CHAPTER ONE Introduction Background of Study Fish plays an important role in the diets of Ghanaians.

It represents 60% of average animal protein intake, making it the single most important source (FA , !00"#. Adut$um, (!000# said that Ghana has a self%sufficiency ratio of 60% for fish. &herefore, fish consumption is sustained 'y a gro$ing level of import of fro(en fish $hich is 'ecoming an important part of lo$ income ur'an and rural consumer)s diets. In order to address the shortfalls, A*uaculture is no$ therefore considered to 'e an important and integral part of agriculture+food sector development activities in Ghana. &he formal definition of a*uaculture, 'y the ,- Food and Agriculture rgani(ation (FA # is the farming of a*uatic organisms, including fish, molluscs, crustaceans and a*uatic plants (FA , .//0#. Farming implies some sort of intervention in the rearing process to enhance production, such as regular stocking, feeding, protection from predators, etc. Farming also implies individual or corporate o$nership of the stock 'eing cultivated. A*uaculture in Ghana is 'ased almost entirely in the fresh$ater environment $ith over !,066 fish ponds and 11! reservoirs $ith total surface areas of !2!./ha and !,230./ha respectively (Fisheries 4irectorate, ,npu'lished data#. Although there are a fe$ commercial farms, production is largely at the su'sistence level $ith average pond si(e 'eing 0.06ha (Asma, !001#. &he ma5ority of a*uaculture activities in Ghana involve the production of various species of tilapia (mainly reochromis niloticus# and the African catfish (6larias gariepinus#

under semi intensive systems using earthen ponds. &here are, ho$ever, a fe$ investors producing rain'o$ trout ( ncorynchus mykiss# under intensive systems using race$ays and

tanks. &he tilapine species constitute a'out /0% of a*uaculture production in Ghana. 7olyculture of the tilapines $ith the African catfish is sometimes done to control the prolific 'reeding of the former under mi8ed se8 culture systems (Asma, !001#. 9ecause of the poor regard of a*uaculture as an economic activity, it $as difficult to promote its commercialisation, as investors $ere not convinced that a*uaculture could 'e a profita'le enterprise in Africa (Gitonga et al. !003#. :o$ever, Asma, (!001# suggested that there $as therefore a need to change this perception for any meaningful development in a*uaculture to 'e realised. &his could only 'e done, among other things, 'y promoting a*uaculture as a commercial enterprise in $hich investors see potential to make profits. In order to attain this goal, a paradigm shift $as necessary. In the later part of the .//0s, the e8tension approach to fish farming changed, $ith the government promoting a*uaculture as a 'usiness as opposed to su'sistence farming (Gitonga et al. !003#. For this approach to take effect, it $as necessary for a*uaculture to 'e treated and operated as a personal enterprise $ith the sole aim of making economic gains to the investors. 6apital investment decisions that involve the purchase of items such as land, machinery, 'uildings, or e*uipment are among the most important decisions undertaken 'y the 'usiness manager (:amenoo, !0..#. &hese decisions typically involve the commitment of large sums of money that $ill affect the 'usiness over a num'er of years. Furthermore, the funds to purchase a capital item must 'e paid out immediately, $hereas the income or 'enefits accrue over time. &he aim of this research is to understand the reasons that account for lo$ rate of a*uaculture production in Ghana in recent times, in spite of capital investment in that fisheries su'%sector.

Statement of the Problem &he Government of Ghana)s *uest to use A*uaculture to fill the gap 'et$een the rising demands for fish products and the limited increases in capture and production of $ild fishes has suffered a serious set'ack recently. &here is a persistent year%to%year decline in recent years of the fisheries su'%sector)s contri'utions to G47. &he fisheries su'%sector particularly in !0..fiscal year produced a negative seven (%"%# gro$th. &his has made a lot of industry $atchers $onder $hat has happened to all the investment and effort made 'y Government and individual investors in the a*uaculture industry over the last decade. &he *uestions that arise therefore are; has there 'een a sustained capital investment in the a*uaculture industry in Ghana< :as these investments yielded the desired or pro5ect returns< Ghana has a per capita consumption of a'out !2 kg per annum of fish, accounting for a'out "2% of the total domestic production (-AFAG, !00"#. Fisheries contri'uted 0./% to the Gross 4omestic 7roduct (G47# in !006 (9udget =tatement, !001#. According to the 9ank of Ghana >eport on the Fishery =u' =ector for !001, there has 'een a steady decline in fish production from 6% of G47 in .//0 to 0./% in !006 (9ank of Ghana, !001#. Ghana, $hich $as a fishing country ?of regional importance) (@ills et al !001#, is currently a net importer of fish and fish products (Ashitey and Flake, !00/#. :o$ever, there seems to 'e lack of ade*uate kno$ledge on the successes of failures of the investment made in this industry. &his thesis therefore seeks to add to kno$ledge and hence address the kno$ledge deficit regarding the capital investments in the a*uaculture industry in Ghana.

CHAPTER T

!iterature Re"ie#

Structure of the $i%herie% Sector Fish farming started in Ghana in the ./20s (Auagrainie et al !00/#. &he stages of a*uaculture development in Ghana can 'e divided into three. &he pre%./10s $hen most of the ponds $ere constructed 'y the government for training and demonstration and for research (Auagrainie et al !00/#. &he second phase $as in the ./10s $hich sa$ a $idespread response to the government)s initiative to$ards self%sustaina'ility in fisheries (7rein et al .//6#. @any ponds $ere constructed 'y 'oth individuals and communities. @uch of the effort in the first and second phases yielded very little and created disillusion among those $ho ventured into it (7rein et al .//6#. &he most recent phase 'egan a'out a decade ago (Auagrainie et al !00/#. &his is characteri(ed 'y a gradual shift from su'sistence to commercial farming and from the pond system to the cage system $hich contri'utes over 10% of total a*uaculture production in Ghana (Ashitey and Flake, !00/#. @uch of the fish on the local market are thus from cages and not ponds. =ince !000, the general annual gro$th rate of fish farms is a'out .6% (Asmah, !001#. &his is evident in the numerous farms 'oth small and large along the lo$er section of the Bolta Cake 'ut not in the *uantity of fish produced annually. 6ertain factors have kept the cost of production of the Ghanaian farmer at a level $here his produce is afforda'le to only a section of the market. &hree of these factors are fish feed, cost of lending and price of fuel. It is estimated that feed constitutes 'et$een 20% and "0% of the total cost of producing tilapia (7artos, !0.0# &he gradual shift from pond system to the cage system in Ghana

re*uires the use of floating fish feed. Dith a feed conversion rate 'et$een ..3 and !.2 ( fori et al., !00/# the national feed re*uirement is estimated as not less than .2,000 mt per year (Ashitey and Flake !00/#.&here is ho$ever no feed mill in Ghana at present (Ashitey and Flake !00/#. &arine $i%hery %ub'%ector% &he marine fisheries sector is usually categori(ed into four su'%sectors; small scale (or artisanal#, semi%industrial (or inshore#, industrial, and tuna. f these the small scale, or

artisanal fisheries su'%sector is the most important $ith respect to landed $eight of fish, it accounts namely for appro8imately "0 to 10% of the national marine fish production (Auaatey, .//"; Amador, et al., !006#. Arti%anal fi%herie% &he artisanal fishery is characteri(ed 'y the use of several gears. &hese include purse seine nets, 'each seine net, set nets, drifting gill nets and hook and line. &hese gears are operated from dug%out canoes. &here are over .. !00 canoes and more than .!3 000 fishers operating actively from over 000 landing sites located along the entire 220 km length of the coastline. A'out 20% of these canoes are po$ered 'y out'oard motors $ith engine po$er of up to 30 hp (Amador et al. !006#. Barious different artisanal gears target different resourcesE &he artisanal purse seines and 'each seines are e8ploiting mainly small pelagics. 7urse seines are used to e8ploit adult sardinellas and chu' mackerel during the up$elling periods, $hen these species move into coastal $aters to spa$n. 4uring the non%up$elling periods, anchovies and 5uvenile sardinellas in coastal $aters are targeted $ith this gear. 9each seines are operated from the 'each and e8ploit adult sardinellas, during the up$elling periods, and anchovies and 5uvenile

