economic analysis and adaptation measures of small … · 2015-07-30 · approval sheet the...

ECONOMIC ANALYSIS AND ADAPTATION MEASURES OF

SMALL-SCALE AQUACULTURE IN

ROXAS CITY, CAPIZ

A Research Paper Submitted to the Faculty of the

Division of Social Sciences, College of Arts and Sciences

University of the Philippines Visayas

Miagao, Iloilo

In Partial Fulfillment of the Requirements in

Economics 199.2 (Economics Research II)

MARLA MAY A. BAES

JUNE 2015

APPROVAL SHEET

The undergraduate research paper attached hereto entitled, “Economic Analysis and

Adaptation Measures of Small-Scale Aquaculture in Roxas City, Capiz” prepared and

submitted by Marla May A. Baes to the Division of Social Sciences, University of the

Philippines Visayas, in partial fulfillment of the requirements for the degree of Bachelor

of Science in Economics, is hereby recommended for acceptance and approval.

_________________________________

PROF. GAY DEFIESTA, PhD

Adviser

ACCEPTED AND APPROVED in partial fulfillment of the requirements for the degree

of Bachelor of Science in Economics.

_________________________________

PROF. PEPITO R. FERNANDEZ JR.

Chairperson

Division of Social Sciences

College of Arts and Sciences

University of the Philippines Visayas

Miagao, Iloilo

ACKNOWLEDGEMENTS

I would like to take this opportunity to thank the following:

Almighty God, thank you for always guiding me and strengthening my soul. You

were always there for me, never leaving my side, in every waking day. Thank you for

enriching my soul with positivity and full of hope. I love you and I will praise you

forever.

Professor Gay Defiesta, thank you for being such an excellent professor to me and

my classmates ma’am! Thank you for being my guiding hand all throughout this process

of making my thesis. Thank you for making me realize that I can do so much more than I

what I expect of myself to be. Because of you I know now that I can do whatever I will

if only I believe in myself and continue to take the challenges in life as a stepping stone

into becoming a better person.

To my parents, no words are enough to express how thankful I am to have you

both in my life. You two are my ears that listen to my problems, my shoulder to cry on, my

rocks, and my inspirations in life. You were always ready to jump in and help me with

whatever I need to do and conquer. Thank you for being proud of me with my

achievements. Thank you for always being there for me. I hope I made you both happy. I

love you. I love you always and forever.

To my classmates in Econ 199.2, Rizel, Nang Joyce, Nang Lyrin, and Bob, thank

you for all your help and words of encouragement friends! Strong! Strong!

To my Econ batch mates, most especially to my supermodel friends (Argena, Paolo

and Kuya Carl), and to my roommates (Jill and Nang Rhema) thank you making me

happy whenever I am sad and boosting my spirits up whenever I am down. I will always

treasure you friends! I am definitely looking forward to more adventures with you!

To all the special people who have been with me in every step of the way, thank

you. Thank you for all the laughter and joys. Life has been truly more meaningful with

all of you there. Thank you for all the memories that I will forever cherish.

And to myself, thank you for hanging in there. You’ve always been so strong.

Always remember that everything happens for a reason and God has a wonderful plan for

you. Good job! Go forth and reach for your dreams!

ii

ABSTRACT

This research was conducted to find out the contribution of the aquaculture

industry to the city and to the small-scale farmers of Roxas City. It also determined the

socio-economic impacts brought by the hydrometeorological events and identified the

adaptation measures employed by the local government and the aquaculture operators.

This study used cost and returns analysis, market based approaches and OLS regression

to analyze the data gathered from the 187 small-scale milkfish, mussel, and oyster

farmers in Roxas City. The findings showed that the aquaculture industry significantly

contributed to revenue, employment, production and profit. However, the industry was

affected by hydrometeorological events which brought about significant damage cost.

Most of the aquaculture operators employed various adaptation strategies to cope with

these hydrometeorological occurences. Some of them, however, did not find it necessary

to adapt because either they do not have enough money to finance adaptation strategies or

they perceive that the impacts are not that significant. This study recommends that the

government should provide other alternative climate-resilient livelihoods to the small-

scale operators. It should also employ sustainable adaptation measures aside from

providing trainings and seminars about aquaculture operation such as by integrating

climate change adaptation techniques to aquaculture farming.

iii

TABLE OF CONTENTS

Page

ABSTRACT ii

LIST OF TABLES iii

LIST OF FIGURES vi

I. INTRODUCTION 1

Background of the Study 1

Statement of the Problem 3

Objectives of the Study 6

Significance of the Study 7

Hypothesis 7

II. REVIEW OF RELATED LITERATURE 8

III. THEORETICAL AND CONCEPTUAL FRAMEWORK 16

Economic Impacts 16

Cost and Return Analysis 18

Regression Analysis 22

Conceptual Framework 23

IV. METHODOLOGY 25

Research Design 25

Study Site 25

Respondents and Sampling Procedure 26

Data Collection Method 28

Tools of Analysis 28

V. RESULTS AND DISCUSSION 33

Study Area 33

The Seafood Industry of Roxas City 35

The Aquaculture Industry’s Contribution to Governement

Revenue, Employment and Production

37

Hydrometeorological Events in the Aquaculture Industry of

Roxas City

40

Socio-Economic Profile of Respondents 41

Aquaculture Operation 44

Socio-Economic Impacts of Different Hydrometeorological

Events

74

Adaptation Measures 85

Regression Analysis 96

iv

VI. SUMMARY, CONCLUSION AND

RECOMMENDATIONS

99

Summary 99

Conclusion 103

Recommendations 106

BIBLIOGRAPHY 108

APPENDICES

v

LIST OF TABLES

Table Page

1 Summary of dependent and independent variables 32

2 Employment generated by the aquaculture industry, 2010 – 2014 37

3 Total production of the aquaculture industry, 2010 – 2014 39

4 Hydrometeorological events that occurred in Roxas City, 2008 –

2014

40

5 Frequency and Percent Distribution of Aquaculture Operators in

Roxas City by Sex, 2015

41

6 Frequency Distribution of Aquaculture Operators in Roxas City

by Other Demographic Characteristics, 2015

42


Roxas City by Sources of Income, 2015

43


Roxas City by Attendance to Trainings and/or Seminars, 2015

43

9 Summary of the initial investment of small-scale milkfish

brackish water operators in Roxas City, Capiz

46

10 Annual depreciation cost of small-scale milkfish brackish water

operators in Roxas City, Capiz

47

11 Total fixed cost of small-scale milkfish brackish water operators

in Roxas City, Capiz

48

12 Total variable cost of small-scale milkfish brackish water


50

13 Total production of small-scale milkfish brackish water operators


51

14 Average price for different types of sale of milkfish 52

15 Total revenue of small-scale milkfish brackish water operators in

Roxas City, Capiz

52

16 Opportunity cost of small-scale milkfish brackish water operators


53

17 Summary of the initial investment of small-scale mussel

mariculture operators in Roxas City, Capiz

54

18 Annual depreciation cost of small-scale mussel mariculture


55

19 Total fixed cost of small-scale mussel mariculture operators in

Roxas City, Capiz

56

20 Total variable cost of small-scale mussel mariculture operators in

Roxas City, Capiz

57

21 Total production of small-scale mussel mariculture operators in

Roxas City, Capiz

57

22 Average price for different types of sale of mussel 58

23 Total revenue of small-scale mussel mariculture operators in

Roxas City, Capiz

58

24 Opportunity cost of small-scale mussel mariculture operators 59

vi


25 Summary of the initial investment of small-scale oyster


60

26 Annual depreciation cost of small-scale oyster mariculture


61

27 Total fixed cost of small-scale oyster mariculture operators in

Roxas City, Capiz

62

28 Total variable cost of small-scale oyster mariculture operators in

Roxas City, Capiz

63

29 Total production of small-scale oyster mariculture operators in

Roxas City, Capiz

64

30 Average price for different types of sale of oyster 64

31 Total revenue of small-scale oyster mariculture operators in

Roxas City, Capiz

65

32 Opportunity cost of small-scale oyster mariculture operators


65

33 Cost and return analysis of small-scale aquaculture operators in

Roxas City, Capiz

67

34 Rate of return of investment of the small-scale aquaculture


68

35 Rate of return on variable cost of the small-scale aquaculture


69

36 Benefit-cost ratio of the small-scale aquaculture operators in

Roxas City, Capiz

70

37 Rate of return on total cost of the small-scale aquaculture


70

38 Gross profit margin of the small-scale aquaculture operators in

Roxas City, Capiz

71

39 Payback period of the small-scale aquaculture operators in Roxas

City, Capiz

72

40 Number of small-scale aquaculture operators in Roxas City that

were affected by different hydrometeorological events in 2008 to

2013

73

41 Average occurrence of hydrometeorological events in 2008 to

2013

73

42 Socio-economic impacts of flood to small-scale milkfish brackish

water operators in Roxas City, Capiz

75

43 Socio-economic impacts of heavy rainfall to small-scale milkfish


75

44 Socio-economic impacts of typhoon to small-scale milkfish


76

45 Socio-economic impacts of drought to small-scale milkfish


77

46 Socio-economic impacts of flood to small-scale mussel


78

47 Socio-economic impacts of heavy rainfall to small-scale mussel 78

vii


48 Socio-economic impacts of typhoon to small-scale mussel


79

49 Socio-economic impacts of drought to small-scale mussel


80

50 Socio-economic impacts of flood to small-scale oyster


80

51 Socio-economic impacts of heavy rainfall to small-scale oyster


81

52 Socio-economic impacts of typhoon to small-scale oyster


82

53 Socio-economic impacts of drought to small-scale oyster


82

54 Summary of the cost of the socio-economic impacts incurred by

the small-scale aquaculture operators in Roxas City, Capiz from

the different hydrometeorological events

83

55 Cost of the major socio-economic impacts incurred by the small-

scale aquaculture operators in Roxas City, Capiz from the

different hydrometeorological events

83

56 Government-led adaptation measures from 2011 to 2013 86

57 Sources of information of the small-scale aquaculture operators in

Roxas City, Capiz

87

58 Number of milkfish brackish water operators that employed

different adaptation strategies

88

59 Different adaptation measures applied by the small-scale milkfish

brackish water operators in Roxas City after flood

88


brackish water operators in Roxas City after heavy rainfall

89


brackish water operators in Roxas City for typhoon

89


brackish water operators in Roxas City after the drought

90

63 Number of mussel mariculture operators that employed different

adaptation strategies

91

64 Different adaptation measures applied by the small-scale mussel

mariculture operators in Roxas City for flood

92

65 Different adaptation measures applied by the small-scale mussel

mariculture operators in Roxas City for typhoon

92

66 Number of oyster mariculture operators that employed different


93

67 Different adaptation measures applied by the small-scale oyster


94

68 Different adaptation measures applied by the small-scale oyster

mariculture operators in Roxas City before heavy rainfall

95

69 Regression analysis showing the factors affecting the adaptation

cost of the small-scale aquaculture operators in Roxas City, Capiz

96

viii

LIST OF FIGURES

Figure Page

1 A conceptual framework showing the contributions of the

aquaculture industry and the socioeconomic impacts and

adaptation measures that are applied to the industry due to

occurrence of hydrometeorological events

23

2 Map of Roxas City, Capiz 34

1

CHAPTER I

INTRODUCTION

Background of the Study

The Philippine Fisheries Code of 1998 or RA 8550 defines aquaculture as the

fishery operations involving all forms of culturing and raising fish species in marine,

fresh, and brackish water marine areas. Aquaculture may be in the form of shrimp

farming, fish farming, algaculture, growing of cultured pearls, and shellfish farming

(Schwartz, 2008).

In the year 2005, capture fisheries and aquaculture had a global production of 108

million tons of fish resources; 45 percent of which was contributed by the aquaculture

industry. From the 0.7 kg of per capita supply of fish from aquaculture in 1970, it grew

up to 7.8 kg of per capital supply of the fishery stocks.

Global aquaculture fisheries are mostly dominated by Asia-Pacific countries.

Asian countries produce almost 75 percent of the total fish aquaculture supply and

generate 80 percent of the global aquaculture production value. China dominates as it

produces two-thirds of the global supply. In 2004, it was able to produce as much 69.6

percent of the total world production or 41.3 million tons of fishery resources from

aquaculture. The Philippines is also a big player as it ranked seventh in terms of

aquaculture production (BFAR, 2007). The seven major marine species that are utilized

in the aquaculture industry of the country are seaweed, milkfish, tilapia, shrimp, carp,

2

oyster, and mussel. The total aquaculture production in the country in 2012 is 2,541,965

metric tons. This includes yield from brackish water and freshwater fishponds,

mariculture of oyster, mussel and seaweeds, fish pens and fish cages in fresh and marine

waters. Approximately 26% of Philippine fisher folks are engaged in aquaculture

activities (Lopez, 2008). To be specific, the 2002 Census of Fisheries in the National

Statistics Office showed that the country has a total of 226,195 aquaculture fishers. Of

which, 126,894 are fishpond operators, 2,422 are mussel farmers, 73,549 seaweed

farmers, 3,041 are oyster farmers, 5,325 are fish pen operators and 14,969 are involved in

other aquaculture activities. In 2005, aquaculture provided the highest share in the total

fisheries production of the country, providing 46% of the fish production. Among the

other fisheries subsector, aquaculture also had the highest growth rate at 8.7% increase

from 2003. Aquaculture has been identified as a sector that will enhance food security

and increase growth for employment. The total value of aquaculture production in 2012 is

P 92,289,924,700 (FAO, 2005).

In the country, the highest aquaculture producer is the Autonomous Region of

Muslim Mindanao (ARMM) with a production of 638, 552 metric tons. Western Visayas

(Region VI) ranked sixth with 179, 231 metric tons. Aquaculture output from ARMM,

however is much lower in value at P 3,340,995,400 compared to Region VI with P

6,897,616,300.

Productivity of aquaculture is threatened by the impacts brought about by climate

change. This may directly affect the industry by influencing the volume of fish stocks and

the global supply of the fishery products. The WorldFish Center (2007) illustrates some

of the implications of climate change on the aquaculture industry. Changes in

3

precipitation and water variability may have an impact on seed availability for the

industry. It may also increase the costs of maintaining pond water levels from stock loss,

reduce production and capacity, change culture species, may create conflict with other

water users. The implications of these biophysical effects to aquaculture are loss of stock

and damage or loss of aquaculture facilities and fishing gear.

Statement of the Problem

Aquaculture has great potentials in ensuring the country’s food security and

decreasing poverty incidence. It also has the potential to supply the demand of the local

people and export market with different fish products. The industry is still faced with

variety of issues and problems; one of which is the lower profit margins and increasing

costs of operations compared to the other agriculture farmed animals such as livestock

and poultry. Because of the continuous growth of the aquaculture industry and the erratic

market prices of harvested wild fish, the aquaculture industry’s effort has become more

competitive (FAO, 2005). Other problems that the aquaculture industry is facing are

environmental degradation, lack of availability of high-quality brood stock, high input

costs, data gaps, inadequate regulatory framework, lack of aquaculture information

management system and lack of focused research and protocol (Lopez, 2008)

Despite the industry’s potentials, there has been little research on how the

aquaculture industry can concretely improve the lives of people and reduce poverty.

Furthermore, very few studies have been taken up so far in Philippines to study the social

and institutional issues that govern the participation of the poor in Aquaculture (Lopez,

2008).

4

Aside from the abovementioned issues and concerns, the aquaculture farmers are

also faced with climate change. Some of the effects by climate change in the fishing

industry are the distribution of marine and freshwater aquatic organisms, displacement of

warm-water species, changes in the physiological processes of fishes due to an increase

in temperature, possibility of fish invasions, and changes in biological processes

(Cochrane, et.al., 2009).

Roxas City, the Seafood Capital of the Philippines, is also affected by adverse

effects of climate change specifically the aquaculture industry. However, the city has

limited records regarding the adaptation measures employed by aquaculture farmers.

There are also limited records as to what are the factors that affect and facilitate the

efforts made by these farmers to adapt.

The main purpose of this study is to determine the direct contributions of

aquaculture fisheries, determine the socio-economic impacts brought about by

hydrometeorological events, and provide information about the adaptation measures

employed by the aquaculture operators. Specifically, the study sought to answer the

following questions:

5

1. What are the contributions of the aquaculture industry to the economy of Roxas

City and to the aquaculture fishpond operators of Roxas City, Capiz?

2. What are the hydrometeorological events from 2008 to 2013 that affected the

aquaculture industry in Roxas City, Capiz?

3. What are the socioeconomic impacts of these hydrometeorological events on the

aquaculture industry of Roxas City, Capiz?

4. What are the adaptation measures employed by the government and the

aquaculture fishpond operators of Roxas City, Capiz to hydrometeorological

events?

5. How much adaptation costs were incurred by the aquaculture fishpond operators

of Roxas City, Capiz?

6. What are the factors affecting the adaptation cost of the aquaculture fishpond

operators of Roxas City, Capiz?

6

Objectives of the Study

1. To determine the contributions of aquaculture fisheries to the economy and to the

aquaculture fishpond operators of Roxas City,

2. To determine the hydrometeorological events from 2008 to 2013 that affected the

aquaculture industry of Roxas City, Capiz

3. To determine the socioeconomic impacts of these hydrometeorological events on

the aquaculture industry of Roxas City, Capiz

4. To determine the adaptation measures to these hydrometeorological events that

were employed by the government and the aquaculture fishpond operators of

Roxas City, Capiz

5. To determine the adaptation costs that were incurred by the aquaculture fishpond

operators of Roxas City, Capiz

6. To determine the factors affecting the adaptation costs of the aquaculture fishpond

operators of Roxas City, Capiz

\

7

Significance of the Study

This study is beneficial to both the government and fishpond operators of Roxas

City, Capiz. It determines the direct economic contributions of the aquaculture industry to

the city, specifically its contributions to the revenues, employment, and production. The

study also guides the fishery operators in deciding to pursue the business or not base on

the calculated profits. Furthermore, the study can give a valuable input to the government

of Roxas City in planning, formulating and/or employing policies and strategies that can

improve the adaptive capacity of the city’s aquaculture industry to the different

hydrometeorological events. It can also serve as a reference to the fishpond operators to

identify other adaptation measures that they may employ in their own fishpond operations

and the cost that the these measures may incur.

Hypothesis

Based on the foregoing questions the hypothesis is given:

Size of the fish farm, type of culture (milkfish brackish water, mussel mariculture or

oyster mariculture), frequency of hydrometeorological event (heavy rainfall, flood,

typhoon, drought), years of experience as an operator, years of education, and

revenue does not affect the aquaculture operators’ adaptation cost.

8

CHAPTER II

REVIEW OF RELATED LITERATURE

A case study was conducted by Jharendu Pant, Benoy Kumar Barman, Khondker

Murshed E-Jahan, Benjamin Belton, and Malcom Beveridge (2013) to determine whether

aquaculture is beneficial to the extreme poor, most especially to the landless and socially

marginalized Adivasi communities in Bangladesh. The main purpose of the paper is to

challenge the view that aquaculture is an inappropriate livelihood option for the ultra

poor and the socially marginalized. Discussions were based on the Adivasi Fisheries

Project. In which, the Project sets out to devise and adapt different aquaculture

technologies to build more productive livelihood assets, improve the knowledge and

skills of the people, focus more on the needs, resources, and capabilities of Adivasi

households. The paper also shows the results of the different interventions that were

implemented to the marginalized Adivasi households. The interventions that were

determined were divided into three groups: the aquaculture activities, aquaculture value

chain related activities, and community-based fisheries management. Included in the

aquaculture activities are pond culture, rice-fish culture, and cage culture. On the other

hand, the aquaculture value chain related activities are food-fish trading, fingerling

trading, and pond netting.

