Udaya Sekhar Nagothu NIVA

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1 EU INCO-DEV-SSA Mitigating Env.Impacts from Aquaculture in the Philippines (Akvaplan-niva) Socio-economic and institutional analysis: Small Scale Aquaculture and Poverty Reduction in the Philippines Udaya Sekhar Nagothu NIVA

2 Study Objectives To investigate the role of SSA in rural livelihoods How different socio-economic, institutional and market factors influence their involvement/dependency? Gender analysis (not covered here)

3 Study area and Methodology Field sites (restricted to 2 regions) Region 3: Laguna (Brackish water cages Milk fish), Taal (Fresh water cages-tilapia), Region 4A: Subic (Marine cages Seaweeds) and Pampanga (Fresh water Ponds- shrimps) Data collection methods: Qualitative and Quantitative data (Questionnaire surveys, field visits, key informants, Local BFAR and other agencies)

4 Map showing study area

5 SSA Expansion in Taal Lake

6 Tourism expansion/impacts

7 Aquaculture and Poverty alleviation Ahmed and Lorica, 2002; Edwards, 2000; FAO and NACA, 2002; Gregory and Guttman, 1997; Graaf and Latif, 2004; Hambrey et al. 2000; Haylor and Bland, 2001; Little et al 1999; NACA, 2006; Stevenson et al., 2002, ADB, FAO Outcomes help policymakers design and implement effective poverty reduction strategies. Socio-economic nature of households implications for environment and sustainable resource management.

8 Basic statistics (2003, BFAR) National Average family income 148,750 pesos/household Relative poverty line 74,000 pesos Households below poverty line 44% Aquaculture employs 1 million people A tilapia fish cage (10x 10x 6-8 mts) 90,000 pesos net income (2 crops/yr) Operating expenses per cage (70% costs - fish feed) 120,000 pesos

9 Close up of floating cage (Taal)

10 Type of management systems 80,0 70,0 60,0 50,0 40,0 30,0 Extensive Semi-intensive Intensive 20,0 10,0 0,0 Pampanga Zambales Laguna Cavite Batangas

11 Tilapia (Oreochromis niloticus); Seaweed (mainly Kappaphycus and Eucheuma spp.).

12 Inheritance Purchase Lease FLA/LGU Others Yes No Others Yes No Others Ownership of farms 120,0 100,0 80,0 60,0 40,0 Pampanga Zambales Laguna Cavite Batangas 20,0 0,0 Land Obtained (%) Water Rights (%) Farm License (%)

13 Data-1 Engagement in aquaculture (62% full time; 38% part time) For 22% - Aquaculture was the only source of hh income For 41% - the major source of hh income Licenses to fish farms (65%,) (78% operators were the license holders) Market access (80%), fluctuating prices, risks Education (60%), and Training in aquaculture (66%)

14 Role of Income from Small Scale Aquaculture in Rural Livelihoods Safety-net: serves the function of overcoming unexpected family income shortfalls (for the very poor) Gap filling: Income supports current household needs, prevent further going down into poverty conditions (fishermen in Cavite) Poverty reduction: provides substantial income and way out of poverty (either stepping out or stepping in - specialize)

15 Integration into markets/cash economy Low product/service contribution and low integration into cash economy (wage labourer/small farms producing for local markets) Low product/service contribution and high integration into cash economy (Seaweed farming) High product/service contribution and high integration into cash economy (Stable markets, intensive farming, Good access..)

16 Opportunities in SS Aquaculture Wide range of opportunities For the whole family including women (self owned farms). Labour buffet: setting up cages, digging ponds, wild fry collection, backyard hatcheries, feeding and maintenance (as caretakers) Sale of fish in the market and post harvesting/processing especially for women In transportation and marketing for the youth

17 Live tilapia transport to market

18 Constraints/Crucial factors Availability and access to resources (water, land) Risks (as prioritized by respondents): diseases, natural calamities, theft, market fluctuations Appropriate human and social capital (i.e. information, knowledge and networks of support) Basic inputs: access to fish seed, feed and markets Effective support services (financial, technical and institutional support..

19 Legal/Institutional framework The Philippine Environment Code (1988) The Philippine Fisheries Code (1998) Bureau of Fisheries and Aquatic Resources Fisheries and Aquatic Resources Management Councils (FARMCs) at various levels (National NFARMC; Municipal M/CFARMC; Integrated FARMC (IFARMC) for water bodies shared by >2 municipalities Fisheries Administrative Orders (FAOs) Fisheries Administrative Order No 196 (2000) (provides detailed guidelines on the creation and implementation of FARMCs.) Fisheries Administrative Order No. 214 (2001) (guidelines for sustainable development of the aquaculture

20 Future Challenges?? At the national level (Co-ordination, Development strategies, e.g. Vietnam) At the regional level (Co-ordination and integration between sectors) At the local level (Integrated Management / Co-management / Adaptive management - LGUs and farmers/ community organizations, NGOs)

21 Importance of different benefits from Aquaculture User groups Landless poor (cage operators, labourers) Women (labourers, processing, marketing) Small farmers (owners) Rural youth (technicians, cage operators As a source of employment Very Important Important Income Food Security Poverty Alleviation Very Important Important Very important Important/ supplementary Important in household diet Important Immediate Needs High priority (policy, financial, technical) Priority (policy support, training) Supplementary Important Supplementary Variable Priority (policy, licences) Variable Variable/ Important Variable Variable Priority (training, financial)

22 Thank you!!!!!