sardinellas during the non%up$elling periods. &he artisanal sector accounts for a'out /0% of total landings of the small pelagic resources. :ook and line, and 'each seines are the main artisanal gears used to e8ploit demersal resources. :ook and line canoes operate in deep $aters of a'out 10 meters on hard 'ottoms. =ome of the hook and line canoes have facilities for storing ice to preserve fish and are therefore capa'le of staying up to three days at sea. &hey target sea%'reams (mainly 4ente8 gi''osus, 7agrus caeruleostictus and 4ente8 canariensis# snappers (Cut5anus fulgens, C.goreensis# and groupers (Fpinephelus aeneus#. &he 'each seine e8ploits 'oth adult and 5uvenile demersal fish 'ut mainly 5uvenile fish. =ome of their target species include 'urrito (9rachydeuterus auritus#, red snapper (Cut5anus fulgens#, grey snapper (Cethrinus atlanticus#, mullet (7seudupeneus prayensis and @ugil spp.# and ri''on%fish (&richiurus lepturus#. &he artisanal sector accounts for a'out 20% of total demersal fish landings annually. 4rifting gill nets are used offshore to e8ploit mainly large pelagics such as sharks (6archarhinus spp.# tunas (&hunnus al'acares, &.o'esus# sail%fish (Istiophorus al'icans# and s$ord%fish (Giphias gladius#. Artisanal gears are also used to e8ploit molluscs and crustaceans. ,ntil ./10, the 'each seines $ere the main e8ploiter of cuttlefish in Ghanaian $aters; accounting for over 60% of landings annually. 6urrently, the industrial tra$lers account for over 10% of landings annually 9each seines are used to e8ploit shrimps mainly 7arapeneopsis atlantica and 7enaeus kerathurus ('oth adult and 5uvenile# and 5uvenile 7enaeus notialis as they move from the estuaries into marine $aters. Co'ster set nets target the spiny lo'ster, 7anulirus regius on

rocky 'ottoms and in depths of a'out 30 m. &he artisanal fishery contri'utes over "0% of total fish landings annually (Auaatey, .//"# Dorth mentioning are the Cagas canoes. &hese are motorised canoes, $hich specialise in hook and line, using insulated containers and ice to preserve high valued fish. =ome of these canoes are e*uipped $ith electronic fish finding devices such as echo sounders (FA , !00"#.

&he semi%industrial, or inshore fleet consists of appro8imately !00 locally 'uilt $ooden vessels fitted $ith in'oard engines of up to 300 hp and have lengths ranging 'et$een 1 and 0" m. Bessels $ith lengths less than .! m are referred to as small%si(ed $hile those 'et$een .! and !! m are referred to as medium si(ed vessels (Auaatey, .//"#. &he vessels are multi%purpose and are used for 'oth purse seining and 'ottom tra$ling. &hey operate as purse seiners during the up$elling periods and s$itch to 'ottom tra$ling for the rest of the year. &he purse seiners target the sardinellas, chu' mackerel and other 6arangidae species. &hey fish in the same coastal $aters as the artisanal fleet during the up$elling seasons. &he small%si(ed tra$lers target Gery &riggerfish (9alistes capriscus#, $hile the others e8ploit sea 'reams (mainly 7agellus 'ellottii, 7agrus caeruleostictus and 4ente8 canariensis#, snappers (Cut5anus fulgens and C.goreensis#, red mullet (7seudupeneus prayensis cassava% fish (7seudotolithus senegalensis#, 'urrito 9rachydeuterus auritus#, and groupers

(Fpinephelus aeneus#. 9ottom tra$ling is done in $aters greater than 00 m depth. &he semi%industrial vessels use ice for preserving fish at sea and a fishing trip usually varied 'et$een 0 and 2 days.

&he disappearance of 9.capriscus from Ghanaian $aters in the late ./10Hs has affected greatly the performance of the sector. &he species $as the main resource 'ase for many of these vessels (Auaatey; .//"#. Indu%trial fi%herie% &he industrial fleet is currently made up of 31 tra$lers, " pair tra$lers, ! shrimpers, !6 tuna 'ait'oats and .0 tuna purse seiners. &he vessels operate from &ema and &akoradi $here there are deep$ater ports. &he tra$lers and shrimpers e8ploit demersal and semi%pelagic species. As deep%sea vessels, these tra$lers are re*uired 'y la$ are to operate in $aters deeper than 00m deep (Fisheries Act 6!2 !00!#. &he industrial fleet has free(ing facilities for preserving fish at sea and can stay for months at sea. It is reported that the industrial fleet has undergone a radical e8pansion in num'ers since ./13 $hen the policy of the Government of Ghana targeted industrial fishing as a mechanism for promoting non%traditional e8ports (Auaatey, .//"; FA , !00"# &ra$lers are normally over 02 m in length and have engines of over 600 hp, $hile the shrimpers are up to 00 m in length $ith engines of over 020 hp. riginally, the tra$lers

fished off the $est and south%$est coast of Africa particularly in the area from =ierra%Ceone to @auritania and also in the Angola to -ami'ia area. &hese vessels have 'een forced out of these $aters 'y the enforcement of the !00 nautical mile FFI Ca$ 'y these countries. 6ommercial shrimpers are restricted 'y la$ to operate 'et$een latitude .o 32H D to !o 00H D and 0o .2HF to .o .!H F and in $aters $ith a greater depth than 00 m. &hese vessels target mainly pink shrimp (7enaeus notialis#. All shrimps caught 'y these vessels are e8ported. &he 'y%catch of these shrimpers consists of fin%fish $hich include soles, cassava%fish, sea 'reams, cuttle%fish and red mullet.

&he industrial tra$lers 'y la$ are to operate in $aters greater than 00 m deep. :o$ever, the 'ottom 'eyond the "2 m depth contour is untra$la'le, limiting their operational area. &he industrial fleet has undergone radical e8pansion in num'ers since the launching of the Ghana Fconomic >ecovery 7rogramme in ./13. &he aim of the programme, among other things, $as to promote non%traditional e8port to earn foreign e8change for the country. &he num'er of operating tra$lers has increased from .0 in ./13 to 00 in .//2. &hese vessels target species such as cuttlefish, sea 'reams, groupers, snappers, soles and cassava fish for e8port. 6ommercial shrimping also resumed in ./16 $ith ! vessels and the num'er increased to .1 in .//6. &here are ! shrimpers operating in Ghana at present. &he industrial vessels have free(ing facilities for preserving fish on 'oard and can stay for months at sea. Tuna fi%herie% &he tuna fishing vessels catch mainly yello$fin tuna (&hunnus al'acares#, skip5ack tuna (Jatsu$onus pelamis# and 'igeye tuna (&hunnus o'esus#. @ost tuna vessels are operated on 5oint%venture 'asis, $ith Ghanaian o$ners having at least 20% of the shares, as re*uired 'y the Fisheries Act 6!2 of !00!. Inland $i%herie% &he Cake Bolta, reservoirs associated $ith irrigation and pota'le $ater pro5ects, and fishponds are the main sources of fresh$ater fish in Ghana. Fishing in Cake Bolta ($ith a surface area of 1 310 kmK and 2 !00 km of shoreline# contri'utes a'out /0% of the total inland fishery production in Ghana, $hich is around /0 000 @&. A'out 10 000 fishers and !0 000 fish processors and traders are engaged in the Cake Bolta fishery. &here are ." 200 canoes actively fishing in the Cake Bolta. &he fishing gears used is

cast and gill nets, hook and line, and traps. &he composition of species landed is 6ichlids (01..%#, 6hrysichthys spp. (03.3%# and =ynodontis spp (...3%#. &o check illegal fishing activities on the Cake Bolta, the Government of Ghana recently ac*uired a modern patrol vessel to 'oost the control efforts undertaken 'y the @onitoring, 6ontrol and =urveillance 4ivision of the 4irectorate of Fisheries. &ain re%ource% of the marine %ub'%ector &he activities in the marine sector range from artisanal canoe operations through inshore to industrial operations. 9oth pelagic and demersal fishery resources are e8ploited. @arine fisheries in Ghana are affected 'y a seasonal up$elling that occurs in Ghanaian coastal $aters. 4uring up$elling periods (4ecem'er+Lanuary M Fe'ruary and Luly M =eptem'er# 'iological activity increases in the sea those results in an increased production of fish food and a'undance of most marine fishes. &hese periods are the main fishing seasons in Ghana.

