19.01.2015 Views

Marketing Efficiency of Fresh Fish Trade in Cochin and BTeraval

Marketing Efficiency of Fresh Fish Trade in Cochin and BTeraval

Marketing Efficiency of Fresh Fish Trade in Cochin and BTeraval

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>Fish</strong>ery Tecilnolopj<br />

2001, Vol. 38(2) pp : 129 - 132<br />

<strong>Market<strong>in</strong>g</strong> <strong>Efficiency</strong> <strong>of</strong> <strong>Fresh</strong> <strong>Fish</strong> <strong>Trade</strong> <strong>in</strong><br />

Coch<strong>in</strong> <strong>and</strong> <strong>BTeraval</strong><br />

Nikita Gopal, V. Annamalai, M.P. Remesan <strong>and</strong> Prem Kumar<br />

Central Institute <strong>of</strong> <strong>Fish</strong>eries Technology<br />

Mntsynpt~ri P.O., Cociz<strong>in</strong> - 682 029, Indi,o.<br />

Price spread is an important <strong>in</strong>dex <strong>of</strong> market<strong>in</strong>g efficiency. This study reports the price<br />

spread between l<strong>and</strong><strong>in</strong>g centres, wholesale <strong>and</strong> retail markets <strong>in</strong> Coch<strong>in</strong> (Kerala) <strong>and</strong> Veraval<br />

(Gujarat) for important varieties <strong>of</strong> fish. The price spread is very high both <strong>in</strong> wholesale<br />

<strong>and</strong> retail markets. While <strong>in</strong> wholesale market the price spread ranged from 1.11% to 46%,<br />

it was as high as 471% <strong>in</strong> the retail rnarket at Veraval <strong>and</strong> 1410% at Coch<strong>in</strong>. The range<br />

<strong>of</strong> price spread was found to be very high dur<strong>in</strong>g the periods <strong>of</strong> low price <strong>and</strong> high catch,<br />

<strong>and</strong> low dur<strong>in</strong>g high price <strong>and</strong> low catch season. The benefit <strong>of</strong> high price spread accrue<br />

to the middlemen, depriv<strong>in</strong>g both the consumer <strong>and</strong> the fishermen <strong>of</strong> a fair price.<br />

Key words: Price spread, market<strong>in</strong>g channel, market<strong>in</strong>g <strong>in</strong>termediaries, l<strong>and</strong><strong>in</strong>g centre,<br />

holesa sale market, retail market<br />

The price spread, measured as the<br />

difference 'between the price paid by the<br />

consumer <strong>and</strong> the price received by the<br />

fishermen, is an important <strong>in</strong>dex <strong>of</strong> market<strong>in</strong>g<br />

efficiency as well as the fairness with<br />

which the market treats the consumer <strong>and</strong><br />

the producer. An efficient <strong>and</strong> fair market<br />

is characterized by a quantum <strong>of</strong> price<br />

spread that is equivalent to the market<strong>in</strong>g<br />

costs <strong>in</strong>clud<strong>in</strong>g the cost <strong>of</strong> storage, transport,<br />

display, h<strong>and</strong>l<strong>in</strong>g, package, the opportunity<br />

cost <strong>of</strong> market<strong>in</strong>g functionaries <strong>and</strong> the<br />

transaction capital. Studies have been carried<br />

out on the market<strong>in</strong>g efficiency <strong>in</strong> fish trade<br />

<strong>in</strong> Uttar Pradesh (Katiha & Ch<strong>and</strong>ra, 1990)<br />

<strong>and</strong> Tamil Nadu (Sathiadas & Panikkar,<br />

1988). The study <strong>of</strong> market<strong>in</strong>g marg<strong>in</strong>s is <strong>of</strong><br />

special significance <strong>in</strong> fisheries for the reason<br />

that fish prices fluctuate far more drastically<br />

than the price <strong>of</strong> manufactured goods. While<br />

most manufactured consumer goods show a<br />

steady upward movement, fish prices show<br />

a cyclical upward movement. The short<br />

period cycles <strong>of</strong> very high <strong>and</strong> low price for<br />

fish allow enough room for market<strong>in</strong>g<br />

<strong>in</strong>termediaries to exploit both the fishermen<br />

<strong>and</strong> the consumer, render<strong>in</strong>g the market<br />

<strong>in</strong>efficient <strong>and</strong> unfair. Hence, a systematic<br />

