Economic Analysis of Catfish Farming in Makurdi Local Government Area, Benue State, Nigeria

Abstract

This study assessed the economics of catfish farming in Makurdi Local Government Area of Benue State. Snowball sampling techniques was used in selecting 84 catfish famers for the study. Data was collected through the use of structured questionnaire, administered to the selected catfish famers. Data were analyzed using descriptive statistics, net farm income and multiple regression analysis. Costs and return structure showed a mean value cost of production N1, 151, 460.67 with mean revenue of N1, 788, 663 and a gross margin of N703, 776.33. Gross ratio and operating ratio were 1.55 and 0.61, respectively; while, return per naira invested was 61k. The greater than one value of gross ratio indicated that catfish farming was profitable; while a less than one operating ratio shows that catfish farmers were efficient in managing costs. The result of the regression showed that fingerlings have a positive and statistically significant at 1%, feed at 5% and the f-value is significant at 1%. The coefficient of multiple determinant R2 was 0.899. Nevertheless, excessive production costs and improper use of inputs were found to have affected the profitability of medium and small-scale fish farmers. Most of these farmers have low years of experience (below 10 years) accounting for about 52.38% of the total respondents. It is concluded that fish farming was profitable in the study area. Therefore, it is recommended that fish farmers in the study area need to acquire more training on the business management aspect of fish production.