The paper was based on the principle of the Sustainable Livelihood Approach

(SLA) that states that the increasing access to livelihood assets or capital is essential to

reduce variability and increase adaptive capacity of resource poor, marginalized

communities.

9

The study was conducted in the five districts in North and Northwestern

Bangladesh. Before the project was conducted in 2007, a pre-project study was conducted

by WorldFish, Caritas, and the Bangladesh Fisheries Research Forum to assess the initial

livelihood context of Adivasi communities and other key stakeholders. From the 5, 337

Adivasi households, 3, 594 households were chosen to become project participants based

on income, size of landholdings, and food security status. A random selection of 657

households (with 148 non-participant households) was chosen to answer the baseline and

end-line surveys; the end-line surveys were answered two years after the implementation

of the different interventions. Furthermore, a study of sustainability was also conducted

in 2012, 30 months after the project. Random visitations of the interdisciplinary team

were made. They used different participatory tools and techniques to determine the

sustainability of the projects. Such methods include focus group discussions (FGDs) with

farmer field school (FFS) members, key informant interviews (KIIs), observations, and

consultations. Results show that aquaculture intervention had a positive effect on the

livelihood assets of the Adivasi households. The households were provided support for

their livelihood asset development. The number of land and land holdings improved

because the number of landless households slightly decreased in 2009 because the

different technology interventions gave the households opportunities to earn sufficient

income for them to reclaim their previously mortgaged lands. There was also an increase

in the number of livestock and poultry holdings and physical assets (such as mobile

phones, bicycles, and rickshaws), the change in the number of holdings of livestocks was

most especially evident to those who are involved in pond culture.

10

The results of the study have been beneficial in showing the different positive

economic and social effects brought about by aquaculture activities to the lives of the

marginalized. In the Philippines, it has been proven that the fisher folks are one of the

poorest, if not the poorest, sector groups of the country. The different aquaculture and

aquaculture related activities such as food-fish trading, pond culture, rice-fish culture and

the like may be used as an alternative livelihood by the coastal households.

An article written by Feng Cai, Xianze Su, Jianhui Liu, Bing Li, and Gang Lei

(2008) highlighted the relationship of the effects of climate change such as the increase in

sea level and global warming to the coastal erosion along the coastal zone of China.

The locale of study is primarily the coastline of China that extends for 18,000

kilometers. Just like China, Philippines, an archipelagic country that is composed of

7,100 islands, is surrounded by water. Its total coastal area is 266,000 km2 and oceanic

area is 1,934,000 km2. If climate change will continue to negatively affect countries with

vast coastlines, Philippines could be in danger of experiencing these negative impacts.

The results showed that two main causes of coastal erosion are human activities

and natural causes such as land subsidence, reclamation, sand mining, and dam

construction. On the other hand, natural causes are sea level rise, aggravation of surge

storm, tectonic subsidence, decrease of dike stability, and river watershed changes.

Because of human activities and natural causes, the three major challenges that China is

facing due to coastal erosion are “threats of global warming and rising sea level to coastal

plains”, “variation of sediment charges”, and “impacts of improper coastal explosion”.

A numerical simulation, case analysis, and results of inter-annual variation have

showed that there is a positive correlation between the sea surface temperature and global

11

climate changes. In which, these climate changes have effects on tropical cyclone

activity. Results have shown that there had been an increase in hurricane frequency and

intensity of cyclone activity.

Furthermore, Cai, Su, Liu, Li, and Lei have identified different coastal protection

measures. These measures may be in the form of conducting basic research of coastal

erosion and assessment of its impacts, intensify research on coastal protection measures

and proper protection of typically eroded coast, improvement of the integrated coastal

zone management, and development of new coastal protection measures and a

management system. While the article successfully shows the different effects of climate

change to the coastal erosion of China, the methodology in finding such were not clearly

identified.

In the Philippines, most, if not all, fishermen are highly dependent on the aquatic

natural resources for their main source of livelihood and income. And it is known for a

fact that among the many different communities, those living in the coastal area will be

one of the most affected communities when the impacts of climate change will arise. J.

Forster, I.R. Lake, A.R. Watkinson, and J.A. Gill (2013) conducted a study to determine

the social-resilience to environmental change of the livelihoods that are dependent to the

marine resources. The purpose of this study is to determine the impacts of hurricane to

the marine-dependent livelihood of the island of Anguilla, their perceptions as resource-

users of the marine resources, and their potential adaptability to these environmental

changes. The social-resilience of the livelihoods are determined by identifying the

characteristics of marine and coastal resource users and livelihoods, by assessing the

12

impacts of hurricanes events, and by determining future environmental changes on the

livelihood security of these households.

The study took place in Anguilla, an island relies that heavily on coastal and

marine resources for the income and livelihood of the people. Snowball sampling was

used to determine the 24 Marine-resource fishers and 13 marine-based tourist operators

that were interviewed. The interviews were consisted of structured closed questions and

open-ended semi-structured questionnaires. Responses were analyzed using ‘open-

coding’ method. Additionally, triangulation and spearman rank correlations were also

used for the analysis of the responses gathered.

Results have shown that the direct effects of environmental changes such as

hurricanes to the marine-resource livelihoods are increasing in the degradation of the

marine environment, loss of fishing gear, reduced catch rates, and damage to business

infrastructures. Among the environmental changes, hurricanes are the ones that can

severely affect the livelihoods of these marine-resource dependent households; of which,

hurricanes may cause both short-term and long-term impacts. On the other hand,

overexploitation of the marine resources and coral bleaching are both an important issues

for both the fishermen and fish operators. Yet despite the apparent effects of the severe

“1995 hurricane” to the fishermen and operators, they were still able to respond to these

impacts by changing their fishing strategies or finding an alternative source of income.

Also, the households were able to adapt different livelihood strategies to withstand these

uncertainties. Forster, Lake, Watkinson, and Gill were also able to identify factors that

may restrict the development of resilience by these marine-resource dependent

livelihoods. These factors could be family status, education, and “fisher ethic”.

13

The results conclude that both the fishermen and operators in Anguilla were

heavily dependent on aquatic natural resources. Although both the fishermen and

operators were greatly affected by environmental changes such as hurricanes, they were

also able to respond to these impacts and perform different adaptation measures.

A study written by Suan Pheng Kam, Marie-Caroline Badjeck, Louise Teh, Lydia

Teh, and Nhuong Tran (2012) aims to find the different autonomous adaptation to climate

change of shrimp and catfish farmers in Vietnam’s Mekong River delta. The primary

objectives of the paper are to present an analysis regarding the direct costs of

implementing a more effective and adaptive fish farm and to discuss important issues that

needs to be considered when undertaking an economic analysis about the different

adaptation options in the aquaculture industry. The study focuses on the different

autonomous adaptation at the farm level operations of aquaculture and the implications

for carefully planned adaptation measures to address issues in the farm-level aquaculture

ponds. This study can serve as a reference to the different aquaculture fish pond operators

in the Philippines as to how much will it cost them to improve their farms to a more

adaptive area that will be able to withstand climate variability.

The research site is also in Vietnam’s Mekong River delta. 80% of Vietnam’s

total shrimp production came from the delta. The researchers used both qualitative and

quantitative assessment methods in determining the different bio-physical impacts of

climate change to the industry. Likewise, the increase in salinity and flooding in the said

area has been modeled using the Vietnam River System and Plain (VRSAP) hydraulic

and salinity model by the Sub-Institute for Water Resources Planning (SIWRP) and the

Geographic Information Systems (GIS) overlay has also been used. Three steps are

14

involved in the traditional approach in establishing the economic analysis: (1)

establishing a baseline with no planned adaptation, (2) estimates are made for the impacts

of climate change to farms with no planned adaptation, and (3) estimates are made for the

impacts of climate change to farms with implemented adaptation policies and measures.

However, this type of approaches may also encounter several issues such as the difficulty

in distinguishing the difference an adaptation measure or impacts of climate change and it

does not take into account a sufficient consideration on the cost for the planned

adaptation measures.

Results have shown that catfish farming operators are unable to keep up with the

sudden increase in the input costs for both the absence and presence of climate change; as

such, only 3% to 5% are able to effectively adapt with the impacts of the said

phenomenon. This may result to a lower discounted net income for the years 2010 –

2020. Furthermore, impacts of climate change may lead to a decrease in the net income

even for the newly improved and effectively adaptive extensive shrimp culture. In line

with this result, if there is an absence of government intervention in helping different

aquaculture operators to adapt to the different impacts of climate change, the shrimp

industry will most likely spend more and experience the highest increase in the input

costs. The total estimated fund needed for developments to be done due to climate

change, such as dike upgrading and payment for increased costs for electricity and fuel, is

approximately USD 191 million.

Kam, Badjeck, et. al., also suggested several policy implications and strategies for

a more improved adaptive capacity of the aquaculture farmers in Vietnam. Adaptation

measures led by the government or any private sector for these farmers can play a

15

significant role in increasing their profits; such policy implications may be improving the

feed conversion ratios and increasing the margins that will benefit the farmers more

compared to the retailers in importing. On the other hand, adaptive strategies may be

reducing electricity and fuel, decreasing direct and indirect fossil fuel, usage of energy-

efficient machinery, and low sourcing of inputs. With these planned adaptation measures,

benefits to other sectors and future uses will also follow. A government-led program will

not only improve the aquaculture sector and positively affect other agricultural sectors

(such as agriculture) but it will also foster protection for both the land and the people.

Also, developments in the coastal areas will further reduce the risk of salinity intrusion.

16

CHAPTER III

THEORETICAL AND CONCEPTUAL FRAMEWORK

Economic Impacts

Economic Impacts, as defined by Glen Weisbrod and Burton Weisbrod (1997),

are the results on the level of economic activity in a certain area. Economic impacts may

be measured in terms of total employment, aggregate personal income, value added or

gross domestic product, business output, or property values. Total employment

determines the additional jobs brought about by economic growth. Aggregate personal

income measures rise of the personal income of the workers. Value Added is equivalent

to Gross Domestic Product or Gross Regional Product. It measures the profit and wage

income fostered in the area being studied. Business output includes the sales volume or

business profit. Property values are indications of income and wealth acquired.

These economic impact measures should be appropriately identified depending on

the purpose of the paper. Four types of study that can be used as guides on what measures

should be used. These are public information study, economic portion of a formal

“environmental impact assessment”, cost-benefit analysis, and a “retrospective” research

study (Weisbrod and Weisbrod, 1997). A public information study aims to present the

economic impacts of an existing project or planned activity. This study uses measures

such as Total Employment and Value Added. The economic portion of a formal

“environmental impact assessment” represents the future economic impacts of a proposed

project. Cost-benefit analysis compares the benefits and costs of a project. Measures such

17

as personal income, value added, and property values can be used. Lastly, a

“retrospective” research study measures benefits based on historical data.

Economic impacts may be in the form direct economic effects or indirect

economic effects. Direct economic effects are the direct consequences brought about by a

certain project or program. The factors that may affect this kind of economic effects are

facility investment and operations, non-facility spending program, cost shift, and

locational competitiveness. On the other hand, indirect economic effects may take in the

form of indirect business impacts, induced business impacts, and dynamic economic

effects.

Moreover, the Food and Agriculture Organization of the United Nations (FAO-

UN); Fisheries and Aquaculture Department conceptualized a framework showing

commercial aquaculture’s contribution to the dynamic performance of the economy.

Commercial aquaculture economic impacts to economic growth can be classified

according direct contributions and indirect contributions.

The direct contributions are classified according to value added and employment.

These are the contributions of the sector’s production to the economy. Value added can

be measured according to labour incomes, business profits, and tax revenues. Indirect

contributions show that aquaculture can also affect the other sectors stimulate their

output. In the report made by FAO, indirect contributions are analyzed through the input-

output linkages

18

Cost and Returns Analysis

Cost and returns analysis is often used to show the different levels of costs,

returns, and profit that an aquaculture operation incurs. The profitability of the fish farm

determined will show the strength and/or weakness of an aquaculture operation.

To determine the profitability the total cost and revenue is determined. After

which, the total costs incurred is subtracted to the total revenue gained. The difference

will become the profit gained by the aquaculture operator.

Cécile Brugère (2006) defines total capital as the initial amount of money that the

owner invests to start and operate a business project. This is computed as the sum of the

initial investment and the equipment cost. Mathematically:

where:

TC = Total Capital

I = Initial Investment

EC = Equipment Cost

Total operating costs are the summation of all the either the fixed or variable cost.

Initial capital costs are excluded in operating cost. The fixed cost are the total costs

employed that do not vary with the level of production. It can either be the maintenance,

the depreciation or even the opportunity cost of other factor of production. Variable costs

on the other hand are costs that do vary with the level of production. It includes hired

labor and other equipment used in production.The total operating cost is then determined

by adding the total fixed costs and total variable costs. The formula is given as:

19

where:

TOC = Total Operating Cost

TFC = Total Fixed Cost

TVC = Total Variable Cost

The Straight-Line Method is used in solving for the annual depreciation. It can be

solved by subtracting the salvage values of an item to its acquisition cost and then divide

its difference by the expected years of useful life of that item. The annual depreciation of

that item is then determined. Mathematically annual depreciation is computed by:

where:

AD = Annual Depreciation

C = Acquisition Cost

SV = Salvage Value

L = Expected Years of Useful Life

Opportunity costs (OC) are implicit costs. It is the value forgone in choosing an

activity over the next best alternative. Opportunity cost indicates the level of alternative

loss or forgone to the aquaculture fishpond operators if the land for example is used in

residential or sold. It is the main distinction between economic and accounting analysis.

In the former, OC is important to evaluate the economic viability of a certain business

and in the latter opportunity cost is excluded.

20

To solve for the opportunity cost multiply the total land area in square meters to

its price. Mathematically:

where:

OC = Opportunity Cost

TL = Total Land Area in square meter

P = Price of Land in square meter

Gross revenue is the total income generated from aquaculture operations. This

may include those that are sold directly to market and given away and consumed. The

gross revenue is the product of the total production and of the unit price. It can be

expressed as:

where:

GR = Gross Revenue

TP = Total Production

UP = Unit Price

Profitability is the main goal of a firm or an individual when establishing a

business. It is defined as the ability of a given investment by firm or an individual to earn

and a return from its purpose or use (Murthy, 1978). It may also be defined as a firm’s

ability to generate earning (Gibson & Boyer, 1979). Don Hofstrand (2009) identifies two

types of profitability namely the accounting profit and economic profit. Accounting

profits, also called as the net income, provide a firm or an individual an overview of the

business. It is the difference between the sale/income gained from the total costs of

21

producing a certain good or service. Furthermore, it is divided into three categories: gross

profit, operating profit, and net profit. Gross profit is measured as the difference between

the total gross revenue and revenue expenditure. Mathematically, it is computed as:

Gross Profit = Total Gross Revenue – Revenue Expenditure

Operating profit is difference between total operating revenue and total cost of

operation. It is computed as:

Operating Profit = Total Operating Revenue – Total Cost of Operation

Net profit is the difference between total gross revenue and total cost of operation.

Mathematically,

Net Profit = Total Gross Revenue – Total Cost of Operation

Meanwhile, economic profits are computed through subtracting the “implicit

costs” or opportunity cost from the business’s net worth. Mathematically, it is computed

as (Hicks, 1939):

Economic Profit = Accounting Profit – Implicit Costs

Or

Economic Profit = Total Revenue – (Explicit Costs + Implicit Costs)

22

Regression Analysis

Regression analysis “studies the dependence of the dependent variable, on one or

several other explanatory variables” (Gujarati, 2004). The view of such analysis is to

estimate the average value of the dependent variable in terms of fixed values of the

explanatory variables. Furthermore, in regression analysis the researcher is concerned

with the statistical dependence among the involved variables and not their functional or

deterministic relationship.

In this analysis, there are three types of data that may be utilized for empirical

analysis; namely, time-series, cross-section and pooled data. Time-series data is

analyzing a set of observation with different values and different times. The data

collected will be at different regular time intervals (examples of which of the data may be

daily, weekly, monthly, and annually. Whereas, cross-section data are values that were

collected by the researchers at the same point in time. On the other hand, pooled data are

consisted of both of those in time series and cross-section data.

23

Conceptual Framework

From the foregoing theoretical concepts, the conceptual framework of this study

is shown in the paradigm in Figure 1

Figure 1. A conceptual framework showing the contributions of the aquaculture

industry and the socioeconomic impacts and adaptation measures that are

applied to the industry due to occurrence of hydrometeorological events

The figure above shows the different contributions of the aquaculture industry to

the city of Roxas and its aquaculture fishpond operators. The industry’s direct

contributions to the economy of the city are estimated through its contributions on the

revenue, the total employment and total production. Its direct contributions to the Roxas

City’s aquaculture fishpond operators are estimated by calculating the operator’s business

profit.

However, the aquaculture industry of Roxas City may be hindered by the

occurrence of different hydrometeorological events. These incidences include

hydrological, meteorological, and climate phenomena that may pose a threat to the

aquaculture farms and endanger the lives of the fishpond operators (United Nations,

1997). Hydrometeorological incidences may take in the form as tropical cyclones,

24

thunderstorms, typhoons, storm surges or storm tides, drought, flash floods. In this study,

the impacts of such phenomena are measured through determining the different

socioeconomic effects of such to the aquaculture industry of Roxas City. These

socioeconomic impacts include lost income, disruption in operations, damaged

irrigations, and reduction in land and property values in damaged areas. With these

impacts, the adaptation measures employed by the local government and its aquaculture

operators to the industry are then determined. Of which, examples of these adaptation

measures are improvement of water efficiency, emergency harvest, improvement of pond

infrastructures and buildings, and repair of transportation vessel used in the aquaculture

operation.

25

CHAPTER IV

METHODOLOGY

Research Design

This study sought to determine the different contributions of the aquaculture

industry to the economy of Roxas and its aquaculture operators, the socioeconomic

impacts of hydrometeorological events to the industry, the adaptation measures employed

by the local government and the aquaculture farmers, and the adaptation costs incurred by

the operators. This study used both primary and secondary data. The primary data was

collected through key informant interviews and surveys from the sample aquaculture

fishpond operators of Roxas City, Capiz. The collected data was analyzed using

descriptive analysis, cost and returns analysis, market based approaches, and OLS

regression.

Study Site

Roxas City is located at the Northeastern tip of Panay Island. It has a total land

area of 10,196 hectares and a total coastline area of 22.2 kilometers. The city is classified

as a third class component city with 47 barangays; 31 urban barangays and 16 rural

barangays. Many barangays in Roxas City are prone to natural hazards such as severe

flooding and tsunamis.The barangays that are located in hilly and steep slopes such as

Lawaan, Bolo, Lanot, Dinginan, Sibaguan, Balijuagan, Cabugao and Lonoy are prone to

severe erosion. The barangays of Bago, Lanot, Adlawan, and Loctugan are prone to

26

flooding. The coastal barangays may experience tsunamis due to the Visayan Sea (Cities

Alliance Project Output, 2009).

