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close this bookEconomics of the Philippine Milkfish Resource System (UNU, 1982, 66 pages)
View the documentPreface
View the documentAbstract
Open this folder and view contentsI. Introduction
Open this folder and view contentsII.The procurement sub-system: fry gathering and distribution and fingerling rearing
Open this folder and view contentsIII. The transformation sub-system: cultivation to market size in fishponds
Open this folder and view contentsIV. The transformation sub-system: cultivation to market size in fishpens
Open this folder and view contentsV. The delivery sub-system: marketing of milkfish
View the documentVI. Discussion and conclusion
View the documentAppendix: definition of terms
View the documentNotes and references
View the documentOther UNU Publications
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Notes and references

1. BFAR. 1977 Fisheries Statistics of the Philippines. Bureau of Fisheries and Aquatic Resources, Manila, Philippines, 1979.

2. C.V. Guerrero and L.B. Darrah. "Bangus Marketing, 1974." National Food and Agriculture Council, Manila, Philippines, 1975.

3. BFAR. See ref. 1; "Fisheries Yearbook, Taiwan Area, 1975," Taiwan Fisheries Bureau, Provincial Govt. of Taiwan, 1976; and "Fisheries Statistics of Indonesia," 1978. Direktorat Jenderal Perikanan, Jakarta, Indonesia, 1980. The production area figures represent gross area. Not all of this area is necessarily fully developed for production purposes. For example, net production area in Indonesia is 145,900 ha. As shown, productivity per hectare estimates are thus understated in Indonesia and probably the same for the Philippines. No firm basis exists, however, to revise these estimates upwards.

4. K. Ruddle and T.B. Grandstaff. "The International Potential of Traditional Resource Systems in Marginal Areas. "Tochnol. Forecast. Soc. Change. 11 (1978): 119-131.

5. Sources of the figures are: A, B. and C from W.H. Schuster, "FishCulture in Brackishwater Ponds of Java." Indo-Pacific Fisheries Council Special Publications no. 1. FAO, Rome, 1952; D and E from D.K Villaluz, Fish Farming in the Philippines. Bookman, Inc., Manila, 1953, 336 pp.; F from H.C. Deleman and J. D.F. Hardenberg, Do Indische Zeevisschen on Zeevisscherij. N.V. Boekhandel en Drukkerij Visser & Co., Batavia-Centrum, 1934.

6. J.E, Bardach, J.H. Ryther, and W.O. McLarney, eds. Aqusculturo: The Farming and Husbandry of Freshwater Merino Organisms. Wiley Interscience, New York,1972.868 Pp.

7. A.W. Herre and J. Mendoze. "Bongos Culture in the Philippine Islands." Philipp. J. Sci. 38(4) (1929): 451-509.

8. G. Ohshima. "A Geographical Study on Aquiculture in the Philippines." Kwansei Gakain University Annual Studios, vol. XXI (1973): 17 pp.

9. W.H. Schuster. "An Annotated Bibliography on the Culture of Milkfish, Chanos chanos (Forskal)." IPFC Occas. Pap. No. 52/3 (1960). Indo.Pacific Fisheries Council, FAO,Rome, and W.H. Schuster (1952): See ref. 5.

10. SEAFDEC. Annual report, 1976. Southeast Asian Fisheries Development Center, Manila, 1979.

11. Philippines Daily Express, April 1 , 1981 , p. 24.

12. This section is drawn primarily from (a) I.R. Smith. F.C. Cas, B.P. Gibe, and L.M. Romillo. "Preliminary Analysis of the Performance of the Fry Industry of the Milkfish (Chanos chanos Forskal) in the Philippines."Aquaculture 14, (1978): 199-219 and lb) I.R. Smith. "The Economics of the Milkfish Fry and Fingerling Industries of the Philippines." (CLARM Technical Reports 1, ( 1981): 155 pp. These two earlier studies wore the result of extensive interviews of representative functionaries in fry gathering and distribution and fingerling rearing conducted during 1977, We gratefully acknowledge the permission of the publishers to reproduce several figures and tables from these earlier publications.

