ASSESSMENT OF THE PROFITABILITY OF FISHING ACTIVITIES BY FISH MONGERS IN EZU, OMABALA AND OTUOCHA RIVERS IN ANAMBRA STATE

CHAPTER ONE

INTRODUCTION

Background of the study

Food security, import substitution, job creation, and economic diversification are some of the goals that have been prioritized in Nigeria's new agricultural promotion strategy (APP), which will be put into effect from 2016 to 2020 and will cover a medium-term span of time. In order to accomplish one of its goals, the policy was developed to facilitate the incorporation of value chains for agricultural commodities into the supply networks of global industry more generally. In addition to this, the strategy intended to boost agricultural productivity in order to generate more foreign currency revenues from agricultural exports, double the income of households, and raise the pace of growth in agriculture. It is anticipated that the initial limited range of agricultural exports would broaden to include fish, cashew nuts, bananas, avocados, and mangoes in the near future. 

Fish is becoming more in demand in Nigeria as a result of the country's expanding population as well as its residents' shifting eating preferences in the direction of a more healthier lifestyle. Fish has the finest nutritional profile for humans since its white flesh is cholesterol-free and it does not include any fat. Aquaculture is the only sustainable source of fish and has a great potential for growth in Nigeria due to the presence of a wide variety of water sources such as rivers, springs, dams, lakes, and the oceans. This makes Nigeria a prime location for the development of aquaculture, which is the only source of fish that is sustainable. The total land area of Nigeria is 923,768 km2, and the country has a coastline that is 853 km long. In addition to this, it is home to a massive system of inland waterways, including as rivers, floodplains, natural and artificial lakes, and reservoirs (Shimang, 2020). Fish farming unquestionably contributes to the improvement of important aspects of society, including the maintenance of the population's nutritional health, the provision of raw materials for the industrial sector, the advancement of rural areas, the expansion of opportunities for international trade, the improvement of the management of natural resources, and the preservation of biological diversity (Dagtekin et al., 2017; FAO, 2016). 

In order for the nation to satisfy the demand for the item, however, it must spend around 125.38 billion yen per year on the importation of 1.9 million metric tonnes of fish (Federal Ministry of Agriculture and Rural Development, FMARD, 2016). In terms of the amount of foreign currency spent annually on fish alone, this amounted to a total of 700 million dollars. Since 1991, the demand and supply gaps in the food industry have consistently been in the negative. As a result, a gap of around 2 million metric tonnes of fish was reported in 2016 (FMARD, 2016), which indicates that the fishing subsector is approximately 30% self-sufficient. In spite of the fact that the fisheries subsector has a high development potential, it has not been able to satisfy the demand for fish and other products of the fishing industry in Nigeria. Additionally, the percentage of Gross Domestic Product (GDP) that it contributed remained pitifully low at 4%. At fishing, processing, and marketing locations, fundamental services and infrastructures are either completely absent or in a deplorable state of disrepair. The majority of marketing takes place in smaller towns and cities, but it also takes place in big urban centers, which results in losses sustained while transportation. The losses are being compounded by incidents of armed robbery as well as car breakdowns brought on by the hazardous road conditions. The decrease in ocean capture, the decrease in aquaculture yields, and the growing cost of fish feed have all had a negative impact on overall productivity. It is impossible to guarantee the profitability of significant private investment in the various stages of the commodity chain when the relevant markets are fragmented and of sub-optimal size. Imports are rapidly filling supply-demand gaps, which has a negative impact on the potential for enhanced income creation as well as food security. How are larger investments going to be made in the communities where the product is being produced? How will the economic players in the subsector be enabled to get direct access to markets and to stay in the markets after they have gained that access? How can the profitability of the commodity be increased to attract private investment in the fishing industry? This is the question that has to be answered. 

