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
7 Frequency and Percent Distribution of Aquaculture Operators in
Roxas City by Sources of Income, 2015
43
8 Frequency and Percent Distribution of Aquaculture Operators in
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
operators in Roxas City, Capiz
50
13 Total production of small-scale milkfish brackish water operators
in Roxas City, Capiz
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
in Roxas City, Capiz
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
operators in Roxas City, Capiz
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
in Roxas City, Capiz
25 Summary of the initial investment of small-scale oyster
mariculture operators in Roxas City, Capiz
60
26 Annual depreciation cost of small-scale oyster mariculture
operators in Roxas City, Capiz
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
in Roxas City, Capiz
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
operators in Roxas City, Capiz
68
35 Rate of return on variable cost of the small-scale aquaculture
operators in Roxas City, Capiz
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
operators in Roxas City, Capiz
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
brackish water operators in Roxas City, Capiz
75
44 Socio-economic impacts of typhoon to small-scale milkfish
brackish water operators in Roxas City, Capiz
76
45 Socio-economic impacts of drought to small-scale milkfish
brackish water operators in Roxas City, Capiz
77
46 Socio-economic impacts of flood to small-scale mussel
mariculture operators in Roxas City, Capiz
78
47 Socio-economic impacts of heavy rainfall to small-scale mussel 78
vii
mariculture operators in Roxas City, Capiz
48 Socio-economic impacts of typhoon to small-scale mussel
mariculture operators in Roxas City, Capiz
79
49 Socio-economic impacts of drought to small-scale mussel
mariculture operators in Roxas City, Capiz
80
50 Socio-economic impacts of flood to small-scale oyster
mariculture operators in Roxas City, Capiz
80
51 Socio-economic impacts of heavy rainfall to small-scale oyster
mariculture operators in Roxas City, Capiz
81
52 Socio-economic impacts of typhoon to small-scale oyster
mariculture operators in Roxas City, Capiz
82
53 Socio-economic impacts of drought to small-scale oyster
mariculture operators in Roxas City, Capiz
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
60 Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City after heavy rainfall
89
61 Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City for typhoon
89
62 Different adaptation measures applied by the small-scale milkfish
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
adaptation strategies
93
67 Different adaptation measures applied by the small-scale oyster
mariculture operators in Roxas City for flood
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
Mussel operators Oyster 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
Table 7. Frequency and Percent Distribution of Aquaculture Operators in Roxas
City by Sources of Income, 2015
Sources of Income Milkfish brackish
water operators
Mussel operators Oyster 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.
Table 8. Frequency and Percent Distribution of Aquaculture Operators in Roxas
City by Attendance to Trainings and/or Seminars, 2015
Attendance to trainings
and/or seminars
regarding aquaculture
farming
Milkfish brackish
water operators
Mussel operators Oyster 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
operators in Roxas City, Capiz
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
SUBTOTAL P 113, 228.00
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
SUBTOTAL P 22, 292.00
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
SUBTOTAL P 8, 288.00
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
in Roxas City, Capiz
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
Transportation Vessels and
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
14. 41 kilos 14. 62 kilos 12. 57 kilos
12. 78 kilos 12. 78 kilos 12. 57 kilos
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
First harvest Second harvest Third harvest
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
First harvest Second harvest Third harvest
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
in Roxas City, Capiz
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
operators in Roxas City, Capiz
A. Initial Investment
Investment Cost
Land P 0.00
Capital
Personal Source
Loaned
P 2, 410.00
P 19,038.00
SUBTOTAL P 21, 448.00
B. Structures
Structures Average Quantity Acquisition Cost
Stakes 778 P 6, 697.00
Raft 1 P 61.00
SUBTOTAL - P 6, 757.00
C. Transportation Vessels and Machineries
Transportation Vessels and
Machineries
Average Quantity Acquisition Cost
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
D. Tools and Equipments
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
SUBTOTAL - P 8, 410.30
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
Structures Economic Useful Years Annual Depreciation
Stakes 1 P 5,106.00
Raft 1 P 43.00
SUBTOTAL - P 5, 149.00
B. Transportation Vessels and Machineries
Transportation Vessels and
Machineries
Economic Useful Years Annual Depreciation
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
SUBTOTAL - P 4,553.00
C. Tools and Equipments
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
SUBTOTAL - P 3,338.00
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
Annual Depreciation P 13, 039.00 P 228.75 27.83
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
First harvest Second harvest Third harvest Fourth harvest
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
First harvest Second harvest Third harvest Fourth harvest
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
TOTAL REVENUE P 57, 006.00
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
in Roxas City, Capiz
Item Opportunity Cost
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
operators in Roxas City, Capiz
A. Initial Investment
Investment Cost
Land P 0.00
Capital
Personal Source
Loaned
P 2, 439.00
P 12, 794.00
SUBTOTAL P 15, 233.00
B. Structures
Structures Average Quantity Acquisition Cost
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
C. Transportation Vessels and Machineries
Transportation Vessels
and Machineries
Average Quantity Acquisition Cost
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
D. Tools and Equipments
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
SUBTOTAL - P 4, 447.95
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
Structures Economic Useful Years Annual Depreciation
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
B. Transportation Vessels and Machineries
Transportation Vessels
and Machineries
Economic Useful Years Annual Depreciation
Boat 6 P 967.90
5 HP engine 5 P 860.00
12 HP engine 7 P 1, 179.00
SUBTOTAL - P 3, 005.00
C. Tools and Equipments
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
SUBTOTAL - P 3, 494.00
