TOPIC: SUSTAINABILITY AND PROFITABILITY OF

AQUACULTURE BUSINESS USING AGRICULTURAL WASTES

IN THE NIGER DELTA

1.1 Background to the Study

Food and Agriculture Organization of the United Nations (FAO), the

International Fund for Agricultural Development (IFAD), the United Nations

Children’s Fund (UNICEF), the World Food Programme (WFP) have expressed

their concern over the state of food security and nutrition in the world. It is

expected that the world population would have reached 9 billion by the year

2050 (FAO, IFAD, UNICEF, WFP, 2023). Their report estimated that between

691 and 783 million people in the world faced hunger in 2022. Furthermore, it

was projected that almost 600 million people will be chronically undernourished

while 3.1 billion people in the world or 42% were unable to afford a healthy diet

in 2021. The challenge of feeding this futuristic population growth lies in

sustainable aquaculture.

Fish farming is a branch of aquaculture that involves the domestication and

rearing of various species of fish (Adelesi and Baruwa, 2020). This practice

allows for the feeding, breeding, growing, and harvesting of fish in a well-

planned and controlled environment (Sambo et al., 2021). Fish play significant

roles in nourishing the world’s population due to their high nutritive quality as

well as providing essential minerals, micronutrients and fatty acids (Alemayehu

& Tamiru, 2019). Fish also contribute a high amount of animal protein to

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human diets as 15 to 20% of human animal protein consumption come from

aquatic animals and they serve as important supplements in diets that lack

essential vitamins and minerals (FAO, 2018). As at 2019, Nigeria’s per capita

daily protein intake (45.4 g) was lower than both the Food and Agriculture

Organization (FAO) recommended minimum per capita daily protein intake

(53.8 g) and the global daily intake (64g), indicating that the country is faced

with protein deficiency (Metu et al., 2016; Akerele et al., 2017; Protein

Challenge, 2020).

Currently, Nigeria's annual demand for fish is about 1.4 million tonnes, while

domestic production is about 780,000 tonnes (Ikechukwu et al., 2023) which

implies the deficit is being bridged through importation. According to Sambo et

al. (2021), to cover this deficit, Nigeria needs at least one million tons of fish to

feed its population annually. Nyong (2021), asserted that there is a need to

increase production and reduce fish imports into the country to enable economic

growth in Nigeria.

One of the ways by which sustainable aquaculture can thrive in the country is

through cost reduction of fish feeds. This is because fish feed represents the

highest production cost element, accounting for more than 80 percent of total

costs (Subasinghe et al., 2021) which results in poor profitability of the

business. As agricultural industry inevitably generates waste of various types.

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According to Kour et al. (2018), the major objective of utilizing wastes in fish

farming system is to recycle different nutrient elements present in such waste.

Therefore, repurposing or transforming waste into functional forms, such as fish

feed, is a sustainable alternative for managing agricultural waste as well as

providing the much-needed fish feed alternative. Farmers in their business

model have been incorporating agricultural waste into fish feed formulation

with the intention to cut-down on cost of fish production. Consequently, it has

potential to provide economic, social, and environmental benefits (Ramírez-

Carmona et al., 2022). Various agricultural wastes can be processed and utilised

as a fish meal (FM) or soybean meal replacement as a protein source. Feeding

trials have been conducted using wastes with remarkable success (Kour et al.,

2018). FM has long been a highly sought-after ingredient for aquafeed, farm

animal feed and pet food, resulting in the skyrocketing commodity price

(Frempong et al., 2019; Galkanda-Arachchige et al., 2020). Hence,

incorporating agricultural waste as fish feed, is one of many ways to sustain the

aquaculture industry, obtained sustained profit while managing agricultural

waste (Ikechukwu et al., 2023).

This research therefore seeks to explore sustainability and profitability of

aquaculture business using agricultural waste in the Niger Delta.

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1.2 Statement of the Problem

It is not uncommon to find farmers feeding animal with agricultural waste. This

is one of the ways to manage agricultural waste and can be regarded as circular

economy. However, competition for the use of conventional feedstuff in Nigeria

for human and livestock consumption coupled with low domestic productivity

in agriculture have led to significant escalations in feed prices. These together

with general shortage of high-quality protein source ingredients such as

fishmeal and soybeans warrant the need for research on alternative feedstuff,

preferably on those feed materials that are not in demand by humans for food.

Several studies have been done in Nigeria to replace fishmeal with different

waste ingredients (Adeyemi et al., 2020). Common amongst them are moringa

leaves, cassava leaves and maggots [black solider fly larvae (BSFL)]. In

addition, microalgae have also been incorporated into fish feed with some

promising results. Different results have been obtained ranging from poor to

very good animal response in terms of growth (Adeyemi et al., 2020). However,

the best available ingredients were cereal bran, soybean meal, cottonseed meal,

cassava chips, palm kernel cake, soybean and maize. These best available

ingredients increase the cost of fish production. Therefore, substituting FM with

alternative ingredients, such as agricultural waste, is one of the many ways to

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sustain the aquaculture, attain effective production cost, minimize waste and

attain industrial sustainability and profitability.

