PRODUCTIVITY AND PROFITABILITY OF AQUACULTURE ENTERPRISES IN UGANDA SOUTH EASTERN AGRO-ECOLOGICAL ZONE

C. C. Ondhoro*1, B. Owoyesigire1, R. Gidoi1, L. Owere1, G. K. Kubiriza2, G. Atukunda3, M. Turyashemererwa3, J. Naluwairo3 and G. Magezi3
1Buginyanya Zonal Agricultural Research and Development Institute P.O Box 1356 Mbale, Uganda
2Department of Zoology, Entomology and Fisheries, Makerere University, P.O.Box 7062 Kampala, Uganda.
3National Fisheries Resources Research Institute, Uganda
Corresponding author*: occonstantine88@gmail.com

Enterprise analysis of aquaculture in Uganda is necessary to assess the economic viability of the sector and provide guiding information to investment. This analysis was performed to establish the productivity and profitability of aquaculture production in south eastern agro-ecological zone of Uganda (U'SEAEZ). Data were obtained from a census database of Buginyanya ZARDI that was earlier generated through enumeration of aquaculture establishments, using hand delivered questionnaire, on-site and laboratory analysis of water quality parameters of the existing systems. Production, species cultured and related factors were analyzed using one-way analysis of variance (ANOVA), Chi-square test and regression models using SPSS and STATA versions 17 and 14 respectively. Mean productivity (χ 2 =1.2223; df =6; p = 0.976) ranged from 0.301 to 2 kgm-3, mainly in earthen ponds.  Production decreased from over 500mt in 2010 to about 100mt in 2014 and increased over 10 fold in 2015. Nile tilapia, African catfish were the most cultured fish species while the Mirror carp was cultured in lower scale by only 5% of the farmers. Unit fixed cost was higher (11,175.71/= about $ 3.19) in the 0.301 kgm-3, than in 2 kgm-3, that was 6,141.67/= ($1.75) while variable cost per kg fish was higher (5,940; $1, 70) at carrying capacity of 2kgm-3 than at 0.301kgm-3 which was 5,323.59 ($1.52). Total cost per kilogram was higher (54814.95; $15.66) at 0.301kgm-3 than 6,041 ($1.73) in the 2kgm-3 respectively. Production was profitable at 2 kgm-3 (1,959.20/= ($0.52kg-1. Production and profitability were mainly influenced by farmers' knowledge of fish nutrition (χ2 =46.3534; P = ≤ 0.001), site suitability F (=2, 82) = 8.12; P= 0.001, water quality and carrying capacity of the systems. Overall, aquaculture enterprise in U'SEAEZ is a profitable venture at carrying capacity ≥2kgm-3, yielding ROI of 32%.

Keywords:  aquaculture production, carrying capacity, profitability, production factors