An Exploration of Impacts of Aquaculture Production and Marketing on Rural Livelihoods in Three Regions in Bangladesh


Book Description

Increased domestic and international demand for aquatic foods have greatly enhanced aquaculture practices and production in Bangladesh, which is reflected in the national economy. However, the impacts of a fast growing aquaculture sector through the involvement of stakeholders, poorer sections throughout the value chain and broader rural livelihoods are largely underdeveloped and have frequently been ignored. The present study explores the impacts of dynamic aquaculture sector on stakeholders at production level and supply chain and test the hypothesis that aquaculture is enhancing rural livelihoods and benefiting the poor. Three aquaculture production systems in three areas of Bangladesh were selected for the study. These were prawn production in gher system in Jessore, pond fish culture in Mymensingh and rice-fish farming in Dinajpur. This selection allowed analysis both the impacts of domestic and export marketing of aquaculture products. Participatory research data collection tools; focus group discussions and participatory mapping were commonly used along with questionnaire surveys to ensure participation of stakeholders. Aquaculture, in general, found to have had significant impacts on rural livelihoods. The greatest effect of aquaculture on farming households were observed in income and consumption. Integrated aquaculture systems were the regular source of fish and vegetables and constitute more than half of the fish and vegetables consumed by farming households. While income from aquaculture was the highest among the several household income sources, the main cash crop differed between the systems studied. Prawn, fish and rice was the main cash earning crops for gher farming, fish farming and rice-fish farming respectively. Qualitative investigation suggested that aquaculture not only increased income through greater production volume, but also improved farmers? assets through income diversification to farm and non-farm sources. The other important outcomes of aquaculture were the enhancement of social safety nets through increased sharing of inputs and labour among farmers. Commonly the aquaculture systems were found to be more intensive with an increasingly commercial attitude over the last ten years, which affected the intra-household labour distribution leading to a greater role for women in production management. While the three activities; fish feed preparation, feeding and growing vegetables performed by vast majority of women could be attributed to their inherent involvement with agriculture, hard physical work like harvesting ponds and pond construction were mostly carried out by the women from poor households as a strategy to reduce hired labour cost. The women?s? increased involvement in aquaculture not only increased their overall workload, but also empowered them in household decision making to some extend. However, involvement in decision making was related to the level of involvement in production activities. The impacts of aquaculture spread beyond the farming households to the broader rural livelihoods. Wage labourers and fishers (harvesting teams) two of the poorest groups of people directly involved were benefited most over the last ten years. Intensification of aquaculture increased the demand for hired labour leading to a structural shift in the agricultural wage labour market in farming communities. About half of the agricultural labourers were found part-time employed in aquaculture activities in Jessore and Mymensingh. In Dinajpur intensification of rice cultivation had a much higher effect on the demand for labour than aquaculture. Increased employment in rural areas increased real labour wages by about one fifth over the last ten years and subsequently improved livelihood outcomes. Declining fish catch due to both decreased natural fish stocks and more restricted property rights, professional fishers benefited by diversifying their livelihoods into the aquaculture sector. While, many of the fishers permanently changed their profession to prawn marketing in Jessore, the rest were full-time or part-time employed in harvesting ponds and/or retailing fish in markets. Such diversification of income greatly reduced seasonal vulnerability and improved livelihood outcomes. The role of fish marketing, which is a critical institution in rural livelihoods, was found to facilitate the growth of the aquaculture sector. High demand of aquatic products and the diverse options of marketing fisheries enabled farmers to meet their initial requirements. More commercial operations of aquaculture increased farmers? awareness and linkages to markets. However, typically the worse-off farmers were the slowest to capture new market opportunities, often due to their poor resources and human capital. Fish marketing was found to be run by the private sector and government provided the infrastructure facilities, except prawn processing plants, which were developed by private sector. While the fish market transactions were fairly efficient, markets facilities and infrastructure were commonly poor and need of government investment for improvement. A gradual growth of fish and markets in the rural areas was observed in the study; this was driven by the increased demand for fish through increased population and supply from aquaculture. The marketing intermediaries provided important services despite their small share of consumers? price and ensured a fair share for farmers. The auctioneers provided a vital role in running the supply chain with investment and credits, which ensured fair competition in the pricing process. Marketing of aquatic products was not only a mechanism of product transaction, but also provided critical livelihoods for rural poor. On average about one hundred people, including retailers were involved in auction markets and eight people in prawn depots. Importantly the number of people in marketing was found to have increase over the years. Access for different groups of poor people to marketing jobs was found to be significant in rural livelihoods. The asset base and daily earning indicates that more than three quarters of the marketing intermediaries were poor; some of them were from poorest and low cast Hindu society. Greater flexibility of entry and exit to the jobs enabled the poorer sections to diversify their livelihoods, which enabled to cope with seasonal variability of opportunities and stable income. The marketing employment provided then increased livelihood welfare and social security. Finally, it can be concluded that the promotion of aquaculture not only increased much needed food availability but also generated critical livelihoods and marketing is not just a mechanism of product flow, but also providing livelihoods welfare to poorest sections of the society. The micro level findings of the study regarding impacts of aquaculture indicate that aquaculture production and marketing have significant impacts on enhancing rural livelihoods in Bangladesh.




