Agricultural Research Management Information System

Home
Research Summary
Search
About Us
- ARMIS
- Brochure
Contact Us
Report
User Request
Data Input
Help
- Operation Manual
  - PDF
  - Video
- Program Area & Commodity
We have reached 37600 number of research entries at this moment.

- Logout

Research Detail

Home
Research
Detail

Financial Profitability of Small Scale Shrimp Farming in a Coastal Area of Bangladesh

Noor-A-Arefin Shawon
Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Md. Masudul Haque Prodhan
Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Md. Akhtaruzzaman Khan
Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Sandip Mitra
Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh-2202, Bangladesh

Abstract/ Executive Summary:

Aquaculture especially shrimp farming has significant contribution to the economy of Bangladesh. The southwest coastal area is more prominent for commercial shrimp farming due to its auspicious environment, higher economic returns, nutrition value and for employment opportunity. The present study estimates the socioeconomic status and financial profitability of small scale shrimp farming in selected areas of Khulna district. One hundred (100) shrimp farmers were selected and data were collected through direct interview method. Financial profitability was analyzed from different point of view. Study revealed that about 35% farmers lie in prime working age group. Most of the farmers completed primary level of education while a few of them were illiterate. Family size of 65 % farmer’s was medium and 40% farmer’s main occupation was shrimp farming. Study also revealed that gross profit margin was high i.e. 59% indicating that farmers did well in managing their farm and farmers has more to cover for operating, financing and other cost. Break-even price for the small scale shrimp worked out Tk. 311 per kg while break-even production was found 155 kg per acre. Benefit cost ratio and net profit margin were found more than one and positive respectively, indicated that small scale shrimp farming was commercially profitable. The research concludes that there is ample scope and possibility for sustaining and developing the small scale shrimp farming in the coastal area of Bangladesh.

Keywords: Shrimp, Profitability, Smallscale, Bangladesh

Location: Khulna, Sathkhira and Bagerhat

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Profitability

Objectives:

This study tried to find out the socioeconomic status and financial profitability of small scale shrimp farming in southern part of Bangladesh.

Methodology:

Khulna, Sathkhira and Bagerhat are the main shrimp producing areas of Bangladesh. Dacope upazila of Khulna was purposively selected for this study due to its auspicious resources and good climatic conditions for shrimp farming where shrimp farming is closely related in one or another way of life for the people. This study was conducted on local small scale farmers who have shrimp farm area less than 250 decimal (small farms means who have less than 250 decimal). One hundred (100) small scale farmers were selected from the study area following stratified random sampling techniques. A draft schedule was developed and pre-tested with a few sample farmers. Then the interview schedule corrected and finalized according to the objectives. Cross-sectional data were collected through direct interview method. Some statistical measures like average, percentage and ratios were calculated in tabular form for measuring socio-economic characteristics and financial profitability. Farmer’s financial profitability were calculated in different ways such as gross margin (GM), net return (NR), benefit-cost ratio (BCR), gross profit margin (GPM), net profit margin (NPM) and break-even analysis. Total cost (TC) of shrimp farming was divided into variable cost (VC) and fixed cost (FC). In this study, variable cost includes labor, fingerling, feed, fertilizer, manure and other miscellaneous cost. Fixed cost were land use cost, construction of water supply and housing, canal digging and dyke re-construction and interest on operating capital. Total cost is the summation of variable and fixed costs.

Source of Information: J Bangladesh Agril Univ 16(1): 104–110, 2018 ISSN 1810-3030 (Print) 2408-8684 (Online)

Article Link (Online Journal): doi: 10.3329/jbau.v16i1.36490

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

This study tried to find out the socioeconomic status and the financial profitability of small scale shrimp farming in coastal area of Bangladesh. Financial profitability was measured from different point of view. It was revealed that most of the farmers were in prime working age group. They completed primary level of education while a few of them were illiterate. Family size of the farmer’s was medium (65%) and main occupation of the shrimp farmer’s was 40%. Study also revealed that small scale shrimp farming was profitable. Benefit cost ratio, gross profit margin, net profit margin and break-even point indicated that small scale shrimp farming is profitable in the study area. It can be recommended from the study that small scale shrimp farmers should continue their business and should not give lease their land to the large farmers.

Knowledge Management: Journal