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ECONOMICS OF CULTURED FISH PRODUCTION IN OSUN STATE, NIGERIA

Publication Type: Journal Article

Publication Year: 2026

Author(s): Olatunji, Rachel Femi, Baba, Kenneth C. and Olorunsanya, Eniola Oluwatoyin

Journal Name: (IJAEMD)

ABSTRACT

Cultured fish farming plays an important role in improving food security, generating income, and reducing Nigeria’s dependence on fish imports. However, variations in production costs, profitability, and technical efficiency continue to constrain the performance of fish farming enterprises. This study examined the socioeconomic characteristics, costs and returns, technical efficiency, and determinants of technical inefficiency among cultured fish farmers in Osun State, Nigeria. A multistage sampling technique was used to select 120 fish farmers from six Local Government Areas across the three Agricultural Development Programme (ADP) zones. Primary data were collected using structured questionnaires and analysed using descriptive statistics, cost-return analysis, and the stochastic frontier production function. The findings showed that farmers were predominantly within the economically active age groups, with relatively high levels of education and farming experience, although access to formal credit remained limited. Cultured fish production was profitable across all LGAs, with total production costs ranging from ₦1,779.67/kg to ₦2,836.76/kg and net farm income ranging from ₦963.58/kg to ₦1,721.47/kg. Benefit-cost ratios varied from 1.34 to 1.97, confirming the economic viability of the enterprise, while feed constituted the largest variable cost component.

The stochastic frontier estimates indicated that pond rent, labour, feed quantity, fingerlings, and depreciation significantly influenced fish output. The mean technical efficiency was 81.7%, implying that farmers could increase output by about 18.3% by minimizing technical inefficiencies using existing resources and technology. The study concludes that cultured fish farming in Osun State is economically viable but recommends improved access to affordable credit, quality production inputs, extension services, and better resource management to enhance productivity and sustainable aquaculture development

Keywords: Cultured fish farming; Costs and returns; Technical efficiency; Stochastic frontier analysis; Osun State, Nigeria