Country Case Study


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Securing food for all in Bangladesh


Book Description

Securing Food for All in Bangladesh presents an array of research that collectively address four broad issues: (1) agricultural technology adoption; (2) input use and agricultural productivity; (3) food security and output market; and (4) poverty, food security, and women’s empowerment. The fifteen chapters of the book address diverse aspects within these four themes. Access to sufficient food by all people at all times to meet their dietary needs is a matter of critical importance. Despite declining arable agricultural land, Bangladesh has made commendable progress in boosting domestic food production. The growth in overall food production has been keeping ahead of population growth, resulting in higher per capita availability of food over time. In the early 1970s, Bangladesh was a food-deficit country with a population of about 75 million. Today, the population is 165 million, and the country is now self-sufficient in rice production, which has tripled over the past three decades. Along with enhanced food production, increased income has improved people’s access to food. Furthermore, nutritional outcomes have improved significantly. Nevertheless, the challenges to food and nutrition security remain formidable. Future agricultural growth and food and nutrition security are threatened by population growth, worsening soil fertility, diminishing access to land and other scarce natural resources, increasing vulnerability of crop varieties to pests and diseases, and persistent poverty leading to poor access to food. In addition, the impacts of climate change—an increase in the incidence of natural disasters, sea intrusion, and salinity—will exacerbate food and nutrition insecurity in the coming decades if corrective measures are not taken. Aligned with this context, the authors of the book explore policy options and strategies for developing agriculture and improving food security in Bangladesh. Securing Food for All in Bangladesh, with its breadth and scope, will be an invaluable resource for policymakers, researchers, and students dedicated to improving people’s livelihoods in Bangladesh.




The making of a blue revolution in Bangladesh: Enablers, impacts, and the path ahead for aquaculture


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A rapid increase in aquaculture production in Bangladesh has lowered fish prices, increased protein consumption, and reduced poverty. The Making of a Blue Revolution in Bangladesh offers a valuable case study of how this transformation in the fish value chain has occurred and how it has improved the lives of both fish producers and fish consumers and considers the future potential of aquaculture in Bangladesh.




