Analysis of determinants of gross margin income generated through fishing activity to rural households around Lake Ziway and Langano in Ethiopia

Dawit Garoma, Asefa Admassie, Gezahegn Ayele, Fekadu Beyene

Collage of Agriculture, School of Agricultural Economics and Agricultural Business, Haramaya University, Dire Dawa, Ethiopia.
IFPRI, Ethiopian Economics Association, Addis Ababa, Ethiopia.
USAID, Addis Ababa, Ethiopia.

DOI: 10.4236/as.2013.411080                

Abstract

This article analyzed determinants of gross margin income from fishing to the rural households around Lake Ziway and Langano in Ethiopia. Four districts adjacent to the two lakes were selected purposively from which 179 respondents drawn randomly. Both primary and secondary information comprises of household structure and assets, climate factors and supportive services were organized. Data analysis employed descriptive statistics, budgetary analysis and the Ricardian method. Budgetary analysis showed positive fish gross margin income (GMI) of ETB 3,023.40 to average fisher. The Ricardian analysis made use of the climate only model (Model 1) and comprehensive model (Model 2). Using Model 1, water level raise due to inflow is vital to earn fair income in addition to the rainfall amount in Season 1, which is supported with positive impact of precipitation water level interaction on fish income. Impact of precipitation was positive in Season 3, due to meher rainfall and withdrawal of fishing labor to join agriculture that minimized over fishing. Using Model 2, precipitation water level interaction has positive impact in Season 2 due to better inflow and Meher rainfall. The interaction term was negative in Season 4 attributed to decreased water level, dry weather and less precipitation. The result also showed positive impact of household members participation, participation in the traditional financial arrangement and capacity to finance

operating costs. The study highlights problems facing fishing business like: decreased lake size and water volume, lake turbidity and siltation, open access and weak institutional arrangement to guide fishing efforts, wetland farming and expansion of irrigation to the lake side, cost of fishing materials, minimum sales price as well as poor access to the fish market. Hence, strengthening fishery coperatives, awareness creation, off-farm opportunities, integrated conservation works, reduced wetland farming and acquaintance to social networks were suggested.

 

Keywords

Lake Ziway; Lake Langano; Fishing Household; Gross Margin; Ricardian Technique; Ethiopia

Conflicts of Interest

The authors declare no conflicts of interest.

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