RP-Department of Agricultural Resource Management

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Browsing RP-Department of Agricultural Resource Management by Subject "Aquaculture"

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    Analysis of the use of credit facilities by small-scale fish farmers in Kenya
    (Springer, 2010) Kwamena, K. Quagrainie; Ngugi, Charles C.; Amisah, Stephen
    The government of Kenya encourages aquaculture development by offering credit facilities through the government agricultural finance institution, Agriculture Finance Corporation. Nevertheless, the level of credit use in fish farming is very low. Access to credit is among several factors that affect farmers’ decision of whether to use particular technology or services. The study examined factors that affected the decision of fish farmers in Kenya to utilize credit facilities in fish production using a probit model. The analysis suggests that farmers in the Western province will have a 19% more probability of using credit facilities for their fish farming operations than farmers from the other provinces such as the Rift Valley, Central, and the Eastern province. The effect of tilapia sales on the probability of credit use by fish farmers is more than three times that of catfish sales. Total pond acreage owned by fish farmers had a positive effect on credit use but the effect was very small and negligible. The level of fish farmers’ use of credit facilities is very low, and there is probably the need to educate farmers on credit use and for the government agricultural lending agency and other commercial agricultural lenders to invest in this enterprise. Kenyan lending institutions have financed traditional agricultural enterprises, and with the growing production of farmed fish, more research is needed to document the aquaculture business model to assist in assessing the profitability potential in aquaculture.
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    Application of Porter’s Framework to Assess Aquaculture Value Chain in Kenya
    (Rural Outreach Program, 2015) Ndanga, L.Z.B.; Quagrainie, K.; Ngugi, C.C.; Amadiva, J.
    Aquaculture (fish farming) is an agricultural as well as fisheries activity, competing with other agricultural enterprises and artisanal fisheries for the same basic inputs. Therefore, aquaculture is subject to the same basic resource constraints that traditional agricultural activities face. The literature suggests that competition within a value chain is between chains and not individual actors. This study examined the aquaculture value chain in Kenya, assessing the entire value chain, and determining the appropriate points to participate in economically sustainable ways. The competition analysis assessed attractiveness at each stage of the chain by reviewing the rivalry in terms of five competitive forces within the Kenyan aquaculture industry; competitive rivalry, the threat of new entrants, bargaining power of suppliers, threat of substitutes and bargaining power of buyers. The aquaculture industry in Kenya is assessed using Porter’s model with marketing mix (Ps) and factor evaluation matrix (FEM). Input supply is found to be the most difficult value chain function in which to participate because it requires relatively large initial capital outlays and additional operating funds. Although fish farming is the driving function of the entire value chain, the significant capital investments required could be a barrier to entry. Fish farming has largely benefited from the support of government, NGOs and other regional development initiatives. The study established that the easiest sector to enter (in terms of low barriers to entry and exit and low labour requirements) is the fish marketing sector. This chain function provides the most flexibility and liquidity to participants, whether as full-time or part-time occupation. Overall, participation in the Kenya aquaculture value chain will depend on the prospective entrant’s level of experience, time, capital commitment and financial goal (long term stability versus liquidity). Aquaculture requires a long term commitment and high capital outlays, as well as persistence, and should therefore be considered by those looking for long term stability and not short term benefits. Established fish farmers may consider diversifying into input supply and value addition as well.