Economic Profitability of Tilapia Production in Malawi and China

Abstract

This study was conducted to analyse the economic profitability of tilapia farming in Malawi and China, using data from 20 farmers both in Malawi and Guangxi Province, People's Republic of China. Application of enterprise budget for profitability analysis showed that profits for tilapia were significantly different (p ≤ 0.05) between the two countries with Malawi registering a bigger benefit-cost ratio of 1.61 than 1.20 for China. However, 3 farms in Malawi posted losses during the production cycle. Breakeven price was $2.00 for Malawi against $1.26 for China. Sensitivity analysis was conducted to evaluate the influence of changes in price, feed, labour and fixed cost on net profit. Holding all conditions constant, sensitive coefficient for price was relatively high for Malawian farms at 2.63 followed by feed, labour and fixed cost at-0.70,-0.36 and-0.32 respectively. Similarly for China, price showed the highest elasticity of 5.96 compared to-3.65,-0.67,-0.27 of feed, fixed cost and labour respectively. For the farms that did not make profits, application of the shutdown rule indicated that the farms were making surplus gross margins hence could continue operating (Price ≥ Average Variable Cost; and Revenue ≥ Total Variable Cost). The present study has demonstrated that differences in input intensification result in different gross revenues since yield is a function of stocking density, feed input, labour and other production inputs. Irrespective of the intensity of input use, farmers still make profits, thus tilapia production is a viable enterprise in both countries.

Economic and financial risks of commercial tilapia cage culture in a neotropical reservoir

“…Production cost studies with O. niloticus aquaculture in net cages in Brazil showed 71% and 73% feed costs [ 38 , 39 ]. Phiri and Yuan [ 13 ] studied tilapia production in China and observed feed costs to represent 74% of total production costs, similar to that presented in this study for all aquaculture projects evaluated. Such proportions may fluctuate depending on the calculated costs, inclusion or exclusion of expenses within the activity, and the productive performance of each production cycle.…”

“…Gathering data and information for assessing technical feasibility, profitability, and financial risks for aquaculture activities requires a deep knowledge of each step of the production system, productive performance indicators of the target species, and expenses of inputs necessary for production [ 12 , 13 ]. These factors enable the measurement of fixed and variable costs within an aquaculture activity.…”

Assembling the superior biofloc tilapia strains for industry

“…It is equivalent or better to the results of other studies. Phiri & Yuan (2018) obtained information that the BC ratio of intensively cultivated tilapia in China and Malawi is 1.21 and 1.61, with profit margins of 20.16% and 61.36%, respectively. The average total cost production is dominated by feed i.e., up to 86%.…”

Computing Actors Roles into CSR Programs of Agriculture and Economic Development; An Evidence from Tribal Community of Teluk Bintuni Regency, West Papua

“…In many tropical and developed countries, the involvement of stakeholders [8][9] is undoubted real. Some play a vital role in controlling the powers [10][11], resources [12], and access [13] even controlling the threat [9]. Examples shared by CSR programs for farmers in Uganda [14].…”