Effects of Cooperative Loan on Small Scale Fish Farming Business in Oyo State, Nigeria
Fish is acclaimed to be the principal source of animal protein for over one billion people globally and provides many important nutritional and health benefits. Fish farming is a profitable venture and it is rapidly expanding and it will continue to be profitable if the planning and management are well taken care of. In consideration of the impact of cooperative society in agricultural production in developed economics, farmers in the developing countries had been encouraged to organize themselves into cooperative societies. Observations however, indicated that a good number of them, still do not participate in cooperative societies and the level of livestock production continues to decline. This study looked at the effect of cooperative loan on small scale fish farming in Egbeda Local Government Area of Oyo State. 120 fish farmers were selected for the study through Two-Stage sampling techniques, structured questionnaires were used to obtain data from the fish farmers. Data were analysed using descriptive statistics, budgetary analysis and regression analysis. The result revealed that 73.3% were male and 40% of the fish farmers in the study area were in their active and productive age. Majority (62.5%) of the fish farmers cultured catfish; also 62.5% operate on 1-2 plots of land with mostly earthly ponds for rearing their fishes. Moreover, 69.2% were cooperative members, 55.8% had cooperatives as their major source of funds. Budgetary analysis showed that fish farming is a profitable business with Gross Margin of N 953,466.25, Net Income of N 708,675 and Profitability Index of 0.585. The significant factors determining profitability were age of farmers, level of education, number of workers, business net income, access to cooperative and interest rate (although it had a negative effect). It can then be concluded that membership of cooperative, access to cooperative fund brings about profitability and growth of fish farming business. Therefore, farmers should be sensitized on the existence benefit to be derived from cooperatives.
Keywords: Fish, Profit, Pond, Data, Production