.# Fishery resources can 'e classified asE !# =mall pelagic species (6lupeidae N=ardinellasO, and Fngraulidae NanchoviesO# 0# Carge pelagic species (=com'roidei Ntuna%like fishesO#, and 3# 4emersal species of the families =paridae, Cut5amdae, @ullidae, 7omadasydae, =erranidae, 7olynidae and 7enaedae (FA , !00"#. Pelagic re%ource% Small (elagic re%ource%

&he 'iomass for small pelagic resources fluctuates significantly. It is ho$ever estimated that the ma8imum catch the small pelagic fishery can sustain is .10 000 tons. Candings of sardinella fluctuate so much so that in some years (e.g. ./"0 and ./"1# they reached points of near collapse, then from the ./10)s, there as a remarka'le increase $ith an all time high of .30 000 metric tons in .//!. Fver since, landings declined reaching 63 000mt in .//". According to some authors, the a'undance of chu' mackerel (=com'er 5aponicus# is so varia'le from year to year that it is almost impossi'le to predict its a'undance. =imilarly anchovy landings fluctuated 'et$een ./ 000mt in ./16 and 1! "00mt in .//6, $ith an all time high of /0 000mt in ./1" (FA , !00"#.

!arge (elagic re%ource% &he main commercial tuna resources $hich occur in Ghanaian Daters are yello$fin tuna (&hunnus al'acares#, skip5ack tuna (Jatsu$onus pelamis# and 'igeye tuna (&hunnus o'esus#. In .///, the total catch $as over 10 000 tons 'ut the average landing for the period !000% !00! $as 6" 000 tons.

)emer%al Re%ource% Fstimates of the 'iomass of surveys sho$ that the potential yield of the total demersal 'iomass on Ghana)s continental shelf is 'et$een 06 000 and 22 000 tons per annum $ith an average of appro8imately 30 000 tons. :o$ever, landings of the last decade, of around 20 000 tons annually, e8ceeded this estimated potential yield, $hich demonstrates the stress under $hich the fishery has 'een operating (Auaatey, .//"; FA , !00"#.

Shrim( Re%ource% Fven though there is a speciali(ed shrimp fishery in Ghana, shrimps are caught 'y all fleets (e8cept tuna fishing vessels# mainly from shallo$ $aters and close to estuaries. Artisanal operators catch shrimps mainly in 'each seines, these are normally 5uvenile shrimps of very lo$ commercial value. &hrough a modelling approach, the ma8imum sustaina'le yield (@=P# of shrimps is estimated to 'e 020 tons per annum e8cluding catches of artisanal fishers. Although catches have never e8ceeded this calculated @=P, the industry sho$ed signs of decline in the last si8 years (FA , !00"#.

Regulating the $i%herie% Indu%try in Colonial Time% &he 9ritish government in the Gold 6oast did not esta'lish a Fisheries 4epartment until ./36 ( cran ./"0E1#. Pet colonial administrators $ere involved in the industry from the turn of the nineteenth century $hen ne$ kinds of fishing e*uipment 'egan to appear on the Fanti 6oast. -e$ technologies, particularly the introduction of improved nets, precipitated a host of ne$ conflicts over marine space and resources. At the same time, local governance over fisheries $as undermined 'y legislation from 9ritish administrators $ho $ere 'eginning to see GhanaHs fisheries as a potentially lucrative industry for the colony. @ean$hile a num'er of conflicts emerged 'et$een villages, $ithin villages, 'et$een young and old, and 'et$een fishermen and the colonial administration. &hese conflicts may 'e categori(ed into three categories, although many of the cases include multiple conflicts. First, conflicts over the introduction of ne$ nets% conservation v. profits; second, conflicts over authority%government v. local chiefs; and third, conflicts over property in marine space and marine time.

According to one scholar, Ca$son (./61E/.#, Fanti fishermen $ere using rectangular nets measuring four hundred yards in length and eighteen yards $ide from a'out .120 on$ard. &hese nets $ere called Ali, and $ere hand%made of imported cotton t$ine, $ith a mesh si(e of only . 0+3 inches. =et in the $ater for hours at a time $ith cork floats and stone $eights, these nets caught su'stantially more fish than $ere previously caught $ith cast nets. &hey also caught fish indiscriminately of si(e. 6ast nets are round nets thro$n into the sea 'y fishermen either standing in the shallo$s or on a canoe. @any conflicts arose up and do$n the coast over Ali nets and other ne$ nets similar to the Ali net. 7rimarily, conflict revolved around issues of unfair competition, profits, conservation, sustaina'ility, and e*ual distri'ution. 9ecause these ne$ nets caught previously unseen volumes of fish, fishing cre$s $ho used these nets $ere a'le to reap greater profits. In addition, the locali(ed market price of fish fell due to the increased supply. Apparently, those unfortunate fishermen $ho did not use these nets 'egan losing profits and 'egan complaining to their chiefs and government representatives. In most of the cases the financial concerns of the unfortunate fishermen $ere presented along $ith (or in the guise of# concerns over the environment and the community; apprehensions a'out over fishing, sustaina'ility of the fisheries resources, and the maintenance of fairness, e*uality, and peace 'et$een fishermen. Along $ith these conflicts over profits and sustaina'ility, other locali(ed political and economic considerations played into the disputes. For instance, in one case it appears that old fishermen $ere 'ehind the passing of 'ye%la$s to prohi'it the use of ne$ nets. It $as thought that these men could not afford to purchase, and $ere too old and $eak to operate these ne$ nets, and $ere therefore losing profits to younger and stronger fishermen $ho could afford them. 6onflicts also arose 'et$een neigh'oring villages, among $hich certainly e8isted other struggles not mentioned in the records $hich might have amplified these fishing disputes. According to 9ar'ara Dalker (.//1E.02%.0/#, the archival record descri'es at least thirteen

cases of net conflicts, $hich are too numerous to mention here. &he earliest case, ho$ever, that esta'lished the precedent for the ensuing conflicts $as the case of Ak$ufio and thers v. @ensah and thers. &his $as a case 'rought to the =upreme 6ourt of the Gold 6oast in

6ape 6oast in .1/1 'et$een t$o groups of fishermen in &eshi. An anonymous colonial document reports that the Ali net came into use among the Ga at &eshi in .1/" and in a short time most of the &eshi people used them $ithout hindrance 'ut later the ma5ority of the fishing population 'ecame dissatisfied $ith them as they found that these nets in5ured their fishing so much that their families $ere starving. &heir chief o'5ection to the net $as that it ruined the herring fishery 'y driving a$ay the fish (Anonymous ././E.#. In response, a fisherman named @ensah and other fishermen at &eshi passed a la$ prohi'iting the use of the Ali net. Dhen a fisherman named Ak$ufio and others continued to use these nets, they $ere attacked 'y @ensahHs group, their canoes $ere upset, and their Ali nets $ere damaged. After deli'erations, in .1//, 6hief Lustice =ir D. 9randford Griffith decided that the la$ made 'y @ensah could not 'e enforced 'ecause it did not e8ist at the time of the =upreme 6ourt rdinance .1"6, and this decision $as used as a precedent in all of the cases of ne$

net conflicts to follo$. &his decision of itself $ill 'e discussed further in the section 'elo$ on conflicts over authority. &he foregoing $as the regulatory frame$ork that paved $ay for the importation 'y the Fisheries 4epartment in ./36 of 00%footer motori(ed fishing 'oasts from the ,nited Jingdom into the country for e8perimental fishing and the introduction of out'oard engines to canoes in the ./20s, four years later ( cran, ./"!#. &he out'oard motors ena'led the canoes to move farther out to sea from the coast and to make 'igger catches *uickly in fe$er hours or days than 'efore. &he success of the t$o 00%footer 'oast used 'y the Fisheries 4epartment $as such that in ./2!, the Government of Ghana set up a 9oatyard 6orporation $hich started 'uilding similar 'oasts at the =ekondi 9oatyard. In no time, several in%'oard

engine $ooden vessels $ith length ranging from !")%0!) $ere 'uilt. In ./6!, five years after independence, the &ema 9oatyard $as esta'lished. &o the post%independence regulation of the fisheries sector it is no$ necessary to turn.

