ABSTRACT
Conventional feed, which uses fishmeal is expensive and expected to be limited in the future due to potential decline in capture fisheries. Researchers have suggested the use of insects such as the Black Soldier Fly larvae (BSFL) as an alternative to fishmeal in fish feed. The major objective of the study was to ascertain the financial viability of BSFL meal and BSFL- based fish feed production and fish farmer’s acceptance of BSFL-based fish feed. Indicators such as Net Present Value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) were used for the financial viability analysis. A sample of 150 farmers were interviewed and a three point Likert scale used to solicit farmer’s responses to perception statements. The bidding game and the Tobit regression model were used to determine the maximum amount farmers were willing to pay and factors influencing the willingness to pay (WTP) amount respectively. Finally, a partial budget was used to estimate the gains made by fish farmer from substituting conventional feed with BSFL-based feed. The results of the study showed that the production of BSFL meal is viable with NPV of GH¢5.7m, BCR of 2.4, IRR of 32%. The production of BSFL-based fish feed is viable with NPV of GH¢8.1m, BCR of 1.95 and IRR of 30%. There was a high degree of acceptance amongst fish farmers as farmers perceived BSFL feed to be beneficial and were willing to pay an average of GH¢ 186.00/20Kg for the BSFL-based feed. The factors affecting WTP were marital status, annual income and awareness of insects as feed. A gain of GH¢6.53 can be made by fish farmers in replacing 14.6kg of conventional feed with 14.6 kg of BSFL-based fish feed. The study recommended the sensitization of entrepreneurs on the profitability of BSFL meal and BSFL- based fish feed production in order to encourage investment. Also, potential entrepreneurs should recognise the mean WTP amount when making pricing decisions in order to penetrate the market and allow fish farmers to make savings from substituting conventional fish feed with BSFL-based fish feed.
CHAPTER ONE INTRODUCTION
Globally, fish production has increased steadily in the last five years from 145.9 million tonnes in 2009 to 167.2 million tonnes in 2014 (FAO, 2016). Capture fisheries remained fairly stable with a minimal increase from 90.2 million tonnes to 93.4 million tonnes within the five years. This is because the world’s oceans have been exploited to its maximum potential and beyond and currently 30% of fish stocks are fished at unsustainable levels (FAO, 2014). The increase in fish production has been mainly due to increase in aquaculture’s contribution to fish production from 55.7 million tonnes to 73.8 million tonnes (FAO, 2014). Fish production has increased in response to increased demand for fish with an increase in consumption from an average of 9.9 kg in the 1960’s to 19.2kg in 2012. This is as a result of population growth, urbanisation and increased income (FAO, 2014). To reduce the pressure on the world’s oceans and seas, aquaculture is expected to expand further to meet growing demand.
In Ghana, the fish production industry is a steadily growing sector that contributes significantly towards GDP and employment. This steady increase is as a result of increase in the production of aquaculture from 19,091 metric tonnes in 2011 to 44,515 metric tonnes in 2016 (MoFAD, 2016). On the other hand, capture fisheries production has declined from about 402,000 metric tonnes in 2010 to 370,000 metric tonnes in 2014 (MoFAD, 2016). The growing demand for fish protein in Ghana has motivated active development of aquaculture both at the commercial and peasant levels. The contribution of aquaculture production to the Ghanaian economy has grown over the past decade, with an annual average growth rate of 12.4% (FAO, 2012). Aquaculture is seen as an important foreign exchange earner,
contributing to food security as well as providing much needed employment to many people in Ghana.
Most aquaculture operators (fish farmers) in Ghana use earthen ponds and rely on mother nature while others supplement with agricultural by-products. Other systems of culture include the cages, pens and raceway systems, which are not commonly practised nationwide (Awity, 2005). In terms of numbers, cages come after ponds. For instance, in 2012, a total of 2, 278 cages whilst 4, 749 ponds were recorded in the country (FD, 2013). However, fish production during the same 2012 year was higher in cages than in ponds. Production from ponds was 1, 771.50 and that of cages was 24, 248.50 metric tonnes.
Traditionally, aquaculture depends capture fisheries that is fish that has been captured from the sea such as pout, capelin, sand eel, and mackerel amongst others for feed supplement namely fishmeal (Olsen & Hasan, 2012). Fishmeal is a ground solid product obtained from removing the water and oil from fish or fish waste. Fishmeal has been an ideal protein supplement for fish feed due to its high protein content, balanced amino acids, vitamins and minerals, fatty acid content and cheap price (Gatlin et al., 2007). The use of fishmeal as the main protein supplement to fishmeal has been touted as unsustainable and expensive. Around 10% of global fish produced is reused as fishmeal and most of this is used in aquaculture (FAO, 2012). This is unsustainable since capture fisheries, which is the main source of fishmeal is declining in the face of increasing demand. As a result, Researchers have tried various feed supplements to replace fishmeal such as bean meal, soybean meal, sunflower meal and other agricultural products. However, these are resources with a lot of competing uses both by humans and animals. As another alternative, researchers are currently revisiting the use of insects, specifically the use of black soldier fly Larvae (BSFL) in aquaculture feed.
This is known to be able to replace fishmeal successfully in aquaculture diet and is ideal for industrial scale production (Burtle, 2008; Diener et al., 2011).
The black soldier fly is a non-pest fly usually found in the tropics. It is originally a native of temperate zones in America but has moved to other temperate regions around the world including Africa (Leclercq, 1997). Its larvae feeds on organic waste reducing the waste by 50% and converting it into biomass rich in protein and fat. Various research has suggested that the black soldier fly larvae meal, that is the larvae of the black soldier fly when grounded into meal, can successfully replace fishmeal in the diet of fish. Research has shown successful feeding trials of fishmeal replacement by BSFL meal in rainbow trout, blue tilapia and channel catfish (Bondari & Sheppard, 1987; Stamer et al., 2014; St-Hilaire et al., 2007).
Problem Statement of the Study
Feed is pertinent to the success of aquaculture development. It accounts for 60 to 70% of total cost of production (FAO, 2012). With increasing demand for fish and decline of capture fisheries, fish production in Ghana is shifting to commercial high intensive fish farming. This means that the demand for commercial formulated feed is rising. However, the sector has not reached its full potential since it is constrained by high costs of feed (Hiheglo, 2008). In 2016, Ghana’s aquaculture production of 44, 919 tonnes fell short of the 100,000 metric tonnes projected in Ghana’s FASDEP report (MoFAD, 2011)
Fishmeal is the main source of protein in formulated fish feed and it makes up to 20- 60% of fish diets (Glencross et al., 2007; Watanabe, 2002). The continuous use of fishmeal for aquaculture production is however not sustainable, currently since water bodies are heavily exploited in order to feed the fishmeal industry (FAO, 2012). In recent times due to
increasing pressure on water bodies, tightened controls and increased quotas on world fisheries, the supply of fishmeal has declined whilst the demand for fish has increased, resulting in higher prices (FAO, 2012). This has caused fish feed to be expensive on the market since dietary protein is the major and most expensive component of formulated fish feeds (Wilson, 2002). For instance, the cost of fish feed on the international market increased by 73 % from 2005 to 2008 due to increase in fishmeal prices (FAO, 2012).