<strong>in</strong>v~sti~ation <strong>of</strong> this asvect is <strong>of</strong> imvortanca<br />

Materials <strong>and</strong> Methods<br />

With a view to estimate the price spread<br />

<strong>in</strong> fish markets <strong>of</strong> Coch<strong>in</strong> (Kerala) <strong>and</strong><br />

Veraval (Gujarat), primary data were collected<br />

from l<strong>and</strong><strong>in</strong>g centres, wholesale <strong>and</strong><br />

retail markets for major species <strong>of</strong> fish<br />

marketed <strong>in</strong> these localities. Data were<br />

collected over a period <strong>of</strong> two years from<br />

1998 to 1999, cover<strong>in</strong>g all the seasons. The<br />

data collection was carried out twice a week<br />

from l<strong>and</strong><strong>in</strong>g centers at Veraval <strong>and</strong> Coch<strong>in</strong><br />

<strong>Fish</strong>eries Harbour <strong>and</strong> the correspond<strong>in</strong>g<br />

retail markets at Coch<strong>in</strong> <strong>and</strong> Veraval. In<br />

addition, the major beach l<strong>and</strong><strong>in</strong>g centres <strong>of</strong><br />

Coch<strong>in</strong> such as Kamalakadavu <strong>and</strong> Vyp<strong>in</strong><br />

were covered once a week. Data for the first<br />

<strong>and</strong> last days <strong>of</strong> the week were not <strong>in</strong>cluded,<br />

so as to avoid abnormalities <strong>in</strong> price<br />

formation.<br />

Price spread reported <strong>in</strong> the study<br />

covered imwortant table varieties <strong>of</strong> fish such<br />

as sard<strong>in</strong>e, mackerel, seer fish, pornfret,<br />

threadf<strong>in</strong> bream, shark, tuna, thread fish,<br />

wolf herr<strong>in</strong>g, perch <strong>and</strong> catfish<br />

Results <strong>and</strong> Discussion


to underst<strong>and</strong> the pr<strong>of</strong>ile <strong>of</strong> farmers <strong>and</strong><br />

their relationship tourards tra<strong>in</strong><strong>in</strong>g needs.<br />

Data were collected by employ<strong>in</strong>g a wellstructured<br />

<strong>and</strong> pre-tested <strong>in</strong>terview schedule.<br />

Frequency distribution, mean, percentage,<br />

correlation analysis <strong>and</strong> t tests were<br />

used for analysis <strong>and</strong> <strong>in</strong>terpretation.<br />

Results <strong>and</strong> Discussion<br />

The f<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> the study regard<strong>in</strong>g the<br />

pr<strong>of</strong>ile <strong>of</strong> the farmers are presented <strong>in</strong> Table<br />

1. It maybe seen that most <strong>of</strong> the respondents<br />

were less than 50 years <strong>of</strong> age <strong>and</strong> had<br />

collegiate <strong>and</strong> above level <strong>of</strong> educational<br />

status. The <strong>in</strong>novative nature <strong>of</strong> the enterprise<br />

could have attracted young <strong>and</strong> highly<br />

educated peopie. Majority <strong>of</strong> the respondents<br />

(66.67%) had other occupations <strong>in</strong> addition<br />

to shrimp farm<strong>in</strong>g <strong>and</strong> th~s may be due to<br />

the risk Ad cost <strong>in</strong>tensive nature <strong>of</strong> shrimp<br />

enterprise. About 80% <strong>of</strong> respondents had<br />

farm size <strong>of</strong> less than 4 ha. The experience<br />

<strong>of</strong> the respondents varied from 2 to 9 years.<br />

Almost all the farmers were practis<strong>in</strong>g<br />

modified extensive farm<strong>in</strong>g <strong>of</strong> Penaet~s<br />

monodon with 5-6 nos. <strong>of</strong> post larvae per m2<br />

The annual <strong>in</strong>come <strong>of</strong> the respondents varied<br />