Po%t'Inde(endence Regulation of the $i%herie% Indu%try Dith the esta'lishment of the &ema 9oatyard in ./6!, a large fleet of $ooden fishing vessels $ith lengths up to "0%feet $ere 'uilt for the industry. @ost of the vessels engaged in dual% purpose fishery, that is, 'ottom tra$ling and purse seining. Cater, individual entrepreneurs imported steel 'oats $ith si(es ranging from 00)%.!0) into the country to carry out fishing in 'oth tra$ling and purse seining for fin%fishes and shellfishes.

&he regulatory policies (in the fisheries sector# of the various governments $e have had since independence can 'e seen in the various legislative interventions they made in the sector. In the early ./60s, the Fisheries Act and the Fisheries >egulations, ./63 (C.I. 063# $ere enacted. &he e8isting la$s, as sho$n in the a'ove analysis, did not e8pressly deal $ith the fisheries industry 'ecause of the particular free%for%all attitude adopted 'y the colonial masters to$ards the industry. In that period, and at 'est, there $ere pieces of legislation that touched on $ater use and or its management. Among these $ere the >ivers (6ap. !!6#, the Forests rdinance, ./3/ (6ap. .2"# and the @os*uitoes rdinance, ./00 rdinance, ./2.

(6ap. .2" >ev#. &hese dealt $ith the fishing industry only tangentially.

7ost independence, and in addition to the Fisheries Act and >egulations, many many other enactments affecting the fisheries industry $ere enacted. &hese includedE

.. &he Dild Animals 7reservation Act, ./6. (Act 30#; !. &he Bolta >iver 4evelopment Act, ./6. (Act 36#; 0. &he Ghana Dater and =e$erage 6orporation Act, ./62 (Act 0.0#; 3. &he il in -aviga'le Daters Act, ./63 (Act !02#; 2. &he Irrigation 4evelopment Authority 4ecree, ./"" (=@64 12#; 6. &he @inerals and @ining Ca$ ./16 (7-46C .20#; ". &he Fnvironmental 7rotection Agency Act, .//3 (Act 3/0#; 1. &he Ghana :igh$ay Authority Act, .//" (Act 230#; /. &he &im'er >esources @anagement Act, .//1 (Act 23"#; and .0. &he @inerals and @ining Act, !006 (Act "00#.

9ack to la$s directly dealing $ith the fisheries industry, in ./"! the government of the -ational >edemption 6ouncil (->6# promulgated the Fisheries 4ecree, ./"! (-.>.6.4. 1"#. In ./"", the Fisheries (Amendment# >egulations ./"" (C.I. ..06# $ere passed 'y the same government to amend the Fisheries >egulations, ./63 (C.I. 063#. In ./"/ the government of the Armed Forces >evolutionary 6ouncil (AF>6# also promulgated the Fisheries 4ecree, ./"/ (A.F.>.6.4. 00#. In that same year, the Fisheries >egulations, ./"/ (C.I. .!02# $ere promulgated. In .//., the government of the 7rovisional -ational 4efence 6ouncil (7-46# promulgated the Fisheries Ca$, .//. (7-46C !26# to repeal the AF>64 00 $hilst saving the Fishing 9oats (6ertificate of 6ompetency as skipper and =econd 6lass Fngineers# >egulations, ./"! (C.I. ""0# and the Fishing 9oats (6ertificate of 6ompetency First 6lass

and =econd 6lass Fngineers# >egulations, ./"3 (C.I. /11#. In .//0, the Fisheries 6ommission Act, .//0 (Act 32"# $as passed amending 7-46C !26. In !00!, the Fisheries Act, !00! (Act 6!2# $as enacted 'y the present government to consolidate $ith amendments all the foregoing la$s on fisheries; to provide for the regulation and management of fisheries; to provide for the development of the fishing industry and the sustaina'le e8ploitation of fishery resources and to provide for connected matters. &he point 'eing made here is that virtually every government, post%independence, passed a num'er of la$s to regulate the fisheries industry. It must 'e an important industry indeed. &he present government, according to the !00" 9udget =tatement, selected a consultant and inaugurated a 6ommittee to revie$ the Fisheries 7olicy to serve as a 'asis for the development of the fisheries sector. &here is also in the offing 4raft Fisheries >egulations intended to give effect to the Fisheries Act of !00! (Act 6!2# and to streamline activities and 'ring a'out uniformity in the fishing industry. 7erhaps, the various issues and complaints from the fisherfolk need find e8pression in the conte8t of these current developments. 6urrently, developments $ithin the fishing industry are far from normal. A recent study on moderni(ed the fishing industry 'y a &ema 'ased non%governmental organi(ation, the 6orporate =ocial >esponsi'ility @ovement (6=>@#, $ith support from the Friedrich F'ert Foundation (FF=#, has esta'lished that fishing practices on sea are likely to create pro'lems for the sustaina'ility of the marine life and environment. According to them 60% of respondents in their survey indicated that they dump dead fish 'ack into the sea $hilst !.% also indicated that they use light in their fishing activities. =imilarly in Fe'ruary and @arch !00", participants including chief fishermen, in a series of consultative $orkshops held in &ema and Accra, reported to the present authors that industrial fishing vessels tend to plough through their nets. In most cases, they are una'le to identify the vessels 'ecause they cannot

read the name of the vessel and so cannot make an intelligent complaint to the relevant authorities. &he tra$lers sometimes s$eep even the small 'reeding stock and this has serious implications for the sustaina'ility of the industry. Again, the tra$lers unearth mud as they move in and $hen they (small fishermen# caste their nets the nets are filled up $ith mud. &he tra$lers also leave metal pieces (i.e. anchors and metal $eights used 'y tra$lers# under the sea and these destroy their net $hen they caste them. Fven though fishes are seasonal, according to them, the tra$lers use highlights that distur' the movement of fishes. &hese tra$lers may take the form of either 'ottom tra$lers $hich sink into the sea or paired tra$lers $hich have t$o tra$lers dragging the same net over a range of space. &he fishermen said that they have made a lot of complaints to the Fisheries 4epartment and the -avy 'ut all to no avail. &hey indicated that they no$ run losses $hen they go to sea. &hey also raised issues of tra$lers coming as close as .2 nautical miles. According to them these concerns have 'een raised in a num'er of fora in the past fifteen (.2# years under the auspices of the Fisheries >esearch Institute. &hey $ere given the assurance in .//! that no more tra$lers $ill 'e registered 'y the then 4epartment of Fisheries, 'ut soon thereafter that .0 more tra$lers $ere registered. &hey have had a num'er of meetings $ith the current @inister for Fisheries on these concerns and she has promised to pass a Cegislative Instrument (C.I# to 'etter regulate the industry and to 'an light fishing.

Analy%i% of the $i%herie% Act* +,,+ -Act .+/0 &he e8isting regime for the regulation of the fisheries industry, as in many areas of Ghanaian 5urisprudence, is a mi8ture of customary rules and statutory enactments in consonance $ith Article .. of the .//! 6onstitution $hich mentions 'oth as sources of la$ in Ghana.