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
Annual Depreciation P 20, 177.00 P 271.38 84.76
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
2.24 sacks 2.27 sacks
Own Consumption 0.92 sacks 0.52 sacks
Given Away
Laborer’s Share
Relative’s Share
2.74 sacks 1.19 sacks
0.08 sacks 0.08 sacks
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
TOTAL REVENUE P 32, 249.00
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
in Roxas City, Capiz
Item Opportunity Cost
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
Mussel mariculture P 55, 004.00 P 3, 020.00 18.21
Oyster mariculture P 32, 249.00 P 2, 338.00 13.79
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
Mussel mariculture P 55, 004.00 P 49, 870.00 1.10
Oyster mariculture P 32, 249.00 P 26, 142.00 1.23
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
Mussel mariculture P 55, 004.00 P 124, 682.00 1.10
Oyster mariculture P 32, 249.00 P 140, 319.00 1.23
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
operators in Roxas City, Capiz
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
TOTAL COST OF IMPACTS P 15, 733.00 100
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
operators in Roxas City, Capiz
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
TOTAL COST OF IMPACTS P 111, 706.00 100
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
operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 2 P 49,000.00 77.18%
Decrease in price of
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
operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 26 P 4, 540.00 13.80%
Decrease in price of
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
mariculture operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 12 P 120.00 77.61
Decrease in price of
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
operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 81 P 7, 849.00 20.06
Decrease in price of
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
TOTAL COST OF IMPACTS P 39, 138.00 100
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
operators in Roxas City, Capiz
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
operators in Roxas City, Capiz
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
operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 10 P 3, 559.00 18.76
Decrease in price of
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
TOTAL COST OF IMPACTS P 18, 975.00 100
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
operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 61 P 3,985.00 4.87
Decrease in price of
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
TOTAL COST OF IMPACTS P 81,780.00 100
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
operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 13 P 4,815.00 100
TOTAL COST OF IMPACTS 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
adaptation strategies
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
Table 60. Different adaptation measures applied by the small-scale milkfish
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.
Table 61. Different adaptation measures applied by the small-scale milkfish
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
TOTAL COST P 37, 763.00
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”.
Table 62. Different adaptation measures applied by the small-scale milkfish
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
mariculture operators in Roxas City for flood
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
TOTAL COST P 6, 680.00
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
mariculture operators in Roxas City for typhoon
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
TOTAL COST P 27, 751.00
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
adaptation strategies
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
mariculture operators in Roxas City for flood
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
TOTAL COST P 22, 981.00
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.
Table 67. Different adaptation measures applied by the small-scale oyster
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
Table 68. Different adaptation measures applied by the small-scale oyster
mariculture operators in Roxas City for typhoon
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
TOTAL COST P 35, 243.00
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
Division of Social 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
UNIVERSITY OF THE PHILIPPINES VISAYAS
College of Arts & Sciences
Division of Social Sciences
Miagao, Iloilo
February 3, 2015
MR. SAMMUEL NARCISSO
OIC of City Assessor’s Office
Roxas City
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 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
UNIVERSITY OF THE PHILIPPINES VISAYAS
College of Arts & Sciences
Division of Social Sciences
Miagao, Iloilo
February 3, 2015
MS. IMELDA OFALLA
OIC of PAG-ASA
Roxas City
MA’AM:
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 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
UNIVERSITY OF THE PHILIPPINES VISAYAS
College of Arts & Sciences
Division of Social Sciences
Miagao, Iloilo
February 3, 2015
MR. ROMMEL ROBERTO LASTIMO
OIC of DRRM Office
Roxas City
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 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
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
116
UNIVERSITY OF THE PHILIPPINES VISAYAS
College of Arts & Sciences
Division of Social Sciences
Miagao, Iloilo
February 3, 2015
MS. ENGELINE AGUIRRE
OIC of City Agriculture’s Office
Roxas City
MA’AM:
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 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
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
117
ANNEX B: QUESTIONNAIRE
118
UNIVERSITY OF THE PHILIPPINES VISAYAS
College of Arts & Sciences
Division of Social Sciences
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.
C. Tools and Equipments
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
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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: ____________________
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.
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3.
Other damages (specify)
1.
2.
3.
3. TYPHOONS
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.
Damage in transport vessels:
1.
2.
3.
Losses in inputs
Fry
Fingerling
Juvenile
Haterin
Feeds / Fertilizers
Others (specify)
Other damages (specify)
1.
2.
3.
128
4. DROUGHT
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
Losses in inputs
Fry
Fingerling
Juvenile
Haterin
Feeds / Fertilizers
Others (specify)
Other damages (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 ( )
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
3. TYPHOON
Do you prepare for typhoons?
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
130
4. DROUGHT
Do you prepare for droughts?
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