ECONOMICS OF TROUT FISH FARMING IN THE NORTHERN AREAS OF PAKISTAN

Abstract

This study was undertaken in Northern Areas of Pakistan during 2004 to estimate the cost of trout fish farming and its profitability. The results of the analysis show that total cost (capital and variable costs) of Rs.234 was incurred to produce one kilogram of trout fish and its selling price was Rs.310. The net revenue came to Rs.76 per kg of fish. It shows that trout fish farming provides a great opportunity for exploiting the abundant source of cold water in Northern Areas and would be a major income generating activity, if rural people were made aware of the trout fish farming and proper market established in the area. INTRODUCTION Fishery plays an important role in Pakistan's economy and is also considered to be an important source of livelihood for the coastal inhabitants. Apart from marine fisheries, inland fisheries (based in rivers, lakes, ponds, dams etc) is also very important activity throughout the country. Though, the share of fisheries in GDP of the country is small but it does contribute to the foreign exchange earnings through export. The nutritional value of fish is very high, with protein content of 15 to 20 percent, low cholesterol content and many useful dietary supplements. During 2004, a total of 90,225 M. tons of fish and fishery products were exported, earning Rs.7.6 billions. During the year 2004-05, the total marine and inland fish production was estimated to be 573,600 M. tons of which, 403,500 M. tons was marine production and remaining 170,100 M. tons came from inland waters while during 2003-04, the total marine and inland fish production was 566200 M. tons. Out of which 400500 M. tons were marine production and 16700 M. tons were inland fish (Govt. of Pakistan, 2004-05). Nature has bestowed Northern Areas (NAs) with cold-water resource, with a variety of habitats, best suited for trout fish farming. Therefore, trout fish farming is an important natural resource and a potential source of income in NAs. There are 45 lakes in Northern Areas, of which 12 are stocked with trout, but most have indigenous fish. Two species of exotic trout i.e., brown trout (Salmo trutta) and rainbow trout (Oncorhynchus mykiss) have established themselves in the rivers of the area. Beside this, of the total length of 2100 km of streams and rivers, about 350 km contain brown trout. The body of brown trout is short but stout and suitable altitude for its culture is about 1000 meter above sea level. It is not recommended for commercial farming

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Sarhad J. Agric. Vol. 23, No. 2- 2007
ECONOMICS OF TROUT FISH FARMING IN THE
NORTHERN AREAS OF PAKISTAN
Abdul Hassan*, Muhammad Ishaq**, Arshad Farooq** and Shaukat Hayat Sadozai*
ABSTRACT
This study was undertaken in Northern Areas of Pakistan during 2004 to estimate the cost of trout fish farming and
its profitability. The results of the analysis show that total cost (capital and variable costs) of Rs.234 was incurred to
produce one kilogram of trout fish and its selling price was Rs.310. The net revenue came to Rs.76 per kg of fish. It
shows that trout fish farming provides a great opportunity for exploiting the abundant source of cold water in
Northern Areas and would be a major income generating activity, if rural people were made aware of the trout fish
farming and proper market established in the area.
INTRODUCTION
Fishery plays an important role in Pakistan’s
economy and is also considered to be an important
source of livelihood for the coastal inhabitants. Apart
from marine fisheries, inland fisheries (based in
rivers, lakes, ponds, dams etc) is also very important
activity throughout the country. Though, the share of
fisheries in GDP of the country is small but it does
contribute to the foreign exchange earnings through
export. The nutritional value of fish is very high, with
protein content of 15 to 20 percent, low cholesterol
content and many useful dietary supplements. During
2004, a total of 90,225 M. tons of fish and fishery
products were exported, earning Rs.7.6 billions.
During the year 2004-05, the total marine and inland
fish production was estimated to be 573,600 M. tons
of which, 403,500 M. tons was marine production
and remaining 170,100 M. tons came from inland
waters while during 2003-04, the total marine and
inland fish production was 566200 M. tons. Out of
which 400500 M. tons were marine production and
16700 M. tons were inland fish (Govt. of Pakistan,
2004-05).
Nature has bestowed Northern Areas (NAs) with
cold-water resource, with a variety of habitats, best
suited for trout fish farming. Therefore, trout fish
farming is an important natural resource and a
potential source of income in NAs. There are 45
lakes in Northern Areas, of which 12 are stocked
with trout, but most have indigenous fish. Two
species of exotic trout i.e., brown trout (Salmo trutta)
and rainbow trout (Oncorhynchus mykiss) have
established themselves in the rivers of the area.
Beside this, of the total length of 2100 km of streams
and rivers, about 350 km contain brown trout. The
body of brown trout is short but stout and suitable
altitude for its culture is about 1000 meter above sea
level. It is not recommended for commercial farming
because of slow growth compared to rainbows.
Rainbow trout can tolerate high water temperature,
less carnivorous and grows faster than brown trout.
The study in hand is an effort by the researchers to
estimate the total cost of the infrastructure for
commercial trout fish farming and to determine the
profitability of this enterprise in Northern Areas.
MATERIALS AND METHODS
This research study was conducted during 2004 in the
whole of NAs of Pakistan where trout fish farming is
carried out on commercial basis. The study is based
on primary data; however, secondary data were also
collected from various published and unpublished
sources, wherever deemed necessary. The primary
data were collected through face-to-face interview
using a pretested comprehensive interview schedule,
designed in the light of preset objectives and review
of literature.
Sample Design
From secondary data and field observations, it was
revealed that there were only eight fish farms
established by the area farmers in which four farms
had started trout fish farming on commercial scale.
Only one fish farm at Government sector, Trout Fish
Research and Multiplication Centre (TRMC), a
research component of Karakoram Agriculture
Research Institute for Northern Areas (KARINA) at
Jaglote, District Gilgit was established, where
Research for the development of trout fish farming is
being carried out. The whole of the population
(where trout fish were reared for commercial
purposes and the govt. farm) were selected for data
collection purposively in order to get the exact
estimated costs required for commercial trout fish
farming.
* PARC, Technology Transfer Institute, Gilgit, Northern Areas Pakistan.
** PARC, Technology Transfer Institute, Tarnab, Peshawar – Pakistan.

