Livelihood Features of Seaweed Farming Households: A Case study from Bungin Permai Village, South Konawe, South East (SE) Sulawesi, Indonesia

Abstract

The aim of this study was to analyse the variations and structure of seaweed farming household incomes; to quantify the income coming from various income sources and to analyse the efficiency of seaweed farming. The study was conducted in the village of Bungin Permai, South Konawe from July to September 2016 using structured interviews. In total there were 96 household respondents involved. Income structures and strategies were analysed descriptively, while the amount of income was determined using income analysis. The results showed that most respondents worked in the fisheries sector as seaweed farmers (n=75; 77%) and also as fishermen. The average income generated by seaweed farming households was IDR. 29,154,121 annually; the income from seaweed farming was IDR. 10,556,724 annually, while the income obtained from non-fishing activities was IDR. 11,071,875 annually. The respondents generated additional income by catching crabs, fishing using traps and anchored lift nets (bagan). When all the depreciated assets (e.g. ropes, floats, and traditional boats) were included in the expenses, the mean C/R (cost-to-revenue) value of seaweed farming was 1.88. The lowest R/C was 0.96 while the highest was 21.04. Those R/C values mean that seaweed faming in Bungin Permai was generally efficient and profitable.

Seaweed Aquaculture in Indonesia Contributes to Social and Economic Aspects of Livelihoods and Community Wellbeing

“…Graphing the various income estimates for seaweed farming against this household poverty line (Figure 3) indicates that, while seaweed farming income can bring families out of poverty, this is by no means always the case. Seaweed farming income in three reported studies, two in Southeast Sulawesi [51,61] and one in Rote Island [59], all fall below the poverty reference level (Figure 3). When considering rural poverty estimates, it is important to note that most farmers do not engage in seaweed processing as a full-time activity.…”

“…Capital and operating costs for seaweed production are relatively low [11,50,51]. The costs to establish a one kilometre array of seaweed farming lines was estimated at around USD 107.50, with the material having a 2-year lifespan [11].…”

“…The main operational cost was seeding (tying on of new propagules), accounting for 28% of variable costs [52]. Revenue:cost (R/C) ratios for seaweed farming reportedly range from 1.5 to 2.6 in South Sulawesi [53], from 0.96 to 21.0 in Southeast Sulawesi [51], and from 3.3 to 3.4 in Maluku [54].…”

“…We also include data from Neish's [11] more extensive 2013 report for comparison (Figure 3). Reports of profitability for seaweed mariculture farms vary widely, from an average of IDR 10.6 million (USD 760) per annum in Southeast Sulawesi [51], from IDR 16.9 to 37.8 million (USD 1200-2700) per cycle across four districts in South Sulawesi [53], and from IDR 15.1 million (USD 1080) per annum for small seaweed farms (10 m × 25 m) up to IDR 29.9 million (USD 2135) per annum for large farms (10 m × 50 m) in Tual, Maluku [54]. A survey in Bombana District of Southeast Sulawesi found that the annual income from seaweed farming ranged from IDR 3.6 million (USD 257) to IDR 18.5 million (USD 1321), and that 92% of farmers earned an annual income between IDR 3.6 million (USD 257) and IDR 15.8 million (USD 1129) [61].…”

“…For reference, the September 2018 national rural poverty line in Indonesia was equivalent to IDR 4.7 million (USD 336) per annum per capita [62]. We have calculated a household national rural poverty value for a five-person household, based on the method of Valderrama et al [63] and reflecting the socio-economic data of two of the studies cited above [51,59] at USD 1,680 (Figure 3). Graphing the various income estimates for seaweed farming against this household poverty line (Figure 3) indicates that, while seaweed farming income can bring families out of poverty, this is by no means always the case.…”