ECONOMIC ANALYSIS AND ADAPTATION MEASURES OF SMALL-SCALE AQUACULTURE IN ROXAS CITY, CAPIZ A Research Paper Submitted to the Faculty of the Division of Social Sciences, College of Arts and Sciences University of the Philippines Visayas Miagao, Iloilo In Partial Fulfillment of the Requirements in Economics 199.2 (Economics Research II) MARLA MAY A. BAES JUNE 2015
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ECONOMIC ANALYSIS AND ADAPTATION MEASURES OF
SMALL-SCALE AQUACULTURE IN
ROXAS CITY, CAPIZ
A Research Paper Submitted to the Faculty of the
Division of Social Sciences, College of Arts and Sciences
University of the Philippines Visayas
Miagao, Iloilo
In Partial Fulfillment of the Requirements in
Economics 199.2 (Economics Research II)
MARLA MAY A. BAES
JUNE 2015
APPROVAL SHEET
The undergraduate research paper attached hereto entitled, “Economic Analysis and
Adaptation Measures of Small-Scale Aquaculture in Roxas City, Capiz” prepared and
submitted by Marla May A. Baes to the Division of Social Sciences, University of the
Philippines Visayas, in partial fulfillment of the requirements for the degree of Bachelor
of Science in Economics, is hereby recommended for acceptance and approval.
_________________________________
PROF. GAY DEFIESTA, PhD
Adviser
ACCEPTED AND APPROVED in partial fulfillment of the requirements for the degree
of Bachelor of Science in Economics.
_________________________________
PROF. PEPITO R. FERNANDEZ JR.
Chairperson
Division of Social Sciences
College of Arts and Sciences
University of the Philippines Visayas
Miagao, Iloilo
ACKNOWLEDGEMENTS
I would like to take this opportunity to thank the following:
Almighty God, thank you for always guiding me and strengthening my soul. You
were always there for me, never leaving my side, in every waking day. Thank you for
enriching my soul with positivity and full of hope. I love you and I will praise you
forever.
Professor Gay Defiesta, thank you for being such an excellent professor to me and
my classmates ma’am! Thank you for being my guiding hand all throughout this process
of making my thesis. Thank you for making me realize that I can do so much more than I
what I expect of myself to be. Because of you I know now that I can do whatever I will
if only I believe in myself and continue to take the challenges in life as a stepping stone
into becoming a better person.
To my parents, no words are enough to express how thankful I am to have you
both in my life. You two are my ears that listen to my problems, my shoulder to cry on, my
rocks, and my inspirations in life. You were always ready to jump in and help me with
whatever I need to do and conquer. Thank you for being proud of me with my
achievements. Thank you for always being there for me. I hope I made you both happy. I
love you. I love you always and forever.
To my classmates in Econ 199.2, Rizel, Nang Joyce, Nang Lyrin, and Bob, thank
you for all your help and words of encouragement friends! Strong! Strong!
To my Econ batch mates, most especially to my supermodel friends (Argena, Paolo
and Kuya Carl), and to my roommates (Jill and Nang Rhema) thank you making me
happy whenever I am sad and boosting my spirits up whenever I am down. I will always
treasure you friends! I am definitely looking forward to more adventures with you!
To all the special people who have been with me in every step of the way, thank
you. Thank you for all the laughter and joys. Life has been truly more meaningful with
all of you there. Thank you for all the memories that I will forever cherish.
And to myself, thank you for hanging in there. You’ve always been so strong.
Always remember that everything happens for a reason and God has a wonderful plan for
you. Good job! Go forth and reach for your dreams!
ii
ABSTRACT
This research was conducted to find out the contribution of the aquaculture
industry to the city and to the small-scale farmers of Roxas City. It also determined the
socio-economic impacts brought by the hydrometeorological events and identified the
adaptation measures employed by the local government and the aquaculture operators.
This study used cost and returns analysis, market based approaches and OLS regression
to analyze the data gathered from the 187 small-scale milkfish, mussel, and oyster
farmers in Roxas City. The findings showed that the aquaculture industry significantly
contributed to revenue, employment, production and profit. However, the industry was
affected by hydrometeorological events which brought about significant damage cost.
Most of the aquaculture operators employed various adaptation strategies to cope with
these hydrometeorological occurences. Some of them, however, did not find it necessary
to adapt because either they do not have enough money to finance adaptation strategies or
they perceive that the impacts are not that significant. This study recommends that the
government should provide other alternative climate-resilient livelihoods to the small-
scale operators. It should also employ sustainable adaptation measures aside from
providing trainings and seminars about aquaculture operation such as by integrating
climate change adaptation techniques to aquaculture farming.
iii
TABLE OF CONTENTS
Page
ABSTRACT ii
LIST OF TABLES iii
LIST OF FIGURES vi
I. INTRODUCTION 1
Background of the Study 1
Statement of the Problem 3
Objectives of the Study 6
Significance of the Study 7
Hypothesis 7
II. REVIEW OF RELATED LITERATURE 8
III. THEORETICAL AND CONCEPTUAL FRAMEWORK 16
Economic Impacts 16
Cost and Return Analysis 18
Regression Analysis 22
Conceptual Framework 23
IV. METHODOLOGY 25
Research Design 25
Study Site 25
Respondents and Sampling Procedure 26
Data Collection Method 28
Tools of Analysis 28
V. RESULTS AND DISCUSSION 33
Study Area 33
The Seafood Industry of Roxas City 35
The Aquaculture Industry’s Contribution to Governement
Revenue, Employment and Production
37
Hydrometeorological Events in the Aquaculture Industry of
Roxas City
40
Socio-Economic Profile of Respondents 41
Aquaculture Operation 44
Socio-Economic Impacts of Different Hydrometeorological
Events
74
Adaptation Measures 85
Regression Analysis 96
iv
VI. SUMMARY, CONCLUSION AND
RECOMMENDATIONS
99
Summary 99
Conclusion 103
Recommendations 106
BIBLIOGRAPHY 108
APPENDICES
v
LIST OF TABLES
Table Page
1 Summary of dependent and independent variables 32
2 Employment generated by the aquaculture industry, 2010 – 2014 37
3 Total production of the aquaculture industry, 2010 – 2014 39
4 Hydrometeorological events that occurred in Roxas City, 2008 –
2014
40
5 Frequency and Percent Distribution of Aquaculture Operators in
Roxas City by Sex, 2015
41
6 Frequency Distribution of Aquaculture Operators in Roxas City
by Other Demographic Characteristics, 2015
42
7 Frequency and Percent Distribution of Aquaculture Operators in
Roxas City by Sources of Income, 2015
43
8 Frequency and Percent Distribution of Aquaculture Operators in
Roxas City by Attendance to Trainings and/or Seminars, 2015
43
9 Summary of the initial investment of small-scale milkfish
brackish water operators in Roxas City, Capiz
46
10 Annual depreciation cost of small-scale milkfish brackish water
operators in Roxas City, Capiz
47
11 Total fixed cost of small-scale milkfish brackish water operators
in Roxas City, Capiz
48
12 Total variable cost of small-scale milkfish brackish water
operators in Roxas City, Capiz
50
13 Total production of small-scale milkfish brackish water operators
in Roxas City, Capiz
51
14 Average price for different types of sale of milkfish 52
15 Total revenue of small-scale milkfish brackish water operators in
Roxas City, Capiz
52
16 Opportunity cost of small-scale milkfish brackish water operators
in Roxas City, Capiz
53
17 Summary of the initial investment of small-scale mussel
mariculture operators in Roxas City, Capiz
54
18 Annual depreciation cost of small-scale mussel mariculture