1.3 Aim and Objectives of the Study

The main aim of this study is to explore the sustainability and profitability of

aquaculture business using agricultural waste in the Niger Delta. The specific

objectives are:

i. Explore the waste types incorporated into fish feeds in the study area

ii. Determine the relationship between the biodegradable wastes and

sustainability and profitability of fish production in the study area.

iii. Determine the relationship between biodegradable wastes profitability of

fish production in the study area.

iv. Determine the relationship between social sustainability and profitability

of fish production in the study area.

v. Determine the relationship between technical sustainability and

profitability of fish production in the study area.

1.4 Research Question

This research is designed to answer the following questions:

i. What are the waste types incorporated into fish feeds in the study area?

ii. Is there relationship between environmental sustainability and

profitability of fish production in the study area?

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 iii. Is there relationship between economic sustainability and profitability of

fish production in the study area?

iv. Is there relationship between social sustainability and profitability of fish

production in the study area?

v. Is there relationship between technical sustainability and profitability of

fish production in the study area?

1.5 Research Hypotheses

Ho1: No relationship between environmental sustainability and profitability of

fish production in the study area

Ho2: No relationship between economic sustainability and profitability of fish

production in the study area

Ho3: No relationship between social sustainability and profitability of fish

production in the study area

Ho4: No relationship between technical sustainability and profitability of fish

production in the study area.

1.6 Significance of the Study

Waste is inevitable in agricultural activity. The ultimate goal of any agricultural

waste management system is to leverage on the economic benefits from the so-

called wastes as well as maintain acceptable environmental standards. The

sustainable production of food and the recycling or upcycling are vital for the

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environment. Using agricultural waste for fish feeds offer an opportunity for

satisfying environmental enhancement (waste management) and food security.

Furthermore, this can make fish production and agricultural waste more

sustainable and help to attain circular economy.

In Nigeria, this is important because there are agricultural waste leads to

environmental pollution and inefficient utilization of resources leading to high

costs of doing business. From available studies, it is possible to manage

agricultural waste through the circular model by incorporating agricultural

waste into fish feed. The technical feasibility alone is however not sufficient but

the cost of implementing such a noble idea is required to reduce the cost of fish

feed and by extension the profitability of agribusiness. The use of agricultural

waste as fish feed can be seen as an innovation that is part of a transition from

linear economy to circular economy and by extension sustainability of business.

This study is important to policy makers and stakeholders in the agricultural and

aquaculture sector in providing policy framework on relevant agricultural waste

management and for food security. The academic students and researchers will

find the result of this study useful for further studies.

1.7 Scope of the Study

The scope of the study will be limited to:

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 i. Farmers involved in aquaculture business within the Niger Delta region

which will include Rivers, Bayelsa and Delta States. This is because these

states represent the major aquaculture business practices in Nigeria.

ii. Emphasis will be placed on fish production as this is the most common

aquaculture business practiced in Nigeria.

iii. The method of study will be both qualitative and quantitative study.

1.8 Limitation of the Study

Like every other research, the limitation of this study includes inability of

farmers to divulge information about their farms, resources and time was

considered in choice of the three states chosen from the the Niger Delta.

1.9 Operationalisation of the Research Variables

i. Dependent Variables (sustainability and profitability indicators of

Profitability)

a. Sales

b. Return on Asset (ROA)

c. Economic Value Added (EVA)

ii. Independent Variables (Indicators of Sustainability)

a. Waste recycling or upcycling efficiency

b. Minimization of resource exploitation

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 c. Minimization of pollution

d. Farmers level of fish farm management

e. Inclusion of farmer’s family member in business

f. Farmer’s level of motivation

g. Minimization of farm accidents

h. Farmer’s size of farm

i. Level of market penetration by farmers

j. Level of staff skill on incorporating waste for fish feed

k. Availability of facility for incorporating waste as fish feed

l. Technology adopted by farmers for incorporating waste as fish feed

Indicators a-c represents environmental dimension of sustainability, d-g

represent social dimension of sustainability, h-i represents economic dimension

of sustainability while j-i represents technical dimension of sustainability.

1.8 Definition of Terms

1. Agricultural waste refers to residues resulting from various

agricultural activities, such as the production and processing of

plantation crops, livestock, fruits and vegetable farming.

2. Aquaculture also known as fish farming is the production of fish under a

controlled environment which involve some farming activities.

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3. Sustainability can be regarded as the management of financial,

environmental, social, economic and technical resources, ensuring the

continuous satisfaction of human needs for the present and future generation.

4. Profit defined as the difference between revenues and costs, provides an

incentive for increase innovation and investment in agriculture on both farmers

and national perspectives.

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