Article .. of the 6onstitution provides that the la$s of Ghana shall include Q6ustomary Ca$Q $hich is defined to mean the rules of la$ $hich 'y custom are applica'le to particular communities in Ghana. Dhilst raising the customary la$ to a high pedestal, the 6onstitution also preserves the 'ody of la$s e8isting 'efore the coming into force of the 6onstitution (the F8isting Ca$# and generally su'sumes 6ustomary Ca$ under the 6onstitution and the F8isting Ca$. &he F8isting Ca$, according to the 6onstitution comprise the $ritten and un$ritten la$s of Ghana as they e8isted immediately 'efore the coming into force of the 6onstitution, and any Act, 4ecree, la$ or statutory instrument issued or made 'efore that date, in as much as they do not conflict $ith the 6onstitution. Flo$ing from the a'ove, the fisheries industry in Ghana is regulated 'y the Fisheries Act of !00!, all other Acts, 4ecrees, la$s, Cegislative Instruments (and other su'sidiary+su'ordinate legislation# on or relating to the sector that are still in force and not inconsistent $ith the 6onstitution (the F8isting Ca$#; and 6ustomary Ca$s that are not inconsistent $ith the 6onstitution or the F8isting Ca$. &he purpose of the Fisheries Act is to consolidate $ith amendments the la$ on fisheries; to provide for the regulation and management of fisheries; to provide for the development of the fishing industry and the sustaina'le e8ploitation of fishery resources and to provide for connected matters. De propose to discuss the provisions of this la$ in the light of the issues raised 'y the fisherfolks and noted in section 0 a'ove. &hese issues generally 'order on the role, functions and po$er of the fisheries institutions, harmful fishing methods such as light fishing and pair tra$ling on artesanal industry, *uality control of fish products, and e*uity in access to fishing logistics provided 'y government.

&he Fisheries Act (in its section .# esta'lishes a Fisheries 6ommission as a 'ody corporate to

regulate and manage the utili(ation of the fishery resources of Ghana and co%ordinate the policies in relation to them. &he 6ommission)s functions among other things are to ensure the proper conservation of the fishery resources through the prevention of over fishing. n the a'ove point it is an offence, according to section 1/ of the Act, for a person to kno$ingly take any (a# gravid lo'sters; ('# crustacea; or (c# any 5uvenile fish during fishing. &herefore, $here any of the aforementioned fishes is caught accidentally, or caught as a 'y% catch, it shall immediately 'e returned to the sea, river or lake. n summary conviction, one

is lia'le to a fine of not less than R20,000 and not more than R. million in respect of a local industrial or semi%industrial fishing vessel or a foreign fishing vessel, and not more than !20 penalty units in any other case. In addition to these, the catch, fishing gear or other apparatus or any com'ination of them used in the commission of the offence may 'e forfeited to the =tate. Again another conservation measure provided in the la$ is to make the fishing of marine mammals an offence in section /0. &hus no person shall fish for marine mammals in the fishery $aters and any marine mammal caught accidentally shall 'e released immediately and returned to the $aters from $hich it $as taken $ith the least possi'le in5ury. &he punishment for this offence is also a fine of not less than R20,000 and not more than R. million in respect of a local industrial or semi%industrial vessel or a foreign fishing vessel; and 200 penalty units in any other case. &he @inister of Fisheries may on the advice of the 6ommission and after consultation $ith the @inister for the Fnvironment, o$ners of the ad5oining land and the relevant 4istrict Assem'ly declare any area of the fishery $aters and the sea'ed underlying the $aters to 'e a marine reserve, according to =ection /.. A person $ho, engages in fishing; dredges or takes any sand or gravel; or other$ise distur's the natural ha'itat $ithin any marine reserve, e8cept $ith the $ritten permission of the @inister, commits an offence and is lia'le on summary conviction to a fine of not less than R20,000

and not more than R! million in respect of a local industrial or semi%industrial fishing vessel or a foreign fishing vessel and not more than 200 penalty units in any other case. &he Fisheries Act also provides in section /!, that $here a person directly or indirectly introduces a deleterious su'stance into the fishery $aters $hich adversely affects the ha'itat or health of the fish or other living a*uatic resource, he commits an offence and is lia'le on summary conviction to a fine of not less than (a# R20,000 and not more than R! million $here a local industrial or semi%industrial vessel or a foreign fishing vessel is used in the commission of the offence; and to 20 penalty units and not more than 200 penalty units in any other case and the person may 'e ordered 'y the court to pay such additional amount as the court may determine in compensation for any loss suffered as a result of the introduction of the deleterious su'stance and any related clean%up costs. &he Fisheries Act also proscri'es in =ection 11 proscri'es the used of any e8plosive, poison or other no8ious su'stance for the purpose of killing, stunning, disa'ling or catching fish, or in any $ay rendering fish more easily caught; or the carrying on 'oard or having in one)s possession or control $ithout la$ful authority at any place $ithin a t$o kilometre radius from any shore or river, any e8plosive, poison or other no8ious su'stance in circumstances indicating an intention of using such su'stance for any of the purposes referred to. It is therefore an offence for any person to land, sell, receive or possess fish taken 'y the prohi'ited methods mentioned a'ove. &he punishment for such an offence is fine of at least R!20,000 and not more than R! million in respect of a local industrial or semi%industrial fishing vessel or a foreign fishing vessel, and at least !2 penalty units and not more than 200 penalty units in any other case, and in addition, the catch, fishing gear or other apparatus or any com'ination of them used in the commission of the offence shall 'e forfeited to the =tate.

As one of its duties, the 6ommmissions is to strive to minimise, as far as practica'le, fishery gear conflict among users. &his is contained in section .0 $hich clothes the 6ommission $ith po$ers to appoint from among its mem'ers a Fisheries =ettlement 6ommittee composed of not less than three and not more than five mem'ers to hear and settle complaints from persons aggrieved in respect of matters arising from or related to the fishing industry. &his, ho$ever, does not limit one)s right to access 5ustice in the regular courts. &he function of the 6ommission in ensuring the monitoring, control and surveillance of the fishery $aters is contained in =ection /3 $hich esta'lishes and provides for the functions of the @onitoring, 6ontrol, =urveillance and Fnforcement ,nit. ne lauda'le function of the 6ommission is to promote co%operation among local fishermen and advance development of artisanal fishing. =ection 2. mandates the 6ommission to take such action as it considers necessary to protect and promote artisanal and semi%industrial fishing including the follo$ingE (a# &he provision of e8tension and training services; ('# &he registration of artisanal fishing vessels and any class of related fishing gear; (c# &he e8emption for such period as it may recommend to the @inister of such fisheries activities as it may determine from any re*uirement concerning licensing and the payment of fees under the Act; (d# &he promotion of the esta'lishment and development of fishing, processing and marketing co%operative societies; (e# &he promotion of the development of artisanal fishing landing facilities; (f# &he esta'lishment of reserved areas for fishing activities of artisanal and semi%industrial fishing vessels;

(g# &he giving of priority to artisanal and semi%industrial fishing in the allocation of fishing licences or *uotas; and (h# &he promotion of 5oint venture arrangements, technology transfer agreements and transfer of technology and e8perience. In any the foregoing actions to 'e taken 'y the 6ommission, it shall not esta'lish concessionary areas $ithin the Inshore F8clusive Ione (IFI# for activities not permitted under this Act. &he IFI according to the =chedule to the Act is the coastal $aters 'et$een the coastline and the 00%metre iso'ath or the 6 nautical miles offshore limit $hichever is farther. In =ection 1.(!# this areas is for e8clusive use 'y small semi%industrial vessel (=IB#, canoes and recreational fishing vessels.