The Freshwater Aquaculture Revolution in Bangladesh


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Freshwater aquaculture production has increased by 167% in Bangladesh between 2001 and 2017, surpassing fish production from natural open water bodies during this period. However, studies have shown that such dramatic growth in agricultural production can alter the earth's potential to generate goods and services in the long run by pushing certain planetary boundaries and disproportionately hurting people who are directly dependent on ecosystem services for livelihoods in the short run and all of mankind in the long run. This research analyzes the growth of freshwater aquaculture in Bangladesh from three perspectives, through three papers. The first paper explores the question of why fish farmers have been motivated to come into aquaculture and expand fish farming. Based on qualitative case studies and focus group discussions in Mymensingh district, a major region of freshwater aquaculture growth in Bangladesh, the study shows that high profitability of aquaculture for more than two decades since the 1990s has motivated people to engage in fish farming. The second paper builds a system dynamics model of land conversion from crop production to aquaculture that simulates future trends in land conversion and food production. The objective of this study is to analyze the dynamics of crop land conversion to aquaculture over time, and understand what key variables are influencing the transformation process. The model is parameterized at two geographical scales: for the entire country and for Mymensingh district. The results show that fish yield, prices, and concentration of supporting industries are some of the key factors that are influencing the growth of aquaculture. This study also observed that although rice land is being converted for aquaculture and other purposes, there is no imminent threat from aquaculture to rice production, as the decline in rice land is being off-set by the growth in rice yields over the last few decades. The third paper embeds water use models in the land use change system dynamics model built in the second paper, in order to understand whether aquaculture growth in Bangladesh is changing water productivity by substituting for irrigated rice production, and how aquaculture growth is impacting groundwater use quantity. The results show that water productivity combining both rice and fish production is generally increasing, both in the case of Mymensingh, and Bangladesh. However, the total volume of water use combining both rice and fish production is increasing in the high aquaculture concentration region of Mymensingh, but decreasing in the country overall. Overall, the research shows that aquaculture growth in Bangladesh has a positive impact on food supply, but continued success of this growth depends on prices and yields continuing to move in a favorable direction. Also, future development of aquaculture needs to focus on groundwater saving technologies, in order to ensure that groundwater extraction does not exceed safe yields in the long run.




Does a “Blue Revolution” help the poor?


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The impressive growth in aquaculture is now commonly dubbed a “blue revolution.” In some Asian countries, fish availability has increased at a faster rate in recent decades than did cereal availability during the Green Revolution. As an example, Bangladesh is one country where aquaculture has increased almost eightfold since the early 1990s. This growth has important implications for food and nutrition securities. Yet, there is little research on the determinants and impacts of this growth to document the lessons, identify evolving issues, and guide policy discussions. This paper attempts to fill that gap. Using several rounds of nationally representative household survey data, the authors conducted microsimulations to generate disaggregated estimates. The results show that, between 2000 and 2010, about 12 percent of Bangladesh’s overall poverty reduction can be attributed to aquaculture growth. In other words, of the 18 million Bangladeshis who escaped poverty during this period, more than 2 million of them managed to do so because of the growth in aquaculture. However, the results vary widely across income groups, with households in the third income quintile (which is not the poorest) benefiting the most. The implications of the results, methodological issues, and areas of future research are also discussed.







Drivers of the Bangladesh fish economy: Projections of future fish supply and demand


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Fish play a major role in the Bangladesh food system. Fish production, processing and marketing are major source of incomes for many households, and fish consumption accounts for a significant share of protein consumption in the Bangladeshi diet. Moreover, fish production and consumption are growting rapidly, with the aquaculture subsector as a major driver of change of both supply and demand In this paper, we present estimates of demand elasticities for four categories of fish (aquaculture, inland capture, mixed production, and marine) using a modified Quadratic Almost Ideal Demand System. These demand estimates are then used in projections of future supply and demand for these different types of fish under different productivity growth assumptions. Our results show that, at current rates of productivity increase, growth in fish production will outpace increases in demand from population and income growth, resulting a decline in real prices over time. A more rapid increase in productivity would lead to even larger supply increases and corresponding price declines. These effects are most keenly felt by the poorest households who see significant increases in fish consumption. Fish production from aquaculture is likely to have higher rates of productivity growth than the more extensive inland capture and marine systems, leading to a long term shift increase in the share of aquaculture production and consumption.




