The economics of the milkfish fry and fingerling industry of the Philippines
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Abstract
The fry and fingerling industry of the milkfish (Chanos chanos Forskal) in the Philippines is alleged to suffer from certain imperfections. Primary among these are an annual shortage of catch necessary to meet the stocking requirements of the 176,000 ha of fishponds; high fry mortality rates during transp0rt;failure of the pricing system to perform its spatial and form allocative functions; and exploitation of fry gatherers and pond operators by middlemen and nursery pond operators who form the core around which the whole fry and fingerling industry has developed. These alleged imperfections provide the rationale for various government policies affecting the fry and fingerling industry.
This study indicates a higher level of industry performance than hitherto supposed. In 1974, an estimated 1.35 billion fry were caught, adequate to meet annual stocking requirements. Allegations of fry shortage were based on simultaneous underestimation of catch and overestimation of stocking requirements, and were traced to temporary price increases resulting from expanded fishpen area, which subsequently declined. Fry storage and transport mortality rates of 8.7% and 6.6%, respectively, compared with a mortality rate of 54% during rearing, indicated that major technical inefficiencies arise in fishponds rather than in the distribution system. Of every 100 fry caught, 38 are harvested at marketable size.
Monthly average fry prices among 17 major trading regions were significantly correlated, indicating a high level of information flow in the industry. An examination of the concession system which restricts first sale opportunities of gatherers indicated that concessionaires are unable to capture their full monopsony advantage due to the "competitive fringe" of smugglers. Rather than exploitation, the concession system is a form of indirect municipal tax on fry gatherers.
Since the fry industry is a 57-million-peso-per-year industry upon which approximately 170,000 people directly and indirectly depend, it is suggested that the location of future milkfish hatcheries and timing of production be planned such that they complement rather than displace the natural fry fishery and distribution system.
Suggested Citation
Smith, I. R. (1981). The economics of the milkfish fry and fingerling industry of the Philippines. Metro Manila, Philippines: International Center for Living Aquatic Resources Management ; Iloilo City, Philippines: Aquaculture Department, Southeast Asian Fisheries Development Center.
Type
Book; Technical ReportISSN
0115-5547Series
ICLARM technical reports; 1 | SEAFDEC Aquaculture Department contribution; No. 93Format
xiii, 148 p. : ill. ; 28 cm.
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Fingerling production of hatchery-reared milkfish (Chanos chanos) in earthen nursery ponds
(Aquaculture Department, Southeast Asian Fisheries Development Center, 2010)Fingerling production of milkfish in ponds maybe operated as a commercial enterprise or a component of milkfish farming that comprises nursery, transition and rearing or grow-out phases. The fishpond nursery is used to grow milkfish fry to fingerlings 1-3 g in weight or 1-2 inches in length. The nursery pond is the smallest of the major fishpond compartment ranging from 500 to 5,000 m2, and is about 10% of the total farming area. The pond is prepared with utmost care to eliminate predators and competitors. The area should have good topography, is free from flooding and should have soil with good water retention properties for good dike construction and efficient culture management. Water supply should be adequate year-round and free from pollutants. Good pond water quality is maintained and natural food should be adequate to enhance growth and survival. With high stocking densities, supplemental feed is also provided. The three types of nurseries are based on feed sources: lablab, plankton with supplemental feeding and direct feeding. Select hatchery-reared fry (21 day old) that swim actively in schools, are uniform in size, have robust body, and are resistant to handling and transport stress. The ideal fry stocking density is 5-40 pieces/m2. Survival ranging from 50-90% can be expected after 25-45 days of rearing. Harvest, packing, transport, acclimation and stocking of the fry or fingerlings are carefully done during the cooler part of the day. Economic indicators show that fingerlings production is a profitable business. The improvement of milkfish grow-out technology from extensive or traditional to modified-extensive, semi-intensive and intensive culture in ponds, pens or in sea cages has increased demand for good quality fingerlings. Mass production of hatchery-reared fingerlings in earthen nursery ponds during peak season of fry availability can help bridge the supply gap. A steady supply of fingerlings for a whole year s operation will further increase production and ensure a sustainable supply of affordable market-sized fish.
