Increasing demand on water resources, reduced land water availability, and concerns over food security have spurred the evolution of many innovative and complex food production. Aquaponics is known to be a productive, innovative, and sustainable fish and vegetable production system that is revolutionizing agriculture in the face of drought, soil fertility losses, and climate change. It is an advanced aquaculture-agriculture system, expected to improve food security in developing countries. However, as an emerging technology, there is very limited information on the system in Ghana. Questions about the financial viability, ecological and socio-economic sustainability of Aquaponics are answered in this comprehensive review. This study considers Aquaponics projects in Ashanti Region, looks at the technology, the type of fish and plant yields, and juxtaposes the technology within best-use practices to make recommendations that will inform evidence-based policymaking and highlights the system’s contribution to improving food security in the Ghana.
This study assessed the financial viability of the Aquaponics system using data obtained from Aquaponics farmers in the Ashanti Region. The initial investment, revenues, benefits cost ratio (BCR), net present value (NPV) using 5 years, internal rate of return (IRR), payback period and accounting rate of return (ARR) were modelled to determine the financial viability of the Aquaponics system. The result indicated that Aquaponics system operation is financially viable. Two fish species (catfish and tilapia) were considered for this study due to consumers’ preferences. The most pressing constraint in the study area is high feeding cost followed by power fluctuation and high mortality rate as the least constraint. This study serves as a model for promoting a viable and sustainable unconventional food production system to attain food security and local economic development in Ashanti Region.
