PROFITABILITY AND POST-HARVEST LOSS ASSESSMENT ALONG FISH VALUE CHAIN ASSOCIATED WITH BAROTSE FLOODPLAIN, ZAMBIA

Abstract

Fish is of great economic, social and nutritional importance to a large population of Africa. It contributes to food security, income, poverty reduction and economic development of the African continent. Particularly in Zambia, fish is considered one of the contributors to agriculture output. Fish supply in Zambia is dominated by capture fisheries . Even though it is of such great importance, profitability and determinants of profitability of capture fisheries is not known. Capture fisheries is also facing a challenge of decreasing supply against a growing demand. Part of the supply decline has been attributed to post harvest losses. There is less information of post-harvest losses of capture fisheries, where they occur in the value chain and what factors affect levels of post-harvest losses. This study examined profitability, post-harvest losses and factors influencing profitability and post-harvest losses. Specifically, the study assessed profitability of fishery enterprise to different actors of the value chain, quantified post-harvest losses affecting different actors along the value chain and determined factors affecting profitability and post-harvest lossed. The study used several approaches. It used gross margin analysis to determine profitability at key nodes of the fish value chain and used Ward and Jeffries approach to determine levels of post-harvest losses. The study also used regression models to assess factors affecting profitability and post-harvest loss. Translog profit function was used to quantify effect of various factors on gross margins. Multiple linear regression was used to assess factors influencing post-harvest loss as cost of loss. The study used data collected from 359 respondents through personal interviews using a pre-tested questionnaire. The study was conducted in Liyoyelo, Marana, Matula, Tangatanga, Nebubela and Liabwa from Mongu and Senanga districts. The districts have fishers, processors and traders. The study found that fishing and processing is a male dominated task while trading is a female dominated task. The results show that all three fish value chain nodes are profitable but fishing is more profitable. The study also found that post-harvest losses occur at all nodes of the value chain but there are higher chances of occurrence at processor node. Though this was the case, traders lose more in terms of percentage weight and in monetary value. The translog profit function results revealed that age, price of capital and price of materials affect profitability. The translog profit function also showed that an interaction of price of capital and price of transport, price of labor and price of transport and price of labor and price of materials influence levels of profitability. Multiple linear regression showed that cost of loss is influenced by experience, price of capital and fish group. the study concluded that fish related activities are profitable. It also concluded that post-harvest losses accur at all nodes of the value chain with trader node experiencing highest levels of percentage physical loss and quality loss. Profitability at trader node was determined by price of capital; price of materials; squared price of capital; squared price of labor; squared price of transport; interaction of price of capital and price of materials; interaction of price of labor and price of transport; interaction of price of labor and price of materials; and age. Post-harvest losses at trader node are affected by price of capital , age and form in which fish is sold. The implications of the findings are that profitability can be enhanced by capacity building in variable cost management and pricing to ensure profit maximization. Targeting high value markets to sell fish also improve profitability. Post-harvest losses can be reduced through improved processing and handling methods. Finally, further studies should be done to assess factors affecting profitability and post-harvest losses at fisher and processor nodes inorder to create full understanding of the value chain