Valuation Study

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Value of Aquaculture Operation


Medium: Water

Country: Philippines

Analytical Framework(s): Economic Analysis

Study Date: 2001

Publication Date: 2002

Major Result(s)

Resource/Environmental Good PHP
Net income from a 4000-sq.m. fish pen 309,969.00 502,000.99 11,224.02
Total cost incurred by a fish pen operator for a 4000-sq.m. pen per cropping 694,129.00 1,124,155.80 25,134.50
Total revenue from a 4000-sq.m. fish pen 1,004,100.00 1,626,160.03 36,358.60

About the Inflation Adjustment: Prices in Philippines (PHP) changed by 61.95% from 2001 to 2014 (aggregated from annual CPI data), so the study values were multiplied by 1.62 to express them in 2014 prices. The study values could be expressed in any desired year (for example, to 2023) by following the same inflation calculation and being sensitive to directional (forward/backward) aggregations using your own CPI/inflation data.

Study Note: This study aimed to assess the effects of excessive aquaculture structures and stocking density on water quality and aquaculture production in Bolinao, Northern Philippines.

Study Details

Reference: Zenaida M. Sumalde. 2002. Pollution-Induced Fish Kills in Bolinao: Effects of Excessive Aquaculture Structures and Overstocking. EEPSEA Research Report, No. 2002-RR.

Summary: In the Philippines, Lingayen Gulf is one of the main producers of aquaculture. In 1992, the Lingayen Gulf Coastal Area Management Plan (LGCAMP) was formulated to regulate aquaculture industry. Bolinao was one of the municipalities surrounding the Gulf identified to be suited for coastal or marine aquaculture production. Since 1995, the number of aquaculture structures in Caquiputan Channel, Bolinao continued to increase to the point that it exceeded the carrying capacity of the Channel. Despite the ordinances, aquaculture operation was not regulated. Overstocking and excessive feeding practices have been reportedly done in the area. These practices, together with excessive number of structures, were claimed to have caused deterioration in water quality that, in turn, have caused fish kills in the area. This study was conducted to assess the effects of excessive aquaculture structures and overstocking on water quality and aquaculture production in the area. Water quality analysis done in the sample fishpens revealed that on the average, the DO levels in areas with aquaculture structures were below the critical value of 5 mg/L for fish growth. TSS values were also reasonably high in aquaculture sites compared to the non-aquaculture areas. Stocking density was found to be negatively correlated with DO values.Cost and return analysis revealed that aquaculture operation is a lucrative business but the at the same time, the management practices have negative effects on the industry itself.Aquaculture production analysis showed that stocking density tends to have negative effects on production if stocking density exceeded 1,693 frys/100 m2 fish pen area. Water quality dummy also indicate that the poorer the water quality in terms of DO value, the more likely that production will decrease. Among the policy implications forwarded from the results of the study include: strict enforcement of the ordinances, provision of resources for activities toward sustainable aquaculture, and enactment of legislation. Suggestions for further researches are also included.

Site Characteristics: The Philippines has been listed as the world's third largest producer of aquaculture species. In Luzon, one of the main aquaculture producers is Lingayen Gulf. The industry started as early as the 1970s through the brackishwater fishponds where the semi intensive form of milkfish culture was adopted. Milkfish was given natural food. Supplemental food, in the form of breadcrumbs and commercial feeds, was given only when the natural food got exhausted. To maximize income, shrimps and other fishes entering the pond during inflow of seawater were grown out together with the milkfish. This was accelerated in 1980s by converting mangrove areas into fishponds. However, the prohibition of mangrove conversion to fishpond in the early 90s pushed milkfish operation to shift to the construction of fishpens and fishcages in the coastal water and rivers.

Comments: There are four municipalities along the Lingayen Gulf that operate aquaculture industry. These are the municipalities of Bolinao, Anda, Dagupan and Binmaley in Pangasinan and Aringay in La Union. However, this study focused on the municipality of Bolinao. The area was chosen due to the intense operation of the industry in seven barangays in the Caquiputan Channel.