TECHNICAL EFFICIENCY AND RISK ANALYSIS OF CATFISH FARMERS IN ONDO STATE, NIGERIA

Abstract

The study focused on technical efficiency and risk analysis of Catfish farmers in Ondo State. Purposive and simple random sampling techniques were used to select 171 Catfish farmers for the study using well-structured questionnaires. Data obtained were analyzed using the Tobit regression model, the net farm income analysis, the stochastic frontier production model, the multinomial logit model and descriptive statistics. The results of the study showed that 70 per cent of the Catfish farmers were within the productive and active age group of 20-49 years old. About 67.25% of the Catfish farmers had tertiary education, 77.19% of them made use of earthen ponds in culturing their fish. The net farm income analysis showed that a kilogramme of food size Catfish was sold for ₦938.96 while the total cost of production was ₦952.30 leading to a loss of ₦13.34 per kilogramme of food size Catfish. The estimates of the Tobit regression analysis indicated that variables such as feed (t = 4.88), fish seeds (t = 10.06) and labour (t = 8.59) were positive and significantly contributed to Catfish production. The maximum likelihood estimates of the stochastic frontier production analysis revealed that variables such as pond size (t = 2.809), fish seeds (t = 14.065), feed (t = 9.548) and labour (t = 8.915) were significant and had direct relationship with the quantity of Catfish output produced. The result of the multinomial logit model showed that educational level as an independent variable increased the likelihood of Catfish famers’ risk aversion relative to the reference group (risk neutral group). Risk attitude analysis revealed that 76.02% of the Catfish farmers were risk takers, 15.21% were risk-averse and 8.77% were risk neutral. Major problems confronting Catfish farmers in the study area were high cost of feed (96.49%), diseases and parasites (59.06%), and inadequate capital (57.31%). In order to reduce the exorbitant cost of feeding Catfish, alternative feeds (such as insects (maggot), tilapia etc.) to imported conventional feeds are hereby recommended. Catfish farmers are enjoined to seek the advice of aquaculture experts in treating the diseases and parasites of their fish. It is also recommended that financial institutions should be willing in granting loan to Catfish farmers and feed producers at a reduced interest rate but with adequate monitoring. Access to loan will enable farmers to increase their scale of production and adopt modern technologies in Catfish production.