Indeed, the Act may 'e descri'ed as a progressive piece of legislation in terms of creating a frame$ork for the gro$th and sustaina'ility of the fisheries sector and of artisanal and small semi%industrial fishing. 4espite the strengths of the Fisheries Act, there are shortfalls in t$o 'road respects. For e8ample, the Act does not contain e8plicit provisions on fish health, *uality assurance or product safety. 9y virtue of the provisions of =ection "" of this Act, ho$ever, it is possi'le to dra$ on other la$s addressing these issues and these may apply $ith the same force as if they $ere enacted as part of the Fisheries Act. =ection "" provides that a fishing licence or other authorisation issued under this Act shall not relieve any licensee, or the master or cre$ of a fishing vessel of any o'ligation or re*uirement imposed 'y la$ concerning navigation, health, customs, immigration or another matter. For e8ample, in e8ercise of the po$ers conferred on the @inister responsi'le for the Fnvironment under section !1 of the

Fnvironmental 7rotection Agency Act .//3 (Act 3/0#, and on the advice of the Fnvironmental 7rotection Agency 9oard, >egulations $ere made for the conduct and su'mission of environmental reports and impact statements. =chedule !, regulation 0 of the Fnvironmental Assessment >egulations, ./// (C.I. .62!#, prescri'es land%'ased a*uaculture as one of the undertakings for $hich an Fnvironmental Impact Assessment (FIA# is mandatory. In the same legislative instrument, schedule 2, regulation 00(!# contains the provisions to regulate the activities associated $ith fish cage culture. It characteri(es $ater trapped for domestic purposes, $ater $ithin controlled and+or protected areas and $ater $hich supports $ildlife and fishery activities as environmentally sensitive areas the use of $hich is governed 'y FIAs. Another e8ample is the role of the Food and 4rugs 9oard. &he Food and 4rugs Ca$, .//! (7-46C 0029#, prohi'its the sale of un$holesome, poisonous or adulterated and unnatural su'stances and lays do$n penalties for 'reaching the la$. Pet, 'eyond dra$ing on legislative provisions from other sectors to 'etter regulate the fisheries sector, it is advisa'le for the @inistry of Fisheries to enact a comprehensive Cegislative Instrument to regulate the sector. &he second shortfall relates to the enforcement of the provisions of the Fisheries Act. It is clear from the analysis of the provisions of the Act that the issues currently 'ordering canoe fishermen are addressa'le under the Act, that is, if the provisions of the Act are enforced.

The %i1e and nature of market% and trade for a2uaculture (roduct% in 3hana &he need to increase annual domestic fish production and efforts 'y the government at attaining this through increased a*uaculture production has 'een esta'lished in preceding chapters. Ffforts so far have concentrated on enhancing production $ith little consideration given to marketing. >ecent developments geared further in the area of production have

included the signing of a memorandum of understanding 'y the @inistry of Fisheries $ith t$o 6hinese fisheries companies to secure a ,=R 30 million loan from the 6hinese government to 'egin a !000ha fish farming pro5ect on >iver 7ra at =hama in the Destern >egion ($$$.modernghana.com+ne$s % accessed !2+0.+.!#. A potential strongpoint of a*uaculture is that production can 'e market oriented as opposed to 'asing markets on the varia'ilities of production, as in capture fisheries (7illay and Jutty, !002#. 7roper understanding of consumer demands, attitudes, and preferences can therefore 'e a ma5or asset in planning a via'le a*uaculture production programme, thus the need for a market survey. A market is literally defined as a place $here goods and services are sold, in effect, a location. It can also 'e defined 'y time such as the seasonal markets or 'y a level or generic sense as in the retail and $holesale market. In marketing, the term market refers to the group of customers or organi(ations that is interested in or has demand for the product, has the resources to purchase the product, and is permitted 'y la$ and regulations to ac*uire the product ($$$.netm'a.com M accessed .0+0!+01#. &he primary o'5ective of every market is to sell goods that satisfy customer needs at $hatever level these are e8pressed. &he demand of any product is ho$ever influenced 'y price of the product, prices of related goods, consumers) tastes and preferences, population num'ers, income levels of consumers, and future e8pectations. ,nderstanding demographic characteristics, consumer characteristics and consumer attitudes to$ard the product can 'e used 'y the industry to e8pand markets into other geographic areas or to increase consumption in traditional market areas (Fngle, .//1#.

&arketing in a2uaculture @arketing is thought to play a key role in any successful a*uaculture development. &he success of a*uaculture depends not only on increased production, 'ut also on the e8istence of a $ell%organi(ed and efficient marketing system. Gil'ert (./1/# placed the importance of marketing in a*uaculture on a par $ith production, financing, cash flo$ and other profit determining factors in a*uaculture enterprises. @arketing unfortunately is often an area disregarded 'y fish farmers $ith most producers 'eing production oriented rather than market oriented (Gil'ert, ./1/#. Dilliams (!000# noted that $ithout ade*uate attention to marketing strategy, even the most efficient fish production may not 'e financially profita'le. &hose $ho are successful in this 'usiness are those that are market oriented, have diverse markets, have spent much time talking to potential customers 'efore 'eginning to design their production operation and are committed to their customers (Fngle and Auagrainie, !006#. Good marketing in a*uaculture is far more than 5ust finding customers for $hat farms have decided to produce. It starts $ith customers, 'oth final end user and trade customers, and from analysis of their needs $orks 'ack to decisions a'out $hat should 'e produced $hen it should 'e produced and $hat the customer should 'e offered (=ha$, .//0#. $i%h con%um(tion and con%umer (reference% in 3hana General fish consumption patterns in Ghana have 'een studied to varying e8tents 'y Fssuman (.//!#; :ein'uch (.//3# and =eini et al. (!003#. According to the studies, consumption patterns $ere defined 'y incomes of consumers, location of consumers, ethnicity, availa'ility and prices of other animal protein sources such as meat and meat product, eggs and milk. Fssuman (.//!# from his study found that the higher a consumer)s income the more the

*uantity of fish demanded, the species preferred and the si(e of fish preferred, $hilst the poor and rural population in Ghana are said to 'uy smaller si(es of fish 'ecause they are $hat they can afford. :e also indicated that certain processed forms of fish $ere preferred 'y some ethnic groups than others and cited the e8ample of fermented fish as much more preferred in southern Ghana, particularly among the Akans (the largest ethnic group in Ghana# than in the north among the indigenous tri'es. =eini et al. (!003# from their study found in relation to location that coastal d$ellers or people living on the fringes of large $ater 'odies ate relatively more fish than their inland counter parts. A'out 10% of total fish supply is cured in various $ays, $ith smoking 'eing the most $idely practised method, applica'le to virtually all species of fish availa'le in the country. &hus 'et$een "0%10% of the domestic marine and fresh$ater catches are consumed in smoked form (FA salting. $i%h trade and marketing in 3hana &rading in fish is an important industry in Ghana providing full or partial employment for an estimated .0% of the population in 'oth rural and ur'an communities. &he volume of trade is dominated 'y the artisanal fishery sector $hich accounts for 10% of domestic fish supply. Candings from this sector are dominated (/0%# 'y small and medium si(ed pelagic fishes and demersal fishes (7erry and =umaila, !00"#. A large proportion of the fish traded is sold smoked. Fresh fish is thought not to attract a large market in many places as a result of poor cold storage facilities (Aryeetey, !00!#. Although estimated annual turnover of the sector is not immediately availa'le, there are indications that this runs into millions of Ghana 6edis as the local value of smoked fish and ,-47, !00.#. ther forms of pre%sale preservation are drying, frying and

e8ports to the ,nited =tates, 6anada and Furope in !00. $ere estimated to range from R ".0 million to R /.3 million (4iei% uadi and @ensah, !002#. $i%h %ale outlet%4 %tructure and infra%tructure &here are si8 main forms of fish sale outlets in Ghana. &hese are the regular markets, fish landing sites, fish markets, fro(en foods stores, vendors and farm gate or pond side. Regular market% &hese are markets dealing in a $ide range of merchandise 'ut $hich often have sections allotted to fish sellers, either central markets serving entire districts or regions or local markets serving communities. ,r'an markets are opened for 'usiness daily $hilst those in the rural areas or serving small ur'an communities operate once or t$ice a $eek on particular days or at regular intervals of days. &raders at these markets form associations as per product sold. F8amples of such associations are the fish sellers association, or even riverine fish sellers association. Fach group has its leaders 'ut a'ove all these leaders is the market S*ueenT $ho oversees all operations in the market. Ghana has a decentralised form of government and these markets are 'uilt and managed at the local level 'y the district assem'lies or the municipal authorities. perators in these markets pay daily tolls to the municipal authorities. Infrastructure $ise, the central markets are fairly $ell e*uipped $ith porta'le $ater supply, electricity, chilled storage and ice supply (normally 'y private operators#, and $ashing facilities $ith several stores, stalls, and sheds. =ome local markets in the cities and ur'an areas have similar facilities 'ut smaller in si(e $hilst others and those in the rural areas are poorly e*uipped $ith some rural markets 'eing 5ust a cluster of sheds. Cevels of trade in fish at the central

markets are intermediate, $holesale, and retail. &rading at the local markets is primarily retail. $i%h landing %ite% &hese are sites ad5acent to inland $ater 'odies or the 'eaches $here fishermen land their catch. &he description here ho$ever focuses primarily on fresh $ater landing sites. Cevels of trading ($holesale, intermediate $holesale or retail# at a site are very much determined 'y the volume of fish landings. A'out 0.0 of such sites have 'een identified along the Bolta lake, prominent among these are Pe5i, 4am'ai 9rum'en, Fkye Amenfrom, &apa A'otoase, J$ame krom, Jpando &orkor, 4e(emeni, &apa A'otoase, &orurroano and Akateng and Akokomasisi landing sites $here an estimated "2000t of fish $ere landed in !00! (4irectorate of Fisheries, !000#. Important landing sites in other parts of the country include Galilea along the Dei5a reservoir in the Greater Accra region, 'onu ad5acent to Cake