13. BFAR. "Fisheries Statistics of the Philippines, 1975." Bureau of Fisheries and Aquatic Resources, Manila, Philippines, 1976 115 pp.

14. R.R. Deanon, R.A. Ganaden, and M.N. Llorca. "Biological Assessment of the Fish Fry Resources (Bangos, Shrimp, Eel) in Luzon, Visayas, Mindanao." PCARR-BFAR, Manila, 1974,

15. S. Kumagai, T. Bagarinao and A. Unggui. "A Study on the Milkfish Fry Fishing Gear in Panay Island, Philippines." Technical Report No. 6 (1980): 34 pp. Aquaculture Dept. SEAFDEC, Tigbauan, lloilo, Philippines.

16. A.R. Librero, S.P. Dizon, A.G. Tidon, D.G. Ramos, and R.C. Alzona. "Fry Gathering Patterns, Costs and Returns, and Socioeconomic Conditions of Fry Gatherers in the Philippines." SEAFDEC-PCARR Pap. No. 1. (1976a) 124 pp. SEAFDECPCARR, Los Banos Laguna, Philippines, and Kumagai et al. (1980): See ref.15.

17. A.S. Abrera. "Philippine Poverty Thresholds," p. 223-273, in M, Mangahas, ed. Measuring Philippine Development: Report of the Social Indicators Project. Development Academy of the Philippines, Manila, 1976.

18, Monopsony is defined as a market situation where there is only one buyer.

19. M.B. Schaefer. "Some Aspects of the Dynamics of Populations Important to the Management of Commercial Marine Fisheries." InterAmer. Trop. Tuna Comm. Bull. 1 (1954): 25-56.

20. For a detailed exposition on fisheries economics, see L.G. Anderson. The Economics of Fisheries Management. The Johns Hopkins University Press, Baltimore, 1977, 214 W.

21. It is this reduction in average net returns from fry gathering under the concession arrangement that led to the conclusion in an earlier study (Smith 1981, See ref. 12b) that the concession fee represents an "indirect tax" borne by the gatherers. The rationale for this argument is based upon the examination of the monopsony position of the concessionaire. Because of his rights of sole purchase, the concessionaire is able to pass this "tax" back to gatherers in the form of lower prices. Because he is a price-taker when selling fry, the monopsonist cannot pass this "tax" forward to his buyers. In this paper, the terms "licence fee" and "rent', are used in place of "indirect tax." Changing the terminology does not change the conclusions regarding optimum allocation of resources, opportunity costs of gatherers and concessionaires, and returns to the municipality. The change does, however, permit the concession arrangement to be analysed in the context of fisheries economics models so that the impact on sustainable yield and total revenue can be determined.

22. A female milkfish produces in excess of 5 million eggs at each spawning (See ref. 5). If one assumes three spawnings per lifetime, a total of 15 million eggs will be released, of which only two need survive to maintain the size of adult stocks. Natural mortality would thus exceed 99.99999 per cent.

23. The authors conducted interviews with Taiwanese fry dealers in 1980. An economic evaluation of the Taiwanese milkfish resource system is also being conducted by C.S. Lee, National Chung Using University, Taichung, Taiwan.

24. Martin, M. "Plastic Bag Hauling of Small Live Fish, part 2. Aquaculture Mag. 7(2) (1981):42-43.

25. See, for example, J.E. Bardach, J.H. Ryther, and W.O. McLarney,eds. Aquaculturo: the Farming and Husbandry of Freshwater and Marine Organisms (Wiley Interscience, New York, 1972, 868 pp.; G.J. Blanco. "Problem of Fishfeed Production Relative to Intensive Coastal Aquaculture for the Indo-Pacific Area." (1970) FAO, Rome; and A. Mane, D. Vitlalug, and H. Rabanal. Cultivation of Fish in Brackish and Estuarine Waters in rho Philippines. Philippine Fisheries, Manila, 1952.