operators in Roxas City, Capiz
55
19 Total fixed cost of small-scale mussel mariculture operators in
Roxas City, Capiz
56
20 Total variable cost of small-scale mussel mariculture operators in
Roxas City, Capiz
57
21 Total production of small-scale mussel mariculture operators in
Roxas City, Capiz
57
22 Average price for different types of sale of mussel 58
23 Total revenue of small-scale mussel mariculture operators in
Roxas City, Capiz
58
24 Opportunity cost of small-scale mussel mariculture operators 59
vi
in Roxas City, Capiz
25 Summary of the initial investment of small-scale oyster
mariculture operators in Roxas City, Capiz
60
26 Annual depreciation cost of small-scale oyster mariculture
operators in Roxas City, Capiz
61
27 Total fixed cost of small-scale oyster mariculture operators in
Roxas City, Capiz
62
28 Total variable cost of small-scale oyster mariculture operators in
Roxas City, Capiz
63
29 Total production of small-scale oyster mariculture operators in
Roxas City, Capiz
64
30 Average price for different types of sale of oyster 64
31 Total revenue of small-scale oyster mariculture operators in
Roxas City, Capiz
65
32 Opportunity cost of small-scale oyster mariculture operators
in Roxas City, Capiz
65
33 Cost and return analysis of small-scale aquaculture operators in
Roxas City, Capiz
67
34 Rate of return of investment of the small-scale aquaculture
operators in Roxas City, Capiz
68
35 Rate of return on variable cost of the small-scale aquaculture
operators in Roxas City, Capiz
69
36 Benefit-cost ratio of the small-scale aquaculture operators in
Roxas City, Capiz
70
37 Rate of return on total cost of the small-scale aquaculture
operators in Roxas City, Capiz
70
38 Gross profit margin of the small-scale aquaculture operators in
Roxas City, Capiz
71
39 Payback period of the small-scale aquaculture operators in Roxas
City, Capiz
72
40 Number of small-scale aquaculture operators in Roxas City that
were affected by different hydrometeorological events in 2008 to
2013
73
41 Average occurrence of hydrometeorological events in 2008 to
2013
73
42 Socio-economic impacts of flood to small-scale milkfish brackish
water operators in Roxas City, Capiz
75
43 Socio-economic impacts of heavy rainfall to small-scale milkfish
brackish water operators in Roxas City, Capiz
75
44 Socio-economic impacts of typhoon to small-scale milkfish
brackish water operators in Roxas City, Capiz
76
45 Socio-economic impacts of drought to small-scale milkfish
brackish water operators in Roxas City, Capiz
77
46 Socio-economic impacts of flood to small-scale mussel
mariculture operators in Roxas City, Capiz
78
47 Socio-economic impacts of heavy rainfall to small-scale mussel 78
vii
mariculture operators in Roxas City, Capiz
48 Socio-economic impacts of typhoon to small-scale mussel
mariculture operators in Roxas City, Capiz
79
49 Socio-economic impacts of drought to small-scale mussel
mariculture operators in Roxas City, Capiz
80
50 Socio-economic impacts of flood to small-scale oyster
mariculture operators in Roxas City, Capiz
80
51 Socio-economic impacts of heavy rainfall to small-scale oyster
mariculture operators in Roxas City, Capiz
81
52 Socio-economic impacts of typhoon to small-scale oyster
mariculture operators in Roxas City, Capiz
82
53 Socio-economic impacts of drought to small-scale oyster
mariculture operators in Roxas City, Capiz
82
54 Summary of the cost of the socio-economic impacts incurred by
the small-scale aquaculture operators in Roxas City, Capiz from
the different hydrometeorological events
83
55 Cost of the major socio-economic impacts incurred by the small-
scale aquaculture operators in Roxas City, Capiz from the
different hydrometeorological events
83
56 Government-led adaptation measures from 2011 to 2013 86
57 Sources of information of the small-scale aquaculture operators in
Roxas City, Capiz
87
58 Number of milkfish brackish water operators that employed
different adaptation strategies
88
59 Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City after flood
88
60 Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City after heavy rainfall
89
61 Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City for typhoon
89
62 Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City after the drought
90
63 Number of mussel mariculture operators that employed different
adaptation strategies
91
64 Different adaptation measures applied by the small-scale mussel
mariculture operators in Roxas City for flood
92
65 Different adaptation measures applied by the small-scale mussel
mariculture operators in Roxas City for typhoon
92
66 Number of oyster mariculture operators that employed different
adaptation strategies
93
67 Different adaptation measures applied by the small-scale oyster
mariculture operators in Roxas City for flood
94
68 Different adaptation measures applied by the small-scale oyster
mariculture operators in Roxas City before heavy rainfall
95
69 Regression analysis showing the factors affecting the adaptation
cost of the small-scale aquaculture operators in Roxas City, Capiz
96
viii
LIST OF FIGURES
Figure Page
1 A conceptual framework showing the contributions of the
aquaculture industry and the socioeconomic impacts and
adaptation measures that are applied to the industry due to
occurrence of hydrometeorological events
23
2 Map of Roxas City, Capiz 34
1
CHAPTER I
INTRODUCTION
Background of the Study
The Philippine Fisheries Code of 1998 or RA 8550 defines aquaculture as the
fishery operations involving all forms of culturing and raising fish species in marine,
fresh, and brackish water marine areas. Aquaculture may be in the form of shrimp
farming, fish farming, algaculture, growing of cultured pearls, and shellfish farming
(Schwartz, 2008).
In the year 2005, capture fisheries and aquaculture had a global production of 108
million tons of fish resources; 45 percent of which was contributed by the aquaculture
industry. From the 0.7 kg of per capita supply of fish from aquaculture in 1970, it grew
up to 7.8 kg of per capital supply of the fishery stocks.
Global aquaculture fisheries are mostly dominated by Asia-Pacific countries.
Asian countries produce almost 75 percent of the total fish aquaculture supply and
generate 80 percent of the global aquaculture production value. China dominates as it
produces two-thirds of the global supply. In 2004, it was able to produce as much 69.6
percent of the total world production or 41.3 million tons of fishery resources from
aquaculture. The Philippines is also a big player as it ranked seventh in terms of
aquaculture production (BFAR, 2007). The seven major marine species that are utilized
in the aquaculture industry of the country are seaweed, milkfish, tilapia, shrimp, carp,
2
oyster, and mussel. The total aquaculture production in the country in 2012 is 2,541,965
metric tons. This includes yield from brackish water and freshwater fishponds,
mariculture of oyster, mussel and seaweeds, fish pens and fish cages in fresh and marine
waters. Approximately 26% of Philippine fisher folks are engaged in aquaculture
activities (Lopez, 2008). To be specific, the 2002 Census of Fisheries in the National
Statistics Office showed that the country has a total of 226,195 aquaculture fishers. Of
which, 126,894 are fishpond operators, 2,422 are mussel farmers, 73,549 seaweed
farmers, 3,041 are oyster farmers, 5,325 are fish pen operators and 14,969 are involved in
other aquaculture activities. In 2005, aquaculture provided the highest share in the total
fisheries production of the country, providing 46% of the fish production. Among the
other fisheries subsector, aquaculture also had the highest growth rate at 8.7% increase
from 2003. Aquaculture has been identified as a sector that will enhance food security
and increase growth for employment. The total value of aquaculture production in 2012 is
P 92,289,924,700 (FAO, 2005).