from Rs. 30,000 to 5,00,000 because <strong>of</strong> their<br />

differential occupations. Majority <strong>of</strong> the<br />

respondents (60%) availed credit from banks<br />

or private money lenders.<br />

Farmers were aware <strong>of</strong> extension agencies<br />

<strong>of</strong> concerned organizations. However,<br />

majority <strong>of</strong> them had limited contacts with<br />

these agencies. Most <strong>of</strong> the respondents had<br />

medium to high degree <strong>of</strong> mass media<br />

exposure. They were' <strong>of</strong> the op<strong>in</strong>ion that<br />

aquacultural programmes were very rare <strong>in</strong><br />

mass media channels. The respondents were<br />

found to be high risk takers (80%), exhibited<br />

high degree <strong>of</strong> scientific orientation (70%)<br />

<strong>and</strong> economic motivation (73.33%). Fellow<br />

farmers <strong>and</strong> feed company representatives<br />

were the prime sources <strong>of</strong> <strong>in</strong>formation.<br />

Meeran & Jayaseelan (1999), while study<strong>in</strong>g<br />

socio-personal, socio-economic <strong>and</strong> sociopsychological<br />

pr<strong>of</strong>ile <strong>of</strong> shrimp farmers,<br />

rpnnrtprl qimi!nr f<strong>in</strong>ri<strong>in</strong>uq<br />

Table 1. Sono-personal pr<strong>of</strong>ile <strong>of</strong> shrimp farmers<br />

Variables<br />

56 <strong>of</strong> farmers (N=30)<br />

Age<br />

Less than 50 years 56.67<br />

50 years & above 43.33<br />

Education<br />

SSLC/H.Sc. 33.33<br />

Graduates <strong>and</strong> above 66.67<br />

Occupation<br />

Aquaculture alone<br />

Aquaculture - others<br />

Farm size<br />

Up to 4 ha<br />

Above 4 ha<br />

Farm<strong>in</strong>g experience<br />

Up to to years<br />

Above 5 years<br />

Type <strong>of</strong> farm<strong>in</strong>g<br />

Modified extensive type<br />

Annual <strong>in</strong>come<br />

Less than Rs. 25,000<br />

Above Rs. 25,000<br />

Credit orientation<br />

Obta<strong>in</strong>ed<br />

Not obta<strong>in</strong>ed<br />

Extension agency contact<br />

Low<br />

Medium<br />

High<br />

Mass media eqosure<br />

Low<br />

Medium<br />

High<br />

Social participation<br />

Low<br />

Medium<br />

High<br />

Risk orientation<br />

Low<br />

Medium<br />

High<br />

Scientific orientation<br />

Low<br />

1O.W<br />

Medium 20.00<br />

High 70.00<br />

Economic motivation<br />

Low 6.67<br />

Medium 20.00<br />

Hign 73.33<br />

The tra<strong>in</strong><strong>in</strong>g needs <strong>of</strong> shrimp farmers <strong>in</strong><br />

the order <strong>of</strong> rank<strong>in</strong>g are presented <strong>in</strong> Table<br />

2. It was noticed that 90% <strong>of</strong> the respondents<br />

expressed their need to have tra<strong>in</strong><strong>in</strong>g on


TRAIhXiVG IGEEDS OF SHNMP FARMERS<br />

Table 2 Tra<strong>in</strong><strong>in</strong>g nerds <strong>of</strong> s!ulmp farmers<br />

Tra<strong>in</strong><strong>in</strong>g needs<br />

% <strong>of</strong> farmers Rank<br />

(N=30)<br />

Health management 90.W 1<br />

Recent advances <strong>in</strong><br />

shrimp farm<strong>in</strong>g 7444 2<br />

Pond management (soil,<br />

water quality, etc.) 6556 3<br />

Seed se!ection <strong>and</strong> stock<strong>in</strong>g 63.33 4<br />

Pond preparation 61.11 5<br />

Feed management 52 21 6<br />

Susta<strong>in</strong>able shnmp farrmng 48.89 7<br />

Group farm<strong>in</strong>g/cooperative farm<strong>in</strong>g 48.89 8<br />