Sarhad J. Agric. Vol. 23, No. 2- 2007 408
Data Analysis
The collected data was analyzed using SPSS for
calculation of averages, percentages and cross
tabulation. Furthermore partial budgeting techniques
was also applied to arrive at the benefits and cost of
fish farming.
RESULTS AND DISCUSSION
Farmers Characteristics:
Education, Age, Family Size and Farming
Experience of Sample Respondents
Studies in different parts of the world (Perration et
al., 1981; Ram, 1980) have reported that literacy
status of farmers is an important variable, which
influences farmers’ receptiveness to innovation and
resources allocation efficiency.
Although the literacy rate plays a significant role in
the overall development of human resources, it does
not truly reflect the developmental stage of society.
Thus the level of human capital formation is
generally measured through the mean number of
schooling years (Herath, 1980; Sharif, 1983). The
data on average years of schooling completed by the
sample respondents reveal that one farmer was
illiterate, one had education upto five years of
schooling, one upto eight years and one farmer had
above ten years of schooling.
The study results show that three farmers of the
selected sample farmers were in the young age group
i.e. between 18 to 50 years and the remaining one
was above 50 years. The average age was found to be
at 47.5 years. Average family size in the study area
was 17 persons comprising 8 male and 9 female
members in each household.
One farmer had eight years of trout fish farming
experience; three farmers had upto 3 years of farming
experience. These farmers have just newly started
fish farming.
Income
Data regarding occupation and income sources (on-farm
and off-farm) shows that three farmers had private
business and one farmer was retired government
servant. The farmers were classified on the basis of their
monthly income. The data show that two households fell
in the income group ranging from Rs.10, 000-20,000
and the remaining two fell in the range of Rs. 20,000-
35,000 per month.
Farm Characteristics
Land, Water Quality and Quantity
Land site is a key factor for fish farming, where
ponds and hatchery are to be constructed. The soil
should retain water and suitable for construction of
ponds. Continuous supply of clean and quality water,
quick draining and easy filling of ponds are the pre
requisite for trout fish farming. Yamaha (1991) stated
that for expansion of trout culture, adequate year-
round supply of quality water should be made
available. Rainbow trout culture requires a permanent
supply of water with temperature ranging from 10 to
20°C, and optimum temperature of 15-18°C
(Yamazaki, 1991).
In the study area, water quality and temperature is
favourable round the year for fish raising. Beside
this, land owned by the farmers also fit for
construction of ponds.
Hatchery
Size, capacity and the type of hatchery depend on the
quality and quantity of water and demand for fry to
produce the table fish. Silt-free, clean and cold water
are necessary in the hatchery for incubation of eggs
and rearing of the fry.
In the study area, TRMC and one respondent had
spring water sources due to which they raised eggs,
fry or fingerlings. However, no local dealer was
available for providing eggs and fry fingerlings and
only TRMC was the reliable source for providing
fingerlings.
Ponds
Culture ponds must have good circulation of water
and easy to clean. The shape of the pond varies from
elongated rectangle type to circular type and irregular
type. However, the elongated rectangular type
involves low construction cost and efficient use of
water and easy to clean compared to any other type
of ponds (Yamaha, 1991).
In the study area, one farmer constructed earthen
pond with the justification that incidence of disease
attack were low in the said ponds. Other ponds of the
sample respondents were made of concrete and
rectangle shape with good water circulation.
Feeding
In the study area there was no reliable source of feed
and farmers relied on their own prepared feed pallets.
In addition to this, all the farmers practiced manual
feeding. It was noted during the survey that only
TRMC had some required equipments for trout fish
culture otherwise all the respondents were lacking the
equipments required for fish culture.