In the country, the highest aquaculture producer is the Autonomous Region of
Muslim Mindanao (ARMM) with a production of 638, 552 metric tons. Western Visayas
(Region VI) ranked sixth with 179, 231 metric tons. Aquaculture output from ARMM,
however is much lower in value at P 3,340,995,400 compared to Region VI with P
6,897,616,300.
Productivity of aquaculture is threatened by the impacts brought about by climate
change. This may directly affect the industry by influencing the volume of fish stocks and
the global supply of the fishery products. The WorldFish Center (2007) illustrates some
of the implications of climate change on the aquaculture industry. Changes in
3
precipitation and water variability may have an impact on seed availability for the
industry. It may also increase the costs of maintaining pond water levels from stock loss,
reduce production and capacity, change culture species, may create conflict with other
water users. The implications of these biophysical effects to aquaculture are loss of stock
and damage or loss of aquaculture facilities and fishing gear.
Statement of the Problem
Aquaculture has great potentials in ensuring the country’s food security and
decreasing poverty incidence. It also has the potential to supply the demand of the local
people and export market with different fish products. The industry is still faced with
variety of issues and problems; one of which is the lower profit margins and increasing
costs of operations compared to the other agriculture farmed animals such as livestock
and poultry. Because of the continuous growth of the aquaculture industry and the erratic
market prices of harvested wild fish, the aquaculture industry’s effort has become more
competitive (FAO, 2005). Other problems that the aquaculture industry is facing are
environmental degradation, lack of availability of high-quality brood stock, high input
costs, data gaps, inadequate regulatory framework, lack of aquaculture information
management system and lack of focused research and protocol (Lopez, 2008)
Despite the industry’s potentials, there has been little research on how the
aquaculture industry can concretely improve the lives of people and reduce poverty.
Furthermore, very few studies have been taken up so far in Philippines to study the social
and institutional issues that govern the participation of the poor in Aquaculture (Lopez,
2008).
4
Aside from the abovementioned issues and concerns, the aquaculture farmers are
also faced with climate change. Some of the effects by climate change in the fishing
industry are the distribution of marine and freshwater aquatic organisms, displacement of
warm-water species, changes in the physiological processes of fishes due to an increase
in temperature, possibility of fish invasions, and changes in biological processes
(Cochrane, et.al., 2009).
Roxas City, the Seafood Capital of the Philippines, is also affected by adverse
effects of climate change specifically the aquaculture industry. However, the city has
limited records regarding the adaptation measures employed by aquaculture farmers.
There are also limited records as to what are the factors that affect and facilitate the
efforts made by these farmers to adapt.
The main purpose of this study is to determine the direct contributions of
aquaculture fisheries, determine the socio-economic impacts brought about by
hydrometeorological events, and provide information about the adaptation measures
employed by the aquaculture operators. Specifically, the study sought to answer the
following questions:
5
1. What are the contributions of the aquaculture industry to the economy of Roxas
City and to the aquaculture fishpond operators of Roxas City, Capiz?
2. What are the hydrometeorological events from 2008 to 2013 that affected the
aquaculture industry in Roxas City, Capiz?
3. What are the socioeconomic impacts of these hydrometeorological events on the
aquaculture industry of Roxas City, Capiz?
4. What are the adaptation measures employed by the government and the
aquaculture fishpond operators of Roxas City, Capiz to hydrometeorological
events?
5. How much adaptation costs were incurred by the aquaculture fishpond operators
of Roxas City, Capiz?
6. What are the factors affecting the adaptation cost of the aquaculture fishpond
operators of Roxas City, Capiz?
6
Objectives of the Study
1. To determine the contributions of aquaculture fisheries to the economy and to the
aquaculture fishpond operators of Roxas City,
2. To determine the hydrometeorological events from 2008 to 2013 that affected the
aquaculture industry of Roxas City, Capiz
3. To determine the socioeconomic impacts of these hydrometeorological events on
the aquaculture industry of Roxas City, Capiz
4. To determine the adaptation measures to these hydrometeorological events that
were employed by the government and the aquaculture fishpond operators of
Roxas City, Capiz
5. To determine the adaptation costs that were incurred by the aquaculture fishpond
operators of Roxas City, Capiz
6. To determine the factors affecting the adaptation costs of the aquaculture fishpond
operators of Roxas City, Capiz
\
7
Significance of the Study
This study is beneficial to both the government and fishpond operators of Roxas
City, Capiz. It determines the direct economic contributions of the aquaculture industry to
the city, specifically its contributions to the revenues, employment, and production. The
study also guides the fishery operators in deciding to pursue the business or not base on
the calculated profits. Furthermore, the study can give a valuable input to the government
of Roxas City in planning, formulating and/or employing policies and strategies that can
improve the adaptive capacity of the city’s aquaculture industry to the different
hydrometeorological events. It can also serve as a reference to the fishpond operators to
identify other adaptation measures that they may employ in their own fishpond operations
and the cost that the these measures may incur.
Hypothesis
Based on the foregoing questions the hypothesis is given:
Size of the fish farm, type of culture (milkfish brackish water, mussel mariculture or
oyster mariculture), frequency of hydrometeorological event (heavy rainfall, flood,
typhoon, drought), years of experience as an operator, years of education, and
revenue does not affect the aquaculture operators’ adaptation cost.
8
CHAPTER II
REVIEW OF RELATED LITERATURE
A case study was conducted by Jharendu Pant, Benoy Kumar Barman, Khondker
Murshed E-Jahan, Benjamin Belton, and Malcom Beveridge (2013) to determine whether
aquaculture is beneficial to the extreme poor, most especially to the landless and socially
marginalized Adivasi communities in Bangladesh. The main purpose of the paper is to
challenge the view that aquaculture is an inappropriate livelihood option for the ultra
poor and the socially marginalized. Discussions were based on the Adivasi Fisheries
Project. In which, the Project sets out to devise and adapt different aquaculture
technologies to build more productive livelihood assets, improve the knowledge and
skills of the people, focus more on the needs, resources, and capabilities of Adivasi
households. The paper also shows the results of the different interventions that were
implemented to the marginalized Adivasi households. The interventions that were
determined were divided into three groups: the aquaculture activities, aquaculture value
chain related activities, and community-based fisheries management. Included in the
aquaculture activities are pond culture, rice-fish culture, and cage culture. On the other
hand, the aquaculture value chain related activities are food-fish trading, fingerling
trading, and pond netting.
The paper was based on the principle of the Sustainable Livelihood Approach
(SLA) that states that the increasing access to livelihood assets or capital is essential to
reduce variability and increase adaptive capacity of resource poor, marginalized
communities.
9
The study was conducted in the five districts in North and Northwestern
Bangladesh. Before the project was conducted in 2007, a pre-project study was conducted
by WorldFish, Caritas, and the Bangladesh Fisheries Research Forum to assess the initial
livelihood context of Adivasi communities and other key stakeholders. From the 5, 337
Adivasi households, 3, 594 households were chosen to become project participants based
on income, size of landholdings, and food security status. A random selection of 657
households (with 148 non-participant households) was chosen to answer the baseline and
end-line surveys; the end-line surveys were answered two years after the implementation
of the different interventions. Furthermore, a study of sustainability was also conducted
in 2012, 30 months after the project. Random visitations of the interdisciplinary team
were made. They used different participatory tools and techniques to determine the
sustainability of the projects. Such methods include focus group discussions (FGDs) with
farmer field school (FFS) members, key informant interviews (KIIs), observations, and
consultations. Results show that aquaculture intervention had a positive effect on the
livelihood assets of the Adivasi households. The households were provided support for
their livelihood asset development. The number of land and land holdings improved
because the number of landless households slightly decreased in 2009 because the
different technology interventions gave the households opportunities to earn sufficient
income for them to reclaim their previously mortgaged lands. There was also an increase
in the number of livestock and poultry holdings and physical assets (such as mobile
phones, bicycles, and rickshaws), the change in the number of holdings of livestocks was
most especially evident to those who are involved in pond culture.
