Comparative Cost Structure and Yield Performance Anzlysis of Upland and Mangrove Fish Farms in Southwest, Nigeria

The bias against mangrove areas in siting fish farmsprompted a comparison of the cost structure and yieldperformance in upland and mangrove locations. Tools utilizedincluded descriptive statistics, budgetary and cash flow analysesand profitability ratios. Empirical results revealed that substantialrevenue could be realized from both farms. While the uplandfarms yielded average gross revenue per hectare per year of$9,183.53, the mangrove farms made $8,135.93 revealing aslight difference. Results of combined cash flow and sensitivityanalysis buttressed that of budgetary analysis. NPVs were$10,888.11 and $10,375.84, B/Cs were 1.28 and 1.29 and IRRwere 48.55% and 48.51% for the upland and mangrove farms,respectively. Profitability ratios were also comparable butslightly higher in the upland farms. The conclusion is thatthere was little or no difference in yield performance. However,the high risk of investment loss in years of excessive floodshould prompt investors in mangrove farms to compulsorilyinsure their farms.