9osomt$i, 9arekese ne8t to the 9arekese dam and $a'i dam all in the Ashanti region. Fish sold here are either live or fresh e8cept on market days at certain landing sites especially those along the Bolta Cake $hen processed fish is also availa'le. @ost landing sites are poorly e*uipped $ith no receptacles for landed fish. &rading is generally in the open sky or under thatch shelters. Canded fish are sold to $holesalers directly from 'oats or canoes. &hese are then sold to intermediate $holesalers and retailers from the floor on polyethylene sheets. &here are no chilled or fro(en storage facilities. Fresh fish dealers come along $ith ice 'locks sometimes 'ought from the vicinity. &here are no pota'le $ater or $ashing facilities. &rading starts very early in the morning; and ends 'y midday. &here are plans 'y the government to install 'last free(ers and ice making machines at eight landing sites, including 4(emeni and Jpando &orkor along the Bolta $i%h market%

&hese are markets that deal in 'oth fresh and processed (smoked, salted dried+fermented and fried# fish. Dith the e8ception of the $holesale and retail outlets located in central and local markets, and fish landing sites $here the num'er of traders can run into a fe$ hundreds, the si(es and num'er of traders are *uite small often ranging from .0 to a'out 20 traders ma8imum. Cevel of trading in the smaller units is primarily retail. $ro1en food %tore% 6ommonly referred to as Scold storesT in Ghana, they deal primarily in fro(en marine fishes, fro(en meat and meat products. &hese are a'out the most organised fish sale outlet $ith ade*uate fro(en preservation and storage facilities. &he 'ulk of foods sold 'y these outlets are imported. &he si(es of the outlets vary ranging from very small retail units operated from domestic chest free(ers and run from the operator)s home or a small shop to large industrial esta'lishments operating from large commercial $alk in free(ers and employing several people. It is the only outlet $here the prices of fish are posted and sold per unit $eight. &he main difference 'et$een $holesalers and intermediate $holesalers in this outlet is that the $holesalers are the main importers, importing3 fish from @auritania, =enegal and -ami'ia, and meat and meat products from the ,=A, 6anada, Argentina and 9ra(il. Fish from the $holesalers are sold in cartoons of !0 and 00kg $eights. 5endor% &his group of dealers are either roaming or stationary. >oaming vendors go from place to place selling their fish $hilst stationary vendors are permanently located under a stall or under the shade of a tree often along a 'usy road. &here $ere t$o types of roaming vendors; small retailers $ho go round communities carrying fish on their heads to sell or Information o'tained from operators during data collection larger retailers $ho have pre%arranged

ScontractsT $ith food 5oint operators such as hotels, restaurants and tilapia 5oints for regular supply of fish. 7rices of fish sold 'y the vendors varied $idely, depending on the location and the 'argaining po$er of the 'uyer. $arm gate &he final fish sale outlet fish is the farm gate. &hese are sale outlets for farmed fish often located on a pond side. &he level of trade at this outlet varies $ith the level of operation. &he commercial farms gates as o'served on one commercial farm and also reported 'y 9lo$ and Ceonard (!00"# for another commercial farm largely sell to $holesalers $ho go on to sell to retailers and intermediate $holesalers. &he su'sistence farms on the other hand sell largely to retailers as they are often in relatively small *uantities. Auantity of fish sold at this outlet is over a .000 mt, estimate 'ased on total a*uaculture production in !006. $inancial "iability of fi%h farming in 3hana A*uaculture in Ghana is 'ased almost entirely in the fresh$ater environment $ith over !,066 fish ponds and 11! reservoirs $ith total surface areas of !2!./ha and !,230./ha respectively (Fisheries 4irectorate, ,npu'lished data#. Although there are a fe$ commercial farms, production is largely at the su'sistence level $ith average pond si(e 'eing 0.06ha. 9ased on the >idler and :ishamunda (!00.# classification of fish farms, the previous chapter defined over /6% as non%commercial, a'out 0% as small scale commercial less than .% as medium to large scale commercial farms. A*uaculture contri'ution to domestic fish production is currently less than .%. As noted earlier, there is a ma5or development interest in e8panding a*uaculture to meet national needs for a*uatic products, and a concern for the potential of the current sector to gro$ and develop. &hough technical a'ility is a prere*uisite for a*uaculture development of a

given species, it $ill o'viously fail to survive and e8pand if it is commercially unvia'le. A*uaculture development re*uires a mi8 of practical scientific kno$ledge, economic and profita'ility studies, and kno$ledge of potential areas for site selection, development and e8pansion. 6ultivation must 'e 'iologically and technically feasi'le and the net returns, at least enough to compensate for risks (>idler and :ishamunda, !00.#. Analysis of financial and economic aspects of the sector is therefore essential as it helps evaluate via'ility of investment and efficiency of resource allocation, to improve e8isting management practices, evaluate ne$ culture technology, assess market potential, and identify areas in $hich research $ould have high potential payoffs (Dorld 9ank, !003#. It is also an important tool for 'usiness planning, seeking financial assistance from formal institutions, and identifying economically sustaina'le enterprises. :o$ever, very little attention has so far 'een paid these issues in Ghana. A 'rief profita'ility assessment of fish farming in Ghana 'y @anu (!003# $as 'ased mainly on assumptions and speculations rather than actual farm data. A more detailed study had 'een undertaken earlier 'y Amevenku (.///#, though 'ased only on hatchery operations.

CHAPTER THREE Re%earch &ethodology

)efinition% of economic e"aluation indicator% ne $ay of evaluating $hether an opportunity such as a ne$ a*uaculture investment is $orth$hile in the long%term, or to choosing 'et$een a*uaculture opportunities $hich vary in si(e, is 'y using capital 'udgeting (6urtis and :o$ard .//0#. 7opular methods of capital 'udgeting include net present value (-7B#, and internal rate of return (I>># (6urtis and :o$ard .//0#. 7ay'ack period (797# and the 'reakeven point (9F7# are also used as indicators of feasi'ility of investments (7illay and Jutty !002#. -7B is used in the analysis of the profita'ility of an investment or pro5ect to give indication of the present value of future earnings. It is the difference 'et$een the future cash inflo$s and outflo$s discounted to present value. If the -7B of a prospective pro5ect is positive, the pro5ect is profita'le 'ut if it is negative, the pro5ect should 'e a'andoned 'ecause cash flo$s $ill also 'e negative (6urtis and :o$ard .//0#. &he higher the -7B value, the more profita'le an investment is. I>> indicates the estimated rate of return that a pro5ect is e8pected to generate to an investment. &his can 'e vie$ed as the efficiency of an investment to turn profit (6urtis and :o$ard

