Assessment of Productivity and Supply Chain of Aquaculture Projects in Gauteng Province for ...

120 Pages·2017·1.37 MB·English

Assessment of Productivity and Supply Chain of Aquaculture
Projects in Gauteng Province for Sustainable Operation

by

Sowemimo Babawale Oyeleke
Student no: 56161077

submitted in accordance with the requirements for
the degree of

MASTER OF SCIENCE
In
AGRICULTURE

at the

University of South Africa

SUPERVISOR: Dr Mary-Jane Thaela-Chimuka
Co-SUPERVISOR: Mr Barileng Leonard Mogoje

Date: June 2017
Table of Contents
List of tables ............................................................................................................ v
List of figures ........................................................................................................... vi
Abbreviations ........................................................................................................ viii
Acknowledgement ................................................................................................... ix
Dedication ............................................................................................................... x
Declaration .............................................................................................................. xi
Abstract .................................................................................................................. xii
CHAPTER 1 ............................................................................................................. 1
1. INTRODUCTION ........................................................................................... 1
1.1 Background ................................................................................................ 1
1.2 Rationale and motivation ........................................................................... 3
1.3 Problem statement ..................................................................................... 3
1.4 Research questions ................................................................................... 4
1.5 Study aims and objectives ......................................................................... 5
1.5.1 The specific objectives are to: ............................................................. 5
1.6 Research hypotheses ................................................................................ 5
1.7 Research ethics considerations ................................................................. 5
1.8 Chapter arrangements ............................................................................... 6
1.9 Summary for chapter one .......................................................................... 6
CHAPTER 2 ............................................................................................................. 7
2 LITERATURE REVIEW ................................................................................. 7
2.1 Introduction ................................................................................................ 7
2.2 Importance of fish farming ......................................................................... 7
2.3 Global fish farming production and growth ................................................. 8
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2.4 Aquaculture production and growth in Africa ........................................... 10
2.5 The fish-farming sector in South Africa .................................................... 11
2.5.1 South Africa‟s marine aquaculture ..................................................... 11
2.5.2 Freshwater aquaculture production and growth ................................ 14
2.6 South Africa aquaculture growth and economic performance 2013 ......... 16
2.7 Fish farming in Gauteng Province ............................................................ 17
2.8 Aquaculture productivity and growth ........................................................ 23
2.8.1 The role of supply chain in aquaculture ............................................. 25
2.8.2 Profitability in aquaculture enterprises ............................................... 27
2.8.3 Gross margin analysis (GMA) ........................................................... 28
2.9 Summary for chapter two ......................................................................... 30
CHAPTER 3 ........................................................................................................... 31
3 RESEARCH METHODOLOGY ...................................................................... 31
3.1 Introduction .............................................................................................. 31
3.2 Study location .......................................................................................... 31
3.3 Research design ...................................................................................... 33
3.4 Sample and sampling methods ................................................................ 35
3.5 Data analysis ........................................................................................... 35
3.5.1 Profit analysis .................................................................................... 36
3.6 Summary for chapter three ...................................................................... 37
CHAPTER 4 ........................................................................................................... 38
4 RESULTS AND INTERPRETATIONS ............................................................ 38
4.1 Introduction .............................................................................................. 38
4.1.1 Demographic characteristics of fish farmers in this study .................. 38
4.1.2 Types of Operation ............................................................................ 40
4.1.3 Farm production capacity vs current production ................................ 42
4.1.4 Productivity and profitability of the aquaculture projects in this study 43
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4.1.5 Gross margin analysis and gross margin ratio analysis .................... 43
4.1.6 Conclusion on productivity and profitability ....................................... 46
4.2 Supply chain and marketing of aquaculture products by the farms in this
study. ....................................................................................................... 46
4.2.1 Aquaculture supply chain and value adding among the farms used in
this study ........................................................................................... 46
4.2.2 Supply chain and aquaculture production inputs in Gauteng Province..
.......................................................................................................... 47
4.2.3 Supply chain and fish sales in Gauteng Province .............................. 47
4.2.4 Purchasing outlets for fish retailers in Gauteng Province .................. 48
4.2.5 Type of fish frequently purchased by retailers ................................... 49
4.2.6 Fish sales by the retailers and profitability ......................................... 50
4.2.7 Open-end question remarks by informal fish retailers in Gauteng
Province ............................................................................................ 52
4.2.8 Summary on supply chain and marketing of aquaculture products ... 52
4.3 Consumers fish consumption dynamics and preferences ........................ 53
4.3.1 Demographic characteristics and preferences of respondents .......... 53
4.3.2 Distribution of respondents according to nationalities and municipal
areas ................................................................................................. 57
4.3.3 Type of fish species consumed by respondents and factors influencing
it ........................................................................................................ 58
4.3.4 General animal protein preferred by sampled consumers in Gauteng
Province ............................................................................................ 60
4.4 Constraints to the growth and profitability of fish farming in Gauteng
Province ................................................................................................... 60
4.5 Summary for chapter four ........................................................................ 62
CHAPTER 5 ........................................................................................................... 64
5 DISCUSSION, CONCLUSION AND RECOMMENDATIONS ......................... 64
5.1 Discussion ............................................................................................... 64
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5.1.1 Demographic characteristics of fish farmers and farm management
system in Gauteng Province.............................................................. 64
5.1.2 Aquaculture production and productivity in Gauteng Province .......... 66
5.1.3 Aquaculture profitability in Gauteng Province .................................... 67
5.1.4 Aquaculture production and constraints encountered in Gauteng
Province ............................................................................................ 68
5.1.5 Supply chain of aquaculture in Gauteng Province ............................. 69
5.1.6 Freshwater fish and consumption pattern in Gauteng Province ........ 70
5.2 Conclusion ............................................................................................... 71
5.3 Recommendations ................................................................................... 72
REFERENCES ....................................................................................................... 74
Appendix 1: Correlation Analysis from this study .................................................. 89
Appendix 2: Consent form and questionnaire ....................................................... 93
Appendix 3: Questionnaire .................................................................................... 96
Appendix 4: Questionnaire for market Survey (wholesalers and retailers) .......... 103
Appendix 5: Questionnaire for consumer survey. ............................................... 106

