Research Article
Analysis of Production Capacity, Profitability, and Constraints in The South African Aquaculture Industry: Case of Gauteng Province Food Fish Aquaculture
Abstract
Gauteng province’s aquaculture was grossly underdeveloped and very little was known about its profitability and the possible constraints faced by its operators. Hence, this study was conducted to assess the production capacity, and profitability of existing aquaculture projects and to identify the constraints responsible for the underdevelopment of the industry in the province. To achieve these, data was collected from five fish farms located in the province using structured questionnaires and interviews. Gross margin analysis and gross profit margin ratio were used to determine the profitability of aquaculture production. The fish farmers in the study used 36% of the capacities of the established aquaculture projects leading to lower tonnage of fish per cycle of production in all the farms. This is an indication of the underutilization of the production capacities of the established fish farms. The profit margins were greater than 40% in all the projects surveyed, proof that aquaculture has good potential as a business enterprise in the province. However, the study identified several constraints which include lack of skilled workforce, poor access to funding, and lack of established input suppliers within the province as being responsible for the underdevelopment of the sector.
References
- Adeleke B, Robertson-Andersson D, Moodley G, Taylor S. 2021. Aquaculture in Africa: A comparative review of Egypt, Nigeria, and Uganda vis-a-vis South Africa. Reviews in Fisheries Science & Aquaculture. 29(2):167-197. doi: 10.1080/23308249.2020.1795615
- An NTH. 2012. Profitability and technical efficiency of black tiger shrimp (Penaeus monodon) culture and white leg shrimp (Penaeus vannamei) culture in Song Song Cau district, Phu Yen province, Vietnam. [Master’s Thesis]. University of Tromso and Nha Trang University. 56 p.
- Bime MJ, Fouda TM, Mai Bong JK. 2014. Analysis of the Profitability and Marketing Channels of Rice: A Case Study of Menchum River Valley, North-West Region, Cameroon. Asian Journal of Agriculture and Rural Development. 4(6):352-360. doi: 10.22004/ag.econ.198416
- Boyd CE, D'Abramo LR, Glencross BD, Huyben DC, Juarez LM, Lockwood GS, McNevin AA, Tacon AGJ, Teletchea F, Tomasso Jr JR, Tucker CS, Valenti WC. 2020. Achieving sustainable aquaculture: Historical and current perspectives and future needs and challenges. J World Aquacult Soc. 51(3):578-633.doi: 10.1111/jwas.12714
- Britz P. 2015. The history of South African inland fisheries policy with governance recommendations for the democratic era. Water SA. 41(5):624-632. doi: 10.4314/wsa.v41i5.05
- Britz PJ, Lee B, Botes L. 2009. 2009 AISA Aquaculture Benchmarking Survey: Primary Production and Markets; [cited 2022 Sept 15]. Available from https://www.soundinteraxions.co.za/2009AISABenchmarkingSurveyFINAL.pdf.pdf
- Britz P, Venter S. 2016. Aquaculture Review: South Africa; [cited 2022 Sept 15]. https://saimi.co.za/site/uploads/resource/spotlight_on_africa_at_world_aquaculture_2017.pdf
- DAFF. 2013. legal guide for the aquaculture sector in South Africa. https://www.dffe.gov.za/sites/default/files/Pdf-Files/guidelines-and-policies/firstedition2013september_legalguidefor_aquaculturesectorinsouthafrica.pdf
- DAFF. 2018a. Department of Agriculture, Forestry and Fisheries. Abalone feasibility study; [cited 2022 Sept 15]. https://www.dffe.gov.za/sites/default/files/reports/feasibilitystudy_abalone2018.pdf
- DAFF. 2018b. Nile and Mozambique Tilapia Feasibility Study Final Report – 2018; [cited 2024 April 2]. https://www.dffe.gov.za/sites/default/files/reports/feasibilitystudy_nileandmozanbiquetilapia.pdf DAF. 2019. Aquaculture Market Value Chain Profile_2019.pdf. [cited 2023 June 11]. Available at http://webapps.daff.gov.za/AmisAdmin/upload/Aquaculture%20Market%20Value%20Chain%20Profile_2019.pdf
- Dlamini S, Tesfamichael SG, Shiferaw YA, Mokhele T. 2022. Socio-demographic determinants of place attachment in Gauteng, South Africa, using partial proportional odds models. GeoJournal. 87:35-51.doi: 10.1007/s10708-020-10240-1
- Edwards P, Zhang W, Belton B, Little DC. 2019. Misunderstandings, myths and mantras in aquaculture: its contribution to world food supplies has been systematically over reported. Marine Policy. 106:1-9.doi: 10.1016/j.marpol.2019.103547
- FAO, 2011. Private Standards and Certification in Fisheries and Aquaculture: Current Practice and Emerging Issues. Food and Agricultural Organization of the United Nations. Retrieved on 23/12/2023 from: http://www.fao.org/docrep/013/i1948e/i1948e.pdf
- FAO. 2020. The State of World Fisheries and Aquaculture 2020. Sustainability in action. Rome.doi.org/10.4060/ca9229en
- GCIS. 2004. The Government Communication and Information System. South Africa Yearbook 2003/04. Yeoville: STE Publishers. Report No.: 57-40609.