10
The results of the study have been beneficial in showing the different positive
economic and social effects brought about by aquaculture activities to the lives of the
marginalized. In the Philippines, it has been proven that the fisher folks are one of the
poorest, if not the poorest, sector groups of the country. The different aquaculture and
aquaculture related activities such as food-fish trading, pond culture, rice-fish culture and
the like may be used as an alternative livelihood by the coastal households.
An article written by Feng Cai, Xianze Su, Jianhui Liu, Bing Li, and Gang Lei
(2008) highlighted the relationship of the effects of climate change such as the increase in
sea level and global warming to the coastal erosion along the coastal zone of China.
The locale of study is primarily the coastline of China that extends for 18,000
kilometers. Just like China, Philippines, an archipelagic country that is composed of
7,100 islands, is surrounded by water. Its total coastal area is 266,000 km2 and oceanic
area is 1,934,000 km2. If climate change will continue to negatively affect countries with
vast coastlines, Philippines could be in danger of experiencing these negative impacts.
The results showed that two main causes of coastal erosion are human activities
and natural causes such as land subsidence, reclamation, sand mining, and dam
construction. On the other hand, natural causes are sea level rise, aggravation of surge
storm, tectonic subsidence, decrease of dike stability, and river watershed changes.
Because of human activities and natural causes, the three major challenges that China is
facing due to coastal erosion are “threats of global warming and rising sea level to coastal
plains”, “variation of sediment charges”, and “impacts of improper coastal explosion”.
A numerical simulation, case analysis, and results of inter-annual variation have
showed that there is a positive correlation between the sea surface temperature and global
11
climate changes. In which, these climate changes have effects on tropical cyclone
activity. Results have shown that there had been an increase in hurricane frequency and
intensity of cyclone activity.
Furthermore, Cai, Su, Liu, Li, and Lei have identified different coastal protection
measures. These measures may be in the form of conducting basic research of coastal
erosion and assessment of its impacts, intensify research on coastal protection measures
and proper protection of typically eroded coast, improvement of the integrated coastal
zone management, and development of new coastal protection measures and a
management system. While the article successfully shows the different effects of climate
change to the coastal erosion of China, the methodology in finding such were not clearly
identified.
In the Philippines, most, if not all, fishermen are highly dependent on the aquatic
natural resources for their main source of livelihood and income. And it is known for a
fact that among the many different communities, those living in the coastal area will be
one of the most affected communities when the impacts of climate change will arise. J.
Forster, I.R. Lake, A.R. Watkinson, and J.A. Gill (2013) conducted a study to determine
the social-resilience to environmental change of the livelihoods that are dependent to the
marine resources. The purpose of this study is to determine the impacts of hurricane to
the marine-dependent livelihood of the island of Anguilla, their perceptions as resource-
users of the marine resources, and their potential adaptability to these environmental
changes. The social-resilience of the livelihoods are determined by identifying the
characteristics of marine and coastal resource users and livelihoods, by assessing the
12
impacts of hurricanes events, and by determining future environmental changes on the
livelihood security of these households.
The study took place in Anguilla, an island relies that heavily on coastal and
marine resources for the income and livelihood of the people. Snowball sampling was
used to determine the 24 Marine-resource fishers and 13 marine-based tourist operators
that were interviewed. The interviews were consisted of structured closed questions and
open-ended semi-structured questionnaires. Responses were analyzed using ‘open-
coding’ method. Additionally, triangulation and spearman rank correlations were also
used for the analysis of the responses gathered.
Results have shown that the direct effects of environmental changes such as
hurricanes to the marine-resource livelihoods are increasing in the degradation of the
marine environment, loss of fishing gear, reduced catch rates, and damage to business
infrastructures. Among the environmental changes, hurricanes are the ones that can
severely affect the livelihoods of these marine-resource dependent households; of which,
hurricanes may cause both short-term and long-term impacts. On the other hand,
overexploitation of the marine resources and coral bleaching are both an important issues
for both the fishermen and fish operators. Yet despite the apparent effects of the severe
“1995 hurricane” to the fishermen and operators, they were still able to respond to these
impacts by changing their fishing strategies or finding an alternative source of income.
Also, the households were able to adapt different livelihood strategies to withstand these
uncertainties. Forster, Lake, Watkinson, and Gill were also able to identify factors that
may restrict the development of resilience by these marine-resource dependent
livelihoods. These factors could be family status, education, and “fisher ethic”.
13
The results conclude that both the fishermen and operators in Anguilla were
heavily dependent on aquatic natural resources. Although both the fishermen and
operators were greatly affected by environmental changes such as hurricanes, they were
also able to respond to these impacts and perform different adaptation measures.
A study written by Suan Pheng Kam, Marie-Caroline Badjeck, Louise Teh, Lydia
Teh, and Nhuong Tran (2012) aims to find the different autonomous adaptation to climate
change of shrimp and catfish farmers in Vietnam’s Mekong River delta. The primary
objectives of the paper are to present an analysis regarding the direct costs of
implementing a more effective and adaptive fish farm and to discuss important issues that
needs to be considered when undertaking an economic analysis about the different
adaptation options in the aquaculture industry. The study focuses on the different
autonomous adaptation at the farm level operations of aquaculture and the implications
for carefully planned adaptation measures to address issues in the farm-level aquaculture
ponds. This study can serve as a reference to the different aquaculture fish pond operators
in the Philippines as to how much will it cost them to improve their farms to a more
adaptive area that will be able to withstand climate variability.
The research site is also in Vietnam’s Mekong River delta. 80% of Vietnam’s
total shrimp production came from the delta. The researchers used both qualitative and
quantitative assessment methods in determining the different bio-physical impacts of
climate change to the industry. Likewise, the increase in salinity and flooding in the said
area has been modeled using the Vietnam River System and Plain (VRSAP) hydraulic
and salinity model by the Sub-Institute for Water Resources Planning (SIWRP) and the
Geographic Information Systems (GIS) overlay has also been used. Three steps are
14
involved in the traditional approach in establishing the economic analysis: (1)
establishing a baseline with no planned adaptation, (2) estimates are made for the impacts
of climate change to farms with no planned adaptation, and (3) estimates are made for the
impacts of climate change to farms with implemented adaptation policies and measures.
However, this type of approaches may also encounter several issues such as the difficulty
in distinguishing the difference an adaptation measure or impacts of climate change and it
does not take into account a sufficient consideration on the cost for the planned
adaptation measures.
Results have shown that catfish farming operators are unable to keep up with the
sudden increase in the input costs for both the absence and presence of climate change; as
such, only 3% to 5% are able to effectively adapt with the impacts of the said
phenomenon. This may result to a lower discounted net income for the years 2010 –
2020. Furthermore, impacts of climate change may lead to a decrease in the net income
even for the newly improved and effectively adaptive extensive shrimp culture. In line
with this result, if there is an absence of government intervention in helping different
aquaculture operators to adapt to the different impacts of climate change, the shrimp
industry will most likely spend more and experience the highest increase in the input
costs. The total estimated fund needed for developments to be done due to climate
change, such as dike upgrading and payment for increased costs for electricity and fuel, is
approximately USD 191 million.