26. See for example, F.J. Blanco. "Status and Problems of Coastal Aquaculture in the Philippines," pp. 60-67, in T.V.R. Pillay, ed., Coastal Auaculture in the Indo-Pacific Region Fishing News (Books) Ltd., Surrey, England, 1970.

27. A.R. Librero, E.S. Nicolas, A.L. Banssihan R.M. Fabro L.P. Lapis, A.M. Nazareno, and E.O. Vasquez, 'Milkfish Farming in the Philippines: a Socioeconomic Study." SEAFDEC-PCARB Res. Pap. Ser. No. 8 (1977): 367 pp. SEAFDEC-PCARR Research Program, Los Banos, Laguna, Philippines. These extrapolations to determine stocking rates and fry catch are reported in Smith et al. (1978): See ref. 12a.

28. K-C. Chong and M.S. Lizarondo. "Inputs as Related to Output in Milkfish Production in the Philippines: a Production Function Analysis." ICLARM Technical Rep 3 (1982). ICLARM BAECON-FI DC, Manila.

29. Data from T.P. Chen. Aquaculture Practices in Taiwan. Fishing News [Books], Ltd., Surrey, England, 1976, 161 pp.,was interpreted in this manner in Smith (1981): See ref. 12b.

30, A.R. Librero, A.G. Tidon, D.G. Ramos, and R.C. Alzona. "Patterns of Fry Purchase and Sale in the Philippines: a Study of Fry Concessionaires and Dealers." SEAFDEC-PCARR Res. Pap. Ser. No, 3. (1976b): 124 pp.SEAFDEC-PCARR Research Program, Los Banos, Laguna, Philippines.

31. Smith (1981) See ref.12b, Thirty-three per cent of mortality in transport using oxygenated water can be explained by the equation:

M jj = 0.017 + 0.00024 (Tij)5/2 R2= .33
( .00004) F= 40.36
t= 6.00
where M jj = % mortality from point i to point j.

T jj = time (hrs) in transport from point i to point j. Both the t-value and the F-value are significant at the 1- percent level. Complete fry mortality can be predicted to occur after 28 hours in transit with no renewal of oxygen.

32. Since early 1979, monthly fry prices in Metro Manila have been more unstable than during the 1976-1977 period. The Von Nueman Ratio, which indicates the degree of price instability, for the 20 month period January 1976-August 1977 is 0.34. For the 20-month period February 1979 October 1980, the ratio is 0.49. The Von Neuman Ratio (R) is calculated as follows:

where Pt = price in time t
n = number of observations

33. The perfectly competitive model would predict that arbitrage by middlemen would result, on the average, in price differentials between exporting and importing markets being equal to the transfer costs between the two markets. For a complete discussion, see R.G. Bressler and R.A. King. Markets, Prices, and Inter regional Trade. John Wiley and Sons, New York, 1970, 426 pp.

34. V.W. Ruttan. "Agricultural Product and Factor Markets in Southeast Asia," pp. 79-106 in K.R. Anshel, ed. Agricultural Cooperatives and Markets in Developing Countries. Praeger, New York, 1969.

35. This section is based primarily on Chong and Lizarondo (1982): See ref. 28. Using data collected from seven provinces in the country with 1978 as the reference period, this survey, hereafter referred to as "our survey," was conducted by the International Center for Living Aquatic Resources Management, Bureau of Agricultural Economics, and Fishery Industry Development Council. A total of 324 milkfish producers were interviewed. They represent farms which are intensively operated .

36. Y.A. Tang and T.L. Huang, "Evaluation of the Relative Suitability of Milkfish in Brackishwater Ponds." FAO World Symposium on Warmwater Pond Fish Culture. FR: III/E4 (1966): 7 PP.

37. BFAR. 1976 Fisheries Statistics of the Philippines. Bureau of Fisheries and Aquatic Resources, Manila, Philippines, 1978. 115pp.

