Abstract:
Fish farming is one of the most important economic activities in Uganda particularly on and around Lake Victoria where biological and environmental conditions are said to be favorable for fish. The demand for fish in Uganda and worldwide is increasing due to increasing human population and health concerns growth. According to (FAO,2000), the per capita fish consumption should be 15 kg, Uganda Capture fisheries production has been declining to the extent that per capita fish consumption currently is 8 kg which is much below that recommended, and this gourde is not expected to produce more fish. Furthermore, population pressure from agriculture and industry are having an impact on water resources thus need to have an alternative source of fish if Uganda has to avoid the importation of fish, and then the only available option for increasing fish production is through aquaculture. The gap existing is that the capable investors are un aware of the potential of different aquaculture systems in terms of productivity, profitability and its capacity to improve people’s welfare, thus low adoption and Investment in aquaculture systems especially cage culture and pond technology. The local community lack sufficient capital and technical knowledge required to operate fish farming. Therefore, the study focuses on the potential of fish farming to improve livelihoods and efficiency of fish farming with concerns of environmental conservation, ensuring of food security in addition to identifying the factors that determine efficiency or fish production. Primary data was collected from Jinja district and Nyenga parish in Njeru sub-county Buikwe district. Direct Observations, group discussions and interviews using questionnaires were used to collect primary data from government officials’ non-government officials, community members, fish sellers, fish farm workers and fish farm owners complemented with secondary data collected from internet and research centers such as NaFIRRI. The profit margin model was used to assess the profitability of aquaculture, and also a logistic regression to find the factors determining the technical efficiency of fish farming and the Cobb-Douglas productivity frontier model (stochastic productivity frontier model) were used to determine the level of technical efficiency of fish farmers in the area and it was revealed that all of the 4 factors assessed were found crucial as regards technical efficiency of fish production and these included; fingerlings, labour, feeds for both cage and pend systems: and fertilizers for pond systems were significant at 5 0/0 level of significance. However, the constant coefficients for both aquaculture systems were found insignificant at 5% level of significance to explain the variation in output though they were positive. This implied that when the above factors included in the model are zero, there would be no output/ or change output would also be zero. From the profitability analysis, it was found out that profit margin for both pond and cage systems decrease with increase in costs. The adoption of cage and pond fish farming technologies was found out to be low due to lack of knowledge and skills and, capital required to carry out fish farming, and therefore this called for government intervention to control the situation if we are to use fish farming as a tool to improve the livelihood of the poor Ugandans, and if we are to achieve Uganda’s goal of becoming a medium developed country by 2050.