.//0#. Dhen evaluating possi'le investments options, it is important to remem'er that the -7B method is 'etter that the I>>. ,sing -7B and I>> measurements to evaluate pro5ects should ideally result in the same findings $here everything else is the same. :o$ever, there are certain types of pro5ects $here using I>> $ill not 'e effective. &he ma5or limitation of I>> measurement is that it uses one single discount rate to evaluate every investment. :o$ever, discount rates do change significantly and therefore $ithout modification, I>> evaluation $ill not 'e ade*uate for long%term pro5ects for $hich discount rates are e8pected to vary. 797 is the time re*uired to recover the cost of an investment through the net cash revenues it generates (6urtis and :o$ard .//0#. It is given as the investment cost of a pro5ect divided 'y the pro5ect)s pro5ected annual cash inflo$s. :o$ever, 797 analysis does not take into consideration cash flo$ after the pay'ack period. &herefore, this method should only 'e used as a first approach at the initial stages of evaluation to give an indication of the pay'ack period and may not 'e relied upon to rank investments on the 'asis of via'ility. 9F7 descri'es ho$ much a pro5ect must produce to cover for the total costs (6urtis and :o$ard .//0#. At the 9F7, the revenues generated 'y a pro5ect e*ual the total costs incurred. An investor $ill need to kno$ this to $eigh this against the production possi'ilities availa'le. :o$ever, this method like the 797 should only 'e used as a first approach 'efore proper evaluation is conducted 'ecause it does not sho$ the profita'ility of pro5ects. :igh revenues alone do not necessarily translate into profits for the investor. A pro5ect must have the a'ility to clear all of its e8penses and costs. Financial ratios are used to give an indication, not only of ho$ likely a pro5ect is to return a profit, 'ut also ho$ that profit relates to other important investment characteristics of the pro5ect. &hese ratios are used to assess a 'usiness)s a'ility to generate earnings as compared to costs incurred during a specific operational period. &hey provide a comparison of profits generated and $hat has 'een invested in a pro5ect. For most of these ratios, having a higher value is an indication that the

investment is good (6urtis and :o$ard .//0#. =uch ratios $ill include return on investment, return on e*uity, return on asset and operating profit margin ratio. >eturn on e*uity (> F# indicates ho$ much profit an investment generates $ith the e*uity (6urtis and :o$ard .//0#. >eturn on assets (> A# is an indicator of ho$ profita'le an investment is relative to its total assets (6urtis and :o$ard .//0#. perating profit margin ratio ( 7@># gives an indication

of ho$ much of the gross income is actually profit (6urtis and :o$ard .//0#. >eturn on investment (> I# gives an indication of ho$ an investment)s returns relate to the total invested capital. Fntrepreneurs) kno$ledge of the sensitivity of their investment to aspects of production is very important. Investments are in most cases implemented 'ased on average costs, prices, *uantities and yields (6arole and Ivano !002#. =ome of these aspects can 'e very volatile and their changes might have enormous effects on the profita'ility of pro5ects. For investors to 'e a'le to make choices on $here and ho$ to invest, they need to kno$ ho$ likely variations on production output, cost of inputs or even changes in the market prices of the products $ill affect their future cash flo$s. Source% and Tool% of )ata Collection &his research adopted a mi8ed method approach. &he study is aimed at finding out $hether or not the market is a factor in the development of a*uaculture in Ghana. &o help achieve this, primary and secondary data $as collected. 7rimary data $as collected through the use of intervie$s and *uestionnaires from the main stakeholders in the supply chain; farmers, $holesalers+ retailers and from the demand side; consumers. In all, 33 consumers, 0. $holesalers and retailers and .3 farmers $ere sampled. &he secondary data $as collected from the Fisheries 6ommission of Ghana and the 9ank of Ghana and consist of intervie$s and documentary revie$s.

=econdary data $ere collected from revie$ing of reports and research $orks found in 5ournals and on the internet. Dhere there $as the need for further clarification on some information or data, email correspondence or telephone intervie$s $ere conducted $ith the various authors $ere possi'le. Sam(ling &ethod% 6onvenience sampling $as used in selecting the location for the research. &hough there are numerous farms in different parts of the country, the choice of the area $as done first to facilitate easy communication to avoid the use of interpreters. =econdly, the researcher had a target of getting information from 'oth cage farmers and pond farmers, so t$o areas selected $ere not geographically too far from each other. 9ased on these criteria the Bolta and Fastern >egions $ere chosen. @ost of the cage system is practiced along the Bolta Cake $hich passes through these t$o regions. 6onvenience sampling is a nonpro'a'ility sampling method $here unit selection is 'ased on accessi'ility or convenience (=tat7ac, !0..#. Its advantage is that it is direct, easy and a relatively less e8pensive method (&rochim, !006#. &he disadvantage ho$ever is the difficulty in e8trapolating the result as a true representation of the $hole population (-ational Audit =ervice, !000#. &he researcher used the sno$'all sampling in selecting the farms to $ork in. the researcher $as thus introduced to a farmer 'y a friend $ho in turn directed me to some of his colleague farmers. =no$'all sampling is another non%pro'a'ility method that depends on referrals (=tat7ac, !0..#. Information could not 'e sourced from farms that had only caretakers $ithout permission from the managers+o$ners $ho $ere most of the time resident in the capital city. An initial person $ho meets the criteria is identified and that person in turn recommends others. Lust as the convenient sampling, it is easy to use 'ut at the cost of introducing some level of 'ias (=tat7ac, !0..#. >etailers and $holesalers $ere sampled in

three cities 'ased on their $illingness to ans$er the *uestions; Accra, &ema and :o, so also $ere the consumers. )ata Analy%i% 4ata analysis $as done using Dindo$s =7== .". ,sing the data, a yearly simulation of operations over a period of .0 years $as done for each culture practice. A production target for each $as set at a constant 2,000 kg per month to 'ring the total yearly production to 60 metric tons. From this production target and using the ac*uired and estimated production characteristic for each type of production, cost values for capital investment, operational investment, and operational incomes $ere calculated. &his $as done 'y generating the follo$ing statements for each of the four culture practicesE a# Investment statement '# peration statement c# 6ash flo$ statement and d# 9alance sheet &hese statements $ere used to derive the parameters that $ere used in this evaluation as indicators of the via'ility and feasi'ility of the culture practices.

5iability of in"e%tment% &he via'ility of the investments $as estimated 'y analysingE a# -et present value (-7B# '# Internal rate of return (I>>#

c# 7ay'ack period (797# d# 9reak%even point (9F7# &he -7B and the I>> $ere derived from the net cash flo$s 'y the discounting method. &he 797 $as calculated 'y dividing the initial investment costs 'y the accumulated profits 'efore depreciations. &his gave the time in years that the enterprise $ould take to pay 'ack the initial investment cost. 9F7 $as derived for production *uantities and produce prices. 9F7 analysis for production *uantities $as derived 'y calculating ho$ much each enterprise should produce per hectare, considering the estimated market prices for the products, to 'e a'le to cover the total production cost. &he 'reak even analysis for the produce prices $as calculated 'y deriving the price at $hich the produce must 'e sold to cover the total cost of production. In this evaluation, the 9F7 margin $as considered in evaluation of the 9F7. &he margin gave an indication of ho$ much of a ?'uffer) (one an investor $ould have 'efore falling to the 9F7 level. Dide margins, $hich $ould indicate 'igger profit margins, are prefera'le.

E"aluation of financial ratio% Fvaluation of financial ratios $as done 'y deriving the follo$ing ratiosE a# >eturn on e*uity (> F# '# >eturn on asset (> A# c# perating profit margin ratio ( 7@># d# >eturn on investment (> I#

For the analysis of the financial ratios of the culture practices, the derived values of these ratios $ere plotted in a compound 'ar chart for comparison. &hese ratios $ere derived asE > FE -et income from operations divided 'y total e*uity > AE -et income from operations divided 'y total assets 7@>E perational gains plus interest divided 'y gross income > IE

-et income from operation divided 'y de'ts plus capital

Sen%iti"ity of in"e%tment% to change% in factor% of (roduction =ensitivity of the investments $as analysed 'y simulating changes inE a# 7roduce prices '# 6ost of feed c# 7roduction *uantities d# Food conversion ratios and e# =urvival rates of fish species under culture

&his analysis $as done to determine the e8tent to $hich slight changes in the values of these production characteristic varia'les $ould influence particular dependent enterprise via'ility varia'les. Apart from survival rate, all other varia'les $ere varied 'et$een /0% and ..0% of their estimated values. =urvival rate $as varied from /0% to .00% of the values used in this evaluation. &he dependent via'ility varia'les considered $ere -7B and I>>. A sensitivity factor for each effect $as derived from the rate of change of the values of the via'ility factor relative to simulated changes in the production characteristic varia'le in consideration.