Roxas City, Capiz was chosen because of its importance to the national

aquaculture industry. The city provides quality and big bulks of fish to other provinces

and other regions of the Philippines. Yet despite the valuable contribution of the city to

the aquaculture industry, many fishing households are affected by the impacts of

hydrometeorological events.

Respondents and Sampling Procedure

Based on the 2012 Municipal Fisheries Profile of Roxas City, there are 715

aquaculture fish operators in the city. This study focused on the small scale aquaculture

operators, specifically the small scale milkfish, oyster, and mussel operators. In Roxas

City, there are 43 small scale milkfish brackish water operators, 149 oyster mariculture

operators, and 171 mussel mariculture operators (City Agriculture Office, 2014). The

average range of a small scale aquaculture farm is from 1 hectare to 2 hectares (FAO,

2010). This study focused on the aquaculture fishpond operators whose average farm size

is below 2 hectares.

Participants were selected using a random sampling method. Solving for the

sample size, the researcher used this formula:

27

Where:

N = 363

p = 0.5

d = 5%

z = 1.96

Solving for the sample size, the total number of small-scale aquaculture operators

that were interviewed are 187. To determine the number of small-scale aquaculture fish

operators to be interviewed from each type of culture, the following formula was used:

Where:

n = sample size

Ni = population of the strata

N = population

Using the formula the following number of small-scale aquaculture operators that

were interviewed are: 22 milkfish brackish water operators, 88 mussel mariculture

operators, and 77 oyster mariculture operators.

28

Data Collection Method

This study used both primary and secondary data to achieve its objectives. The

secondary data that was gathered for determining the direct contributions to the economy

of Roxas City were collected from the City Development Planning Office and Bureau of

Fisheries and Agriculture Office. Furthermore, the data regarding the

hydrometeorological events from 2008 to 2013 that occurred in Roxas City was gathered

from the office of PAG-ASA; the following years were chosen so the respondents will

accurately remember the different socioeconomic impacts and easily identify the

adaptation measures that they employed to cope with the events. The socioeconomic

impacts to the aquaculture industry were gathered from the Department of Agriculture’s

office. Likewise, the adaptation measures employed by the government were gathered

from the same office and the Department of Social Welfare and Development (DSWD)

office. The primary data used was collected through a survey using a structured

questionnaire.

Tools of Analysis

Descriptive Analysis

This study used descriptive analysis to discuss the contributions of the

aquaculture industry to the revenue, total employment and total production of Roxas City

and the profit of the aquaculture farmers. It was also used to discuss the different

hydrometeorological events from 2008 to 2013. Furthermore, it was also used to discuss

the socioeconomic impacts of the said weather events and the adaptation measures

employed by the government of Roxas and the aquaculture fishpond operators.

29

Cost and Return Analysis

This study used Cost and Return Analysis (CRA) to determine the direct

contribution of the aquaculture industry to the aquaculture fishpond operators’ business

profit. The profitability of the fish farm was computed by determining the difference

between the total revenue and total costs of production. Mathematically,

Business Profit = Total Revenue – Total Costs

The revenue of the aquaculture operator was computed by multiplying the

quantity of the harvest and the price of which it was sold. Mathematically, the total

revenue was computed through:

Total Revenue = Price x Quantity of fish harvested

Meanwhile, the total costs were computed by computing the sum of the fixed

costs and variable costs that were incurred by the aquaculture operator. The costs were

computed by identifying the amount of initial capital, acquisition cost if the farm is

owned, annual lease if the fish farm is rented, pond structures, buildings, transportation

vessels, machineries, tools and equipments, fish farm inputs, fixed costs, and other

production costs.

Mathematically, the total costs were computed through:

Total Costs = Total Fixed Costs + Total Variable Costs

30

In this study, the profit was measured according to its accounting profit and

economic profit. The primary difference between the two types of profit is that the

economic profit uses opportunity cost of the fish farm. Mathematically, the opportunity

cost was measured through:

Opportunity Cost = Total Land Area (in hectares) x Price of the land per hectare

Market Based Approach

The Market Based Approach is an economic valuation method that was used to

compute the costs of the socio-economic impacts of the different hydrometeorological

events and of the adaptation measures. Examples of the socio-economic effects are

decrease/reduction in volume of stock, changes/decrease in price of harvest, increase in

labor usage, damage in pond infrastructures, damage in buildings in the fish farm,

damage in the transportation vessels, and losses in farm inputs.

Meanwhile, the costs that were measured for the adaptation measures employed

by the aquaculture operators were computed are from materials or supplies that they used

and additional labor. Examples of the adaptation measures are improvement in water

efficiency, improvement in pond infrastructures, improvement in the fish farm buildings,

employment of new strategies to monitor upcoming hydrometeorological events, and

repair of transportation vessels.

31

OLS Regression

This study used OLS Regression to determine the factors affecting the adaptation

cost of the operators. The independent variables are the size of the fish farm, type of

culture of the fish farm, frequency of the occurrence of the hydrometeorological events,

the years of experience in the aquaculture industry, the aquaculture operator’s highest

educational attainment in years, and the revenue generated from the aquaculture

operation and the independent variable is the adaptation cost spent by the operator.

The empirical model of the study is:

32

In summary, the dependent and independent variables are:

Variables Description Measurement

Dependent Variable:

Adaptation cost

Independent Variables:

Size of the fish farm In Hectares

Milkfish brackish water 1 = If the type of culture of the fish

farm is milkfish brackish water

0 = If otherwise

Oyster mariculture 1 = If the type of culture of the fish

farm is oyster mariculture

0 = If otherwise

Frequency of heavy

rainfall

Number of times the fish farm was

affected by heavy rainfall from

2008-2013

Frequency of flood Number of times the fish farm was

affected by flood from 2008-2013

Frequency of typhoon Number of times the fish farm was

affected by typhoon from 2008-2013

Frequency of drought Number of times the fish farm was

affected by typhoon from 2008-2013

Years of experience In years of experience as an operator

Years of education In years the operator attended school

Revenue Revenue generated from the

aquaculture farm

Table 1. Summary of dependent and independent variables

33

Chapter V

RESULTS AND DISCUSSION

Study Area

Roxas City is the capital of the province of Capiz. Its total land area is 10,196

hectares or 101,96 sq.km. From the total land area, 6,418.70 hectares are considered as

urban areas and 3,777.30 hectares are rural areas.

The city’s land are utilized for agriculture, fishpond areas, swamps and marshes,

forests, parks and other recreational activities, transport utilities, residential areas,

socialized housing, commercial uses, industrial uses, institutions, special institutional

areas, grassland and pasture, mining and quarrying, agro-industrial uses, tourist zones,

water zone/rivers and creeks, cemeteries, and roads. Among the land uses of the city,

3,535.46 hectares are utilized for agricultural purposes and 2,068.80 hectares are used as

fishpond areas.

Roxas City is considered as the center of trade and commerce in the province of

Capiz and the northern part of Panay Island. It has an agri-based economy; of which,

54.96% of the city’s total land area is utilized in farming and fishing activities. The city’s

major agricultural crops are rice, assorted leafy vegetables, citrus, pineapple, root crops,

plantation crops, watermelon, peanut, and coconut. Although the city has been mainly

producing agricultural crops, it is now moving towards industrialization and

commercialization.

34

Figure 2. Map of Roxas City, Capiz

Source: City Tourism Promotion and Development Office of Roxas City

35

The Seafood Industry of Roxas City

Roxas City is considered as the Seafood Capital of the Philippines mainly because

of the abundant supply of seafood at the same time the quality of such products which are

unaffected by red tide for more than three decades. The total fisheries production of

Roxas City is 30, 053.66 metric tons; 8,000 metric tons are produced by the municipal or

city fisheries, 5,336.24 metric tons are from the aquaculture production, and 16, 717.42

metric tons are from the commercial fisheries production (City Agriculture’s Office,

2012)

There are approximately 3,500 municipal fishermen in the city. The average catch

of fishers with motorized fishing crafts is 20.0 kilograms and the average catch of the

fishers with the non-motorized fishing crafts is 1.5 kilograms. The major fishing methods

or gears used by the said fishers are gill nets, hook and line, long line, crab pot, pukot,

likos, punot, taba, spear fishing, paanod or palutaw,bakong, shellfish gathering, and

seaweed gathering. Fishers using long line method generate the highest production. The

major species being caught through the long line method are gingaw, mangagat, nipa-

nipa, and pagi.

There are 251 licensed commercial fishermen in Roxas City. All year round,

various fishing methods are being practiced in order to catch 16, 717.42 metric tons of

tabagak, sapsap, salay, hasa, and hortidos.

Roxas City has a total aquaculture area of 1,949.389 hectares. 1,898.39 hectares

are utilized as brackishwater fishpond areas, 8.0 hectares are the freshwater fishpond

areas, and 43.0 hectares are mariculture areas. Brackishwater fishponds approximately

36

produce 5,336.24 metric tons of milkfish, brackishwater tilapia, shrimps, prawns, crabs,

grouper, and red snapper. Freshwater fishponds produce 56.0 metric tons of freshwater

tilapia and catfish. Mariculture areas produce 512.5 metric tons of grouper, oyster, and

mussel. The city annualy produces 20,000 – 50,000 pieces of tilapia fry, 100,000 – 200,

000 catfish and tilapia fry, 5,000 – 10,000 pieces of grouper fingerling, and 500 – 5,000

pieces of kikilo or danggit fry.

The quality and safety margin of fish products from the area made Roxas City a

sought-after supplier of various markets in the neighboring provinces, Manila and abroad.

Some 1, 992 residents engaged themselves in fish processing or value adding of different

fishery products of the city. The different species that are being processed into different

post harvest products are sardines, mackerel, milkfish, blue crabs, anchovy, slip mouth,

oyster, squid, red belly fusilier, mullet, prawns, and scallops. The said species are being

deboned, smoked, dried, made into shrimp paste, and fillet dried. The city’s marine

products are being exported by the city through its national port and the port of Iloilo.

Smoked sardines, dried tabagak, dried mackerel, canned blue crabs, dried squid, and

half-shelled or frozen scallops are usually being exported while all the other post harvest

processed products are being sold in the local and domestic markets.

37

The Aquaculture Industry’s Contribution to Government Revenue, Employment

and Production

The revenue being generated from the 1,898.39 hectares of brackish water

fishponds is approximately P 6, 329, 841.95 per year. According to Mr. Sammuel

Narcisso of the City’s Assessor’s Office, the revenue comes from the payments of the

fishpond owners of land tax which is 2.5% of the market value of their ponds. Whereas,

the revenue generated by the government from mariculture aquaculture is P 20,280.00 for

the years 2009 to 2014. According to the Ordinance No. 016-2007, licenses and/or

permits shall be paid or renewed on or before January 31st of every year. Included in the

City Fisheries License fees are the Individual Fees worth P 70.00, Mayor’s Permit worth

of P 100.00, and Inspection or Miscellaneous Fees worth P 40.00. As per statement of the

Department of Agriculture’s office the mariculture operators should also pay a P 1.00

rental per square meter every year.

In 2010, the employment generated for maintaining brackish water fishponds is

1,000 laborers; of which, there are 190 caretakers, 760 fishworkers and/or laborers, and

50 carpenters and/or helpers. However, the total employment declined to 930 workers in

2011 and 2012 but in 2013 and 2014 this increased to 1, 032 and 1,060 workers,

respectively. On the other hand, the workers for the oyster and mussel mariculture are

usually the owners and their family members but 150 carpenters and/or helpers are

employed every year for the repairs of the pond structures. Furthermore, the operators of

freshwater aquaculture are mostly just being handled by the operators themselves and

their family.

38

Table 2. Employment generated by the aquaculture industry, 2010 – 2014

Aquaculture Employment generated per year

2010 2011 2012 2013 2014

Brackish water Fishponds 1,000 930 930 1,032 1,060

A. Caretaker 190 180 180 180 190

B. Fishworker/laborer 760 720 720 792 800

C. Carpenter/helper 50 30 30 60 70

Oyster/mussel 150 150 150 150 150

A. Caretaker Owner Owner Owner Owner Owner

B. Fishworker/laborer Family Family Family Family Family

C. Carpenter/helper 150 150 150 150 150

Freshwater

A. Caretaker Owner Owner Owner Owner Owner

B. Fishworker/laborer Family Family Family Family Family

C. Carpenter/helper - - - - -

From the three classifications of aquaculture, the highest contributors to the said

industry are the brackish water fishponds producing more than 70% of the total

production every year. The said fishponds were able to produce 3, 307.09 metric tons of

milkfish, brackish water tilapia, shrimps, crabs, and grouper in 2010. In 2011 and 2012 it

was able to produce 4, 768.74 metric tons of fish but in 2013 the annual production

declined to 3, 842.42 metric tons due to the damages brought about by Typhoon Yolanda.

Fortunately, in 2014 the annual production increased to 5, 336.24 metric tons.

Mariculture, the second top producer of the aquaculture industry, was able to

produce 918 metric tons of grouper, oyster, and mussel in 2010. Among the three species

that are cultured in mariculture, oysters have the highest production with 12, 800 sacks or

640 metric tons of it were produced in the said year. However, due to a tropical

depression and typhoon the production of mariculture species declined to 512.5 metric

39

tons in 2011 and 2012. In 2013, the production further declined to 130 metric tons but

significantly increased to 512.5 metric tons in 2014.

Freshwater fishponds were able to produce 30 metric tons of tilapia and catfish in

2010. The said fishponds were unaffected by the different hydrometeorological

occurrence from the years 2011 to 2014 as it consistently produced 56 metric tons of the

said cultured species for four (4) years.

Table 3. Total production of the aquaculture industry, 2010 – 2014

Aquaculture Production per year (in MT)

2010 2011 2012 2013 2014

Brackish water Fishponds

A. Milkfish

B. Brackish water tilapia

C. Shrimps

D. Prawns

E. Crabs

F. Grouper

3,307.085 4,768.74 4,678.74 3,842.42 5,336.24

3, 001.355 3,985.8 3,985.8 3,188 4,085.8

150.05 199.25 199.25 159.4 299.25

121.180 398.50 398.50 320.0 398.50

2.5 11.370 11.370 1.2 11.370

30.0 170.82 170.82 170.82 170.82

2.0 3.0 3.0 3.0 2.0

Freshwater Fishponds

A. Tilapia

B. Catfish

30.0 56.0 56.0 56.0 56.0

3.0 6.0 6.0 6.0 6.0

27.0 50.0 50.0 50.0 50.0

Mariculture

A. Grouper

B. Oyster

C. Mussel

918.0 512.5 512.5 130 512.5

50.0 70.0 70.0 30 75.0

640.0 150.0 150.0 50 175.0

228.0 292.5 292.5 50 300.0

40

Hydrometeorological Events in the Aquaculture Industry of Roxas City

The total production of the aquaculture industry can be greatly affected due to the

occurrence of different hydrometeorological disasters. PAG-ASA presented the different

tropical depressions, tropical storms, and typhoons that occurred in 2008 to 2014. In

2008, Roxas City was affected by the typhoon Frank and tropical depression Quinta. In

June of 2009, Typhoon Peria also affected the city. In 2010, 11 cyclones occurred in the

Province of Capiz but these did not affect Roxas City. Also, there was a tropical

depression that occurred in 2011. In 2012, typhoon Pablo occurred. In 2013, the deadly

typhoon Yolanda greatly damaged the city. And in 2014, Roxas City experienced an El

Nino, the tropical storm Basyang, typhoon Ruby, and tropical depression Seniang.

From the cited hydrometeorological events, Typhoon Yolanda greatly affected the

aquaculture industry of Roxas City. 31.33% of the total value of losses amounting to

P 77,094,600.00 of the fisheries sector accounted the value of losses of the aquaculture

sector. The total value of losses of the brackish water fishponds is P 4,904,600.00; of

which, the milkfish brackish water fishponds operators incurred the highest value of

losses amounting to P 2,342,600.00. Freshwater fishponds incurred a total loss

P 450, 000.00; while, mariculture had a total value of losses of P 18,800,000.00.

Table 4. Hydrometeorological events that occurred in Roxas City, 2008 – 2014

Hydrometeorological

Event

Year

2008 2009 2011 2012 2013 2014

Typhoon Frank

June 18

Peria

June 23

Pablo

December2

Yolanda

November6

Ruby

December4

Tropical

Depression

Quinta

November 6

Ramon

October10

Seniang

December28

Tropical

Storm

Basyang

January1

41

Socio-Economic Profile of the Respondents

In order to determine the importance of the aquaculture industry and how it may

be beneficial to the small-scale operators of Roxas City, twenty-two (22) milkfish

brackish water operators, eighty-eight (88) mussel mariculture operators, and seventy-

seven (77) oyster mariculture operators were interviewed.

It was found out that the aquaculture operator respondents were mostly male.

More than 90% of the milkfish brackish water and mussel mariculture and more than

60% of the oyster mariculture farmers were male. The reason for the dominance of the

male operators is most probably because the operation of the aquaculture farms are labor

intensive; thus, are handled mostly by male.

Table 5. Frequency and Percent Distribution of Aquaculture Operators in Roxas

City by Sex, 2015

Sex Milkfish brackish

water operators

Mussel operators Oyster operators

Frequency Percentage Frequency Percentage Frequency Percentage

Male 20 90.91 81 92.05 47 61.04

Female 2 9.09 7 7.95 30 38.96

TOTAL 22 100 88 100 77 100

An aquaculture operator in Roxas City can be as young as 17 years old and as old

as 72 years old. The average age of the milkfish brackish water operators is 53 years old

while the average age for both the mussel and oyster mariculture operators is 46 years

old.

In general, milkfish operators have higher educational attainment compared to the

other operators. The average educational attainments for a milkfish, mussel, and oyster

42

operator are 13, nine, and nine years, respectively. Furthermore, the average household

size for the three types of aquaculture operation is four. However, among the three

aquaculture operations the farming with the highest number of household members is

oyster mariculture with a maximum of 10 household members living together. Aside

from having the highest educational attainment, the milkfish operators also have the

highest average level of aquaculture operation experience. The least number of years

engage in aquaculture farming is one year while the longest number of years is 54.

Table 6. Frequency Distribution of Aquaculture Operators in Roxas City by Other

Demographic Characteristics, 2015

Demographic

Characteristics

Milkfish brackish

water operators


Age

Min

Max

Mean

30

70

53

25

67

46

17

72

46

Educational

attainment*

Min

Max

Mean

10

16

13

6

14

9

3

14

9

Household Size

Min

Max

Mean

2

7

4

1

7

4

1

10

4

Years engaged in

aquaculture farming

Min

Max

Mean

5

54

19

1

20

11

2

30

11

*in years with 1st grade as year 1

Among the respondents, oyster operators are highly dependent on their

aquaculture farming as their source of income as 73 of them depend on such livelihood.

Mussel operators, among the others, are the least dependent on aquaculture farming as

their source of income as 56 (63.64%) of them have other livelihoods.

