Small holder fish production Nigeria (BO-27.04-002-006)

The project investigated the suitability of natural waters for cage farming of tilapia; analyzed the feasibility of local feed production and identified sustainable business models to link small scale fish farmers to local markets.  The price cost analysis revealed that feeds constitute more than 70% of the production costs in three commercial tilapia farms.  The quality of fingerlings was also variable and determined the productivity which greatly depended on the production site and the management.  Currently, tilapia cage farming in lagoons is not economically viable and a better site selection and adapted tilapia strains are needed for brackish water fish farming.  The break-even point for the farm in a freshwater dam will be reached after 10 to 13 years, with an internal rate of return (IRR) of 6.8%.  At the condition that the license to farm natural waters is given by the state authorities, cage farming in dams and reservoirs can be profitable.  Many dams have suitable water quality and are community controlled which reduces the risk of theft and gives the possibility to organize smallholders into cooperatives.

In order to sustainably produce fish at affordable prices and to make the cage farming industry profitable, it is strongly advised to promote the local production of tilapia feeds at prices below the import prices.  Research is needed to assist the site selection and adapted strains for cage farming particularly in lagoons and to define the carrying capacity of natural waters for a maximum number of cages in relation to water characteristics and feeds.