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Add To Calendar 25/06/2025 15:40:0025/06/2025 16:00:00Africa/CairoWorld Aquaculture Safari 2025PROFITABILITY OF SMALL-SCALE AQUACULTURE: A TALE OF THE UNPROFITABLE PROFITSMeeraThe World Aquaculture Societyjohnc@was.orgfalseDD/MM/YYYYanrl65yqlzh3g1q0dme13067

PROFITABILITY OF SMALL-SCALE AQUACULTURE: A TALE OF THE UNPROFITABLE PROFITS

Olanrewaju Femi Olagunju*, Dadi Kristofersson, Tumi Tómasson and Theódór Kristjánsson

 

*Federal Department of Fisheries and Aquaculture, Abuja, Nigeria; Faculty of Economics, School of Social Sciences, University of Iceland, Reykjavík, Iceland; olagunjulanre@gmail.com, ofolagunju@hi.is.

 



Average costs increase with scale of operation with feed cost being the highest across all operational scale (Table 1). While the overall results suggest that aquaculture is generally profitable, deeper analysis highlights the multifaceted nature of small-scale profitability. Micro-scale farmers reported positive net profit, but their ROI, profit per kg, and OPM were significantly lower than those of other groups and fell well below the overall relative average (Table 2). These results indicate that, despite making a profit in absolute terms, the margins are minimal and unlikely to sustain long-term viability. Supporting this, survey responses show that many farmers exiting the industry cite high production costs or a lack of meaningful profit as key reasons.

The findings underscore the importance of scale-specific analysis and the use of multiple profitability indicators in assessing economic performance. To ensure the sustainability of the aquaculture sector, especially for the most vulnerable operators, there is a clear need for targeted policy support and programme interventions aimed at improving the profitability of micro- and small-scale producers.