43


City by Sources of Income, 2015

Sources of Income Milkfish brackish

water operators


Frequency % Frequency % Frequency %

Aquaculture Farming

as primary source of

income

13 59.09 32 36.36 73 94.81

With other source of

income

9 40.91 56 63.64 4 5.19

TOTAL 22 100 88 100 77 100

Other sources of income of the milkfish operators are from their salaries of being

a teacher, security agency head, business consultant, government employee, cook, and

poultry farmer. Mussel and oyster operators, on the other hand, engage in other fishing-

related and labor activities.

Despite the high dependency of the respondents to aquaculture farming as their

source of income, most have not attended trainings and/or seminars regarding aquaculture

farming because only less than five percent of the total respondents have attended such.

Only one milkfish operator, two mussel operators, and four oyster operators have

attended trainings and/or seminars. The trainings that the aquaculture operators were able

to attend were either about prawn culture or mussel and oyster farming.


City by Attendance to Trainings and/or Seminars, 2015

Attendance to trainings

and/or seminars

regarding aquaculture

farming

Milkfish brackish

water operators


Frequency % Frequency % Frequency %

Have attended 1 4.55 2 2.27 4 5.19

Have NOT attended 21 95.45 86 97.73 73 94.81%

44

Aquaculture Operation

The aquaculture fishponds of Roxas City have three types of culture methods;

these methods may be extensive, semi-intensive, and intensive. The species used for the

extensive culture may either be monoculture or polyculture while for the semi-intensive

and intensive monoculture species are used. Intensive culture methods have the highest

stocking rate compared to the other culture methods as the fishponds used for such are

usually small with an average size of 0.5 – 1 hectare. As this study focused more on the

small-scale aquaculture operators, the culture method of the milkfish brackish water

operators is usually semi-intensive. The ponds that they used are sized two hectares and

below. These ponds must be fully cleaned out before they can start their stocking process.

Lime is used as the pond’s fertilizer. The average cropping frequency of an aquaculture

fishpond is 2.5 cropping per year; however, in this study the average cropping frequency

is three.

The mariculture industry of Roxas City has two types of culture methods; namely,

the stake and raft method. Among the two, the stake method is more widely practiced by

the mussel and oyster operators. The stake method utilizes mature bamboos and the

stakes are usually ranged at a 1.0 meter interval. Whereas, the raft method uses raft

structures made out of bamboos. Unlike milkfish, mussel and oyster shellfishes have a

natural spawning season. This season is usually where the salinity and temperature of

Roxas City’s riverines are most favorable. The culture period of oysters are between six

to eight months that is why other oyster operators of the city have two cropping while

others only have one. Meanwhile, mussels are being harvested at an average of four times

a year.

45

Costs and Returns of Milkfish Brackish Water Aquaculture

Initial Investment

Initial investments and other capital costs are two of the important factors in

starting an aquaculture farming business. The average initial investment of small-scale

milkfish brackish water operation is P 561,309.00. The capital for starting a milkfish

brackish water farm incurred the highest capital cost with P 304,694.00 followed by the

average acquisition cost of the land worth P 112,807.00

The average cost for pond structures is P 113,227.00. Among these, the

establishment of dikes incurred the highest cost of P 46,619.05 and establishment of pond

excavation as the least with P 450.00. The pond structures of a milkfish brackish water

pond are as follows: dikes, leeves, sluice gates, pond excavation, guard or caretaker’s

house, raft, and personal residence. Dikes are used as enclosures to the entire pond

compartment, leeves are the “safety measure” of the pond as it holds water back during

the flood stage and sluice gates are structures that regulate the entry and exit of water in

the pond. Furthermore, the average cost for transportation vessels and machineries is

P 22,292.00. Only one operator, however, owned a boat with an acquisition cost of

P 16,667.00 and also one operator owned a generator with an acquisition cost of

P 5, 625.00.

The following tools and equipments that are needed for milkfish brackish water

farming are nylon cords, shovel, spade, fish nets, bamboo hooks, hammers, and saw. The

average cost for tools and equipment is P 8,288.00.

46

Table 9. Summary of the initial investment of small-scale milkfish brackish water


A. Initial Investment

Investment Cost

Land P 112, 807.00

Capital

Personal Source

Loaned

P 138, 077.00

P 166, 617.00

SUBTOTAL P 417, 501.00

B. Structures

Structures Average Quantity Acquisition Cost

Dike 1 P 46, 619.00

Leeves 1 P 2, 447.00

Sluice Gates 2 P 21, 287.00

Pond Excavation 1 P 450.00

Guard or caretaker’s house 1 P 33, 625.00

Raft 1 P 800.00

Personal Residence 1 P 8, 000.00


C. Transportation Vessels and Machineries

Transportation Vessels and

Machineries

Average Quantity Acquisition Cost

Boat 1 P 16, 667.00

Generator 1 P 5, 625.00


D. Tools and Equipments

Tools and Equipments Average Quantity Acquisition Cost

Nylon 1 roll P 1, 500.00

Shovel 2 pieces P 1, 240.00

Spade 2 pieces P 936.00

Fish Net 3 meters P 3, 067.00

Bamboo Hook 2 pieces P 635.00

Hammer 2 pieces P 450.00

Saw 1 piece P 250.00


TOTAL COST OF INITITAL INVESTMENT P 561, 100.00

47

Depreciation Cost

The average annual depreciation for the pond structures, transportation vessels

and machineries, and tools and equipments incurred by the milkfish brackish water

aquaculture operators is P 15, 192.00.

The structure with the highest annual depreciation is dike as it has a depreciation

cost of P 5,896.00. Saw, on the other hand, incurred the lowest depreciation cost with

P 140.00.

Table 10. Annual depreciation cost of small-scale milkfish brackish water operators


A. Structures

Structures Economic Useful Years Annual Depreciation

Dike 5 P 5, 896.00

Leeves 2 P 317.00

Sluice Gates 5 P 961.00

Pond Excavation 2 P 225.00

Guard or caretaker’s house 5 P 2, 124.00

Raft 1 P 800.00

Personal Residence 5 P 1, 278.00

SUBTOTAL - P 11, 601.00

B. Transportation Vessels and Machineries


Machineries

Economic Useful Years Annual Depreciation

Boat 4 P 417.00

Generator 6 P 854.00

SUBTOTAL - P 1, 271.00

C. Tools and Equipments

Tools and Equipments Economic Useful Years Annual Depreciation

Nylon 5 P 255.00

Shovel 2 P 488.00

Spade 5 P 150.00

Fish Net 3 P 838.00

Bamboo Hook 2 P 295.00

Hammer 3 P 154.00

Saw 2 P 140.00

SUBTOTAL - P 2,320.00

TOTAL ANNUAL DEPRECIATION P 15, 192.00

48

Fixed Costs

Fixed costs are costs paid by the operators annually even without production.

These costs may be payments for permanent caretakers, taxes, Barangay permits and

payments for loaned capital. Included in fixed cost are the depreciation costs of the pond

structures and tools and equipments.

The average fixed cost by the milkfish brackish water operators is P 92,748.00.

The highest contributor to this cost is the annual payment for the permanent caretaker

which is P 29,314.00. The annual depreciation constitutes 16.38% of the total fixed cost

or P 15,192. 00. The repair cost for the structures, transportation vessels and machineries,

and tools and equipments is P 20,949.00. The taxes being paid by the milkfish brackish

water operators on average is only P 4,233.00.

Table 11. Total fixed cost of small-scale milkfish brackish water operators in Roxas

City, Capiz

Item Average Value Value/kilogram Percentage

Permanent Caretaker P 29, 314.00 P 5.09 31.61

Taxes P 4, 233.00 P 0.73 4.56

Loaned Capital P 23, 059.00 P 4.00 24.86

Annual Depreciation P 15, 192.00 P 2.64 16.38

Repair Cost P 20, 949.00 P 3.63 22.59

TOTAL FIXED COST P 92, 748.00 P 16. 09 100

49

Variable Costs

Variable costs are composed of the inputs, materials, and hired labor that are

being utilized by the operators every production cycle. For milkfish brackish water

operation variable cost consists of hired labor, fry, fingerling, haterin, feeds, fertilizers,

lime, dried chicken manure, fuel, containers, transportation costs, and commuting costs.

The average total variable cost by the said operators is P 84,788.00. Of which, the highest

contributor for the variable cost are the containers or banyeras used for the harvested

milkfish. The total average cost for the containers is P 18,590.00 (21.93%). The average

hired labor per year is approximately 24 people; they are in charge for the stocking,

feeding, marketing, and most especially for harvesting. The milkfish inputs may be fry,

fingerlings, or haterin. On average, 7,372 fry, 6,000 fingerlings, and 10,000 haterins are

being displaced on the milkfish farm. The total average cost for these inputs are P 12,

000.00, P 12, 000.00, and P 9,250.00, respectively. Thirteen sacks of Tateh feeds and one

sack of Aqua feeds is being utilized every year. The feeds constitute 13.41% of the total

variable cost. The fertilizers used are Urea and 16-20. Seven sacks of Urea amounting to

P 5,080.00 and six sacks of 16-20 worth P 5, 168.42 are used every year. Furthermore,

apog and dried chicken manure are used after harvest and before seed stocking.

Approximately P 3,761.67 is spent on 14 sacks of lime or apog and P 326.28 for five

sacks of dried chicken manure. In transporting the harvested milkfish, the operators spend

P 1,625.00 for rented transportation and P 300.00 for commuting costs.

50

Table 12. Total variable cost of small-scale milkfish brackish water operators in

Roxas City, Capiz

Item Average Qty. Average Value Value/kg Percentage

Hired Labor 24 P 4,909.00 P 0.85 5.79

Fry 7, 372 P 12, 000.00 P 2.08 14.15

Fingerling 6, 000 P 12, 000.00 P 2.08 14.15

Haterin 10, 000 P 9, 250.00 P 1.60 10.91

Feeds

Tateh

Aqua

13 sacks

1 sack

P 10,577.00

P 800.00

P 1.84

P 0.14

12.47

0.94

Fertilizer

Urea

16 – 20

7 sacks

6 sacks

P 5, 080.00

P 5, 168.00

P 0.88

P 0.90

5.99

6.10

Lime or apog 14 sacks P 3, 762.00 P 0.65 4.44

Dried chicken manure 5 sacks P 326.00 P 0.06 0.38

Fuel (Vehicle) 12.5 L P 400.00 P 0.07 0.47

Containers 9 pieces P 18, 590.00 P 3.23 21.93

Transportation Cost 15 rentals P 1, 625.00 P 0.28 1.92

Commuting Cost 5 one-way

trips

P 300.00 P 0.05 0.35

TOTAL

VARIABLE COST

- P 84, 788.00 P 14.71 100

Production

The total quantity of production is being divided by the operator into three uses:

sold, own consumption, and given away. There are three types of sales in which the

aquaculture species can be sold; these are contract sale, auction sale, and direct sale.

Furthermore, the total quantity of those that are to be given away is divided into the share

of laborers and relatives.

On the average, milkfish brackish water farming has three production cycles. The

average total production of milkfish is 5, 763.29 kilos a year. Among the three production

cycles, the third harvest has the highest total production with 2, 043.43 kilos of milkfish

being harvested. On the first harvest 1, 726.70 kilos of milkfish is being harvested while

on the second harvest 1, 993.16 kilos of milkfish is being harvested. These harvested fish

51

are usually being brought at a contract sale. 900 kilos on the first harvest and 1, 056.25

kilos are being sold through contract sale. 705.62 kilos, 736.38 kilos, and 789.42 kilos of

milkfish are directly sold at the market on the first, second, and third harvest respectively.

Meanwhile only 90 kilos on the first harvest and 170 kilos on the second and third

harvest are being sold through auction sale.

Furthermore, the quantity of milkfish that is being consumed by the operator and

his family are 3.89 kilos on the first harvest, 3.3 kilos on the second harvest, and 2.62

kilos on the third harvest. The production cycle in which laborers are being given the

highest quantity of milkfish is on the second harvest where they receive 14.62 kilos of

milkfish as their share. Also, on the first and second harvest the relatives of the operators

receive 12.78 kilos of milkfish on average.

Table 13. Total production of small-scale milkfish brackish water operators in

Roxas City, Capiz

First harvest Second harvest Third harvest

Sold

Contract Sale

Auction Sale

Direct Sale

900 kilos 1, 056.25 kilos 1, 056.25 kilos

90 kilos 170 kilos 170 kilos

705. 62 kilos 736. 38 kilos 789. 42 kilos

Own Consumption 3. 89 kilos 3. 13 kilos 2. 62 kilos

Given Away

Laborer’s Share

Relative’s Share



Sub-total 1, 726. 70 kilos 1, 993. 16 kilos 2, 043. 43 kilos

TOTAL PRODUCTION 5, 763.29 kilos

In general, the average per kilo of milkfish is P 95.00 for the three types of sale.

However, on the first harvest of milkfish that was sold through contract sale the price per

kilo of milkfish is lower at P 92.50.

52

Table 14. Average price for different types of sale of milkfish

Type of sale Price


Contract Sale P 92.50 P 95.00 P 95.00

Auction Sale P 95.00 P 95.00 P 95.00

Direct Sale P 95.00 P 95.00 P 95.00

Revenue

The total revenue generated from an aquaculture farm is computed by multiplying

the total output with the unit per price of the said good. In this study, the total output is

classified into three categories, there are those that are sold, personally consumed, and

given away.

The average total revenue that the milkfish brackish water operators are able to

acquire is P 545, 237.00. The third harvest is able to raise the highest revenue with P 194,

126.00. Furthermore, contract sale is the highest revenue generating type of sale as it is

able to raise P 83, 250.00 on the first harvest and P 100, 344.00 each on the second and

third harvest.

Table 15. Total revenue of small-scale milkfish brackish water operators in Roxas

City, Capiz


Sold

Contract Sale

Auction Sale

Direct Sale

P 83, 250.00 P 100, 344.00 P 100, 344.00

P 8, 550.00 P 16, 150.00 P 16, 150.00

P 67, 034.00 P 69, 956.00 P 74, 9945.00

Own Consumption P 366.00 P 297.00 P 249.00

Given Away

Laborer’s Share

Relative’s Share

P 1, 357.00 P 1, 389.00 P 1, 194.00

P 1, 203.00 P 1, 214.00 P 1, 194.00

Sub-total P 161, 761.00 P 189, 350.00 P 194, 126.00

TOTAL REVENUE P 545, 236.75

53

Opportunity Cost

On average, the opportunity cost of a milkfish operator is P 365, 259.00.

Opportunity cost of land obtained the highest cost with P 200, 000.00. Opportunity cost

of capital followed with P 138,077.00. Lastly, the value foregone of family labor is P

26,182.00

Table 16. Opportunity cost of small-scale milkfish brackish water operators


Item Opportunity Cost

Capital P 138,077.00

Land P 200,000.00

Labor P 26,182.00

TOTAL OPPORTUNITY COST P 364,259.00

Costs and Returns of Mussel Mariculture

Initial Investment

The average initial investment of small-scale mussel mariculture operators is

P 69, 072. 00. Mussel operators incurred no acquisition costs for their farm land because

they are utilizing the city waters. The average capital for starting a mussel farming

operation is P 21, 447. 00. This capital is used to buy the initial structures, transportation

vessels and machineries, and tools and equipments to start their mussel farming.

The structures used by the mussel farmers are stakes and raft. The average

number of stakes being utilized is 778 bamboo poles. It has total cost of P 6, 697.00.

Among the 88 mussel mariculture operators, only nine own a raft with an average cost of

P 61.00. The average acquisition cost for the transportation vessel is P 3, 557.00

54

Table 17. Summary of the initial investment of small-scale mussel mariculture



Investment Cost

Land P 0.00

Capital

Personal Source

Loaned

P 2, 410.00

P 19,038.00


B. Structures


Stakes 778 P 6, 697.00

Raft 1 P 61.00




Machineries


Boat 1 P 3, 557.00

5 HP engine 1 P 4, 400.00

10 HP engine 1 P 12, 000.00

12 HP engine 1 P 12, 500.00

SUBTOTAL - P 32, 457.00


Tools and Equipments Average Quantity Total Cost

Bolo 2 pieces P 272.00

Binder 8 rolls P 895.00

Rope 5 rolls P 1, 548.94

Gloves 5 pairs P 121.08

Nylon 6 rolls P 689.00

Sacks 49 pieces P 310.00

Pail 3 pieces P 105.00

Fish Net 20 meters P 2, 160.00

Thermo chess 6 pieces P 1, 200.00

Shovel 1 piece P 154.67

Scrap 21 kilos P 351.48

Spade 4 pieces P 593.13

Rubber 1 piece P 5.00

Hat 1 piece P 5.00


TOTAL COST OF INITIAL INVESTMENTS P 69, 072.46

55

Depreciation Cost

The average annual depreciation cost incurred by the oyster mariculture operators

is P 13, 039.00. Stakes incurred the highest annual depreciation cost of P 5, 106.00 while

rubber and hat incurred the lowest annual depreciation cost of P 5.00 each.

Table 18. Annual depreciation cost of small-scale mussel mariculture operators in

Roxas City, Capiz

A. Structures


Stakes 1 P 5,106.00

Raft 1 P 43.00




Machineries


Boat 3 P 885.00

5 HP engine 4 P 600.00

10 HP engine 6 P 1, 668.00

12 HP engine 5 P 1,400.00



Tools and Equipments Economic Useful Years Annual Depreciation

Bolo 1 P 225.00

Binder 1 P 844.00

Rope 3 P 498.00

Gloves 6 months P 121.00

Nylon 4 P 169.00

Sacks 8 months P 310.00

Pail 1 P 105.00

Fish Net 8 P 145.00

Thermo chess 2 P 540.00

Shovel 5 P 21.00

Scrap 6 months P 351.00

Spade 4 P 141.00

Rubber 1 P 5.00

Hat 1 P 5.00


TOTAL ANNUAL DEPRECIATION P 13,039.00

56

Fixed Costs

Mussel mariculture operators have an average total fixed cost of P 46, 860.00.

Payments for the permanent caretaker amounting to P 30,800.00 constitute the highest

amount of fixed cost. Among the 88 mussel mariculture operators interviewed, only 38

were paying for their annual Barangay Permit which ranges from P 50.00 to P 100.00. On

average, payment for loaned capital is P 1,187.00 (2.53%). The repair cost incurred by

the mussel mariculture is P 1, 701.00. The annual depreciation for mussel mariculture is

P 13, 039.00 (27.83%).

Table 19. Total fixed cost of small-scale mussel mariculture operators in Roxas

City, Capiz

Item Average Value Value/sack Percentage

Permanent Caretaker P 30, 800.00 P 540.35 65.73

Barangay Permit P 133.00 P 2.33 0.28

Loaned Capital P 1, 187.00 P 20.82 2.53

Repair Cost P 1, 701.00 P 29.84 3.63


TOTAL FIXED

COST

P 46, 860.00 P 822.11 100

Variable Costs

The average variable cost of mussel mariculture operators is P 3,020.00. Hired

labor, fuel, transportation cost, and commuting cost constitute the total variable cost.

Commuting cost is the highest variable cost as P 1, 135.00 (37.59%) is being spent on

this by the operators. 6 laborers are being hired mostly to help the operator during harvest

season. The total payment for this hired labor is P 785.00 (26%). Fuel is the second

highest variable cost as P 915.00 (30.29%) is being spent on six liters of fuel.