Kam, Badjeck, et. al., also suggested several policy implications and strategies for
a more improved adaptive capacity of the aquaculture farmers in Vietnam. Adaptation
measures led by the government or any private sector for these farmers can play a
15
significant role in increasing their profits; such policy implications may be improving the
feed conversion ratios and increasing the margins that will benefit the farmers more
compared to the retailers in importing. On the other hand, adaptive strategies may be
reducing electricity and fuel, decreasing direct and indirect fossil fuel, usage of energy-
efficient machinery, and low sourcing of inputs. With these planned adaptation measures,
benefits to other sectors and future uses will also follow. A government-led program will
not only improve the aquaculture sector and positively affect other agricultural sectors
(such as agriculture) but it will also foster protection for both the land and the people.
Also, developments in the coastal areas will further reduce the risk of salinity intrusion.
16
CHAPTER III
THEORETICAL AND CONCEPTUAL FRAMEWORK
Economic Impacts
Economic Impacts, as defined by Glen Weisbrod and Burton Weisbrod (1997),
are the results on the level of economic activity in a certain area. Economic impacts may
be measured in terms of total employment, aggregate personal income, value added or
gross domestic product, business output, or property values. Total employment
determines the additional jobs brought about by economic growth. Aggregate personal
income measures rise of the personal income of the workers. Value Added is equivalent
to Gross Domestic Product or Gross Regional Product. It measures the profit and wage
income fostered in the area being studied. Business output includes the sales volume or
business profit. Property values are indications of income and wealth acquired.
These economic impact measures should be appropriately identified depending on
the purpose of the paper. Four types of study that can be used as guides on what measures
should be used. These are public information study, economic portion of a formal
“environmental impact assessment”, cost-benefit analysis, and a “retrospective” research
study (Weisbrod and Weisbrod, 1997). A public information study aims to present the
economic impacts of an existing project or planned activity. This study uses measures
such as Total Employment and Value Added. The economic portion of a formal
“environmental impact assessment” represents the future economic impacts of a proposed
project. Cost-benefit analysis compares the benefits and costs of a project. Measures such
17
as personal income, value added, and property values can be used. Lastly, a
“retrospective” research study measures benefits based on historical data.
Economic impacts may be in the form direct economic effects or indirect
economic effects. Direct economic effects are the direct consequences brought about by a
certain project or program. The factors that may affect this kind of economic effects are
facility investment and operations, non-facility spending program, cost shift, and
locational competitiveness. On the other hand, indirect economic effects may take in the
form of indirect business impacts, induced business impacts, and dynamic economic
effects.
Moreover, the Food and Agriculture Organization of the United Nations (FAO-
UN); Fisheries and Aquaculture Department conceptualized a framework showing
commercial aquaculture’s contribution to the dynamic performance of the economy.
Commercial aquaculture economic impacts to economic growth can be classified
according direct contributions and indirect contributions.
The direct contributions are classified according to value added and employment.
These are the contributions of the sector’s production to the economy. Value added can
be measured according to labour incomes, business profits, and tax revenues. Indirect
contributions show that aquaculture can also affect the other sectors stimulate their
output. In the report made by FAO, indirect contributions are analyzed through the input-
output linkages
18
Cost and Returns Analysis
Cost and returns analysis is often used to show the different levels of costs,
returns, and profit that an aquaculture operation incurs. The profitability of the fish farm
determined will show the strength and/or weakness of an aquaculture operation.
To determine the profitability the total cost and revenue is determined. After
which, the total costs incurred is subtracted to the total revenue gained. The difference
will become the profit gained by the aquaculture operator.
Cécile Brugère (2006) defines total capital as the initial amount of money that the
owner invests to start and operate a business project. This is computed as the sum of the
initial investment and the equipment cost. Mathematically:
where:
TC = Total Capital
I = Initial Investment
EC = Equipment Cost
Total operating costs are the summation of all the either the fixed or variable cost.
Initial capital costs are excluded in operating cost. The fixed cost are the total costs
employed that do not vary with the level of production. It can either be the maintenance,
the depreciation or even the opportunity cost of other factor of production. Variable costs
on the other hand are costs that do vary with the level of production. It includes hired
labor and other equipment used in production.The total operating cost is then determined
by adding the total fixed costs and total variable costs. The formula is given as:
19
where:
TOC = Total Operating Cost
TFC = Total Fixed Cost
TVC = Total Variable Cost
The Straight-Line Method is used in solving for the annual depreciation. It can be
solved by subtracting the salvage values of an item to its acquisition cost and then divide
its difference by the expected years of useful life of that item. The annual depreciation of
that item is then determined. Mathematically annual depreciation is computed by:
where:
AD = Annual Depreciation
C = Acquisition Cost
SV = Salvage Value
L = Expected Years of Useful Life
Opportunity costs (OC) are implicit costs. It is the value forgone in choosing an
activity over the next best alternative. Opportunity cost indicates the level of alternative
loss or forgone to the aquaculture fishpond operators if the land for example is used in
residential or sold. It is the main distinction between economic and accounting analysis.
In the former, OC is important to evaluate the economic viability of a certain business
and in the latter opportunity cost is excluded.
20
To solve for the opportunity cost multiply the total land area in square meters to
its price. Mathematically:
where:
OC = Opportunity Cost
TL = Total Land Area in square meter
P = Price of Land in square meter
Gross revenue is the total income generated from aquaculture operations. This
may include those that are sold directly to market and given away and consumed. The
gross revenue is the product of the total production and of the unit price. It can be
expressed as:
where:
GR = Gross Revenue
TP = Total Production
UP = Unit Price
Profitability is the main goal of a firm or an individual when establishing a
business. It is defined as the ability of a given investment by firm or an individual to earn
and a return from its purpose or use (Murthy, 1978). It may also be defined as a firm’s
ability to generate earning (Gibson & Boyer, 1979). Don Hofstrand (2009) identifies two
types of profitability namely the accounting profit and economic profit. Accounting
profits, also called as the net income, provide a firm or an individual an overview of the
business. It is the difference between the sale/income gained from the total costs of
21
producing a certain good or service. Furthermore, it is divided into three categories: gross
profit, operating profit, and net profit. Gross profit is measured as the difference between
the total gross revenue and revenue expenditure. Mathematically, it is computed as:
Gross Profit = Total Gross Revenue – Revenue Expenditure
Operating profit is difference between total operating revenue and total cost of
operation. It is computed as:
Operating Profit = Total Operating Revenue – Total Cost of Operation
Net profit is the difference between total gross revenue and total cost of operation.
Mathematically,
Net Profit = Total Gross Revenue – Total Cost of Operation
Meanwhile, economic profits are computed through subtracting the “implicit
costs” or opportunity cost from the business’s net worth. Mathematically, it is computed
Of the total damage cost per occurrence of typhoon, about half or 45.76% is from
the damage on the residential house. Five oyster operators suffered a total damage cost of
P 35,000.00 for this impact. The damage on the boat engine amounted to P 14, 800.00. A
total of P 3,985.00 was obtained by each of the 61 affected oyster operators due to the
decrease in their harvest.
Typhoons also damaged the tools and equipments used in oyster farming. The
average cost of damages for the destruction of the binder holdings and nylon is
82
P 1, 978.00 and P 2, 000.00, respectively. It also decreased the price of oyster by P 89.00
(20%) per sack, from the average contract price of P 445.00 it declined to P 306.00 after
the typhoon.