S~te selection <strong>and</strong> farm con.s:ruction 45 56 9<br />

Socio-economics, environmental<br />

consequences <strong>of</strong> shrimp farm<strong>in</strong>g 40.00 10<br />

are the major threat to shrimp fann<strong>in</strong>g. The<br />

farmers showed keen <strong>in</strong>terest to know the<br />

ways to prevent the occurrence <strong>of</strong> diseases,<br />

easy ways to detect them <strong>and</strong> methods <strong>of</strong><br />

effective disease control. About three-fourth<br />

<strong>of</strong> the respondents (74.44%) desired to be<br />

<strong>in</strong>formed <strong>of</strong> recent advances <strong>in</strong> shrimp<br />

farm<strong>in</strong>g. About 65% <strong>of</strong> respondents op<strong>in</strong>ed<br />

that they needed tra<strong>in</strong><strong>in</strong>g on pond management,<br />

especially regard<strong>in</strong>g soil <strong>and</strong> water<br />

quality conditions, water exchange, application<br />

<strong>of</strong> probiotics, etc. This may be due to<br />

their underst<strong>and</strong><strong>in</strong>g that optimum soil <strong>and</strong><br />

water conditions are critical for a successful<br />

crop.<br />

Majority <strong>of</strong> the respondents (63.33%)<br />

wanted tra<strong>in</strong><strong>in</strong>g <strong>in</strong> identification <strong>of</strong> quality<br />

seed, seed test<strong>in</strong>g <strong>and</strong> stock<strong>in</strong>g. Farmers<br />

were <strong>of</strong> the view that gett<strong>in</strong>g good quality<br />

seed is one <strong>of</strong> the major constra<strong>in</strong>ts. The<br />

need for acquir<strong>in</strong>g the knowledge <strong>in</strong><br />

identification <strong>and</strong> detection <strong>of</strong> healthy seed<br />

was also felt <strong>and</strong> expressed. More than half<br />

<strong>of</strong> the respondents (61.11%) desired to have<br />

tra<strong>in</strong><strong>in</strong>g & pond preparation, especially on<br />

application <strong>of</strong> correct dose <strong>of</strong> <strong>in</strong>puts, proper<br />

bloom<strong>in</strong>g, optimum levels <strong>of</strong> various<br />

parameters, etc. About half <strong>of</strong> the<br />

respondents (52.2276) desired to have tra<strong>in</strong><strong>in</strong>g<br />

<strong>in</strong> feed management - identification <strong>of</strong><br />

good quality feeds, recommended feed<strong>in</strong>g<br />

major expenditure <strong>in</strong> shrimp farm<strong>in</strong>g is on<br />

feed <strong>and</strong> the farmers are for its judicious<br />

use.<br />

h'early half <strong>of</strong> the respondents required<br />

tra<strong>in</strong><strong>in</strong>g on susta<strong>in</strong>able shrimp production<br />

<strong>in</strong>clud<strong>in</strong>g every step from site selection to<br />

post harvest management. Equal percentage<br />

<strong>of</strong> farmers were <strong>of</strong> the view that shrimp<br />

farmers need to be educated on group<br />

h g . About half <strong>of</strong> the respondents<br />

expressed their desire to be educated on<br />

proper site selection <strong>and</strong> appropriate method<br />

<strong>of</strong> farm construction. Significant number <strong>of</strong><br />

farmers desired to have tra<strong>in</strong><strong>in</strong>g on the<br />

social, economic <strong>and</strong> environmental consequences<br />

<strong>of</strong> shrimp farm<strong>in</strong>g, so that they can<br />

be prudent enough to make efforts to<br />

m<strong>in</strong>imize the unfavourable consequences.<br />

To study the nature <strong>of</strong> relationship<br />

between the personal attributes <strong>of</strong> shrimp<br />

farmers <strong>and</strong> their tra<strong>in</strong><strong>in</strong>g needs, a correlation<br />

analysis was carried out. The results <strong>of</strong><br />

correlation analysis (Table 3) have clearly<br />

shown that there is no sigruficant relationship<br />

between them. Fourteen variables were<br />

taken for analysis <strong>and</strong> none <strong>of</strong> the attributes<br />

was significantly related. Further, the<br />

attributes like age, education <strong>and</strong> farm size<br />

Table 3. Relationship between personal attributes <strong>and</strong><br />

tra<strong>in</strong><strong>in</strong>g needs <strong>of</strong> shrimp farmers<br />