57

Table 20. Total variable cost of small-scale mussel mariculture operators in Roxas

City, Capiz

Item Average Qty. Average Value Value/sack Percentage

Hired Labor 6 P 785.00 P 13.77 26

Fuel 6L P 915.00 P 16.05 30.29

Transportation Cost 2 rentals P 186.00 P 3.26 6.12

Commuting Cost 1 one-way trip P 1, 135.00 P 19.91 37.59

TOTAL

VARIABLE COST

- P 3, 020.00 P 52.99 100

Production

On average, a mussel mariculture operator produces 56.89 sacks of mussel every

year. The average production cycle of mussel farming is four cycles a year. The first

harvest have the highest production with 23.73 sacks of mussel. On the second harvest

17.73 sacks of mussel is being harvested, on the third 7.4 sacks, and on the fourth 8.03

sacks of mussels.

Mussel mariculture operators only engage in two types of sale: contract sale and

direct sale. Among these types of sale, the said operators engage in contract sale more

often. The operators only engage in direct sale during the first and second harvest.

Table 21. Total production of small-scale mussel mariculture operators in Roxas

City, Capiz

First harvest Second harvest Third harvest Fourth harvest

Sold

Contract Sale

Direct Sale

12 sacks 13 sacks 7 sacks 8 sacks

11 sacks 4 sacks

Own

Consumption

0.6 sacks 0.6 sacks 0.4 sacks 0.03sacks

Given Away

Laborer’s

Share

Relative’s

Share

0.1 sacks 0.1 sacks

0.03 sacks

0.03 sacks

Sub-total 23.73 sacks 17.73 sacks 7.4 sacks 8.03 sacks

TOTAL PRODUCTION 56.89 sacks

58

Moreover, among the types of sale of the harvest mussel, the fourth harvest of

contract sale incurred the highest price with a pricing of P 1,780.00 per sack. Whereas,

the lowest price for mussel is on the second harvest sold directly to the market with a

price of P 378.00 per sack.

Table 22. Average price for different types of sale of mussel

Type of sale Price


Contract Sale P 981.00 P 985.00 P 1,542.00 P 1,780.00

Direct Sale P 406.00 P 378.00 - -

Revenue

On average, the total revenue of a mussel mariculture operator is P 57, 006.00. On

the first harvest the said operators are able to acquire their highest revenue of

P 16,736.00. On the third and fourth harvest no revenue were being generated from the

laborer’s share and relative’s share as all the harvested mussel are being sold through

contract sale. Furthermore, the revenue generated on the second harvest is P 14, 813.00,

P 11, 411.00 on the third harvest and P 14, 045.00 on the fourth harvest.

Table 23. Total revenue of small-scale mussel mariculture operators in Roxas City,

Capiz


Sold

Contract Sale

Direct Sale

P 11, 767.00 P 12, 801.23 P 10, 794.00 P 14,000.00

P 4, 463.00 P 1, 514.00 - -

Own

Consumption

P 416.00

P 409.00

P 617.00

P 45.00

Given Away

Laborer’s

Share

Relative’s

Share

P 69.00 P 68.00 - -

P 21.00 P 20.00 - -

Sub-total P 16, 736.00 P 14, 813.00 P 11, 411.00 P 14, 045.00


59

Opportunity Cost

The average opportunity cost incurred by the mussel operators is P 5, 730.00. The

operators did not incur an opportunity cost for land as the mariculture operators are

utilizing the city waters.

The foregone capital of the operators is P 2,410.00 while their opportunity cost

for labor P 3,320.00

Table 24. Opportunity cost of small-scale mussel mariculture operators



Capital P 2, 410.00

Land P 0.00

Labor P 3,320.00

TOTAL OPPORTUNITY COST P 5, 730.00

Costs and Returns of Oyster Mariculture

Initial Investment

In comparison with the mussel mariculture operators, the oyster mariculture

operators also incurred no cost for land as the oysters are also being farmed in the city

waters. Their average capital is P 15, 233.00. P 2,439.00 of which is personal sourced and

P 12, 794.00 is loaned.

The average cost for pond structures P 65, 315.00. Seventy six of the total

respondents for oyster mariculture have 565 stakes with an acquisition cost P 5, 917.00.

The structure that has the highest total cost is the residential house at P 50,000.00.

Furthermore, rafts with drums do not have an acquisition cost as it is given by the local

government.

60

Table 25. Summary of the initial investment of small-scale oyster mariculture



Investment Cost

Land P 0.00

Capital

Personal Source

Loaned

P 2, 439.00

P 12, 794.00


B. Structures


Stakes 565 P 5, 917.11

Raft 4 P 6, 990.67

Raft w/drums 6 P 0.00

Raft w/floaters 9 P 2, 406.25

Personal residence 3 P 50,000.00

SUBTOTAL - P 65, 314.83


Transportation Vessels

and Machineries


Boat 1 P 6,791.67

5 HP engine 1 P 4, 800.00

12 HP engine 1 P 13, 250.00

SUBTOTAL - P 24, 841.67


Tools and Equipments Average Quantity Total Cost

Bolo 2 pieces P 340.49

Binder 12 rolls P 1, 128.00

Rope 7 rolls P 707.14

Gloves 2 pairs P 91.40

Nylon 5 rolls P 497.69

Sacks 10 pieces P 61.51

Shovel 1 piece P 400.00

Scrap 18 kilos P 254.55

Spade 1 piece P 650.00

Rubber 19 pieces P 283.50

Hat 2 pieces P 33.67


TOTAL COST OF INITIAL INVESTMENTS P 109, 837.70

61

Depreciation Cost

The average depreciation cost incurred by the oyster mariculture operators is

P 20, 177.00 with raft as the structure with the highest annual depreciation at P 6, 792.00.

Raft with drums do not have any depreciation cost as the said operators did not spend any

monetary amount in buying it.

Table 26. Annual depreciation cost of small-scale oyster mariculture operators in

Roxas City, Capiz

A. Structures


Stakes 1 P 4,683.00

Raft 1 P 6, 792.00

Raft w/drums 2 P 0.00

Raft w/floaters 2 P 203.00

Personal residence1 10 P 2, 000.00

SUBTOTAL - P 13, 678.00


Transportation Vessels

and Machineries


Boat 6 P 967.90

5 HP engine 5 P 860.00

12 HP engine 7 P 1, 179.00



Tools and Equipments Economic Useful Yeats Annual Depreciation

Bolo 1 P 300.00

Binder 1 P 1, 016. 00

Rope 2 P 330.00

Gloves 2 months P 91.00

Nylon 1 P 449.00

Sacks 6 months P 62.00

Shovel 4 P 91.00

Scrap 1 P 250.00

Spade 1 P 613.00

Rubber 1 P 259.00

Hat 1 P 33.00


TOTAL ANNUAL DEPRECIATION P 20, 177.00

62

Fixed Cost

The average total fixed cost of oyster mariculture is P 23, 804.00. Barangay

Permit, payments for loaned capital, repair cost, and depreciation cost constitutes the

oyster mariculture operators’ fixed cost. Only 53 of the 77 oyster mariculture operators

pay for their annual Barangay Permit with an average cost of P 80.00. Annual

depreciation is accounted for the highest fixed cost with an average cost of P 20, 177.00

or 84.76% while payments for the Barangay Permit incurred the lowest cost with P 80.00

or 0.33% of the total fixed cost.

Table 27. Total fixed cost of small-scale oyster mariculture operators in Roxas

City, Capiz

Item Average Value Value/sack Percentage

Barangay Permit P 80.00 P 1.08 0.33

Loaned Capital P 791.00 P 10.64 3.32

Repair Cost P 2, 757.00 P 37.08 11.58


TOTAL FIXED

COST

P 23, 804.00 P 320.16 100

Variable Costs

Meanwhile, the average variable cost of the oyster mariculture operation is

P 2, 378.00. These variable costs are composed of oyster shells, hired labor, fuel,

transportation cost, and commuting cost. The oyster shells are being strapped into nylon

after which can be used as “poles” for oysters. On average, 19 sacks of oysters worth P

183.00 are utilized every year. Hired labor constitutes the variable cost with P 1, 738.00

or 73.07% of the total variable cost. Seven laborers are being hired to help with

harvesting of the oysters. Furthermore, two liters of fuel worth P 140.00 are being used

by the operators for their motorized boats. Transportation cost is worth P 218.00 (9.16%)

and commuting cost is worth P 120.00 (5.05%)

63

Table 28. Total variable cost of small-scale oyster mariculture operators in Roxas

City, Capiz

Item Average Qty. Average Value Value/sack Percentage

Oyster Shells 19 sacks P 183.00 P 2.46 7.67

Hired Labor 7 P 1,738.00 P 23.38 73.07

Fuel 2L P 140.00 P 1.88 5.89

Transportation Cost 1 rental P 218.00 P 2.93 9.16

Commuting Cost 2 one-way trip P 120.00 P 1.61 5.05

TOTAL

VARIABLE COST

- P 2, 378.00 P 31.98 100

Production

The average total production of oyster mariculture operators is 74.35 sacks of

oysters. Unlike the mussel mariculture, the average production cycle of an oyster farm is

only twice a year. In which, the first harvest produces more oysters with 50.4 sacks of the

total production is harvested during this cycle.

Oyster mariculture operators engage in contract sale and direct sale. 44.42 sacks

on the first harvest and 19.89 sacks on the second harvest are being sold through contract

sale while 2.24 sacks and 2.27 sacks of oysters are being sold directly on the first and

second harvest, respectively.

On both the production cycle, the average quantity of oyster that is being given as

relative’s share is approximately 0.8 sacks. 2.74 sacks on the first harvest and 2.27 sacks

on the second harvest are being given as laborer’s share.

64

Table 29. Total production of small-scale oyster mariculture operators in Roxas

City, Capiz

First harvest Second harvest

Sold

Contract Sale

Direct Sale

44.42 sacks 19.89 sacks


Own Consumption 0.92 sacks 0.52 sacks

Given Away

Laborer’s Share

Relative’s Share



Sub-total 50.4 sacks 23.95 sacks

TOTAL PRODUCTION 74.35 sacks

Moreover, comparing the contract and direct sale prices for oyster, direct sale

have higher prices. Oyster is relatively expensive on the direct selling of the first harvest

because it is priced at P 586.00 per sack. Meanwhile, the lowest price of oyster is when it

is being sold through contract sale on the first harvest as it is only priced at P 407.00 per

sack.

Table 30. Average price for different types of sale of oyster

Type of sale Price

1st harvest 2

nd harvest

Contract Sale P 407.00 P 445.00

Direct Sale P 586.00 P 556.00

Revenue

The average revenue generated from the two production cycles of oyster

mariculture operators is P 32, 249.00. Among the two harvests, the first harvest is able to

generate more revenue with P 21, 244.00. From the types of sale the contract sale on the

first harvest generated the highest revenue with P 18, 074.00

65

Table 31. Total revenue of small-scale oyster mariculture operators in Roxas City,

Capiz

First harvest Second harvest

Sold

Contract Sale

Direct Sale

P 18, 074.00 P 8, 847.00

P 1, 313.00 P 1, 263.00

Own Consumption P 457.00 P 260.00

Given Away

Laborer’s Share

Relative’s Share

P 1, 360.00 P 596.00

P 40.00 P 40.00

Sub-total P 21, 244.00 P 11, 006.00


Opportunity Cost

The average opportunity cost of the oyster mariculture operators is P 4, 339.00.

P 2,439.00, of which, is the opportunity cost of capital and P 1, 900.00 is of the foregone

labor. In comparison with the mariculture operators, oyster operators incurred no

opportunity cost for land.

Table 32. Opportunity cost of small-scale oyster mariculture operators



Capital P 2, 439.00

Land P 0.00

Labor P 1,900.00

TOTAL OPPORTUNITY COST P 4,339.00

66

Cost and Returns Analysis

The three types of profit that are discussed in this study are the gross profit,

financial profit, and the economic profit. Gross profit is computed by subtracting the total

variable cost to the total revenue generated in milkfish brackish water production.

Financial profit is obtained by subtracting the total fixed cost and total variable cost from

the total revenue. Lastly, economic profit is obtained by subtracting the total fixed cost,

total variable cost, and opportunity cost from the total revenue. The opportunity cost in

this study is the value foregone for land, capital, and family labor.

As seen in table 33, the average gross profit, financial profit, and economic profit

of the three aquaculture types are positive. A positive gross profit indicates that the

milkfish brackish water ponds, mussel mariculture areas, and oyster mariculture areas of

Roxas City are profitable and may continue to operate in the short run. The average gross

profit of a milkfish brackish water farm is P 460, 449.00 while the average gross profit of

a mussel farm is P 53, 984.00 and the oyster farm is P 29, 911.00.

A positive financial profit means that the variable cost and fixed cost of a

milkfish, mussel, and oyster farm are covered and is still profitable. The financial profit

of a milkfish farm is P 460, 449.00, for the mussel farm is P 7, 134.00, and for the oyster

farm is P 6, 107.00. Furthermore, the positive economic profit for the three types of

aquaculture indicates that the said small-scale aquaculture operations are profitable in the

long run. The economic profit of the milkfish brackish water aquaculture is P 3, 443.00.

The pure economic profit of the mussel and oyster mariculture is P 1,404.00 and P 1,

768.00, respectively.

67

Table 33. Cost and return analysis of small-scale aquaculture operators in Roxas

City, Capiz

Profit Value

Milkfish brackish

water aquaculture

Mussel

mariculture

Oyster

mariculture

Revenue P 545,237.00 P 55,004.00 P 32,249.00

Cost P 1,103,103.00 P 124,682.00 P 140,319.00

Initial Investment P 561,309.00 P 69,072.00 P 109,838.00

Fixed Cost P 92,748.00 P 46,850.00 P 23,804.00

Variable Cost P 84,788.00 P 3,020.00 P 2,338.00

Opportunity Cost P 364,259.00 P 5,730.00 P 4,339.00

Gross Profit P 460,449.00 P 53,984.00 P 29,911.00

Financial Profit P 367,701.00 P 7,134.00 P 6,107.00

Economic Profit P 3,443.00 P 1,404.00 P 1,768.00

It can be observed that although the small-scale milkfish brackish water operators

incurred the highest cost among the other two types of aquaculture farming, it was also

able to generate the highest gross profit, financial profit, and economic profit. Although

the small-scale oyster mariculture operators incurred higher fixed and variable cost

compared to those of small-scale mussel mariculture operators’ it was able to generate

lower gross profit and financial profit. The reason for such is that the oyster operators

have higher depreciation cost compared to those of the mussel operators. As such, they

own more rafts and has residential houses near their oyster farming area. They also have

more inputs compared to the latter because they oyster shells that are to be attached to the

binder and used stakes.

68

Other Measures of Profitability

Rate of return on investment (ROI)

The rate of return on investment is determined by dividing the invested capital

from the gross profit taken from the aquaculture farm. Gross profit is profit wherein taxes

and other fixed costs are removed from the total revenue and invested capital is the initial

capital that the aquaculture farmers spent in starting their aquaculture farming. The rate

of return of investment determines the ability of the aquaculture farmers to generate the

expected return (required return) based on using and managing their invested capital.

With the computed ROI, the aquaculture farmers became more knowledgeable as to

much of their investment (in capital terms) were recovered.

Among the three types of aquaculture, the mussel mariculture incurred the highest

rate of return on investment with 2.52. This means that in every year the mussel

mariculture operators are able to recover P 2.52 of their invested capital. Meanwhile,

milkfish brackish water operators obtained a ROI of 1.51 and oyster mariculture

operators obtained a ROI of 1.96

Table 34. Rate of return of investment of the small-scale aquaculture operators in

Roxas City, Capiz

Aquaculture Type Gross Profit Invested Capital ROI

Milkfish brackish

water

P 460, 449.00 P 304, 694.00 1.51

Mussel mariculture P 53, 984.00 P 21, 447.00 2.52

Oyster mariculture P 29, 911.00 P 15, 233.00 1.96

69

Rate of return on variable cost (RVC)

The rate of return on variable cost is determined by dividing the total variable cost

to the total revenue incurred from the aquaculture farm. RVC enables the aquaculture

operators to determine how much of their operating costs are recovered after a year of

operation.

Mussel mariculture operators also obtained the highest rate of return on variable

cost (RVC). Every year, the said operators are able to recover P 18.21 of their operating

cost or variable cost. Meanwhile, the oyster mariculture operators obtained a RVC of

13.79 and the milkfish brackish water operators obtained a RVC of 6.43

Table 35. Rate of return on variable cost of the small-scale aquaculture operators in

Roxas City, Capiz

Aquaculture Type Total Revenue Total Variable

Cost

RVC

Milkfish brackish

water

P 545, 237.00 P 84, 788.00 6.43



Benefit-Cost Ratio (BCR)

The Benefit-Cost Ratio (BCR) compares the total expected benefit taken from the

aquaculture farm vis-à-vis its total expected costs. This is determined by dividing the

costs (total variable cost and total fixed) to the total financial returns or revenue generated

from the aquaculture farm.

Milkfish brackish water operators incurred the highest BCR with 3.07. This

means that after a year worth of operation. They are able to recover P 3.07 of their

financial costs or total fixed and variable costs. The mussel mariculture operators and

oyster mariculture operators obtained a BCR of 1.10 and 1.23, respectively.

70

Table 36. Benefit-cost ratio of the small-scale aquaculture operators in Roxas City,

Capiz

Aquaculture Type Total Revenue TVC + TFC BCR

Milkfish brackish

water

P 545, 237.00 P 177, 535.00 3.07



Rate of return on total cost (RTC)

The rate of return on total costs (RTC) is determined by dividing the total cost to

the total revenue generated from the aquaculture farm. The total cost includes the initial

investment, fixed costs, variable costs, and the opportunity cost incurred from the

aquaculture farm. RTC determined the rate of how much of the total cost can be

recovered in a year worth of operation.

The milkfish brackish water operators had the highest rate of return on total cost

as they are able to recover P 3.07 of their total cost every year. Mussel mariculture

operators and oyster mariculture operators were able to obtain a ROI of 1.10 and 1.23,

respectively.

Table 37. Rate of return on total cost of the small-scale aquaculture operators in

Roxas City, Capiz

Aquaculture Type Total Revenue Total Cost RTC

Milkfish brackish

water

P 545, 237.00 P 1, 103, 103.00 3.07



71

Gross Profit Margin

Gross profit margin measures the percentage of how much of the aquaculture

operation’s revenue is considered as gross profit. This indicator is measured by dividing

the revenue to the gross profit and is then multiplied to 100 turn it to percentage.

Results have shown that from the three types of aquaculture, the mussel

mariculture operators incurred the highest gross profit margin of 98.16%. This means that

approximately 98% of the total revenue generated from the mussel mariculture farming is

considered as gross profit. Furthermore, the gross profit margin of the milkfish

brackishwater operators is 84.45% while the gross profit margin of the oyster mariculture

operators is 91.82%.

