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Aquaculture in hana #1

FEATURE

Ghana is one of the countries in the Sub-Saharan Africa region with the potential to dramatically increase its
fish production through aquaculture. In this two part special focus on Ghana, we examine two major issues;
alternative feed resources and best management practices.

Alternative feed sources

by Francis Ekow de Heer

fter some years of mild growth,

Ghanas aquaculture industry is
now set to play a crucial role in
the economy, especially in closing
the wide gap between local fish demand and
domestic production, which burdens the
nation with a high annual fish import bill.
Quite a number of local and foreign investors are showing interest in this sector. One
major issue set to give the industry a badly
needed boost is the availability of alternative
feed resources, which hold the prospect
of significantly reducing the fish farmers
production budget.
In 2013, the government launched the FAOfunded National Aquaculture Development
Plan, which is being implemented over five
years at a cost of US$ 85 million. The programme aims to improve the viability of the
aquaculture business, and to raise national fish
output from the present 27,750 metric tons
to 130,000 metric tons by the end of 2018.
Over 80 percent of commercial fish farmers in
Ghana are engaged in the production of Nile
tilapia, whilst the others are engaged mostly in
the production of African sharp-tooth catfish.

Demand for tilapia, a delicacy in Ghana, is very

high, even though at between US$ 2.50 and
US$ 3.00 per kilo it is way above the world
market price.
Fish consumption in Ghana increased from
900,000 metric tons in 2013 to one million
metric tons in 2014, but local output in the
two years was less than 450,000 metric
tons. Ghana, whose current per-capita fish
consumption is 25 kg/person/year, imports
US$ 200 million of fish annually. The decline
of local fish production over the years is due
to the use of outmoded equipment and illegal
fishing methods, especially lights, chemicals,
explosives and small mesh-size nets. Age-old
plans for introducing fibreglass boats are yet
to be realised, so Ghanaian artisanal fishermen
still use canoes and drag-nets to produce 70
percent of local output.
Aquaculture is fast gaining pace as an alternative source of animal protein as Ghanas
marine and freshwater fishery production
decline. Interest in aquaculture has been
growing steadily in recent years, but a major
issue of concern to farmers is the cost of feed.
On average, feed costs take up 70 percent
of a fish farmers budget, due mainly to the
30 | INTERNATIONAL AQUAFEED | July-August 2015

fact that maize, the major ingredient, is also

the major feed source for humans. The use
of non-conventional feed sources, which until
recently had virtually no commercial value,
would substantially reduce the aquaculture
production budget and attract more investors.
Among the alternative ingredients which are
currently being deployed in aquaculture are
cocoa pod husk, palm kernel cake, wheat bran
and sunflower cake.
Cocoa pod husk (CPH) is derived from
the remains of the fruit after the beans, which
comprise 25 percent of the fruit, have been
extracted. Over 3720 metric tons of CPH
can be generated annually. Scientists in Ghana,
Nigeria and elsewhere have long proven that
CPH is viable as poultry, pig and fish feed.
For example, Ashade and Osineye (2013)
reported that CPH could suitably substitute
up to 100 percent in the diet of tilapia.
Adewumi and Olalaye (2010) reported that
CPH was one of several plant residues that
had been tested and found to be suitable
substitutes for conventional fish feed. Some
aquafeed producers have started using CPH
as substitute for maize.
Palm kernel cake (PKC) is the residue

FEATURE

At the fish farm of Crystal Lake Fishing Ltd, Volta Lake, Ghana

obtained from the kernel after the extraction

of the oil. Ghana produced 53,000 metric tons
of PKC in 2014. PKC is a valuable commodity in major palm oil producing countries like
Indonesia and Malaysia, where it is used locally
and exported as cattle feed. Until recently,
only a small amount of this commodity was
used in Ghana in pig diets. Presently, however,
it is being used on a small scale as poultry, pig
and aquaculture feed.
The Ministry of Agriculture recommends
the inclusion of PKC at 15 percent in fish
diets. Some researchers have found PKC
a useful inclusion in fish diets. Omoregie
obtained the best results with Nile tilapia fed
on a diet of 15 percent palm kernel meal

and 25 percent fishmeal. Onwudike also

concluded that although PKC was a viable
substitute for groundnut cake, it had to be
added to other protein sources in order to
increase dietary levels of some otherwise
deficient amino acids.
Soybean meal is the main protein source
for poultry and fish farmers in African countries. It is an imported, expensive commodity,
so most farmers would appreciate a local
substitute. Sunflower cake is recognised in
Ghana as a valuable protein source in animal
diets. Commercial cultivation of sunflowers,
which stalled for some three years, is resuming
in the Central Region of the country. Mr Kwasi
Addae, a commercial farmer, has mobilised