Personal attributes<br />

Age<br />

Education<br />

Occupation<br />

Farm size<br />

Fann<strong>in</strong>g expenence<br />

Type <strong>of</strong> farrmng<br />

Credit orlentatlon<br />

Annual <strong>in</strong>come<br />

Mass med~a exposure<br />

Extension agency contact<br />

Social part<strong>in</strong>pation<br />

Risk onentation<br />

Scienhhc onentahon<br />

Economc mohvahon<br />

Con: Coeff (I)


were negatively related. It was proved that<br />

shrimp farmers, irrespective <strong>of</strong> their social,<br />

economic <strong>and</strong> psychological st<strong>and</strong><strong>in</strong>g, were<br />

eager to acquire necessary knowledge <strong>and</strong><br />

skills for obta<strong>in</strong><strong>in</strong>g successful crops on a<br />

long-term susta<strong>in</strong>able basis.<br />

It could be <strong>in</strong>ferred from the above<br />

f<strong>in</strong>d<strong>in</strong>gs that most <strong>of</strong> the shrimp farmers<br />

opted for tra<strong>in</strong><strong>in</strong>g <strong>in</strong> one or the other aspect<br />

<strong>of</strong> shrimp farm<strong>in</strong>g. Health management,<br />

seed quality detection, pond management<br />

<strong>and</strong> recent advances <strong>in</strong> aquaculture were the<br />

major tra<strong>in</strong><strong>in</strong>g needs identified. It is suggested<br />

that tra<strong>in</strong><strong>in</strong>g camps should be<br />

organized on the identified aspects at field<br />

level with appropriate tra<strong>in</strong><strong>in</strong>g modules <strong>in</strong><br />

simple local language, on learn<strong>in</strong>g by do<strong>in</strong>g<br />

basis. The transfer <strong>of</strong> technology <strong>and</strong> human<br />

resources development programmes <strong>of</strong> the<br />

research organizations, promotional agencies<br />

<strong>and</strong> extension activities <strong>of</strong> the State<br />

fisheries departments may be <strong>in</strong>tensified<br />

<strong>in</strong>corporat<strong>in</strong>g these tra<strong>in</strong><strong>in</strong>g needs.<br />

The authors are grateful to Dr. G.R.M. Rao,<br />

Director, CIB.4 for his constant guidance <strong>and</strong> encouragement.<br />

They are also thankful to Dr. hl. Knshnan,<br />

Senior Scientist <strong>and</strong> Dr. T. Ravishankar, Scientist, for<br />

their valuable suggestions <strong>in</strong> prepar<strong>in</strong>g this manuscript.<br />

References<br />

Kumaran, M. (1998) Effectiveness <strong>of</strong> AgrictrIturn1<br />

Extension Sentices <strong>in</strong> nr Irrigation<br />

Commnnd Aren. Ph.D. Thesis, Division <strong>of</strong><br />

Agricultural Extension, IAN, New Delhi<br />

Misra, D.C. (1990) OccasionnI Pnper 3, Directorate<br />

<strong>of</strong> Extension, Mirushy <strong>of</strong> Agriculture,<br />

New Delhi<br />

&feeran, N. & Jayaseelan, P.M.J. (1999) J. Extn.<br />

Edn. 10, 2445<br />

Sailaja, A. & Reddy, M.K. (1999) J. Extn. Edn.<br />

10, 2419<br />

Smith, R.B., Ethg, A.W. & Diamond, J.E.<br />

(1991) Rapid Rtlrnl Apprnisni: A Promis<strong>in</strong>g<br />

Needs Assessment Pnuadign~ for Grassroots<br />

Development, Seventh Annual Conference,<br />

Association for International Agriculture<br />

<strong>and</strong> Extension Education, St.<br />

Louis, USA<br />

World Bank (1990) World Bank Report, Oxford<br />

University Press, New York

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!