- GCRO. 2016. The Gauteng City-Region Observatory. Quality of life survey IV (2015/16); [cited 2022 Sept 15]. Available from https://gcro.ac.za/research/project/detail/quality-of-life-survey-iv-2015/
- Hecht T, Uys W, Britz PJ. 1988. Culture of sharptooth catfish, Clarias gariepinus in southern Africa. Pretoria: the National Programme for Aquaculture Research. Report No.: 153.
- Kamangira A, Singini W, Kasulo V, Jere WL, Kapute F. 2014. Profitability and consumer preference of pond raised fish among fish farmers and consumers in Northern Malawi. Paper presented at: the Fourth Biennial Regional Conference; Maputo, Mozambique.
- Kaminski AM, Genschick S, Kefi AS, Kruijssen F. 2018. Commercialization and upgrading in the aquaculture value chain in Zambia. Aquaculture. 493:355-364.doi: 10.1016/j.aquaculture.2017.12.010
- Kirchherr J, Charles K. 2018. Enhancing the sample diversity of snowball samples: Recommendations from a research project on anti-dam movements in Southeast Asia. PloS One. 13(8):1-17. doi: 10.1371/journal.pone.0201710
- Madibana MJ, Fouché CH, Mnisi CM. 2020. Challenges facing emerging aquaculture entrepreneurs in South Africa and possible solutions. Afr J Food Agric Nutr Dev. 20(6):16689-16702. doi: 10.18697/ajfand.94.18890
- Makiti Guides and Tours 2009. General Overview of Gauteng; [cited 2013 May 2]. Available from https://www.culturalguiding.com/Courses/GautengProvince/ProvinceOverview/GeneralOverviewofGauteng/1423.pdf
- Matlala MP. 2014. Economic Performance of Tilapia Farming in Southern China [Master’s Thesis]. Nanjing Agricultural University. 214 p.
- Moja Media., 2015. South African Weather & Climate. Retrieved on 10/11/2023 from: https://www.portfoliocollection.com/useful-info/south-africa-weather-and-climate
- Mwangi MH. 2007. A Comparative Economic Evaluation of Farming of three important Aquaculture Species in Kenya. A Project submitted to the United Nations University Fisheries Training Programme. 65p. available at: https://www.grocentre.is/static/gro/publication/55/document/henry07prfi.pdf
- Nkadimeng MV, Makombe G, Mapiye O, Mapiye C, Oluwatayo I, Dzama K., Mojapelo C, Mollel N, Ngambi J, Mautjana MH. 2021. A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. PloS One. 16(6):1-13.doi: 10.1371/journal.pone.0253657
- Ogundari K, Ojo SO. 2009. An examination of income generation potential of aquaculture farms in alleviating household poverty: estimation and policy implications from Nigeria. Turkish Journal of Fisheries and Aquatic Sciences. 9(1):39-45.