38. K-C. Chong. "In Search of Higher Productivity in Milkfish Production: a Case Study." Paper presented for the UPLB/SEARCADSE/EDl/World Bank Livestock Development Projects Course for Asian Countries, Los Banos Laguna Philippines ;Anand, India, 1980. 16 pp.

39. H.R. Rabanal. "Inorganic Fertilizers for Pond Fish Culture." Philipp. J. Fish. 8 (1): (1961).

40. Y.A. Tang. "Improvement of Milkfish Culture in the Phillippines." IPFC Current Affairs Bull. 49 (1967): 14-22.

41. Y.C. Shang. "Economic Comparison of Milkfish Farming in Taiwan and the Philippines." Aquaculture 9 (1976): 229236.

42. BAC. Annual report, Brackishwater Aquaculture Center (BAC), Leganes, lloilo, Philippines, (1978), 28 pp.

43. P. Korringa. Farming Marine Fishes and Shrimps. Developments in Aquaculture and Fisheries Science, 4. Elsevier Scientific Publ. Co., Amsterdam, 1976, 208 pp.

44. J.K. Liang and C.Y. Huang. "Milkfish Production in a Newly Reclaimed Tidal Land in Taiwan," pp. 417-428 in T.V.R. Pillay, ed. Coastal Aquaculture in the Indo-Pacific Region. Fishing News (Books) Ltd., Surrey, England, 1972.

45, A majority of the 324 respondents are very interested in the BAECON/FIDCI/CLARM Farm Record Keeping Project es demonstrated by their support, and willingness to pay for the blank farm-record forms. Requests for additional record books are still received.

46. O.K. Villaluz. fish Farming in the Philippines. Bookman, Inc., Manila, Philippines, 1953, 336 pp.

47. In addition, slightly more than 1 per cent would like to polyculture milkfish with penaeid shrimps.

48. Production intensification refers to the use of larger quantities of inputs other than land to boost production from a given area of pond.

49. This classification of size is based on the size distribution of milkfish farms in the sample. The Bureau of Census was consulted for a size definition but no size definition is available for milkfish farms. Farm size definition is, however, available for agriculture.

50, Y.A. Tang. "Stock Manipulation of Coastal Fish Farms," pp.438-453, in T.V.R. Pillay, ad. Coastal Aquaculture in the Indo-Pocific Region. Fishing News (Books) Ltd., Surrey, England, 1972.

51. These computations have taken into consideration reported losses due to weather disturbances.

52. B.H. Nielsen, A.E. Santiago, and F. Petersen, "The Hydraulic Control Structure-a Threat to the Fishpen Industry in Laguna de Bay." Paper presented at the Natural Resources Management Center, Ministry of Natural Resources Forum, AIT, 19 March 1981. Diliman, Quezon City, Philippines, Using carbon 14 techniques, these authors estimate annual production of phytoplankton to be 780 g C/m2 considerably less than the 1980 g C/m2 reported for Lake George by L.C. Beadle. The Inland Waters of Tropical Africa, Longman, London, 1974.

53. M.N. Delmendo and R.H. Gedney, "Fishfarming in Pens: a New Fishery Business in Leguna de Bay." LLDA Technical Paper No. 2.35 pp. in various pagings. Laguna Lake Development Authority, Pasig, Rizal, Philippines, 1974.

54. I.R. Smith, M.Y. Puzon, and C.N. Vidal-Libunao. "Philippine Municipal Fisheries: a Review of Resources, Technology and Socioeconomics. "ICLAFM Studies and Reviews 4. 87 pp. International Center for Living Aquatic Resources Management and Fishery Industry Development Council, Manila, Philippines, 1980.

55. M.N. Delmendo. "An Evaluation of the Fishery Resources of Laguna de Bay." Philipp. J. Fish. 14 (2) (1976): 213-231.

56. Laguna Lake Development Authority. "Survey of 1973 Fishery Catch in Laguna da Bay." LLDA Technical Paper No.1. 13 pp. LLDA, Pasig, Rizal, Philippines, 1974.

