TITLE:
Analysis of determinants of gross margin income generated through fishing activity to rural households around Lake Ziway and Langano in Ethiopia
AUTHORS:
Dawit Garoma, Asefa Admassie, Gezahegn Ayele, Fekadu Beyene
KEYWORDS:
Lake Ziway; Lake Langano; Fishing Household; Gross Margin; Ricardian Technique; Ethiopia
JOURNAL NAME:
Agricultural Sciences,
Vol.4 No.11,
November
19,
2013
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.