- Ortega-Cisneros K, Cochrane KL, Rivers N, Sauer WHH. 2021. Assessing South Africa’s Potential to Address Climate Change Impacts and Adaptation in the Fisheries Sector. Front Mar Sci. 8:1-20. doi: 10.3389/fmars.2021.652955
- Sambo AS, Abdulaziz K, Bada MM. 2021. Profitability analysis of small-scale fish farming in Zangon-Kataf Local Government Area of Kaduna State, Nigeria. Int J Agric Pol Res.doi: 10.15739/IJAPR.21.010
- Sebola MP. 2018. Financing emerging black farmers for agricultural development in South Africa: A wasteful and unworkable model for creating black farmers. The Journal for Transdisciplinary Research in Southern Africa. 14(1):1-7. doi: 10.4102/td.v14i1.555
- Siddiqa A, Shahroz MH, Barman BK, Ahmed MU, Chakraborty BK. 2018. Production economics and profitability analysis of aquaculture in Southwest Bangladesh. International Journal of Oceanography and Aquaculture. 2(6):1-9. doi: 10.23880/ijoac-16000156
- Stander H. 2007. The Sharptooth Catfish (Clarias gariepinus). [cited 2013 May 2]. http://www0.sun.ac.za/aquaculture/uploads/articles/Catfish Farming.pdf
Year 2024,
Volume: 10 Issue: 1, 1 - 8, 25.04.2024
Abstract
References
- Adeleke B, Robertson-Andersson D, Moodley G, Taylor S. 2021. Aquaculture in Africa: A comparative review of Egypt, Nigeria, and Uganda vis-a-vis South Africa. Reviews in Fisheries Science & Aquaculture. 29(2):167-197. doi: 10.1080/23308249.2020.1795615
- An NTH. 2012. Profitability and technical efficiency of black tiger shrimp (Penaeus monodon) culture and white leg shrimp (Penaeus vannamei) culture in Song Song Cau district, Phu Yen province, Vietnam. [Master’s Thesis]. University of Tromso and Nha Trang University. 56 p.
- Bime MJ, Fouda TM, Mai Bong JK. 2014. Analysis of the Profitability and Marketing Channels of Rice: A Case Study of Menchum River Valley, North-West Region, Cameroon. Asian Journal of Agriculture and Rural Development. 4(6):352-360. doi: 10.22004/ag.econ.198416
- Boyd CE, D'Abramo LR, Glencross BD, Huyben DC, Juarez LM, Lockwood GS, McNevin AA, Tacon AGJ, Teletchea F, Tomasso Jr JR, Tucker CS, Valenti WC. 2020. Achieving sustainable aquaculture: Historical and current perspectives and future needs and challenges. J World Aquacult Soc. 51(3):578-633.doi: 10.1111/jwas.12714
- Britz P. 2015. The history of South African inland fisheries policy with governance recommendations for the democratic era. Water SA. 41(5):624-632. doi: 10.4314/wsa.v41i5.05
- Britz PJ, Lee B, Botes L. 2009. 2009 AISA Aquaculture Benchmarking Survey: Primary Production and Markets; [cited 2022 Sept 15]. Available from https://www.soundinteraxions.co.za/2009AISABenchmarkingSurveyFINAL.pdf.pdf
- Britz P, Venter S. 2016. Aquaculture Review: South Africa; [cited 2022 Sept 15]. https://saimi.co.za/site/uploads/resource/spotlight_on_africa_at_world_aquaculture_2017.pdf
- DAFF. 2013. legal guide for the aquaculture sector in South Africa. https://www.dffe.gov.za/sites/default/files/Pdf-Files/guidelines-and-policies/firstedition2013september_legalguidefor_aquaculturesectorinsouthafrica.pdf
- DAFF. 2018a. Department of Agriculture, Forestry and Fisheries. Abalone feasibility study; [cited 2022 Sept 15]. https://www.dffe.gov.za/sites/default/files/reports/feasibilitystudy_abalone2018.pdf
- DAFF. 2018b. Nile and Mozambique Tilapia Feasibility Study Final Report – 2018; [cited 2024 April 2]. https://www.dffe.gov.za/sites/default/files/reports/feasibilitystudy_nileandmozanbiquetilapia.pdf DAF. 2019. Aquaculture Market Value Chain Profile_2019.pdf. [cited 2023 June 11]. Available at http://webapps.daff.gov.za/AmisAdmin/upload/Aquaculture%20Market%20Value%20Chain%20Profile_2019.pdf
- Dlamini S, Tesfamichael SG, Shiferaw YA, Mokhele T. 2022. Socio-demographic determinants of place attachment in Gauteng, South Africa, using partial proportional odds models. GeoJournal. 87:35-51.doi: 10.1007/s10708-020-10240-1
- Edwards P, Zhang W, Belton B, Little DC. 2019. Misunderstandings, myths and mantras in aquaculture: its contribution to world food supplies has been systematically over reported. Marine Policy. 106:1-9.doi: 10.1016/j.marpol.2019.103547
- FAO, 2011. Private Standards and Certification in Fisheries and Aquaculture: Current Practice and Emerging Issues. Food and Agricultural Organization of the United Nations. Retrieved on 23/12/2023 from: http://www.fao.org/docrep/013/i1948e/i1948e.pdf
- FAO. 2020. The State of World Fisheries and Aquaculture 2020. Sustainability in action. Rome.doi.org/10.4060/ca9229en
- GCIS. 2004. The Government Communication and Information System. South Africa Yearbook 2003/04. Yeoville: STE Publishers. Report No.: 57-40609.