July-August 2015 | INTERNATIONAL AQUAFEED | 31

out-grower farmers
who are expected
to grow enough sunflower oil for the local
fish cannery industry,
and enough sunflower seed cake for the
poultry and aquaculture industries.
Results from a
collaborative work
by AquaFish CRSP
of Oregon State
University and the
Sokoine University in
Tanzania showed that
a 50/50 combination
of moringa and sunflower seed cake was a
viable substitute for soya bean meal.
A major challenge facing the aquafeed
industry is the absence of good quality feed
processing. About 30 percent of feed used
in the industry is imported, and Raanan
Feeds, the only producer of extruded feed
in Ghana, is currently producing at maximum
capacity. Most of the feed used or produced
by the many small-scale farms in Ghana are
neither pelletised nor extruded, and do not
float. Current signs show good prospects for
investment inflows. The combination of sizeable investment and alternative feed resource
deployment will give aquaculture in Ghana a
bright future.

Aquaculture in hana #2

FEATURE

Commercial floating feeds

for pond culture of tilapia in Ghana
A case study

The impact of the adaption of best management practices on social welfare

In this article, the research of Dr Yaw B. Ansah and Dr Emmanuel A. Frimpong on the effectiveness of BMPs
on the aquaculture industry, specifically the production of tilapia in Ghana will be shared. Dr Ansah received
his PhD from the Department of Fish and Wildlife Conservation as well as an MSc in Agricultural and Applied
Economics, both from Virginia Tech (USA). Dr Frimpong is an associate professor at Virginia Tech, he studies
fish biology and aquaculture and supervised Dr Ansahs dissertation.

lassified by the World Bank in 2014 as a lower middle

income country, Ghana has an economy largely dependent on agriculture. The agricultural sector contributes 23
percent of the countrys gross domestic product (GDP)
annually, whereas 42 percent of the population was employed in the
agricultural sector in 2013. Ghanas 2.3 percent annual population
growth rate requires a sustained increase in food production.
The country has increased food production per capita by more than
80 percent since the early 1980s, and is largely self-sufficient in staple
crops such as maize, cassava, plantain, and yam. In 2011 the Overseas
Development Institute forecasted that Ghana will meet the United
Nation (UN)s Millennium Development Goal (MDG) 1 of eradicating
extreme poverty and hunger by 2015. However, it is important to go
beyond meeting this goal of food quantity to target food quality, both
of which are components of food security.
Ghana is one of the countries in the sub-Saharan Africa region
with the potential to dramatically increase its fish production through

aquaculture. This is the result of a high fish demand, and the combination of a stable political environment and the commissioning of the
only commercial fish feed mill in West Africa. The country derives a
majority of its dietary protein from fish, with an estimated per capita
fish consumption of 2030 kg per annum in 2009, higher than the
global estimate of about 18 kg.
The global aquaculture industry has been blamed widely for its
negative impacts on natural aquatic ecosystems. Pond effluents are
relatively dilute, and as such not amenable to conventional treatment
technologies. Aquaculture management practices affect the volume of
water, nutrient, solids, and oxygen demand loading rates from ponds to
effluent-receiving water bodies. Generally, these practices are grouped
into nutrient management and effluent management.
In 2014 Frimpong et al showed the effect of two best management practices (BMPs) on the growth of Nile tilapia (Oreochromis
niloticus) and their effectiveness at preventing the transport of nutrients and solids from fishponds to water bodies in Ghana. Specifically,
these two BMPs were the use of commercial floating feeds and pond

32 | INTERNATIONAL AQUAFEED | July-August 2015

FEATURE
water reuse. That study showed that reused pond
water resulted in the same growth rates as the usual
practice of draining and refilling pond with new water
before stocking. This result was in contrast to the
widely held belief among pond fish farmers in the
sub-Saharan Africa region that reusing water from a
previous cycle could harm cultured fish.
Two main types of fish feed are used by fish farmers in Ghana. The recommended commercial feed
type is pelleted, smooth, and mostly floating, unlike
the farm-made type, which is coarse, powdery, and
sinking. In a previous study Frimpong et al showed
that the commercial floating feed type resulted in up
to a 100 percent increase in fish growth compared to
the farm-made sinking feed. Analysis of revenues and
costs on a typical tilapia farm in Ghana also indicated
that using commercial floating feed resulted in a
higher probability of profitability (45%) than using the
farm-made alternative (25%).
Demonstrating profitability of better management
practices will encourage the adoption by fish farmers,
which will both protect the environment and further
increase farm profits. Widespread adoption of profitable innovations is expected to have an impact not
only at the farmhousehold level, but also on the
welfare of the society as a whole, including both producers and consumers. Positive outcomes of adopting BMPs such as commercial floating feeds include
achievement of an environmentally-friendly image
by the aquaculture industry, increased tilapia production, and lower fish costs. This study conducted by
Dr Ansah and Dr Frimpong sought to quantify the

July-August 2015 | INTERNATIONAL AQUAFEED | 33

FEATURE

economic impact of the adoption of floating feeds in pond culture

of tilapia in a developing country on social welfare. Specifically, they
were interested in the net present value (NPV) of BMP adoption, with
Ghana as a case country. Also, it was of interest to determine factors
that had the greatest influence on NPV from adoption of the BMP.