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List of tables
Table 2.1: South African marine aquaculture species and scale of operation in
2013…………………………………………………………………………12
Table 2.2: South Africa‟s marine aquaculture production 2001-2013……............13
Table 2.3: Freshwater aquaculture species culture in South Africa, 2013….……14
Table 2.4: South Africa‟s freshwater aquaculture production 2006-2013..........…15
Table 2.5: Production and value in South African aquaculture sector 2013……..17
Table 2.6: Values of fish and aquatic invertebrates exported by Provinces
(DAFF, 2012)……………………………………………..………………...19
Table 2.7: Values of fish and aquatic invertebrates exported by Gauteng
Province……………………………………………………………………..20
Table 2.8: Species and status of aquaculture facilities in Gauteng province...….21
Table 2.9: Supply chain management definitions……………………..………..…..26
Table 4.1: Demographic characteristics of fish farmers (n = 5).............................40
Table 4.2: Management inputs and production systems for studied farms in
Gauteng……………………………………………………………………..41
Table 4.3: Gross margin output of fish production................................................44
Table 4.4: Gross profit margin ratio…………………….………….…………………45
Table 4.5: Selling prices of fishes by retailers.......................................................51
Table 4.6: Gender of respondents……………………………..….………………….53
Table 4.7: Districts of residence of respondents…………………..…………….….58
Table 4.8: Constraints to the growth of aquaculture as indicated by fish producers
in Gauteng province.............................................................................62
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List of figures
Figure 2.1: World capture fisheries and aquaculture production as of 2012………9
Figure 2.2: Municipal and district areas of Gauteng province………………………21
Figure 3.1: Map of Gauteng province showing it location on the map of South
Africa…………………………………..............……………………………32
Figure 3.2: Map of Gauteng province of South Africa showing the metropolitan
and district municipalities…………...………………………………...…..33
Figure 4.1: Cross tabulation of farm capacity and actual usage............................42
Figure 4.2: Percentage of production capacity utilized by on the farms………......43
Figure 4.3: Places and location of fish sources by retailers from Gauteng
province................................................................................................48
Figure 4.4: Retailers‟ fish purchase locations………………………...…………...…48
Figure 4.5: Types of fish purchased by retailers……………………………..……....49
Figure 4.6: Fish purchasing intervals by retailers……………………………………50
Figure 4.7: Profitability of fish retailing according to responses from retailers…....51
Figure 4.8: Growth of freshwater fish market.........................................................52
Figure 4.9: Age range of respondents……………………….………………………..54
Figure 4.10: Academic qualifications of consumer…………………..……….……….54
Figure 4.11: Preferred purchase outlet…………………..……………………………..55
Figure 4.12: Fish form preference…………………………..…………………………..56
Figure 4.13: Frequency of fish consumption……………..………………….…………56
Figure 4.14: Nationalities of respondents who responded to this survey……...……57
Figure 4.15: Type of fish species consumed by respondents………..………………58
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Figure 4.16: Preferred fish species consumed by different sampled nationalities…59
Figure 4.17: Factors influencing respondents‟ fish consumption……..…….……….59
Figure 4.18: General animal protein preference by respondents….……..………….60

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Abbreviations
DAFF: Department of Agriculture, Forestry and Fisheries
DTI: Department of Trade and Industry
FAO: Food and Agricultural Organization
NASF: National Aquaculture Strategic Framework
GDARD: Gauteng Department of Agriculture and Rural Development
PUA: Public Understanding of Aquaculture

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Acknowledgement
I first and foremost acknowledge my determination not to give up in the face of
stroke that I had shortly before I registered and commenced this study. I thank the
University of South Africa for granting me the funding in the second year that made
my research programme possible. I owe a lot to Mr Leonard Mogoje who co-
supervised me on the project. I thank you for your tireless efforts at reading and
correcting the work plus all those teachings you gave me on excel and SPSS. Thank
you for all those times you had to pick me up at home and drive me to the campus
and back. You gave lecturing and supervision a new meaning. My profound gratitude
goes to Professor M.A Antwi for the painstaking effort at reading/editing the work, for
guidance and encouragement throughout the course of the study. My gratitude also
goes to Dr Mary-Jane Thaela-Chimuka for the supervision of this work.
A very big thanks to Ms Catherine Greengrass for showing me studies that have
been done in aquaculture especially in Gauteng Province, for introducing me to
stakeholders in the aquaculture industry and for giving me the opportunity to assist in
her PhD research programme. My sincere thanks also to Mr Lerry Awotayo, the
chairman of Eller Security (SA) for his prayers, brotherly love and especially for
making sure my rents and boarding were paid throughout the period of my stroke
recovery.

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