Decentralised Fish Seed Networks in Northwest Bangladesh


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Ricefield based fish seed production (RBFSP) in irrigated spring (boro) ricefields after initial introductions by external promoters has spread among farmers in parts of Northwest Bangladesh. This approach to producing juvenile fish, rather than by specialised geographically clustered hatchery and nursery enterprises, has been recognised as a strategy for decentralised production that makes large high quality seed available locally and supports food fish production. RBFSP has been promoted by the international NGO CARE as part of a process to improve rice-based livelihoods of farming households using a farmer field school (FFS) approach in two consecutive projects between 1993 and 2005. The approach is technically simple and is based on the stocking of common carp (Cyprinus carpio) eggs and Nile tilapia (Oreochromis niloticus) broodfish in ricefields. As a new approach to farmer level fish seed production, its livelihood impacts on the farming households as well as associated actors; its adoption, adaptation and rejection process in farming households; and its cost-effectives for dissemination at farmer level were not well understood. This thesis mainly applies the concept of the sustainable livelihood approach (SLA) using tools and processes of the growing family of participatory research. A systems approach was used to ensure that the key stakeholders including households, community and extension organizations were included. The study was initiated with a well-being analysis of community households to identify poorer households before exploring impacts of RBFSP on poorer producing households (RF) compared to non-producing (NRF) households based on one-off and longitudinal surveys. Livelihoods impacts on other actors linked directly and indirectly with RBFSP were also investigated. The adoption process of RBFSP at the household level and the cost-effectiveness of its promotion were assessed. Impact studies at the household level showed that RF households were significantly larger and had lower levels of formal education than NRF. Adoption of RBFSP had improved practical skills and hence substantially improved human capital in RF households. RF households tended to have more of their ricefish plots located adjacent to their households. Poor and intermediate adopters had smaller riceplots than better-off households but higher seed production efficiencies (poor-315.1 kg fingerlings/ha; intermediate-419.1 kg fingerlings/ha) than better-off households (294.6 kg fingerlings/ha). In addition to direct consumption of large fingerlings, RF households restocked them for further growth in their household ponds in doing so increasing yields by 60%. Fish consumption increased substantially in RF households based on their own production reducing their dependency on purchase from markets. The year round longitudinal survey revealed that activities for RBFSP were compatible with their existing rice-based agriculture activities for household members including men, women and children. The relatively limited income from fingerling production improved cash flow in the low income months. Consumption of large size fingerlings from ricefields provided nutrient dense food in the?hungry gap? months when supplies of wild fish were poor, smoothing consumption. Apart from RF households, RBFSP extended its livelihoods impacts to a wide range of actors in and around the seed producing community. Poor fry traders were found to be key actors in the spread and support of RBFSP. On average fry traders supplied fingerlings to 35 foodfish producers within a mean distance of 5 Km from producing households in a community where RBFSP was well established. The end users (foodfish producers) included households with their own ponds, ponds with multiple ownership and larger waterbodies leased by small groups. Locally available RFBSP juveniles were attractive to each of these groups, supplementing hatchery derived seed. A large number of complex socio-cultural and technical factors were related to household level adoption of RBFSP. The major factors included use of cash generated to prevent distress sales of rice; lack of requirement to use pesticide in ricefields; meeting the household consumption demand; capacity to restock fingerlings in ponds; lack of any negative effects on rice production; increased non-stocked fish production in riceplots; simplicity of the technology; ease of fish harvest from riceplots; increased ability to gift fingerlings/foodfish to relatives and neighbours; more efficient use of both riceplot and irrigation pumps. The most important reasons for households not attempting or quickly rejecting RBFSP were labour conflicts with other activities. However, lost access to the riceplots through changes in tenure was the most common cause of late rejection by households who had practiced RBFSP for several years after withdrawal of CARE support. Location of fish seed producing plots close to the homesteads facilitated household women to contribute to seed production activities through feeding and looking after fish. Women were able to decide and control resources generated from fingerling sales as well as choosing to gift fingerlings to their relatives. Informal transfer of fingerlings in this way stimulated spread of RBFSP. Decentralised fish seed production was promoted through FFS very cost effectively. The introduction of an improved strain of Nile tilapia (GIFT) broodfish greatly enhanced the returns from decentralised seed production based on common carp alone. High levels of secondary adoption improved benefits from promoting RBFSP. The major benefit derived from the improved returns to food fish farmers using locally produced seed. Higher levels of net present value (NPV) and benefit cost ratio (BCR) were achieved based on promotion of mixed-sex tilapia in RBFSP than mono-sex tilapia produced in a large scale central hatchery. Cost-effectiveness in terms of multiplier development impacts on ramification of secondary adopters and, income of fry traders and foodfish producers, RBFSP also showed better performance than a mono-sex tilapia hatchery.




An Evaluation of Small-scale Freshwater Rural Aquaculture Development for Poverty Reduction


Book Description

This report looks at small-scale aquaculture from the viewpoint of poverty reduction. What are the main factors that enable fish farming to generate livelihoods and reduce poverty? Based on case studies, the first part of the report highlights the importance of access to capital assets--human, social, natural, physical, and financial--and to a range of transforming processes, such as markets, institutions, facilities, infrastructure, and services.