Table 52. Socio-economic impacts of typhoon to small-scale oyster mariculture
operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 61 P 3,985.00 4.87
Decrease in price of
oyster
8 P 6,688.00 8.18
Increase in labor 5 P 1,340.00 1.64
Stakes damage 62 P 7,342.00 8.98
Raft damage 34 P 3,353.00 4.10
Boat damage 34 P 5,295.00 6.47
Engine damage 1 P 14,800.00 18.10
Damage in binder
holdings
8 P 1,978.00 2.42
Damage in residence 5 P 35,000.00 45.76
Damage in nylon 1 P 2,000.00 2.61
TOTAL COST OF IMPACTS P 81,780.00 100
Out of the seventy-seven mariculture operators, 13 oyster operators were affected
by drought. An average damage cost of P 4,815.00 was incurred by the operators due to
the decrease in harvest arising from excessive heat.
Table 53. Socio-economic impacts of drought to small-scale oyster mariculture
operators in Roxas City, Capiz
Socio-economic
impacts
No. of operators
affected
Average cost per
occurrence
Percentage
Decrease in harvest 13 P 4,815.00 100
TOTAL COST OF IMPACTS P 4,815.00 100
83
Summary of the Cost of the Socio-Economic Impacts Incurred from the Different
Hydrometeorological Events
The table below shows the summary of the average costs incurred by the small-
scale aquaculture operators of Roxas City from the occurrence of flood, heavy rainfall,
typhoon, and drought. It can be observed that typhoons more than the other three
hydrometeorological events inflicted the highest damage cost to all the aquaculture
operators. The average damage cost brought about by an occurrence of a typhoon to a
milkfish brackish water operator is P 111,706.00, P 39, 138.00 for a mussel mariculture
operator, and P 81,780.00 for an oyster mariculture operator.
Mussel operators incurred the highest damage cost for the occurrence of floods at
P 32,891.00. The milkfish operators, on the other hand, incurred the lowest damage costs
at P 19,372.00. Among the four hydrometeorological events, the aquaculture operators
suffered the lowest damage cost for the occurrence of heavy rainfall. Milkfish operators
incurred P 15, 733.00, P 154.00 for mussel operators, and P 18,975.00 for oyster
operators.
Milkfish operators incurred the highest damage cost from flood. The excessive
heat brought about by the hydrometeorological event increases the mortality rate of fish
pond seedlings. The average cost of damage per occurrence of drought to the milkfish
operator is P 63,490.00. Mussel and oyster operators, on the other hand, incurred a loss of
P 105.00 and P 4,815.00, respectively.
84
Table 54. Summary of the cost of the socio-economic impacts incurred by the
small-scale aquaculture operators in Roxas City, Capiz from the
different hydrometeorological events
Cost of
socio-economic
impacts
Milkfish brackish
water operators
Mussel mariculture
operators
Oyster mariculture
operators
Flood P 19, 372.00 P 32, 891.00 P 24, 681.00
Heavy Rainfall P 15, 733.00 P 154.00 P 18, 975.00
Typhoon P 111, 706.00 P 39, 138.00 P 81, 780.00
Drought P 63, 490.00 P 105.00 P 4, 815.00
Among the major socio-economic impacts of the different hydrometeorological
events, decrease in harvest contributed the highest damage cost to milkfish operators at P
107,217.00. Decrease in price of harvest is estimated at P 16,404.00 to the mussel
operators. Furthermore, damage on transporation vessels and machineries caused the
highest loss to the oyster operators at P 30,345.00.
Table 55. Cost of the major socio-economic impacts incurred by the small-scale
aquaculture operators in Roxas City, Capiz from the different
hydrometeorological events
Major socio -
economic
impacts
Milkfish brackish
water
Mussel mariculture Oyster mariculture
Cost % Cost % Cost %
Decrease in
harvest
P 107,217.00
50.98
P 12,614.00
17.45
P 13,207.00
9.91
Decrease in
price of harvest
P 1,933.00
0.92
P 16,404.00
22.69
P 12,797.00
9.60
Damage in
structures
P 40,411.00
19.22
P 10,004.00
13.84
P 1,340.00
1.01
Damage in
transportation
vessels and
machineries
P 2,000.00
0.95
P 4,400.00
0.55
P 30,345.00
22.77
85
Adaptation Measures
Government-led adaptation
Several efforts has been made by the local government in order to prepare the
fisher folks for upcoming hydrometeorological events and also to help them recover from
the socioeconomic impacts they experienced after the occurrence of such.
In 2011, the City Agriculture’s Office proposed a project entitled “Establishment
of Floating Mariculture Structures for Oyster/Mussel and Grouper Culture as
Livelihood”. This project was aimed to improve the livelihood of the fish farmers most
especially in the financial, technical, and social aspects of their lives. The project is also
intended to increase production of oysters and mussels to increase the famers’ capability
to adapt to the different hydrometeorological events. The total funding requirement for
this project was P 172, 252.00, P 10,000.00 or 6% was spent for the training and
orientation on the pre-implementation phase. P 152, 352.00 was utilized on capital
assistance for the expenditures of the said operators on their fixed cost. The small-scale
mariculture operators are to be granted loan assistance to supply their mariculture farms
with floating cages and raft structures.
In 2012, a training was proposed by the City Agriculture’s Office on “Grouper
Cage Culture and Oyster/Mussel Production Training for Small-Scale Fisherfolks
Association”. The training aimed to teach the mariculture operators of Roxas City on how
to construct floating structures for their mariculture farms, encourage them to rehabilitate
riverine areas, discourage destructive fishing activities, and develop a sustainable
management mariculture venture scheme for them. The total training cost amounted to
86
P 10, 000.00 and its target participants are the small-scale mariculture operators in Lewis
Baybay, Roxas City.
In 2013 before Typhoon Yolanda ravaged Roxas City, the Department of Social
Welfare and Development conducted capability building trainings to the fisher folks of
the city. Also, together with the Department of Agriculture they provided different
sustainable livelihood programs to the said sector. After the occurrence of Typhoon
Yolanda, 12 barangays of Roxas City were given financial assistance amounting to
P 217, 695.30 each.
Table 56. Government-led adaptation measures from 2011 to 2013
Adaptation Measures Year Estimated Cost
“Establishment of Fishing
Mariculture Structures for
Oyster/Mussel and Grouper
Culture as Livelihood”
2011 P 172, 252.00
“Grouper Cage Culture and
Oyster/Mussel Production
Training for Small-Scale
Fisherfolks Asscociation”
2012 P 10,000.00
Financial Assistance to 12
affected barangays
Capability building trainings
by DSWD
Sustainable livelihood
programs by the City
Agriculture’s Office
2013 P 2,612,343.60
.
87
Sources of information about upcoming hydrometeorological events
In general, all of the respondents were knowledgeable about the existence of a
weather office in Roxas City. The major sources of information about upcoming
hydrometeorological events are television, radio, and the Philippine Atmospheric,
Geophysical and Astronomical Services Administration (PAG-ASA). Among the
respondents, only the milkfish operators rely on newspaper for their weather related
information. Eight of the milkfish operators and 12 of the oyster operators rely on text
messages from their family and friends regarding weather announcements.
Table 57. Sources of information of the small-scale aquaculture operators in Roxas
City, Capiz
Source of information
Aquaculture
Operators
Television Radio Newspaper PAG-ASA
Announcements
Text
Milkfish brackish
water operators
22 22 21 22 8
Mussel mariculture
operators
86 85 24 88 0
Oyster mariculture
operators
77 76 1 77 12
Adaptation Measures of Small-Scale Milkfish Brackish Water Operators
All the milkfish operators employ different adaptation measures in order for them
to adapt to typhoon. More than half or 59.09% adapt to flood. Only three operators
employ different adaptation measures to cope up with heavy rainfall and drought.
