cannot be<br />

overemphasized. The objectives <strong>of</strong> <strong>the</strong> study were three fold: assess <strong>the</strong> pr<strong>of</strong>itability <strong>of</strong> aquaculture <strong>in</strong><br />

Uganda, determ<strong>in</strong>e factors affect<strong>in</strong>g <strong>the</strong> pr<strong>of</strong>itability and assess <strong>the</strong> constra<strong>in</strong>ts faced by farmers <strong>in</strong> fish<br />

farm<strong>in</strong>g enterprise. The paper presents both descriptive and econometric analysis <strong>of</strong> <strong>the</strong> f<strong>in</strong>d<strong>in</strong>gs aris<strong>in</strong>g<br />

from field survey conducted <strong>in</strong> June/July 2010 <strong>in</strong> Mukono, Mpigi and Wakiso districts <strong>in</strong> Central Uganda.<br />

The data were captured us<strong>in</strong>g SPSS version 15 and analyzed by SATA9.<br />

The study results showed that many farmers had spent close to 8years <strong>in</strong> <strong>the</strong> bus<strong>in</strong>ess and owned three<br />

ponds on average measur<strong>in</strong>g 520m 2. The major constra<strong>in</strong>ts <strong>in</strong>cluded: predators, expensive fish and lack <strong>of</strong><br />

capital <strong>in</strong> that order. In terms <strong>of</strong> fish enterprises fish farm<strong>in</strong>g was found to be a pr<strong>of</strong>itable bus<strong>in</strong>ess as<br />

evidenced by <strong>the</strong> average gross marg<strong>in</strong> value <strong>of</strong> US$104 per cycle and net farm <strong>in</strong>come <strong>of</strong> US$41. Net<br />

returns <strong>of</strong> <strong>in</strong>vestment <strong>of</strong> 0.05 implied that for every US$1.0 <strong>in</strong>vested <strong>in</strong> <strong>the</strong> fish farm<strong>in</strong>g bus<strong>in</strong>ess, <strong>the</strong><br />

farmer returned US$ 0.05. Farmers <strong>in</strong>curred higher variable costs (92.8 percent than fixed costs (7.3<br />

percent). These were responsible low pr<strong>of</strong>its and return on <strong>in</strong>vestment. The most important determ<strong>in</strong>ants<br />

<strong>of</strong> pr<strong>of</strong>its were: farm<strong>in</strong>g experience, average size <strong>of</strong> fish harvested and average price <strong>of</strong> a unit <strong>of</strong> price.<br />

The aforementioned have positive impact on fish farm<strong>in</strong>g <strong>in</strong> <strong>the</strong> studied region. It is imperative that<br />

Government <strong>in</strong>stitutes policies that encourage private <strong>in</strong>dividuals and farms with capital to venture <strong>in</strong>to<br />

production <strong>of</strong> good quality seed and feeds to reduce on variable costs. This will go a long to <strong>in</strong>crease <strong>the</strong><br />

size <strong>of</strong> fish that was found to be relevant <strong>in</strong> <strong>in</strong>creas<strong>in</strong>g pr<strong>of</strong>its. Along with improv<strong>in</strong>g available feeds and<br />

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