57. This assumes that the "in-between years" for which no data is available are consistent with this declining trend.

58. Delmendo and Gedney (See ref. 53) raised their concern for the socioeconomic well being of the small scale fishermen. This concern for declining real incomes of fishermen remains seven years later and little progress seems to have been made to resolve the conflict.

59. Laguna Lake Development Authority. 1980. Laguna de Bay Fish Pen Development Project, First quarter report, March 1980. LLDA, Pasig, Metro Manila, Philippines. 47 pp. in various pagings.

60. C.V. Guerrero. "Bangus Production in Fishpens." NFAC Marketing Research Unit. Report No. 75-23. 19 pp. Special Studies Division, Department of Agriculture, Quezon City, Phliiwines, 1975.

61. J.L. Ramirez. "Productivity and Returns to Inputs of Fishpen Aquaculture in the Philippines." Univ. of the Philippines at Los Baffos, 89 pp. Unpublished M.S. thesis, 1978.

62. E.S. Nicolas, A.R. Librero, R.A. Cello, and E.R. Pamulaklakin. "A Socioeconomic Study of Fishpen Aquaculture in the Philippines." SEAFDEC-PCARR Res. Pap. Ser. No. 5.165 [15] pp. SEAFDEC-PCARR Research Program, Los Baffos, Laguna, Philippines, 1976.

63. This is a short-run condition only.In the long run, assuming conditions of perfect competition (including factor [input] mobility), the value of the marginal product from the marginal input in the respective sectors will tend to equality.

64. Smith (See ref. 12b) estimated 45 per cent for 1976, Guerrero (See ref. 60) estimated 49 per cent for 1974.

65. See ref. 28 for fishpond estimate; see ref. 61 for fishpen estimate.

66. Comprehensive Water Quality Management Programme, Laguna de Bay. Final report, 1978. Vol. 4, Annex 1. Limnology of Laguna de Bay. Laguna Lake Development Authority, Pasig, Metro Manila, Philippines. The recommendations of consultants regarding the role of nitrogen in the lake's ecology are found in SOGREAH, 1974. Laguna de Bay Water Resources Development Study. Report to LLDA, UNDP and ADB. Vol. I-III. Société Grenoblaise d'Etude d'Application Hydrolique, Manila.

67. This section draws upon data collected by the 1979 survey of 324 producers in sewn selected provinces of the Philippines, as conducted by the Bureau of Agricultural Economics (BAECON), the Fishery Industry Development Council (FIDC), and the International Center for Living Aquatic Resources Management (ICLARM). Concurrent with this survey of producers, BAECON also conducted a survey of marketing practices in the same seven provinces. Secondary data used to analyze the pricing efficiency of the delivery sub-system is collected from major market centres by BAECON.

68. Realabut-Navera, E. "Fish Marketing at the Navotas Fish Landing and Market Authority in Navotas, Rizal, 1973-1974. Univ. of the Philippines at Los Baffos, 198 pp. Unpublished M.S. thesis, 1976.

69. The best description of the suki system can be found in N.A. Cuyos and A. Spoehr. 1976. "The Fish Supply of Cebu City: a Study of Two Wholesale Market'." Philippine Quarterly of Culture and Society. Univ. of Sen Carlos, Cebu City, Philippines 4 (3): 160-198, which describes the fresh and dried fish wholesale markets of Cebu City in the Central Philippines.

70. The relationship between monthly wholesale and retail prices over the 1969-1979 period can be expressed as Pr=0.027 + 1.23 Pw where Pr = retail price and Pw = wholesale price, R2 value of this specification is 0.95. The value of the coefficient of Pw is not significantly different from 1.0, indicating a constant, rather than a percentage mark-up between wholesale and retail price. However, the margin is widening with time.

71. See for example, D.A. Rondinelli, Spatial Analysis for Regional Development: a Case Study in the Bicol River Basin of the Philippines. Resource Systems Theory and Methodology Series, no. 2. The United Nations, University, Japan, 1980.

72. The price of milkfish has been increasing at a slightly lower rate than "all items" in the Metro Manila consumer price index.