88
Table 58. Number of milkfish brackish water operators that employed different
adaptation strategies
Hydrometeorological event No. of operators that
applied different
adaptation measures
Percentage
Flood 13 59.09
Heavy Rainfall 3 13.64
Typhoon 22 100
Drought 3 13.64
Milkfish operators employ different adaptation measures following the occurrence
of flood. The adaptation measures that were employed by the operators are to replace the
fry seedlings and repair the dikes.
During floods, milkfish seedlings overflow from the ponds. When this happens,
milkfish operators had to buy new fry seedling which costs P 646.00; hired additional
labor to re-stock the fry costs P 183.00. 11 milkfish operators repaired their dikes. They
spent P 2,682.00 and P 655.00 for material and additional labor, respectively.
Table 59. Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City after flood
Adaptation
measures
No. of
operators
that applied
this
adaptation
Cost Cost of
Additional Labor
Source Frequency
Buy Fry 12 P 646.00 P 183.00 1 day Personal 1
Repair Dike 11 P 2,682.00 P 655.00 2 days Personal 1
TOTAL COST P 4, 166.00
Damages brought about by heavy rainfall incurred minimal costs to the milkfish
operators. The only adaptation measure they employed for this hydrometeorological
event is to repair the dikes of their ponds. No materials were used nor were hired labor
utilized since the caretaker of the pond is the one that fixes the damages.
89
Table 60. Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City after heavy rainfall
Adaptation
measures
No. of
operators that
applied this
adaptation
Cost Cost of
Additional
Labor
Source Frequency
Repair Dike 3 P 0.00 P 161.00 1 day Personal 2
TOTAL COST P 161.00
The milkfish operators employ adaptation strategies before and after a typhoon.
Before the occurrence of a typhoon, water is extracted from the pond to avoid flooding.
No materials were used for such adaptation measure; however, additional labor
amounting to P 272.00 was utilized. After the typhoon, transportation vessels and pond
structures are repaired and milkfish seedlings are bought to replace the ones that died.
The adaptation measure that cost the most is the repair for the caretaker or guard’s
houses.
Table 61. Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City for typhoon
Adaptation
measures
No. of
operators
that
applied this
adaptation
Cost Cost of Additional
Labor
Source Frequency
Before the typhoon
Reduce water 9 P 0.00 P 272.00 1.5days Personal 2
Sub-total P 0.00 P 272.00
After the typhoon
Repair boat 8 P 1, 813.00 P 0.00 - Personal 2
Repair dike 22 P 7, 086.00 P 620.00 3days Personal 2
Repair caretaker
or guard’s house
21 P 16,619.00 P 480.00 2.5days Personal 2
Replace fry 16 P 1, 658.00 P 80.00 1 day Personal 2
Repair sluice
Gates
14 P 8, 493.00 P 80.00 1 day Personal 2
Fix holes in the
Pond
5 P 0.00 P 400.00 2 days Personal 2
Sub-total P 35,669.00 P 1, 500.00
TOTAL COST P 37, 763.00
90
Due to the high mortality of fry, fingerling, and haterin during droughts, the
adaptation measures of milkfish operators usually performs pond clearing, adding of
water to the pond, replacing the milkfish seedlings, and application of “lablab”.
After a drought, water is being entered into the pond after it is being cleared and
emptied-out. Milkfish seedlings, after which, are stocked into the pond area and are
supplied with “lablab”.
Table 62. Different adaptation measures applied by the small-scale milkfish
brackish water operators in Roxas City after the drought
Adaptation
measures
No. of operators
that applied this
adaptation
Cost Cost of
Additional
Labor
Source Frequency
Empty the pond 2 P 0.00 P 80.00 1 day Personal 1
Add new water 3 P 0.00 P 67.00 1 day Personal 1
Buy haterin 2 P 700.00 P 0.00 - Personal 1
Add “lablab” 2 P 0.00 P 80.00 1 day Personal 1
TOTAL COST P 928.00
Adaptation Measures of Small-Scale Mussel Mariculture Operators
Six mussel operators applied adaptation measures for flood and 87 operators
employed adaptation measures for typhoon. The average cost of adaptation for flood is P
6,680.00. In anticipation of a flood, the operators tighten the rope holdings of their stake
so that the bamboo structures will be less susceptible to movements. This entailed a cost
of P 1,100.00; P 800.00 for the rope and P 300.00 for the additional labor.
After the flood, the operators buy stakes as replacement for the damaged ones.
This is the adaptation measure that cost the highest at P 4, 280.00.
91
Table 63. Different adaptation measures applied by the small-scale mussel
mariculture operators in Roxas City for flood
Adaptation
measures
No. of
operators
that applied
this
adaptation
Cost Cost of
Additional
Labor
Source Frequency
Before the flood
Tighten rope
Holdings
2 P 800.00 P300.00 1.5days Personal 1
Sub-total P 800.00 P 300.00
After the flood
Replace stakes 4 P4,280.00 P 0.00 - Personal 1
Replace scrap
Holdings
1 P1,500.00 P 0.00 - Personal 1
Sub-total P5,780.00 P 0.00
TOTAL COST P 6, 680.00
Before a typhoon occurs, mussel mariculture operators add binder to tighten the
holdings of the bamboo stakes and buy additional rope to also secure the bindings of the
stakes. These adaptation measures’ total cost is P 780.00 for the binder and rope and P
1,575.00 for the additional labor used.
After a typhoon, the operators buy stakes to replace the damaged ones, repair their
rafts and boats and buy additional binder, rope, and scrap to tighten the holdings of stakes
and rafts. Among these, the adaptation measure that entailed the highest cost is the
buying of the rope at P 8,493.00. In general, the average total cost of adapting to typhoon
is P 27,751.00
92
Table 64. Different adaptation measures applied by the small-scale mussel
mariculture operators in Roxas City for typhoon
Adaptation
measures
Operators
that
applied
this
adaptation
Cost Cost of Additional
Labor
Source Frequency
Before the typhoon
Add binder to
tighten the
holdings
5 P308.00 P1,000.00 5days Personal 1
Tighten the rope
of the stake
Bindings
18 P472.00 P 575.00 3days Personal 1
Sub-total P780.00 P 1, 575.00
After the typhoon
Replace stakes 87 P5,759.00 P1, 500.00 6days Personal 1
Repair raft 1 P1,000.00 P 500.00 3days Personal 1
Repair boat 19 P4,195.00 P 600.00 3days Personal 1
Replace binder 20 P1,000.00 P 0.00 - Personal 1
Replace rope 14 P8,493.00 P 0.00 - Personal 1
Buy scrap 2 P350.00 P 0.00 - Personal 1
Sub-total P20,796.00 P 2, 600.00
TOTAL COST P 27, 751.00
Adaptation Measures of Small-Scale Oyster Mariculture Operators
The oyster mariculture operators applied adaptation measures for all
hydrometeorological events except for drought. They view the impacts of drought to be
less significant compared to the socio-economic impacts brought about by flood, heavy
rainfall and typhoon.
Table 65. Number of oyster mariculture operators that employed different
adaptation strategies
Hydrometeorological event No. of operators that
applied different
adaptation measures
Percentage
Flood 24 31.17
Heavy Rainfall 22 28.57
Typhoon 77 100.00
93
The average cost incurred by the oyster mariculture operators for adapting to
flood is P 22, 981.00. Before a flood occurs, the oyster operators tighten the rope
holdings of their raft and stakes The average cost of these adaptation measures are
P 2,047.00; P 1,417.00 for the materials and P 630.00 for the additional labor.
Meanwhile, the average cost of adapting after a flood has occurred is P 20,678.00
for the materials and P 267.00 for the additional labor. The operators buy bamboo stakes
as replacement and repair rafts and transportation vessels.
