Economics Analysis and Determinants of Profitability of Catfish Farming in Kaduna North Local Government Area, Kaduna State, Nigeria

Abstract

This study provides an economic analysis of the cost structure and how it influences the profitability of catfish farming in Kaduna North Local Government Area. The research specifically examines the determinants of profitability, but lays emphasis on the composition and behavior of production costs, categorizing them into fixed and variable costs, and ultimately tries to ascertain their effect on overall profitability. To this end, this study assessed the economics of catfish farming in Kaduna North Local Government Area of Kaduna State, Nigeria. A total of 60 table-sized catfish farmers were randomly selected from the list of Agricultural Development Program (ADP) contact fish farmers in the study area and interviewed through a structured questionnaire. Descriptive statistics, budgetary analysis, and a multiple regression model were employed in analyzing the data. Results revealed that table-sized catfish farmers were at most 40 years old (55.0%), male (70.0%), married (68.3%), had between 5-9 years of experience in catfish farming (58.3%), with no access to farm credit (61.7%). The cost of feeds per kg of table-sized catfish was estimated at N238.39, while the seed fingerling cost N6.56, constituting 80.6% and 2.2% of the total cost per kg of catfish produced. The labour cost per kg of the fish was N10.2, constituting 3.4% of the total cost per kg of the fish. The profitability statistics, including Rate of Return on Investment (RRI) and Profitability Index (PI), were estimated at 35.1% and 26%. The regression analysis shows that the estimated F-value of 16.578 was significant at 1% level, with an R2 estimated at 0.565, indicating both the fitness of the models and data captured, which all indicated that table-sized catfish farming is profitable in the study area. It is recommended that catfish farmers in the study area pay special attention to the cost of feeds, as it could be critical to the profitability of the fish farming enterprises.