Table 38. Gross profit margin of the small-scale aquaculture operators in Roxas

City, Capiz

Aquaculture

Type

Total Revenue Gross Profit Gross Profit Margin

Milkfish brackish

water

P 545, 237.00 P 460, 449.00 84.45%

Mussel mariculture P 55, 004.00 P 53, 984.00 98.16%

Oyster mariculture P 32, 249.00 P 29, 911.00 91.82%

Payback Period

Payback period determines the number of years it would take for an investment of

an aquaculture operator to be paid back through the annual gross profit the aquaculture

operation generates (Engle, 2005). Payback period is determined by dividing the gross

profit from the initial investment. Results have shown that it will only take one year for

the milkfish brackish water operators to pay back for their initial investment. Among the

three types of aquaculture the oyster mariculture operators incurred the longest time

before they can pay back their initial investment as it will take them five years to do such.

72

Table 39. Payback period of the small-scale aquaculture operators in Roxas City,

Capiz

Aquaculture

Type

Initial Investment Gross Profit Payback period

Milkfish brackish

water

P 561,309.00 P 460, 449.00 1 year

Mussel mariculture P 124,682.00 P 53, 984.00 2 years

Oyster mariculture P 140,319.00 P 29, 911.00 5 years

Socio-Economic Impacts of Different Hydrometeorological Events

From the aforementioned hydrometeorological events that occurred in Roxas City

from 2008 to 2013, the local government only has a comprehensive damage assessment

on Typhoon Yolanda. The said typhoon greatly affected the aquaculture industry of

Roxas City as it incurred a total damage cost of P 77,094,600.00 to the different fishing

sectors. The brackish water fishponds lost approximately P 4,904,600.00 worth of input

variables and infrastructures. The freshwater farms incurred a total loss of P 450,000.00

worth of catfish or tilapia input units. Mariculture farms had a total damage cost of

P 18,800,000.00. The damages in the mariculture operators’ fish cages amounted to P 16,

500, 000.00

From the damage assessment report prepared by the city’s Department of

Agriculture’s office, approximately 75 aquaculture operators were affected and 395

mariculture operators were affected.

Table 40 presents the total number of small-scale aquaculture operators that were

affected by the different hydrometeorological events that occurred in 2008 to 2013.

73

Table 40. Number of small-scale aquaculture operators in Roxas City that were

affected by different hydrometeorological events in 2008 to 2013

Hydrometeorological

event

Milkfish brackish

water operators

Mussel

mariculture

operators

Oyster

mariculture

operators

No. of

affected

% No. of

affected

% No. of

affected

%

Flood 12 54.55% 26 29.55% 6 7.79%

Heavy Rainfall 4 18.18% 6 18.18% 30 38.96%

Typhoon 22 100% 87 98.86% 77 100%

Drought 2 9.09% 2 2.27% 13 16.88%

The table below shows the average occurrence of the hydrometeorological events

that the aquaculture operators experienced in 2008 to 2013.

Table 41. Average occurrence of hydrometeorological events in 2008 to 2013

Hydrometeorological

event

Milkfish brackish

water operators

Mussel mariculture

operators

Oyster mariculture

operators

Flood 1 3 1

Heavy Rainfall 2 4 3

Typhoon 2 1 1

Drought 1 2 1

As what can be seen in the table 40, the hydrometeorological event that affected

almost all of the small-scale aquaculture operators in Roxas City is typhoon. All of the

milkfish brackish water and oyster operators and 87 of the mussel operators were affected

by the said hydrometeorological event. In line with this, the reason why a mussel operator

was not affected by a typhoon is because he’s only been a mussel operator for a year. As

this study only focuses on the hydrometeorological occurrences from 2008 to 2013, the

2014 impacts of a typhoon to the said operator was not computed.

More than 50% of the milkfish brackish water operators were affected by the

occurrence of flood. From the said years, the average number of times a milkfish operator

74

is affected by a flood is one. Meanwhile, 26 or 29.55% of the mussel operators and only

six out of the 77 oyster operators were affected by the said hydrometeorological event.

Among the three aquaculture operators, the oyster mariculture operators were

affected by the heavy rainfall the most. The average number of times an oyster operator

was affected by a heavy rainfall in the years 2008 to 2013 is three times.

Furthermore, it can be seen that a small majority of the total aquaculture operators

were affected by drought. Only two milkfish operators, two mussel operators, and 13

oyster operators have stated that they were affected by drought.

Socioeconomic Impacts of Hydrometeorological Events to Small-Scale Milkfish

Brackish Water Operators

As mentioned, the production of the aquaculture industry may be altered because

of the occurrence of different hydrometeorolgical events. The socioeconomic impacts

brought about by flood to the said operators from 2008 to 2013 are increase in labor

usage, losses in fry, damage in dike, damage in guard house or caretaker’s house and

damage in sluice gates.

Out of the 12 affected milkfish brackish water operators, six incurred a loss of

P 400.00 from their capital as they had to increase their labor usage for the repairs and

reconstructions in the pond structures. All the affected operators obtained a loss of

P 554.00 for to the mortality of fry as during flood significant amount of fry overflowed

from the fish ponds. In general, the average total cost of the socio-economic impacts per

occurrence of flood is P 19,372.00

75

Table 42. Socio-economic impacts of flood to small-scale milkfish brackish water


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Increase in labor 6 P 400.00 2.06

Losses in fry 12 P 554.00 2.86

Dike damage 8 P 8,418.00 43.45

Damages on

caretaker/guard house

3 P 5, 000.00

25.81

Damage on sluice gates 3 P 5, 000.00 25.81

TOTAL COST OF IMPACTS P 19, 372.00 100

Three milkfish brackish water operators experienced a decrease in the quantity of

harvest due to excessive heavy rainfall. The average cost for this socioeconomic impact is

P 6,333.00. Meanwhile, the damage in dike incurred a total cost of P 9,400.00.

The average loss for a milkfish operator due to the occurrence of heavy rainfall is

P 15, 733.00.

Table 43. Socio-economic impacts of heavy rainfall to small-scale milkfish brackish

water operators in Roxas City, Capiz

Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 3 P 6,333.00 40.25

Dike damage 4 P 9, 400.00 59.75


The socioeconomic impacts of a typhoon to the milkfish brackish water operators

are decrease in harvest, decrease in the price of the harvested milkfish, increase in labor

usage, damage in boat, damage in sluice gates, damage in the caretaker’s or guard house,

losses in fry, losses in fingerling, and damage in dikes.

Typhoon causes the greatest damage among the hydrometeorological events

because it is capable of destroying not only the pond structures but also the structures

surrounding the ponds.

76

Due to the mortality of fry and fingerling, the harvested quantity of milkfish

significantly declined causing a loss of P 51,884.00 to a milkfish operator. There were

even instances wherein a milkfish operator was not able to harvest as all the seedlings of

milkfish overflowed from the pond area. Furthermore, the price of milkfish in the market

also declined because the demand decreases due to the perception that the milkfish

harvested after a typhoon are of lower quality compared to those harvested before a

typhoon occurred. In effect, the price became P 45.00 from the average selling price of

P 95.00. This price decrease is about 52.63%

The damage in the caretaker or guard’s house incurred the highest cost of damage

for the pond infrastructures at P 33,000.00. The fish farm inputs that were lost due to the

typhoon are fry and fingerlings which amounted to P 4,600.00

In general, the average cost of socio-economic impacts brought about by an

occurrence of a typhoon is P 111,706.00

Table 44. Socio-economic impacts of typhoon to small-scale milkfish brackish water


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 13 P 51, 884.00 46.45

Decrease in price of

milkfish

4 P 13, 113.00 11.74

Increase in labor 3 P 1, 533.00 1.37

Boat damage 7 P 2, 000.00 1.79

Damage on sluice gates 14 P 11, 826.00 10.59

Damages on

caretaker/guard house

17 P 767.00

0.69

Losses in fry 3 P 3, 833.00 3.43

Losses in fingerling 18 P 26, 750.00 23.95


77

There are three socio-economic impacts brought about by drought to a milkfish

brackish water pond; namely, decrease in harvest, decrease in price of harvest, and losses

in haterin. The socioeconomic impact that contributed the highest loss is decrease in

harvest with P 49,000.00 (77.18%) on the average. This socio-economic impact is due to

the mortality of fry, fingerling, haterin, or juvenile due to excessive heat. The losses of

haterin causes an average damage cost of P 490.00 Furthermore, due to the decrease of

price the operators obtained an average loss of P 14,000.00. In totality, the average cost

of socio-economic impacts brought about by an occurrence drought is P 63,490.00

Table 45. Socio-economic impacts of drought to small-scale milkfish brackish water


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 2 P 49,000.00 77.18%


milkfish

2 P 14, 000.00 22.05%

Losses in haterin 2 P 490.00 0.77%

TOTAL COST OF IMPACTS P 63, 490.00 100%

Socioeconomic Impacts of Hydrometeorological Events to Small-Scale Mussel

Mariculture Operators

The average cost of damages brought about by flood to mussel mariculture

operators is P 32, 891.00. Damage in rafts obtained the highest of losses at P 15, 000.00

Among the 26 affected mussel operators, however, only one incurred damages in his raft.

Moreover, the average cost of losses for decrease in harvest is P 4,540.00, P 7,172.00 for

the increase in labor usage, and P 2,029.00 for the damage and destruction on bamboo

stakes.

78

Table 46. Socio-economic impacts of flood to small-scale mussel mariculture


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 26 P 4, 540.00 13.80%


mussel

10 P 7, 172.00 21.81%

Increase in labor usage 2 P 4, 150.00 12.62%

Stake damage 15 P 2, 029.00 6.17%

Raft damage 1 P 15, 000.00 45.60%

TOTAL COST OF IMPACTS P 32, 891.00 100%

Among the 16 affected mussel mariculture operators by heavy rainfall, 12

experienced a decrease in their total harvest. The total damage cost for this impact is P

120.00. Due to heavy rainfall, the harvested mussel shells were of lower quality; thus,

making the purchase price is lower. The average cost of socio-economic impacts brought

about by an occurrence of heavy rainfall is P 154.00

Table 47. Socio-economic impacts of heavy rainfall to small-scale mussel


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 12 P 120.00 77.61


mussel

4 P 35.00 22.39

TOTAL COST OF IMPACTS P 154.00 100

The average total cost of damages brought about by an occurrence of typhoon to

the mussel mariculture operators is P 39,138.00. The socioeconomic impacts of typhoon

are decrease in harvest, decrease in price of harvested mussel, increase in labor usage,

damage on bamboo stakes, damage on raft, damage on boat, damage on binder holdings

on both rafts and stakes, and damage on rope holdings.

Just like the damages incurred by the milkfish brackish water operators, the

socioeconomic impacts brought about by a typhoon contributed the highest damage cost

79

to the mussel mariculture operators. It affected the quality and quantity of the mussel

shells and it also destroyed the stakes and rafts, transportation vessels, and tools and

equipments used in mussel farming.

Decrease in price of the harvested mussel incurred the highest cost of losses at

P 9,197.00 because the harvested mussels were of low quality. Typhoon decreased the

contract price to as much as 20%. After the typhoon, the average contract price of P

1,780.00 declined to P 1,430.00. Decrease in the total harvest quantity amounted to

P 7, 849.00. Furthermore, 86 of the affected mussel operators incurred damages on their

bamboo stakes which amounted to an average total loss of P 5,848.00.

Table 48. Socio-economic impacts of typhoon to small-scale mussel mariculture


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage



mussel

46 P 9, 197.00 23.50

Increase in labor 12 P 5, 854.00 14.96

Stakes damage 86 P 5, 848.00 14.94

Raft damage 1 P 4, 000.00 10.22

Boat damage 20 P 4, 400.00 11.24

Damage on binder

holdings

20 P 975.00 2.49

Damage on rope

holdings

16 P 1, 015.00 2.59


Two mussel operators were affected due to the occurrence of drought. The

socioeconomic impact of this hydrometeorological event is the decrease in the total

harvest size of mussels. Due to extreme heat some mussels eventually died and can no

longer be sold. With this, the mussel operators incurred an average loss of P 105.00

80

Table 49. Socio-economic impacts of drought to small-scale mussel mariculture


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 2 P 105.00 100

TOTAL COST OF IMPACTS P 105.00 100

Socioeconomic Impacts of Hydrometeorological Events to Small-Scale Oyster

Mariculture Water Operators

The average damage cost to an oyster mariculture farmer per occurrence of a

flood is P 24,681.00. The impacts include reduced quality of harvested oysters, damaged

rafts and stakes, and damaged transportation vessels used in oyster farming.

The damage on boat per occurrence is the highest damage cost at P 10,000.00,

comprising 40.52% of the total losses. Only one of the six affected farmers, however,

experienced this impact. Four operators experienced a decrease in the quantity of the

harvested oyster, which is equivalent to P 848.00 per incidence of flood.

Table 50. Socio-economic impacts of flood to small-scale oyster mariculture


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 4 P 848.00 3.43

Stakes damage 3 P 6,333.00 25.66

Raft damage 2 P 7,500.00 30.39

Boat damage 1 P 10,000.00 40.52

TOTAL COST OF IMPACTS P 24,681.00 100

The different socioeconomic impacts caused by heavy rainfall are decreased

harvest, decrease in the price of harvested oyster, decrease in demand for oyster, and

damage on boat. The average damage cost caused by an occurrence of heavy rainfall is

P 18,975.00. Of this amount, 47.73% or P 9,057.00 is contributed by the decrease in

demand of oyster. Consumers are no longer willing to buy oysters after excessive rainfall

81

because of the perception of the decline in quality. Out of the 30 affected oyster

operators, 10 experienced a decrease in harvest worth P 3,559.00. Nine operators incurred

damage worth P 250.00 on their boats. The decrease in price of the harvested oysters, on

the other hand, contributed a damage cost of P 6,109.00.

Table 51. Socio-economic impacts of heavy rainfall to small-scale oyster mariculture


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage



oyster

18 P 6, 109.00 32.19

Decrease in demand

for oyster

22 P 9, 057.00 47.73

Boat damage 9 P 250.00 1.32


The average damage cost brought about by an occurence typhoon to a small-scale

oyster mariculture farm is P 81,780.00. The socioeconomic impacts of such

hydrometeorological event include decrease in harvest and price of harvested oyster,

increase in labor usage, damaged bamboo stakes, rafts, boat, boat engine, binder

holdings, residential house, and nylon holdings.

Of the total damage cost per occurrence of typhoon, about half or 45.76% is from

the damage on the residential house. Five oyster operators suffered a total damage cost of

P 35,000.00 for this impact. The damage on the boat engine amounted to P 14, 800.00. A

total of P 3,985.00 was obtained by each of the 61 affected oyster operators due to the

decrease in their harvest.

Typhoons also damaged the tools and equipments used in oyster farming. The

average cost of damages for the destruction of the binder holdings and nylon is

82

P 1, 978.00 and P 2, 000.00, respectively. It also decreased the price of oyster by P 89.00

(20%) per sack, from the average contract price of P 445.00 it declined to P 306.00 after

the typhoon.

Table 52. Socio-economic impacts of typhoon to small-scale oyster mariculture


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 61 P 3,985.00 4.87


oyster

8 P 6,688.00 8.18

Increase in labor 5 P 1,340.00 1.64

Stakes damage 62 P 7,342.00 8.98

Raft damage 34 P 3,353.00 4.10

Boat damage 34 P 5,295.00 6.47

Engine damage 1 P 14,800.00 18.10

Damage in binder

holdings

8 P 1,978.00 2.42

Damage in residence 5 P 35,000.00 45.76

Damage in nylon 1 P 2,000.00 2.61


Out of the seventy-seven mariculture operators, 13 oyster operators were affected

by drought. An average damage cost of P 4,815.00 was incurred by the operators due to

the decrease in harvest arising from excessive heat.

Table 53. Socio-economic impacts of drought to small-scale oyster mariculture


Socio-economic

impacts

No. of operators

affected

Average cost per

occurrence

Percentage

Decrease in harvest 13 P 4,815.00 100


83

Summary of the Cost of the Socio-Economic Impacts Incurred from the Different

Hydrometeorological Events

The table below shows the summary of the average costs incurred by the small-

scale aquaculture operators of Roxas City from the occurrence of flood, heavy rainfall,

typhoon, and drought. It can be observed that typhoons more than the other three

hydrometeorological events inflicted the highest damage cost to all the aquaculture

operators. The average damage cost brought about by an occurrence of a typhoon to a

milkfish brackish water operator is P 111,706.00, P 39, 138.00 for a mussel mariculture

operator, and P 81,780.00 for an oyster mariculture operator.

Mussel operators incurred the highest damage cost for the occurrence of floods at

P 32,891.00. The milkfish operators, on the other hand, incurred the lowest damage costs

at P 19,372.00. Among the four hydrometeorological events, the aquaculture operators

suffered the lowest damage cost for the occurrence of heavy rainfall. Milkfish operators

incurred P 15, 733.00, P 154.00 for mussel operators, and P 18,975.00 for oyster

operators.

Milkfish operators incurred the highest damage cost from flood. The excessive

heat brought about by the hydrometeorological event increases the mortality rate of fish

pond seedlings. The average cost of damage per occurrence of drought to the milkfish

operator is P 63,490.00. Mussel and oyster operators, on the other hand, incurred a loss of

P 105.00 and P 4,815.00, respectively.

84

Table 54. Summary of the cost of the socio-economic impacts incurred by the

small-scale aquaculture operators in Roxas City, Capiz from the

different hydrometeorological events

Cost of

socio-economic

impacts

Milkfish brackish

water operators

Mussel mariculture

operators

Oyster mariculture

operators

Flood P 19, 372.00 P 32, 891.00 P 24, 681.00

Heavy Rainfall P 15, 733.00 P 154.00 P 18, 975.00

Typhoon P 111, 706.00 P 39, 138.00 P 81, 780.00

Drought P 63, 490.00 P 105.00 P 4, 815.00

Among the major socio-economic impacts of the different hydrometeorological

events, decrease in harvest contributed the highest damage cost to milkfish operators at P

107,217.00. Decrease in price of harvest is estimated at P 16,404.00 to the mussel

operators. Furthermore, damage on transporation vessels and machineries caused the

highest loss to the oyster operators at P 30,345.00.

Table 55. Cost of the major socio-economic impacts incurred by the small-scale

aquaculture operators in Roxas City, Capiz from the different

hydrometeorological events

Major socio -

economic

impacts

Milkfish brackish

water

Mussel mariculture Oyster mariculture

Cost % Cost % Cost %

Decrease in

harvest

P 107,217.00

50.98

P 12,614.00

17.45

P 13,207.00

9.91

Decrease in

price of harvest

P 1,933.00

0.92

P 16,404.00

22.69

P 12,797.00

9.60

Damage in

structures

P 40,411.00

19.22

P 10,004.00

13.84

P 1,340.00

1.01

Damage in

transportation

vessels and

machineries

P 2,000.00

0.95

P 4,400.00

0.55

P 30,345.00

22.77

85

Adaptation Measures

Government-led adaptation

Several efforts has been made by the local government in order to prepare the

fisher folks for upcoming hydrometeorological events and also to help them recover from

the socioeconomic impacts they experienced after the occurrence of such.