Research details, methodology and data collection

Generally, according to economic theory, an innovation (a new

technology) shifts the supply function for a commodity downward,
resulting in a larger equilibrium quantity at a lower price. This development may have a significant bearing on the level of poverty or welfare
of a particular community where a new agricultural technology is diffused. The conventional framework for applied welfare economics is
provided by a three-part assumption: the demanders perceived value
of a unit of a good or service is indicated by the competitive demand
price of that unit; the suppliers perceived value of a unit of a good or
service is indicated by the competitive supply price of that unit; and the
net benefits and costs of a given action to a group of people is the total
of the benefits and costs to each member.
Dr Ansah and Dr Frimpong employed the economic surplus
method, which is the most common method for analysing the welfare
impacts of agricultural research in a partial equilibrium framework. The
popularity of this method stems from the fact that it requires the least
data, can be applied to the broadest ranges of situations, is easy to
grasp, and can be used both ex ante and ex post.
To effectively run the economic surplus model, both physical and
market data must be collected on the following:
The proportion of farmers who adopt the innovation overtime
The price of the commodity
The change in yield of the commodity with the new technology
The nature of the market, as products that are traded may not
experience price declines if production increases
The time it takes to develop the innovation, and the number of
years for maximum adoption to be reached
The discount rate for future benefits compared to current
benefits
The researchers raised Nile tilapia (O. niloticus) on five demonstration earthen-pond farms in central Ghana. Stocking, feeding, and other
management practices employed for the production of tilapia on these
demonstrations were consistent with those used on typical tilapia farms

in Ghana. These demonstrations provided both physical data on the

effects of two BMPs on the growth of Nile tilapia and budgeting data
for profitability analysis. The two BMPs were use of commercial floating
feed (as opposed to farm-made feed prepared on site from food and
agro-industrial wastes), and reused water (as opposed to draining and
refilling ponds with new water before each production cycle).
In the Frimpong et al 2014 study, it was concluded that of the two
BMPs, only feed type significantly influenced fish growth and yield. Using
floating feed resulted in average yields 100 percent higher than using
sinking feed. Since there was no significant difference in fish growth
with water type (reused or fresh water), the researchers analysed
only the welfare impacts of the adoption of floating feed as a new
technology.
Reusing pond water for multiple production cycles is clearly environmentally beneficial. However, there were no significant differences
detected in fish yields or farm costs from this BMP. The quantification
of the environmental impacts of reusing pond water is the subject of
a separate study. Without resulting in differences in growth, the only
potential source of economic benefits of water reuse is saving input
cost from refilling emptied ponds. The vast majority of pond farmers
in Ghana obtain water at no direct cost from diverted streams or
groundwater seepage. Cost savings to the farmer are therefore not
readily apparent.
The unit cost of the recommended feed type is almost eight times
that of the farm-made alternative, and the cost of fish feed makes up
over 50 percent of total costs on a typical fish farm. The implication
is that the adoption of the new feed technology will result in a 350
percent increase in total annual farm costs.
The rate of adoption of each BMP was tracked over three years
though a comprehensive survey that was administered from 2011 to
2013, to 363 fish farmers in Ghana. Respondents came from the central and southwestern parts of Ghana, specifically in the Ashanti, BrongAhafo, Central, Eastern, and Western Regions. Pond farms in Ghana
are located mostly within these regions, due to conducive biophysical
factors. Average adoption rates over this period were 58.2 percent for
commercial floating feed and 27.4 percent for pond water reuse. It is
worth noting that most farmers who claim to use the former technology presently do not use it exclusively, but the trial of the technology
is an indication of their desire to fully adopt it if it proves superior and
affordable. Dr Ansah and Dr Frimpong assumed 70 percent as the

34 | INTERNATIONAL AQUAFEED | July-August 2015

FEATURE
maximum adoption rate, which they believe to be a realistic figure for
an aquaculture innovation.
Aquaculture production in Ghana occurs in two main systems,
floating cages in the Volta Lake and dugout earthen ponds. Floating
cage systems are intensive operations that rely solely on commercial
floating feed through the production cycle, and these systems account
for about 90 percent of the countrys aquaculture production. Total
production from cages alone was 24,250 metric tons (mt) in 2013.
Current BMP dissemination efforts are targeted at the less-intensive
earthen-pond systems that rely more on the farm-made sinking feed
type. Effectively, the adoption of the new feed technology will likely
impact the production from earthen ponds, since the innovation is
already being used widely in the cage systems.

