Economic Viability Analysis of Fish Farming in Tarash Upazilla of Sirajganj District in Bangladesh

Mahmud SMD and Islam KMD

Published on: 2019-05-15

Abstract

The objective of this study is to examine the economic viability of fish farming in Tarash upazila of Sirajganj districts in Bangladesh. This study is mainly based on primary data that are collected from fish farmers following random sampling technique. The study found that per bigha annual variable cost of fish production in the study area is Tk.85725.98 and fixed cost is Tk. 56946.34. It is also found that and the annual gross return is Tk. 98614.02 and net return is Tk. 41667.62. Again, the benefit cost ratio (BCR) of fish farming is 1.475. Thus, it is clear that the fish farming is profitable and economically viable in the study area.

Keywords

Fish production; Economic viability; Bangladesh

Introduction

Fish is one of the main sources of animal protein for the people of Bangladesh which provides 63.00 percent of animal protein [1]. Due to favorable climatic condition and geographical location, Bangladesh has huge potential to produce fish. Recently the country is 4th in fish production in the world [2]. Fish farming in the country has created a significant working and income opportunity to millions of poor, and trade in fishery products. It plays important role in poverty alleviation and economic growth of the country. Bangladesh earns a significant amount of foreign currency, about 4.9% of total export earnings from fishery resources [3]. Fishery products such as frozen shrimp, live fish, dry fish, salted fish, fish maw, shark-fin, tortoise and turtles have emerged as prominent export items in the country. In Bangladesh, the natural annual fish cannot meet up the increasing demand for protein for the growing human population, and hence the lack of natural fish resulting pressure on aquaculture to enhance the production. Therefore, continuous efforts are being made to increase fish production from locally available inland sources. As a result, farmers of the country have increased fish production at a significant rate compared to earlier years. The country's total production of fish was 3261782 million metric tons in 2011-2012 of which 85208 million metric tons [4-5]. Thus, the fishery subsector has significant contribution to the GDP of the country which is around 6.18% [6]. In recent year, farmers of Bangladesh are transforming their agricultural land into pond and farming fish in order to get better profit from the same land are. However, it is essential to know whether fish farming is really more profitable or not. Therefore, this study is an effort to calculate the costs and benefits of fish farming in Sirajganj district of Bangladesh. 

Research Methodology

Study Area and Data Collection

This study is carried out in Sirajganj district of Bangladesh which is situated in North-central region of Bangladesh. It is an agriculture based district. Agriculture production is dominated by rice production. Others crops such as potatoes, oilseeds, maize, vegetable, fruits, and spices etc. The district is also potential for fish cultivation. The study is designed to determine the economic viability of fish farming in Tarash Upazilla of Sirajganj district. To collect primary data, 3 villages from Tarash Upazila of Sirajgang district are selected randomly. Finally, the sample fish farmers have also been selected random basis.

Techniques of Analysis

Some statistical and mathematical techniques such as mean, percentage, and standard deviation have been used to achieve the objective of the study. Moreover, per hectare profitability of inland fish production is measured in terms of gross return, gross margin, net return and benefit cost ratio (BCR).

Results And Discussion

The costs of various inputs of fish production and benefit are described in Table 1. The cost items are identified as fingerlings, feed, fertilizer, harvesting, labor, transport, fare of net, equipment, medicine, pond drying, dykes repairing, water supply, remove of mud, cow dung and manure, lime, medicine, electricity, oil-cake, interest on operating cost, land use cost, net cost, and pond digging cost. From Table 1 it is revealed that the annual cost of fingerling is Tk. 27691.05 per bigha in fish farming, per bigha annual cost of feed for fish farming is Tk. 29523.45. Similarly, annual cost of catching for marketing is Tk. 4481.301. The estimated interest cost on operating capital is found Tk. 2490.40. It is also observed that the gross return or total revenue from fish production in the study area is TK.184340.00 per bigha in a year, whereas total fixed cost is TK. 142672.38, total variable cost is TK. 85725.98 per bigha in a year. 

Table 1: Per bigha annual cost and benefit of fish farming.

   
(iii) Fertilizer 1072.69
(iv) Harvesting 4181.3
(v) Labor 4263.58
(vi)Transport 2317.4
   
(vii)Net cost/fare of net 507.57
(viii)Equipment 179.68
(ix)Medicine 2742.28
(x)Pond drying 456.91
(xi)Water supply 690.08
(xii)Lime 4160
(xiii)Electricity 366.02
(xiv)Oil-cake 2415.94
(xv)Interest on operating cost 2390.41
(xvi) Lease cost 17561.23
(xvii) Miscellaneous 467.64
B. Total variable costs (sum of cost items ‘i’ to ‘xvii’) 85987.23
C. Fixed costs
Pond digging cost 38991.87
D. Total fixed cost 38991.87
E. Total cost (B+D) 124979.12
F. Gross return (Sales revenue) 184340
G. Gross margin (F-B) 98352.77
H. Net profit (F-E) 59360.89
Benefit Cost Ratio (BCR) [F÷D] 1.475
Source: Author’s own calculation based on survey, 2019

Thus, annual profit margin is found TK. 98352.77 per bigha. The benefit-cost ratio is 1.475. This implies that fish farming in this study area is a profitable.

Conclusion

Bangladesh has been producing huge inland fish to meet up the demand for animal protein for growing population and for gaining better profit. As a result agricultural transformation has been increasing in the country. The objective of this study is to calculate the profit of fish farming in Sirajganj District of Bangladesh. On the basis of the findings of the study it is apparent that fish farming is profitable in the study area.

References

  1. Rahman MA. Year round pangus and food security: An economic analysis of some selected areas of Mymensingh district. Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh, 2009.
  2. Statistical Yearbook of Bangladesh, Bangladesh Bureau of Statistics, Ministry of Planning, Government of the People’s Republic of Bangladesh, Dhaka, Bangladesh, 2018.
  3. Statistical Yearbook of Bangladesh, Bangladesh Bureau of Statistics, Ministry of Planning, Government of the People’s Republic of Bangladesh, Dhaka, Bangladesh, 2009.
  4. DoF (Department of Fisheries) Matshya Saptaha Saranika-2012. Department of Fisheries, Ministry of Fisheries and Livestock. The Government of the People’s Republic of Bangladesh, Dhaka, Bangladesh, 2013.
  5. Hossain MT. Profitability analysis of fish farms in mymensingh. Euro J Bus Manag. 2014; 6: 273-279.
  6. Statistical Yearbook of Bangladesh, Bangladesh Bureau of Statistics, Ministry of Planning, Government of the People’s Republic of Bangladesh, Dhaka, Bangladesh, 2014.