Abdul Hassan, et al. Economics of trout fish farming …… 409
Fingerlings Availability
The breeding season of trout is from December to
February. In the study area, TRMC was the only
source of fingerlings for the farmers while a farmer in
Gilgit also produce fingerlings for his own farm. The
price of fingerling of average size upto 3 mm with 1
gram weight was Rs.2.00/fry (available from mid
February to mid March) while fry of 5 gm weight
was Rs.3.00 (available from mid March to April end).
Market
Access to market is one of the factors to be kept in
mind before initiating any economic activity.
Rainbow trout is widely accepted as food fish of high
quality (Martyshev, 1983). The farmers were of the
view that in area, demand for trout fish is high.
However, due to the absence of established market in
the area, the farmers brought their fish to the roadside
markets and sold to the consumers.
Fish Disease
The sample respondents were of the view that the
climate is favourable for raising fish and the disease
incidence is lower in fish ponds. However, if there is
outbreak of any disease then the area lacks the
diagnosis facility
Cost and Benefit Analysis
Capital Fixed Cost
The initial capital requires to start trout fish farming
was estimated at Rs.136,500/- having the capacity to
produce 1130 Kgs of fish per year. However, the
capital cost was depreciated by dividing on economic
life of each asset and the capital cost came to
Rs.20,250/- (8% of the total cost). The major
components of capital cost includes raceway
construction, land rent, water system/pipe,
store/workshop etc (Table I).
Variable Costs
Variable cost of the trout fish includes feed, watch
and ward, fry/fingerlings, maintenance,
fuel/electricity etc. (Table I). The total variable cost
to produce 1130 Kgs of trout fish was estimated at
Rs.244,026/- (92% of the total cost) per annum. The
watch and ward constitute the major component of
the variable cost (29% of the total cost) followed by
feed (28% of the total cost), maintenance and
fingerlings (10% each of the total cost). The total cost
(fixed cost + variable cost) accounted for Rs.
264,277/- to produce 1130 Kgs of fish per annum.
The total revenue from the sale of 1130 Kgs of fish
per year was estimated at Rs. 350,300/- and the net
revenue came to Rs.86,023/- per annum.
Table I Cost and Revenue of Trout Fish Farming (Rs/Annum)
S.No Items Per Kg Cost Cost/Pond/1130 Kgs Percent
1 Land 2 2331 0.88
2 Raceway Construction 2 1867 0.71
3 Water System/Pipe 1 804 0.30
4 Store/Workshop 1 1433 0.54
5 Net 1 1551 0.59
6 Graders/Balance/Tanks etc. 4 4717 1.78
7 Other (Tub, Bucket, etc.) 7 7548 2.86
Initial Capital Cost 18 20250 7.66
8 Feed 65 73704 27.89
9 Glassware/Chemicals 5 5273 2.00
10 Fuel/Electricity 6 6987 2.64
11 Oil/Medicine etc. 2 2001 0.76
12 Fingerlings 24 26998 10.22
13 Watch and Ward 68 77119 29.18
14 Maintenance 24 27247 10.31
15 Telephone/Communication 13 14805 5.60
16 Transportation 9 9892 3.74
Variable Cost 216 244026 92.34
Total Cost 234 264277 100.00
Total Fish Kg 1 1130 0.43
Total Revenue 310 350300 132.55
Net Revenue 76 86023 32.55
Source: Survey data, 2004

Abdul Hassan, et al. Economics of trout fish farming …… 410
CONCLUSION AND RECOMMENDATIONS
This study was carried out at the Trout Fish Research
and Multiplication Centre (TRMC), Jaglote and the
private farmers ponds to estimate cost of and return
from trout fish farms. The study concluded that
Northern Area of Pakistan is technically sound for trout
fish culture. With regard to economic feasibility, the
preliminary analyses carried out, show very positive
results from the private sector. Trout fish farming
provides a great opportunity for exploiting the abundant
source of cold water in Northern Areas. However, a
market should be established before promoting trout
production. The demand for trout fish exists in Northern
Area and also in the other parts of Pakistan. At present
domestic trout consumption is limited to certain hotels,
restaurants and a few households of Northern Areas
with higher living standards.
Based on the findings of the study and field
observations the following recommendations are made:
i. Training in trout fish farming be imparted to the
interested farmers/entrepreneurs.
ii. Availability of fingerlings in the area to the
farmers.
iii. Availability of quality feed in the market be
assured.
iv. Assuring the management of marketing system.
v. Research for the development of trout fish
farming is the need of the time.
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Fig.1 Cost items of trout fish farming
Initial Capital Cost
8%
Telephone/Communication
6%
Tranportation
4%
Watch and Ward Cost
28%
Maintenance
10%
Feed for Table Fish
28%
Fingerlings
10%
Glassware/tools/chemicals/n
et
2%
Fuel/Electricity Cost
3%
Other oil, Medicine
1%