Research findings

The estimated average NPV of adopting commercial floating tilapia

feed for tilapia farming in earthen ponds in Ghana over 20 years was
almost US$ 11 million (Figure 1). The probability that the NPV is a
positive value was about 70 percent (Figure 2). Additionally, there
was a probability of about 48 percent that the NPV is greater than
the estimated mean value of 11 million (Figure 2). Sensitivity analysis
showed that the variables (and direction of correlation) with the
greatest impacts on mean NPV were the change in yield of tilapia (+)
and the change in production costs (), resulting from the adoption
of commercial floating fish feed (Figure 3). To a less significant extent,
mean NPV also was sensitive to the 2013 tilapia earthen-pond production level (+), the chosen discount rate (), the level of peak adoption
rate (+), and the specific amount of recurrent costs (+), in that order.
A plus sign indicates that an increase in that variable will increase NPV,
while a decrease in a variable with a minus sign will increase NPV.

Final thoughts

However, considering the significant positive social welfare implications of adopting this feed type in earthen pond farming, both
governmental and nongovernmental agencies could invest in reducing
feed cost in order to facilitate diffusion. Our results indicate that the
marginal benefit from any investments made to reduce feed costs and
facilitate farmers use of the new feed type is high.
Also, adoption rates of the recommended feed type had a nonsignificant but positive effect on mean NPV. However, adoption rate
links indirectly to change in yield. Change in yield is the physical change
in the average weight of fish fed the new feed type, but the more
farmers that adopt the technology the higher the chances of increasing
production in order to realise the calculated NPV.
This study projected that adoption of yield-enhancing aquaculture BMPs and innovations in a developing country such as Ghana
would result in significant social welfare benefits. Considering the
high marginal benefits of investments in floating feed, it is recommended that affordable credit programs and other financial packages
be created to help farmers meet the current price of fish feed. Dr
Ansah and Dr Frimpong also recommend investment into research
and development projects to reduce the amount of feed wasted
from overfeeding. The focusing of extension effort on production
technologies will lead to the realisation of benefits and reduction in
risk. These efforts will result in the country reaping high social benefits
from the increased yield. Also, active dissemination of this and other
BMPs will create the awareness required for rapid diffusion of these
innovations.
This feature has been altered from the original open access article for
formatting reasons. The original open access article is distributed under a
Creative Commons Attribution (CC-BY) 4.0 license. Published by Cogent
Food & Agriculture (ISSN: 2331-1932), Cogent OA, part of Taylor &
Francis Group.

From the results of this study, it emerges that Ghanas economy

has a high probability of profiting significantly from adoption of
BMPs, such as use of floating fish feed in earthen-pond farms. The
GDP for the country in 2013 was US$48 billion. Ghanas agriculture sector contributes about 22 percent of the countrys GDP.
Extrapolations based on figures from Ghanas National
Aquaculture Development Plan indicate that the current value
of commercially farmed fish in the country to be approximately
US$40 million. This implies that the studys calculated average benefit (US$11 million over 20 years) will annually add > 25 percent
of the current value of commercially farmed fish.
Clearly, Ghana stands to benefit substantially from the increased
fish yield, which will result from adoption of the recommended,
floating fish feed. A previous study conducted by Ansah et al in 2014
identified possible key socioeconomic benefits or impacts of higher
fish yields to include increased employment within the improved
aquaculture industry, higher incomes, reduced poverty, possible
foreign exchange, lower fish cost, better nutritional diet (more protein), improved health and welfare. Additionally, women in Ghanas
fisheries sector are involved more in processing and marketing of
fish, and as such, they too will benefit from the increased fish yields
from the adoption of the recommended feed type.
The recommended commercial floating feed type is known to
cost almost eight times as much as the alternative feed type produced on farms from a mixture of byproducts of local agro-food
industry. It is also not unusual for the cost of fish feed to make up
> 50 percent of variable or total costs of a fish farm, therefore, it
is expected that adoption of the recommended feed type will be
accompanied by a substantial investment of capital, and principles
of innovation adoption predict that the higher cost implications
could discourage rapid diffusion of this feed innovation among
pond farmers in Ghana.
July-August 2015 | INTERNATIONAL AQUAFEED | 35