In 2011, the City Agriculture’s Office proposed a project entitled “Establishment

of Floating Mariculture Structures for Oyster/Mussel and Grouper Culture as

Livelihood”. This project was aimed to improve the livelihood of the fish farmers most

especially in the financial, technical, and social aspects of their lives. The project is also

intended to increase production of oysters and mussels to increase the famers’ capability

to adapt to the different hydrometeorological events. The total funding requirement for

this project was P 172, 252.00, P 10,000.00 or 6% was spent for the training and

orientation on the pre-implementation phase. P 152, 352.00 was utilized on capital

assistance for the expenditures of the said operators on their fixed cost. The small-scale

mariculture operators are to be granted loan assistance to supply their mariculture farms

with floating cages and raft structures.

In 2012, a training was proposed by the City Agriculture’s Office on “Grouper

Cage Culture and Oyster/Mussel Production Training for Small-Scale Fisherfolks

Association”. The training aimed to teach the mariculture operators of Roxas City on how

to construct floating structures for their mariculture farms, encourage them to rehabilitate

riverine areas, discourage destructive fishing activities, and develop a sustainable

management mariculture venture scheme for them. The total training cost amounted to

86

P 10, 000.00 and its target participants are the small-scale mariculture operators in Lewis

Baybay, Roxas City.

In 2013 before Typhoon Yolanda ravaged Roxas City, the Department of Social

Welfare and Development conducted capability building trainings to the fisher folks of

the city. Also, together with the Department of Agriculture they provided different

sustainable livelihood programs to the said sector. After the occurrence of Typhoon

Yolanda, 12 barangays of Roxas City were given financial assistance amounting to

P 217, 695.30 each.

Table 56. Government-led adaptation measures from 2011 to 2013

Adaptation Measures Year Estimated Cost

“Establishment of Fishing

Mariculture Structures for

Oyster/Mussel and Grouper

Culture as Livelihood”

2011 P 172, 252.00

“Grouper Cage Culture and

Oyster/Mussel Production

Training for Small-Scale

Fisherfolks Asscociation”

2012 P 10,000.00

Financial Assistance to 12

affected barangays

Capability building trainings

by DSWD

Sustainable livelihood

programs by the City

Agriculture’s Office

2013 P 2,612,343.60

.

87

Sources of information about upcoming hydrometeorological events

In general, all of the respondents were knowledgeable about the existence of a

weather office in Roxas City. The major sources of information about upcoming

hydrometeorological events are television, radio, and the Philippine Atmospheric,

Geophysical and Astronomical Services Administration (PAG-ASA). Among the

respondents, only the milkfish operators rely on newspaper for their weather related

information. Eight of the milkfish operators and 12 of the oyster operators rely on text

messages from their family and friends regarding weather announcements.

Table 57. Sources of information of the small-scale aquaculture operators in Roxas

City, Capiz

Source of information

Aquaculture

Operators

Television Radio Newspaper PAG-ASA

Announcements

Text

Milkfish brackish

water operators

22 22 21 22 8

Mussel mariculture

operators

86 85 24 88 0

Oyster mariculture

operators

77 76 1 77 12

Adaptation Measures of Small-Scale Milkfish Brackish Water Operators

All the milkfish operators employ different adaptation measures in order for them

to adapt to typhoon. More than half or 59.09% adapt to flood. Only three operators

employ different adaptation measures to cope up with heavy rainfall and drought.

88

Table 58. Number of milkfish brackish water operators that employed different


Hydrometeorological event No. of operators that

applied different

adaptation measures

Percentage

Flood 13 59.09

Heavy Rainfall 3 13.64

Typhoon 22 100

Drought 3 13.64

Milkfish operators employ different adaptation measures following the occurrence

of flood. The adaptation measures that were employed by the operators are to replace the

fry seedlings and repair the dikes.

During floods, milkfish seedlings overflow from the ponds. When this happens,

milkfish operators had to buy new fry seedling which costs P 646.00; hired additional

labor to re-stock the fry costs P 183.00. 11 milkfish operators repaired their dikes. They

spent P 2,682.00 and P 655.00 for material and additional labor, respectively.

Table 59. Different adaptation measures applied by the small-scale milkfish

brackish water operators in Roxas City after flood

Adaptation

measures

No. of

operators

that applied

this

adaptation

Cost Cost of

Additional Labor

Source Frequency

Buy Fry 12 P 646.00 P 183.00 1 day Personal 1

Repair Dike 11 P 2,682.00 P 655.00 2 days Personal 1

TOTAL COST P 4, 166.00

Damages brought about by heavy rainfall incurred minimal costs to the milkfish

operators. The only adaptation measure they employed for this hydrometeorological

event is to repair the dikes of their ponds. No materials were used nor were hired labor

utilized since the caretaker of the pond is the one that fixes the damages.

89


brackish water operators in Roxas City after heavy rainfall

Adaptation

measures

No. of

operators that

applied this

adaptation

Cost Cost of

Additional

Labor

Source Frequency

Repair Dike 3 P 0.00 P 161.00 1 day Personal 2

TOTAL COST P 161.00

The milkfish operators employ adaptation strategies before and after a typhoon.

Before the occurrence of a typhoon, water is extracted from the pond to avoid flooding.

No materials were used for such adaptation measure; however, additional labor

amounting to P 272.00 was utilized. After the typhoon, transportation vessels and pond

structures are repaired and milkfish seedlings are bought to replace the ones that died.

The adaptation measure that cost the most is the repair for the caretaker or guard’s

houses.


brackish water operators in Roxas City for typhoon

Adaptation

measures

No. of

operators

that

applied this

adaptation

Cost Cost of Additional

Labor

Source Frequency

Before the typhoon

Reduce water 9 P 0.00 P 272.00 1.5days Personal 2

Sub-total P 0.00 P 272.00

After the typhoon

Repair boat 8 P 1, 813.00 P 0.00 - Personal 2

Repair dike 22 P 7, 086.00 P 620.00 3days Personal 2

Repair caretaker

or guard’s house

21 P 16,619.00 P 480.00 2.5days Personal 2

Replace fry 16 P 1, 658.00 P 80.00 1 day Personal 2

Repair sluice

Gates

14 P 8, 493.00 P 80.00 1 day Personal 2

Fix holes in the

Pond

5 P 0.00 P 400.00 2 days Personal 2

Sub-total P 35,669.00 P 1, 500.00


90

Due to the high mortality of fry, fingerling, and haterin during droughts, the

adaptation measures of milkfish operators usually performs pond clearing, adding of

water to the pond, replacing the milkfish seedlings, and application of “lablab”.

After a drought, water is being entered into the pond after it is being cleared and

emptied-out. Milkfish seedlings, after which, are stocked into the pond area and are

supplied with “lablab”.


brackish water operators in Roxas City after the drought

Adaptation

measures

No. of operators

that applied this

adaptation

Cost Cost of

Additional

Labor

Source Frequency

Empty the pond 2 P 0.00 P 80.00 1 day Personal 1

Add new water 3 P 0.00 P 67.00 1 day Personal 1

Buy haterin 2 P 700.00 P 0.00 - Personal 1

Add “lablab” 2 P 0.00 P 80.00 1 day Personal 1

TOTAL COST P 928.00

Adaptation Measures of Small-Scale Mussel Mariculture Operators

Six mussel operators applied adaptation measures for flood and 87 operators

employed adaptation measures for typhoon. The average cost of adaptation for flood is P

6,680.00. In anticipation of a flood, the operators tighten the rope holdings of their stake

so that the bamboo structures will be less susceptible to movements. This entailed a cost

of P 1,100.00; P 800.00 for the rope and P 300.00 for the additional labor.

After the flood, the operators buy stakes as replacement for the damaged ones.

This is the adaptation measure that cost the highest at P 4, 280.00.

91

Table 63. Different adaptation measures applied by the small-scale mussel


Adaptation

measures

No. of

operators

that applied

this

adaptation

Cost Cost of

Additional

Labor

Source Frequency

Before the flood

Tighten rope

Holdings

2 P 800.00 P300.00 1.5days Personal 1

Sub-total P 800.00 P 300.00

After the flood

Replace stakes 4 P4,280.00 P 0.00 - Personal 1

Replace scrap

Holdings

1 P1,500.00 P 0.00 - Personal 1

Sub-total P5,780.00 P 0.00


Before a typhoon occurs, mussel mariculture operators add binder to tighten the

holdings of the bamboo stakes and buy additional rope to also secure the bindings of the

stakes. These adaptation measures’ total cost is P 780.00 for the binder and rope and P

1,575.00 for the additional labor used.

After a typhoon, the operators buy stakes to replace the damaged ones, repair their

rafts and boats and buy additional binder, rope, and scrap to tighten the holdings of stakes

and rafts. Among these, the adaptation measure that entailed the highest cost is the

buying of the rope at P 8,493.00. In general, the average total cost of adapting to typhoon

is P 27,751.00

92

Table 64. Different adaptation measures applied by the small-scale mussel


Adaptation

measures

Operators

that

applied

this

adaptation

Cost Cost of Additional

Labor

Source Frequency

Before the typhoon

Add binder to

tighten the

holdings

5 P308.00 P1,000.00 5days Personal 1

Tighten the rope

of the stake

Bindings

18 P472.00 P 575.00 3days Personal 1

Sub-total P780.00 P 1, 575.00

After the typhoon

Replace stakes 87 P5,759.00 P1, 500.00 6days Personal 1

Repair raft 1 P1,000.00 P 500.00 3days Personal 1

Repair boat 19 P4,195.00 P 600.00 3days Personal 1

Replace binder 20 P1,000.00 P 0.00 - Personal 1

Replace rope 14 P8,493.00 P 0.00 - Personal 1

Buy scrap 2 P350.00 P 0.00 - Personal 1

Sub-total P20,796.00 P 2, 600.00


Adaptation Measures of Small-Scale Oyster Mariculture Operators

The oyster mariculture operators applied adaptation measures for all

hydrometeorological events except for drought. They view the impacts of drought to be

less significant compared to the socio-economic impacts brought about by flood, heavy

rainfall and typhoon.

Table 65. Number of oyster mariculture operators that employed different


Hydrometeorological event No. of operators that

applied different

adaptation measures

Percentage

Flood 24 31.17

Heavy Rainfall 22 28.57

Typhoon 77 100.00

93

The average cost incurred by the oyster mariculture operators for adapting to

flood is P 22, 981.00. Before a flood occurs, the oyster operators tighten the rope

holdings of their raft and stakes The average cost of these adaptation measures are

P 2,047.00; P 1,417.00 for the materials and P 630.00 for the additional labor.

Meanwhile, the average cost of adapting after a flood has occurred is P 20,678.00

for the materials and P 267.00 for the additional labor. The operators buy bamboo stakes

as replacement and repair rafts and transportation vessels.

Table 66. Different adaptation measures applied by the small-scale oyster


Adaptation

measures

Operators

that applied

this

adaptation

Cost Cost of

Additional

Labor

Source Frequency

Before the flood

Tighten the rope

holdings of rafts

18 P 283.00 P130.00 1day Personal 1

Tighten the rope

holdings of

stakes

3 P 1, 133.00 P500.00 2days Personal 1

Sub-total P 1, 417.00 P 630.00

After the flood

Replace stakes 3 P 7,667.00 P 267.00 1.5days Personal 1

Repair raft 2 P 10,000.00 P 0.00 - Personal 1

Repair boat 1 P 10,000.00 P 0.00 - Personal 1

Sub-total P 20, 667.00 P 267.00


94

The adaptation measures employed by the operators for heavy rainfall are usually

done prior to the occurrence of the event. These adaptation measures include adding of

binder to the stake holdings and tightening of the rope holdings for the rafts. Twenty two

(28.57%) operators added binder to the stake holdings while only 15 tightened the

holding of their rafts.


mariculture operators in Roxas City before heavy rainfall

Adaptation

measures

No. of operators

that applied this

adaptation

Cost Cost of

Additional

Labor

Source Frequency

Add binder to the

stake holdings

22 P 83.00 P 0.00 - Personal 1

Tighten the rope

holdings of the

rafts

15 P 100.00 P 0.00 - Personal 6

TOTAL COST P 183.00

The adaptation measures that were employed by the oyster operators befor a

typhoon are to tighten the rope and binder holding of the stakes and rafts and buying of

additional bamboo stakes. After the occurrence of the hydrometeorological event, the

operators replace the damaged stakes, repair the rafts, boats, and residential houses, and

buy binder, nylon, and rope to tighten the holdings of both the rafts and stakes. The

average cost incurred by the operators for adapting to typhoon is P 35, 243.00.

95



Adaptation

measures

Operators

that applied

this

adaptation

Cost Cost of

Additional Labor

Source Frequency

Before the typhoon

Tighten the rope

holdings of rafts

18 P1, 432.00 P200.00 1day Personal 1

Add stakes 4 P 79.00 P 0.00 - Personal 1

Add binder to the

stake holdings

3 P1,677.00 P 0.00 - Personal 1

Tighten the rope

holdings of stakes

22 P1,152.00 P212.00 1day Personal 1

Sub-total P4,339.00 P 416.00

After the typhoon

Replace stakes 65 P6,205.00 P 108.00 0.5days Personal 1

Repair raft 34 P6,056.00 P 0.00 - Personal 1

Repair boat 34 P5,456.00 P 0.00 - Personal 1

Replace binder 7 P831.00 P 0.00 - Personal 2

Replace rope 3 P5,333.00 P 0.00 - Personal 1

Replace nylon 1 P2,000.00 P 0.00 - Personal 2

Repair

residential house

5 P4,200.00 P300.00 2.5days Personal 1

Sub-total P30,081.00 P 408.00


96

Regression Analysis

A regression analysis was performed in order to determine the factors that

affected the aquaculture operators’ adaptation cost. Specifically, a SEMILOG (log-lin)

functional form was used for the OLS regression data analysis in order to determine the

growth rate of the variable ADCOST (Adaptation Cost). The result of the data analysis is

presented below.

Table 69. Regression analysis showing the factors affecting the adaptation

cost of the small-scale aquaculture operators in Roxas City, Capiz

Coefficient Std. Error t-ratio p-value

Const 7.27156 0.314558 23.1167 <0.00001 ***

Size 0.586782 0.4129 1.4211 0.15705

Milk -1.1643 0.770536 -1.5110 0.13257

Oys 0.0914825 0.179862 0.5086 0.61165

Ffreq -0.254287 0.0781543 -3.2537 0.00137 ***

Rfreq 0.208016 0.0709244 2.9329 0.00380 ***

Tfreq 0.191254 0.166404 1.1493 0.25198

Dfreq 0.0270293 0.234979 0.1150 0.90855

Years 0.0225156 0.00901903 2.4965 0.01346 **

Educ 0.081124 0.0256337 3.1647 0.00183 ***

Revenue 3.34412e-06 1.50352e-06 2.2242 0.02741 **

The results showed that the significant variables were CONST (constant), FFREQ

(frequency of flood), RFREQ (frequency of heavy rainfall), YEARS (years of experience

as an operator), EDUC (years of education), and REVENUE (revenue generated from the

aquaculture farm).

97

At 1% level of significance, it was determined that a unit increase in heavy

rainfall will increase the adaptation cost spent by the operators by 21%. The occurrence

of heavy rainfall signifies the forthcoming occurrence of other hydrometeorological

events such as typhoon and flood. With this, operators tend to spend more during heavy

rainfall so as the impacts of other events will be less damaging and destructive.

Furthermore, it was determined that a unit increase in the frequency of flood the

adaptation cost decreases by 25%. As flood may be an after-effect of heavy rainfall,

different adaptation strategies has already been employed by the aquaculture operators,

that is why further adaptation measures for flood are already deemed as insignificant and

not needed.

Moreover at 5% level of significance, it was found out that a one year increase in

the experience as an operator of the respondent will increase the adaptation cost by 2%.

This is because with an increased experience in the aquaculture farming, the operator

tends to become more knowledgeable as to what are the other possible adaptation

measures that they are to employ when adapting to the different hydrometeorological

events.

The regression result also showed that at 1% level of significance, a one year

increase in the education attainment of the operator will also increase the adaptation cost

by 8%. By increasing knowledge through education, the operator is able to determine

what adaptation measures will be most effective in adapting to the different

hydrometeorological events.

98

Lastly, at 5% level of significance, a peso increase from the revenue generated

from the aquaculture operation increases the adaptation cost by 3.3-06 %. When the

operators are able to generate more revenue from the aquaculture farm, they then are

capable enough to spend more for their adaptation measures.

The R-squared value of the regression is 0.32401. This indicates that the

regression equation explains 32% of the variation of adaptation cost.

99

CHAPTER VI

SUMMARY, CONCLUSION AND RECOMMENDATIONS

Summary

This study focused on the small-scale aquaculture operators of Roxas City,

specifically the milkfish brackish water operators, the mussel mariculture operators, and

the oyster mariculture operators. A total of 187 operators were interviewed; of which, 22

were milkfish farmers, 88 were mussel farmers, and 77 were oyster farmers.

Socio-economic profile showed that in all the types of aquaculture, operators were

mostly male. Most are, likewise, dependent on aquaculture farming for their primary

source of income.

Approximately P 6, 329, 841.95 tax revenues are generated annually by the local

government from the fishpond land taxes. Meanwhile P 20, 280.00 was generated from

the payments of mariculture operators for licenses. Also, a significant amount of

employment opportunities is being generated with more than 1,000 hired laborers

employed by the industry. Brackish water fishpond operators hired the highest number of

laborers as they were able to employ 1,000 workers in 2010, 930 in 2011 and 2012, 1,032

in 2013 and 1,060 in 2014.

Moreover, in the year 2014 the brackish water fishponds were able to produce

5,336.24 metric tons of milkfish, tilapia, shrimps, prawns, crabs, and grouper. Freshwater

100

fishponds were able to supply 50 metric tons of tilapia and catfish and mariculture farms

were able to supply 512.50 metric tons of grouper, oyster, and mussel.

In order to determine the benefits acquired by the small-scale aquaculture

operators from the industry, a cost and returns analysis was performed. Calculating for

the revenue and costs, the small-scale aquaculture operators obtained positive gross

profit, financial profit, and economic profit.

Results have shown that the average gross profit of a milkfish brackish water

operator is P 460, 449.00; while the average gross profit of a mussel mariculture operator

is P 53, 984.00 and P 29, 911.00 for an oyster maricuture operator. The average financial

profit of a milkfish brackish water operator is P 367, 701.00, P 7, 134.00 for a mussel

mariculture operator, and P 6, 107.00 for an oyster mariculture operator. Lastly, the

average economic profit for a milkfish brackish water operator, mussel mariculture

operator, and oyster mariculture operator is P 3, 443.00, P 1, 404.00, and P 1,768.00,

respectively.

However, due to the occurrence of different hydrometeorological events in Roxas

City, the small-scale aquaculture operators incurred losses. Between 2008 and 2013, the

city experienced nine hydrometeorological occurrences. Typhoon Yolanda is the most

devastating as it incurred a total loss of P 77,094,600.00 to the fishing industry alone.

Out of the total respondents, flood affected 12 (54.55%) milkfish brackish water

operators, 26 (29.55%) mussel mariculture operators, and six (7.79%) oyster mariculture

operators. Heavy rainfall affected four (18.18%) milkfish brackish water operators, six

(18.18%) mussel mariculture operators, and 30 (38.96%) oyster mariculture operators.

Typhoons affected almost all of the respondents except for one mussel farmer who

101

started his aquaculture operation only in 2014. Furthermore, drought affected two

(9.09%) milkfish brackish water operators, two (2.27%) mussel mariculture operators,

and 13 (16.88%) oyster mariculture operators.