- GCRO. 2016. The Gauteng City-Region Observatory. Quality of life survey IV (2015/16); [cited 2022 Sept 15]. Available from https://gcro.ac.za/research/project/detail/quality-of-life-survey-iv-2015/
- Hecht T, Uys W, Britz PJ. 1988. Culture of sharptooth catfish, Clarias gariepinus in southern Africa. Pretoria: the National Programme for Aquaculture Research. Report No.: 153.
- Kamangira A, Singini W, Kasulo V, Jere WL, Kapute F. 2014. Profitability and consumer preference of pond raised fish among fish farmers and consumers in Northern Malawi. Paper presented at: the Fourth Biennial Regional Conference; Maputo, Mozambique.
- Kaminski AM, Genschick S, Kefi AS, Kruijssen F. 2018. Commercialization and upgrading in the aquaculture value chain in Zambia. Aquaculture. 493:355-364.doi: 10.1016/j.aquaculture.2017.12.010
- Kirchherr J, Charles K. 2018. Enhancing the sample diversity of snowball samples: Recommendations from a research project on anti-dam movements in Southeast Asia. PloS One. 13(8):1-17. doi: 10.1371/journal.pone.0201710
- Madibana MJ, Fouché CH, Mnisi CM. 2020. Challenges facing emerging aquaculture entrepreneurs in South Africa and possible solutions. Afr J Food Agric Nutr Dev. 20(6):16689-16702. doi: 10.18697/ajfand.94.18890
- Makiti Guides and Tours 2009. General Overview of Gauteng; [cited 2013 May 2]. Available from https://www.culturalguiding.com/Courses/GautengProvince/ProvinceOverview/GeneralOverviewofGauteng/1423.pdf
- Matlala MP. 2014. Economic Performance of Tilapia Farming in Southern China [Master’s Thesis]. Nanjing Agricultural University. 214 p.
- Moja Media., 2015. South African Weather & Climate. Retrieved on 10/11/2023 from: https://www.portfoliocollection.com/useful-info/south-africa-weather-and-climate
- Mwangi MH. 2007. A Comparative Economic Evaluation of Farming of three important Aquaculture Species in Kenya. A Project submitted to the United Nations University Fisheries Training Programme. 65p. available at: https://www.grocentre.is/static/gro/publication/55/document/henry07prfi.pdf
- Nkadimeng MV, Makombe G, Mapiye O, Mapiye C, Oluwatayo I, Dzama K., Mojapelo C, Mollel N, Ngambi J, Mautjana MH. 2021. A gross margin analysis for Nguni cattle farmers in Limpopo Province, South Africa. PloS One. 16(6):1-13.doi: 10.1371/journal.pone.0253657
- Ogundari K, Ojo SO. 2009. An examination of income generation potential of aquaculture farms in alleviating household poverty: estimation and policy implications from Nigeria. Turkish Journal of Fisheries and Aquatic Sciences. 9(1):39-45.
- Ortega-Cisneros K, Cochrane KL, Rivers N, Sauer WHH. 2021. Assessing South Africa’s Potential to Address Climate Change Impacts and Adaptation in the Fisheries Sector. Front Mar Sci. 8:1-20. doi: 10.3389/fmars.2021.652955
- Sambo AS, Abdulaziz K, Bada MM. 2021. Profitability analysis of small-scale fish farming in Zangon-Kataf Local Government Area of Kaduna State, Nigeria. Int J Agric Pol Res.doi: 10.15739/IJAPR.21.010
- Sebola MP. 2018. Financing emerging black farmers for agricultural development in South Africa: A wasteful and unworkable model for creating black farmers. The Journal for Transdisciplinary Research in Southern Africa. 14(1):1-7. doi: 10.4102/td.v14i1.555
- Siddiqa A, Shahroz MH, Barman BK, Ahmed MU, Chakraborty BK. 2018. Production economics and profitability analysis of aquaculture in Southwest Bangladesh. International Journal of Oceanography and Aquaculture. 2(6):1-9. doi: 10.23880/ijoac-16000156
- Stander H. 2007. The Sharptooth Catfish (Clarias gariepinus). [cited 2013 May 2]. http://www0.sun.ac.za/aquaculture/uploads/articles/Catfish Farming.pdf
There are 32 citations in total.
Details
| Primary Language | English |
|---|---|
| Subjects | Pisciculture |
| Journal Section | Research Article |
| Authors | |
| Publication Date | April 25, 2024 |
| Published in Issue | Year 2024Volume: 10 Issue: 1 |