Table of Contents
1.0 INTRODUCTION
1.2 Problem statement
1.3 Research questions
1.4 Research objectives
1.4.1 Specific objectives
1.5 Justification of the study
2.0 LITERATURE REVIEW
2.1 The global state of Aquaculture
2.2 The current contribution of Aquaculture to the economy of Ghana
2.3 Fish consumption in Ghana
2.4 The Actors along the fish supply chains
2.4.1 The Fish Supply chain
2.5 The Fish market and industry in Ghana
2.6 Aquaponics
2.6.1 History
2.6.2 Design: The basics
2.6.3 Location
2.6.4 Ideal growing conditions
2.6.5 Sunlight
2.6.6 Temperature
2.6.7 Water
2.6.8 Oxygen
2.6.9 Air pumps
2.6.10 Ammonia
2.7 Fishes reared in Aquaponics systems
2.8 Vegetables grown in Aquaponics systems
2.9 Essentials for Setting an Aquaponics Farm
2.10 Benefits of Aquaponics systems
2.11 Constraints of Aquaponics system
2.12 Aquaponics as an urban food system mechanism
2.13 Aquaponics as climate regulation mechanism
2.14 The proliferation of Aquaponics in Ghana
2.15 Financial viability analysis
2.16 The Discounting measures
2.16.1 The Net Present Value (NPV)
2.16.2 The Benefit-Cost Ratio (BCR)
2.16.3 The Internal Rate of Return (IRR)
2.17 The Non-Discounting Measures
2.17.1 The Payback Period
2.17.2 Accounting Rate of Return (ARR)
2.17.3 The Sensitivity Analysis
2.18 Empirical review of the feasibility study
2.18.1Method
2.18.2 Results
2.18.3 Discussion
3.0 METHODOLOGY
3.1 Introduction
3.2 Study Area
3.3 Description of the Study Area
3.4 Sampling size and sampling technique
3.4.1 sampling size for Aquaponics farmers
3.5 Data collection
3.6 Data Analysis
3.6.2 Financial Analysis
3.6.6 The Non-Discounting Measures;
3.6.7 The Payback Period
3.6.8 Accounting Rate of Return (ARR)
3.7 Constraints Analysis.
4.0 RESULTS AND DISCUSSIONS
4.1 Introduction
4.2 The Demographics of Farmers
4.2.1 Age of Respondents
4.2.2 Household size
4.2.3 Years of experience
4.2.4 Gender of Respondents
4.2.5 Level of education
4.2.6 Marital status of respondents
4.3 Major resources of equipment needed to start an operational Aquaponics farm
4.3.1 Fish
4.3.2 Source of water
4.3.3 Land size
4.3.4 Tank
4.4 Investment/initial Cost for an Aquaponic farm in the Ashanti region.
4.5 The operational cost for the Aquaponics system (Catfish (Siluriformes))
4.7 The operational cost for the Aquaponics system (Tilapia (Oreochromis niloticus))
4.8 Expected revenue for Tilapia (Oreochromis niloticus)
4.9 Analysis of Financial Viability Estimates
4.9.1 Cost projections for Catfish (Siluriformes)
4.10 Revenue Projections for Catfish (Siluriformes)
4.11 Discounted cash flows
4.11.1 The decision rule for NPV
4.11.2 The decision rule for Internal Rate of Return (IRR)
4.11.3 The decision rule for Benefit-Cost Ratio (BCR)
4.12 The Payback Period
4.13 Accounting Rate of Return (ARR)
4.14 Sensitivity Analysis
4.14.2
4.15 Cost projections for Tilapia (Oreochromis niloticus)
4.16 Revenue Projections for Tilapia (Oreochromis niloticus)
4.17 Discounted cash flows
4.17.1 The decision rule for NPV
4.17.2 The decision rule for Internal Rate of Return (IRR)
4.17.3 The decision rule for Benefit-Cost Ratio
4.18 The Payback Period
4.20 Sensitivity Analysis
4.21 Constraint Analysis
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary of the results or findings of the study
5.2 Conclusion
5. 3 Recommendations
5.4 Suggestion for Further Research
Research Objectives & Themes
The primary aim of this study is to conduct a detailed financial viability analysis of the aquaponics system within the Ashanti Region, focusing on whether this innovative production method is a sustainable and economically sound investment for local farmers.
- Financial viability modeling (NPV, IRR, BCR, Payback Period, ARR).
- Evaluation of startup and operational costs for tilapia and catfish cultivation.
- Comparative analysis of financial returns between different stock species.
- Identification of primary constraints such as feed costs and power fluctuations.
- Sensitivity analysis of project performance under economic volatility.
Excerpt from the Book
2.6 Aquaponics
Aquaponics has its history dating back to more than 600 years ago in Mexico. It is believed that along the marshy shores of the lake of Texcoco, the Aztecs settled and they built the capital of their Empire, Tenochtitlan (that is the actual Mexico City).
Since the marshlands and the surrounding rough soil did not allow the development of enough agricultural farming to feed the population, it is believed that the Aztecs brought about the “chinampus”, artificial floating gardens made from reeds and covered by mud coming from the bottom of the lake. On these islands, the farmed plants could thrive through seeping into the soil, going through its thickness to get the lake water (Kristen, 2014).
According to (Kristen, 2014), the introduction of fish farming to Aquaponics systems, on the other hand, is attributed to people from South China and Thailand who reared fish alongside rice in paddy fields in South China and the whole of Southeast Asia where although the technology had been brought by Chinese settlers who had migrated from Yunnan around 5AD.
Summary of Chapters
CHAPTER ONE: This chapter provides an introduction to the global food security challenge, the role of aquaculture, and the specific research objectives concerning the financial viability of aquaponics in Ghana.
CHAPTER TWO: This chapter reviews the literature on global aquaculture, fish consumption patterns in Ghana, the design and benefits of aquaponics, and the financial methodologies used to assess investment viability.
CHAPTER THREE: This chapter details the technical methodology, describing the study area, data collection techniques from farmers, and the specific financial modeling tools employed.
CHAPTER FOUR: This chapter presents the comprehensive financial results and discussions, including cost projections, sensitivity analysis, and the ranked constraints faced by aquaponics operators.
CHAPTER FIVE: This chapter provides the final summary, conclusions on financial viability, and specific policy recommendations for government and future investors.
Key Words
Aquaponics, Financial Viability, Aquaculture, Ghana, Net Present Value, Internal Rate of Return, Benefit-Cost Ratio, Fish Farming, Hydroponics, Ashanti Region, Food Security, Investment Appraisal, Sensitivity Analysis, Payback Period, Agricultural Economics.
Frequently Asked Questions
What is the core focus of this research?
The research is centered on assessing the financial viability of adopting aquaponics systems for fish and vegetable production within the Ashanti Region of Ghana.
What are the primary themes covered?
The study covers financial performance indicators, startup and operational cost breakdown, specific fish species (catfish and tilapia) in recirculating systems, and environmental/economic constraints.
What is the primary research goal?
The main objective is to determine if aquaponics is a financially feasible business venture for investors and stakeholders in the Ashanti Region.
Which scientific methods are applied?
The study utilizes discounted cash flow analysis (NPV, IRR, BCR) and non-discounted measures (Payback Period, ARR), alongside Kendall's Coefficient of Concordance for constraint analysis.
What does the main body address?
The main body examines the global and local state of aquaculture, specific aquaponics design basics, operational cost structures, revenue projections, and sensitivity analysis under varying economic conditions.
Which keywords characterize this work?
Key terms include financial viability, aquaponics, Net Present Value (NPV), Ghana, tilapia, catfish, and food security.
How does the project account for economic uncertainty?
The study employs a sensitivity analysis to test the project's resilience against fluctuations in labor costs, output prices, and discount rates.
What is the significance of the findings regarding specific fish species?
The findings indicate that while tilapia generates a higher IRR and provides a shorter payback period due to market demand, both catfish and tilapia are demonstrated to be financially viable.
- Citar trabajo
- Georgette Boateng (Autor), 2021, Analysis of financial viability of Aquaponic Systems in the Ashanti region, Múnich, GRIN Verlag, https://www.grin.com/document/1393239