It is necessary to enhance profitability through linkage of small entrepreneurs in the fishery subsector to output market opportunities in order to drive private investment in the fishery subsector for increased income generation, for the generation of employment, and for the reduction of poverty. This is necessary in order to drive private investment in the fishery subsector for enhanced income generation, for the generation of employment, and for the Repositioning the fishery subsector in such a way as to reduce reliance on fish importation and ensure that supply and demand in the subsector can take place in such a way as to improve food security and provide maximum benefits to the economic agents in the subsector is an important task that needs to be done right now. In addition, the present alarming levels of fish imports from all over the globe may be significantly reduced if better chances for strong markets, higher productivity, and further expansions of profit are established (Ugwumba, 2016). This study was carried out to analyze the profitability of the fishery enterprise at the level of small scale operations at production, processing, and marketing stages in the commodity value chain with the intention of suggesting measures to improve the performance of actors and improved investment in the fishery value chain. These targets were set for the fishery sub-sector in the new agricultural promotion policy of the government, which was outlined above.Therefore, this study examines the profitability of fishing activities by fish mongers in ezu, omabala and otuocha rivers in Anambra state.

Statement of the problem

In general, fishermen do not often have the financial management skills necessary to effectively manage their resources, which prevents them from maximizing their income and, as a result, their profits. If this is the case, it would seem to imply that the expansion of the sector would, in the end, be contingent on the socioeconomic features of the fishermen, such as their level of capitalization, educational attainment, fishing experience, gender, and participation in cooperatives. In particular, cooperatives of fishermen may have a significant function to play in the process of increasing the profitability of artisanal fish farming (Pius, 2019). Cooperatives in the fishing industry are thought to be an effective method for maximizing long-term community benefits and mitigating the risks associated with poor fisheries management, insecure livelihoods, and poverty, which are all harsh realities for a significant number of the world's small-scale fishermen. Studies that are now available have concentrated their attention mostly on the quantity of fish that are taken and the accompanying income in the state of Anambra; however, these studies have not specifically addressed the Ezu, Omabala, or Otuocha rivers in Anambra. This is referred to as a gap in the research. In addition, very few of the available research took into account the lucrative activities on fish mongers' revenues, as well as fishing input supplies, as potential variables that may explain variances in profitability among fishermen. Therefore, there is a need for the present study on fish production to carefully examine these research gaps.

 Objective of the study

The primary objective of the study is the assessment of the profitability of fishing activities by fish mongers in Ezu, Omabala and Otuocha Rivers in Anambra state. The specific objectives is as follows: 

i. To assess the profitability of fish farming through cost and revenue of fish farming.

ii. To identify the problems associated with fish farming.

iii.To suggest possible solutions for those problems.

 Research Questions

The following questions have been prepared for the study:

i. What is the profitability of fish farming through cost and revenue of fish farming?

ii. What are the problems associated with fish farming?

iii.What are the possible solutions for those problems?

 Research hypotheses

The following hypothesis have been formulated for the study:

H0: There is no profit in the fishing activities by fish mongers.

HA: There is profit in the fishing activities by fish mongers.

Significance of the study

This study is of importance to entrepreneur in the fishing sector as it will expose them to the challenges fish mongers face in carrying out their fishing activities and how it affects their profitability. 

Additionally, subsequent researchers will use it as literature review. This means that, other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regards to the profitability of fishing activities by fish mongers.

1.7 Scope of the study

This study will focus on the assessment of the profitability of fishing activities by Fish mongers in Ezu, Omabala and Otuocha Rivers in Anambra state.  By extension, the study will assess the problems associated with fish farming, and the possible solutions for those problems. The respondents for this study will comprise of Fish mongers in Ezu, Omabala and Otuocha Rivers in Anambra state.

1.8 Limitation of the study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced.

1.9 Definition of terms

Profitability: the degree to which a business or activity yields profit or financial gain

Fishing activities: the actual or attempted searching for, catching, taking, or harvesting of fisheries resources

Fish mongers: a shop that sells fish.