The average total cost of socio-economic impacts of the different

hydrometeorological events to the milkfish brackish water operators are P 19,372.00 for

flood, P 15,733.00 for heavy rainfall, P 111,706.00 for typhoon, and P 63, 490.00 for

drought. Mussel mariculture operators incurred a total average damage cost of

P 32, 891.00 for flood, P 154.00 for heavy rainfall, P 39, 138.00 for typhoon, and

P 105.00 for drought. Whereas, the average damage cost incurred by the oyster

mariculture operators is P 24, 681.00 for flood, P 18, 975.00 for heavy rainfall,

P 81, 780.00 for typhoon, and P 4, 815.00 for drought.

In order to adapt to these hydrometeorological events, the local government of

Roxas City provided the aquaculture operators, specifically the mariculture operators,

with trainings and seminars about capability building and skills trainings. However,

provision of such only started in 2011. Also, the local government provided a financial

assistance to the barangays that were affected by Typhoon Yolanda.

On average, milkfish brackish water operators employ two adaptation measures

for flood, one for heavy rainfall, seven for typhoon, and four for drought. Mussel

mariculture operators employ three adaptation measures for flood and eight for typhoon.

Whereas, oyster mariculture operators employ five adaptation measures for flood, two for

heavy rainfall, and 11 for drought. The adaptation measures that were employed for some

hydrometeorological event were practiced before and after the occurrence of the event.

102

The total number of milkfish brackish water operators that applied different

adaptation measures is 13 for flood, three for heavy rainfall, 22 for typhoon, and three for

drought. For mussel mariculture farming, six operators and 87 operators employed

different adaptation measures for flood and typhoon, respectively. No adaptation

measures were employed for heavy rainfall and drought. Lastly, in oyster mariculture

farming the number of operators that employed different adaptation measures are 24 for

flood, 22 for heavy rainfall, and 77 for typhoon. In comparison with the mussel

mariculture, no adaptation measures were employed for drought.

The average cost spent by a milkfish brackish water operator on the adaptation

measures for flood is P 4,166.00, P 161.00 for heavy rainfall, P 37, 442.00 for typhoon,

and P 928.00 for drought. A mussel mariculture operator, on average, spends P 6, 680.00

for flood and P 27, 751.00 for typhoon. Meanwhile, oyster mariculture operators obtained

an average adaptation cost of P 22, 981.00 for flood, P 183.00 for heavy rainfall, and P

37,763.00 for drought. Accounted in these adaptation costs are the materials and inputs

that were brought as replacements and additional usage and labor.

Furthermore, results of an Ordinary Least Square regression analysis showed that

the factors that can affect an aquaculture operator’s adaptation cost are the frequency of

flood, frequency of rainfall, years as an aquaculture operator, years of education, and

revenue generated from the aquaculture farming.

103

Conclusion

As shown by the data, the aquaculture industry of Roxas City is a profitable venue

for revenue generation. The industry is of big help to the small-scale aquaculture

operators because of the profit that they obtained from the aquaculture farms. The result

indicated that aquaculture farming is highly profitable in the short run as the operators

were able to generate a gross profit of P 460,449.00 for the milkfish operators, P

53,984.00 for the mussel operators, and P 29,911.00 for the oyster operators. The

industry is also profitable in the long run because all the operators were able to generate a

positive economic profit of P 3,443.00, P 1,404.00, and P 1,768.00 for the milkfish,

mussel, and oyster operators, respectively.

Despite the high profitability of aquaculture it is still vulnerable to the different

hydrometeorological events because Roxas City is exposed to the said weather-related

events. In 2008 to 2014, alone, the city experienced nine hydrometeorological events.

The aquaculture farmers, in general, are also exposed to flood, heavy rainfall, typhoon

and drought. Milkfish operators are vulnerable to hydrometeorological events such as

flood and typhoon. More than 50 percent of the milkfish farmers were affected by flood

and all were affected by typhoon. The hydrometeorological events greatly decreased the

harvest of milkfish as the operators incurred a total loss of P 107,217.00 for this impact.

Mussel operators were mostly affected by flood and typhoon. The occurrence of such

events greatly decreased the profit of these small-scale mussel operators as they incurred

a loss of more than P 10,000 for the decrease in harvest, decrease in price of harvested

mussels, and damage on their stakes and rafts. Oyster operators, on the other hand, are

104

the most affected among the operators as most of them are highly dependent on

aquaculture farming as their livelihood. The operators are highly vulnerable to heavy

rainfall and typhoon. Damage on transportation vessels and machineries incurred the

highest total loss at P 30,345.00.

Results showed that among the hydrometeorological events, typhoon affected

the aquaculture industry the most. The said event significantly affected and damaged the

farm structures, transportation vessels, tools and equipments and variable inputs of the

aquaculture operators. Heavy rainfall incurred the least cost of damages to the milkfish

brackish water operators. Drought incurred the least cost of damages for both the mussel

and oyster mariculture operators.

Furthermore, it was observed that the local government does not have a

comprehensive adaptation plan for the occurrence of the different hydrometeorological

events. It was not until 2011 that that the government started to provide different

trainings and programs to the small-scale aquaculture operators.

The adaptation measures employed were mostly reactive as most of these were

applied after the occurrence of a hydrometeorological event. All of the operators spent a

significant monetary amount on employing different adaptation measures for typhoon as

this hydrometeorological event, as stated before hand, inflicted the aquaculture farms the

most.

Despite being affected by flood, heavy rainfall, typhoon, and drought, several

aquaculture operators do not employ adaptation measures to some hydrometeorological

event. One possible reason for this is that some operators, specifically mussel and oyster

mariculture farmers, perceived that some of the socio-economic impacts of the events are

105

not highly damaging to their aquaculture farms. Since these farmers are operating a

small-scale farm it will not be rational for them to spend a significant amount of money

to the employment of adaptation strategies.

The study showed that with an increase in education and years as an operator, the

adaption cost also increases. This is because with an additional knowledge regarding the

different adaptation techniques the operators are likely to seek better and more effective

adaptation measures; thus, incurring a higher cost. Also with an increase in revenue

generated from the aquaculture operation, the adaptation cost also increases since the

operators are more capable in spending higher monetary amount in employing different

adaptation measures.

Lastly, increase in the frequency of heavy rainfall increases the adaptation cost as

this is an indication of forthcoming hydrometeorological events such as typhoon and

flood. In this regard, the operators tend to spend more on the employment of adaptation

strategies for heavy rainfall.

106

Recommendations

Since the aquaculture industry is a good source of revenue to the local

government and is an effective livelihood source to the small-scale fish operators, the

local government should develop the industry by promoting the aquaculture products

during different tourism-related activities.

The local government offices should also keep a comprehensive damage

assessment reports following the occurrence of a hydrometeorological event as to

determine the extent of the vulnerability of the city and the small-scale aquaculture

operators.

Moreover, it is recommended that the aquaculture operators should not solely

depend on aquaculture farming as their primary source of livelihood but also venture on

other alternative livelihoods that are climate-resilient as the results showed that they

incurred significant losses from the hydrometeorological events.

However, as with the improvement of the aquaculture industry, the government

should also increase the adaptation strategies that they employ and provide the

aquaculture farmers with. It should increase its provision of trainings regarding capability

enhancement in coping up with the occurrence of weather-related occurrences. In line

with this, the local government should not only limit the provision of trainings and

seminars to the mariculture operators but also to the fishpond operators. Even though

they are capable enough to spend a significant amount of money in the employment of

their adaptation strategies they should also be educated as to what are the proper and

effective adaptation techniques.

107

Lastly, as with the employment of sustainable adaptation measures, the

government should employ projects that will enable the operators to integrate different

climate change adaptation techniques to their aquaculture farming so as their costs for

employment of the adaptation measures to the hydrometeorological events will be lesser.

108

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111

ANNEX A: LETTERS

112

UNIVERSITY OF THE PHILIPPINES VISAYAS

College of Arts & Sciences


Miagao, Iloilo

February 3, 2015

HON. ANGEL ALAN CELINO

Mayor

City of Roxas

SIR:

I, the undersigned, am a 4th

year Bachelor of Science in Economics student from

the University of the Philippines Visayas. As a requirement for my Economics 199.2

(Economics Research) course, I am currently on the process of doing my undergraduate

research entitled “Economic Analysis and Adaptation Measures of Small-Scale

Aquaculture in Roxas City, Capiz”. To which, this research aims to determine the

direct contributions of the aquaculture industry to the said city and to the small-scale

aquaculture operators, the different socioeconomic impacts brought about by

hydrometeorological events, and the adaptation measures and its costs incurred by the

small-scale aquaculture operators.

In this light, I would like to request for the following:

1. to be granted permission to conduct my research in your city,

2. to be granted permission to interview and conduct surveys to small-scale

aquaculture operators in this city, and

3. to be granted access to different information from related agencies regarding the

aquaculture industry of this city.

Rest assured that the information and data that will be gathered will be

confidential and solely for academic purposes only. Thank you and hoping for your

favorable response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA

Adviser

113




Miagao, Iloilo

February 3, 2015

MR. SAMMUEL NARCISSO

OIC of City Assessor’s Office

Roxas City

SIR:












1. to be granted information regarding the revenue, in the form of land tax,

contributed by milkfish brackishwater aquaculture operators in Roxas City

Rest assured that the information and data that will be gathered will be confidential

and solely for academic purposes only. Thank you and hoping for your favorable

response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA

Adviser

114




Miagao, Iloilo

February 3, 2015

MS. IMELDA OFALLA

OIC of PAG-ASA

Roxas City

MA’AM:












1. to be granted information regarding the different hydrometeorologial events that

affected Roxas City for the years 2008 - 2013

Rest assured that the information and data that will be gathered will be confidential

and solely for academic purposes only. Thank you and hoping for your favorable

response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA

Adviser

115




Miagao, Iloilo

February 3, 2015

MR. ROMMEL ROBERTO LASTIMO

OIC of DRRM Office

Roxas City

SIR:












1. to be granted information regarding the different hydrometeorological events, for

the years 2008 – 2013, that affected the aquaculture industry of Roxas City

2. to be granted information regarding the socioeconomic impacts of the said

hydrometeorological events to the aquaculture industry of Roxas City

3. to be granted information regarding the different adaptation measures employed

by the government of Roxas that helped lessen or reduce the damages brought

about by the said hydrometeorological events



favorable response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA

Adviser

116




Miagao, Iloilo

February 3, 2015

MS. ENGELINE AGUIRRE

OIC of City Agriculture’s Office

Roxas City

MA’AM:












1. to be granted information regarding the direct contributions of the aquaculture

industry to Roxas City; specifically, its contributions to the total production and

total employment to the city

2. to be granted information regarding the total share of the oyster and mussel

mariculture operators to the city’s revenue



favorable response.

Sincerely yours,

MARLA MAY BAES

Noted by,

DR. GAY DEFIESTA

Adviser

117

ANNEX B: QUESTIONNAIRE

118




Miagao, Iloilo

ECONOMIC ANALYSIS AND ADAPTATION MEASURES OF

SMALL-SCALE AQUACULTURE OPERATORS IN

ROXAS CITY, CAPIZ

I am a B.S. Economics student of the University of the Philippines Visayas and

am presently working on an undergraduate research on the economic analysis and

adaptation measures of the small-scale aquaculture operators in your city. Through this

study, the aquaculture operators will be able to identify their costs and revenues of their

farm and they will also be able to determine the costs of damages and adaptation

measures to the different hydrometeorological events that occurred in the city.

In line with this, I would like to have an interview with you regarding the costs

and return of your aquaculture business, costs of damages of the different

hydrometeorological events that affected your farm, and the different adaptation

measures that you employed. The gathering of data will last for 30 minutes to an hour. I

assure you that the data gathered from this interview will remain confidential and for

solely for academic purposes.

I will be greatly thankful for your participation in this study.

MARLA MAY A. BAES

INTERVIEW SCHEDULE CODE

(To be supplied by the interviewer)

I.S. Number:

M.B. –

M.M. –

O.M. –

I. GENERAL INFORMATION OF THE OPERATOR

119

Name of Respondent : _______________________________

Age : _____________

Sex : _____________

Civil Status : _____________

Highest educational attainment : _______________________________

Years of experience as an operator : _____________

Have you attended any training related to aquaculture operation?

( ) Yes ( ) No

If yes,

Title of

training

Year

Attended

Description

of training

Organizer/s Who

conducted

the training

Days of

training

Place

where it

was held

a. No. of household members: ___________________

Name of

Household

Member

Relation

to the

Operator

Age Sex Highest

educational

attainment

Occupation Contribution to

the Household

Income

(per year)

Other sources of income No of

years in

the said

choice

Total Amount of

compensation

(per year)

Employer/ Source (if

applicable)

Occupation

a.

b.

Business

a.

b.

Remittances

120

Livestock

a.

b.

Others (specify)

a.

b.

II. PROFILE OF THE FISHPOND

Questions Answers

Type of aquaculture operation: ( ) Milkfish Brackishwater

Location/ Site:

Total Area of fish farm (ha/sq.m.):

Years the fish farm is in operation:

Water supply: ( ) Well

( ) Tide

( ) Others (please specify)

Type of ownership: ( )

Owned

( ) Leased

( ) FLA

( ) Others

Year

Acquired

Acquisition

Cost

If the fish farm is owned:

If you were to sell your land, how much is

the selling price:

If fish farm is leased:

Leased

From Private Owner From Public Sources

Area (ha/sq.m.)

Annual Rent

Type of lease:

( ) Fixed Cash

( ) Share of production

( ) Share of revenue and

costs

Length of lease (yrs)

Is the lease renewable?

Yes

No

121

Other provisions:

III. FISHPOND OPERATION

A. Capital

Where did you get your initial capital?

Personal Sourcing: Initial Capital/ Amount:

Borrowed: Total Amount Borrowed:

If initial capital is borrowed:

B. Pond Structures, Buildings, Transportation Vessels, Machineries

Item Year

Acquire

d

Quantit

y

Acquisitio

n Cost

Repai

r Cost

Salvag

e

Value

Estimate

d Life

Span

Prevailin

g Market

Value

Source Borrowed Amount Interest Term

Family

Friends

Bank

Others

(specify)

122

(years)

Structures:

1.

2.

3.

4.

Transportatio

n vessels:

1.

2.

Machineries:

1.

2.


D. Other Fixed Costs

Fixed costs Quantity Price per unit Total Cost

Maintenance of structures

Business Permit

Insurance

Taxes

Others (specify)

Tools and

Equipments

Year

Acquired

Quantity Price

per unit

Total

Cost

Salvage

Value

Estimated

Life Span

(years)

Prevailing

Market

Value

123

E. Labor Costs

Activity Number of workers

Family Permanent

Caretaker

Hired Others(specify)

Pond preparation

1. Stocking

2. Feeding

3. Fertilization

4. Weeding

Processing

1. Maintenance

2. Harvesting

3. Marketing

Post-harvest

1. Transportation

2. Packing

3. Processing

4. Marketing

Others (specify)

Type of Labor Payment

(salary/day)

Allowances

Family

Permanent Caretaker

Hired

Others (specify)

F. Fish Farm Inputs

No. of production cycles in a year: ________

Inputs/ per production

cycle

Quantity Price per unit Total Cost Prevailing

Market Value

Fry

Fingerling

Haterin

Juvenile

Feeds

124

1.

2.

Fertilizers

1.

2.

Others (specify)

1.

2.

G. Other Production Costs (per harvest)

Item Quantity Price per unit Total Cost

Fuel

Oil

Electricity

Water

Ice

Containers

Transportation Cost

Commuting Cost

Others (specify)

H. Production

How many times do you harvest in a year : _______________

a. Division of production per harvest

Quantity

Sold

Consumption

Laborer’s share

For other purposes:

1.

2.

3.

4.

125

b. Total production

Production Cycle

Number

Time Total Quantity of Output

Unit of measure

Per ton ( )

Per sack ( )

c. Quantity per type of sale

Production

Cycle No.

Contract

Sale

Auction

Sale

Direct

Sale

Others

(specify)

Market Price per

unit of

measure

IV. SOCIO-ECONOMIC IMPACTS OF HYDROMETEOROLOGICAL

EVENTS

a. From 2008 to 2013, which of these hydrometeorological events affected your fish

farm?

Hydrometeorological Event Number of times it

affected the fish farm

Year/s it occurred

( ) Flood

( ) Heavy Rainfall

( ) Typhoon

( ) Drought

( ) Others (specify)

b. Where do you get your information about the upcoming hydrometeorological

events?

( ) Television

( ) Radio

( ) Newspaper

126

( ) Weather Office Announcements

( ) Others (specify) _____________

c. Does Roxas City have a weather office (PAG-ASA)?

( ) Yes

( ) No

d. What are the different socio-economic effects of these hydrometeorological

events?

1. FLOOD

Year/s occurred: ____________________

Socio-economic effects Cost of damages

Decrease/Reduction in volume of harvest

Changes/Decrease in price of harvest

Increase in labor usage

Damage in structures:

1.

2.

3.

Other damages (specify)

1.

2.

3.

2. HEAVY RAINFALL

Year/s occurred: ____________________






1.

2.

127

3.


1.

2.

3.

3. TYPHOONS

Year/s occurred: ____________________






1.

2.

3.

Damage in transport vessels:

1.

2.

3.

Losses in inputs

Fry

Fingerling

Juvenile

Haterin

Feeds / Fertilizers

Others (specify)


1.

2.

3.

128

4. DROUGHT

Year/s occurred: ____________________





Losses in inputs

Fry

Fingerling

Juvenile

Haterin

Feeds / Fertilizers

Others (specify)


1.

2.

3.

V. ADAPTATION MEASURES EMPLOYED BY THE AQUACULTURE

OPERATOR

Notes:

For “Source of funds” refer to the following choices:

a. Personal Sourcing

b. Support from a Local Government Unit

c. Loaned (if yes, state how many % is the interest)

Adaptation measures refer to the preparations done whenever a certain

hydrometeorological event occurs

1. FLOOD

Do you prepare for floods?

Yes ( ) No ( )

If yes, what are your preparations/adaptation measures?

Adaptation

Measures

Materials/Supplies

Additional

Labor (no of

workers/days/

salary

Other Costs Source

of

funds

Year/s

applied

Frequency

Inventory Cost Cost Inventory Cost

129

2. HEAVY RAINFALL

Do you prepare for heavy rainfalls?

Yes ( ) No ( )


Adaptation

Measures

Materials/Supplies

Additional

Labor (no of

workers/days/

salary

Other Costs Source

of

funds

Year/s

applied

Frequency


3. TYPHOON

Do you prepare for typhoons?

Yes ( ) No ( )


Adaptation

Measures

Materials/Supplies

Additional

Labor (no of

workers/days/

salary

Other Costs Source

of

funds

Year/s

applied

Frequency


130

4. DROUGHT

Do you prepare for droughts?

Yes ( ) No ( )


Adaptation

Measures

Materials/Supplies

Additional

Labor (no of

workers/days/

salary

Other Costs Source

of

funds

Year/s

applied

Frequency


economic analysis and adaptation measures of small … · 2015-07-30 · approval sheet the...

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