Table 66. Different adaptation measures applied by the small-scale oyster
mariculture operators in Roxas City for flood
Adaptation
measures
Operators
that applied
this
adaptation
Cost Cost of
Additional
Labor
Source Frequency
Before the flood
Tighten the rope
holdings of rafts
18 P 283.00 P130.00 1day Personal 1
Tighten the rope
holdings of
stakes
3 P 1, 133.00 P500.00 2days Personal 1
Sub-total P 1, 417.00 P 630.00
After the flood
Replace stakes 3 P 7,667.00 P 267.00 1.5days Personal 1
Repair raft 2 P 10,000.00 P 0.00 - Personal 1
Repair boat 1 P 10,000.00 P 0.00 - Personal 1
Sub-total P 20, 667.00 P 267.00
TOTAL COST P 22, 981.00
94
The adaptation measures employed by the operators for heavy rainfall are usually
done prior to the occurrence of the event. These adaptation measures include adding of
binder to the stake holdings and tightening of the rope holdings for the rafts. Twenty two
(28.57%) operators added binder to the stake holdings while only 15 tightened the
holding of their rafts.
Table 67. Different adaptation measures applied by the small-scale oyster
mariculture operators in Roxas City before heavy rainfall
Adaptation
measures
No. of operators
that applied this
adaptation
Cost Cost of
Additional
Labor
Source Frequency
Add binder to the
stake holdings
22 P 83.00 P 0.00 - Personal 1
Tighten the rope
holdings of the
rafts
15 P 100.00 P 0.00 - Personal 6
TOTAL COST P 183.00
The adaptation measures that were employed by the oyster operators befor a
typhoon are to tighten the rope and binder holding of the stakes and rafts and buying of
additional bamboo stakes. After the occurrence of the hydrometeorological event, the
operators replace the damaged stakes, repair the rafts, boats, and residential houses, and
buy binder, nylon, and rope to tighten the holdings of both the rafts and stakes. The
average cost incurred by the operators for adapting to typhoon is P 35, 243.00.
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Table 68. Different adaptation measures applied by the small-scale oyster
mariculture operators in Roxas City for typhoon
Adaptation
measures
Operators
that applied
this
adaptation
Cost Cost of
Additional Labor
Source Frequency
Before the typhoon
Tighten the rope
holdings of rafts
18 P1, 432.00 P200.00 1day Personal 1
Add stakes 4 P 79.00 P 0.00 - Personal 1
Add binder to the
stake holdings
3 P1,677.00 P 0.00 - Personal 1
Tighten the rope
holdings of stakes
22 P1,152.00 P212.00 1day Personal 1
Sub-total P4,339.00 P 416.00
After the typhoon
Replace stakes 65 P6,205.00 P 108.00 0.5days Personal 1
Repair raft 34 P6,056.00 P 0.00 - Personal 1
Repair boat 34 P5,456.00 P 0.00 - Personal 1
Replace binder 7 P831.00 P 0.00 - Personal 2
Replace rope 3 P5,333.00 P 0.00 - Personal 1
Replace nylon 1 P2,000.00 P 0.00 - Personal 2
Repair
residential house
5 P4,200.00 P300.00 2.5days Personal 1
Sub-total P30,081.00 P 408.00
TOTAL COST P 35, 243.00
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Regression Analysis
A regression analysis was performed in order to determine the factors that
affected the aquaculture operators’ adaptation cost. Specifically, a SEMILOG (log-lin)
functional form was used for the OLS regression data analysis in order to determine the
growth rate of the variable ADCOST (Adaptation Cost). The result of the data analysis is
presented below.
Table 69. Regression analysis showing the factors affecting the adaptation
cost of the small-scale aquaculture operators in Roxas City, Capiz
Coefficient Std. Error t-ratio p-value
Const 7.27156 0.314558 23.1167 <0.00001 ***
Size 0.586782 0.4129 1.4211 0.15705
Milk -1.1643 0.770536 -1.5110 0.13257
Oys 0.0914825 0.179862 0.5086 0.61165
Ffreq -0.254287 0.0781543 -3.2537 0.00137 ***
Rfreq 0.208016 0.0709244 2.9329 0.00380 ***
Tfreq 0.191254 0.166404 1.1493 0.25198
Dfreq 0.0270293 0.234979 0.1150 0.90855
Years 0.0225156 0.00901903 2.4965 0.01346 **
Educ 0.081124 0.0256337 3.1647 0.00183 ***
Revenue 3.34412e-06 1.50352e-06 2.2242 0.02741 **
The results showed that the significant variables were CONST (constant), FFREQ
(frequency of flood), RFREQ (frequency of heavy rainfall), YEARS (years of experience
as an operator), EDUC (years of education), and REVENUE (revenue generated from the
aquaculture farm).
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At 1% level of significance, it was determined that a unit increase in heavy
rainfall will increase the adaptation cost spent by the operators by 21%. The occurrence
of heavy rainfall signifies the forthcoming occurrence of other hydrometeorological
events such as typhoon and flood. With this, operators tend to spend more during heavy
rainfall so as the impacts of other events will be less damaging and destructive.
Furthermore, it was determined that a unit increase in the frequency of flood the
adaptation cost decreases by 25%. As flood may be an after-effect of heavy rainfall,
different adaptation strategies has already been employed by the aquaculture operators,
that is why further adaptation measures for flood are already deemed as insignificant and
not needed.
Moreover at 5% level of significance, it was found out that a one year increase in
the experience as an operator of the respondent will increase the adaptation cost by 2%.
This is because with an increased experience in the aquaculture farming, the operator
tends to become more knowledgeable as to what are the other possible adaptation
measures that they are to employ when adapting to the different hydrometeorological
events.
The regression result also showed that at 1% level of significance, a one year
increase in the education attainment of the operator will also increase the adaptation cost
by 8%. By increasing knowledge through education, the operator is able to determine
what adaptation measures will be most effective in adapting to the different
hydrometeorological events.
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Lastly, at 5% level of significance, a peso increase from the revenue generated
from the aquaculture operation increases the adaptation cost by 3.3-06 %. When the
operators are able to generate more revenue from the aquaculture farm, they then are
capable enough to spend more for their adaptation measures.
The R-squared value of the regression is 0.32401. This indicates that the
regression equation explains 32% of the variation of adaptation cost.
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CHAPTER VI
SUMMARY, CONCLUSION AND RECOMMENDATIONS
Summary
This study focused on the small-scale aquaculture operators of Roxas City,
specifically the milkfish brackish water operators, the mussel mariculture operators, and
the oyster mariculture operators. A total of 187 operators were interviewed; of which, 22
were milkfish farmers, 88 were mussel farmers, and 77 were oyster farmers.
Socio-economic profile showed that in all the types of aquaculture, operators were
mostly male. Most are, likewise, dependent on aquaculture farming for their primary
source of income.
Approximately P 6, 329, 841.95 tax revenues are generated annually by the local
government from the fishpond land taxes. Meanwhile P 20, 280.00 was generated from
the payments of mariculture operators for licenses. Also, a significant amount of
employment opportunities is being generated with more than 1,000 hired laborers
employed by the industry. Brackish water fishpond operators hired the highest number of
laborers as they were able to employ 1,000 workers in 2010, 930 in 2011 and 2012, 1,032
in 2013 and 1,060 in 2014.
Moreover, in the year 2014 the brackish water fishponds were able to produce
5,336.24 metric tons of milkfish, tilapia, shrimps, prawns, crabs, and grouper. Freshwater
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fishponds were able to supply 50 metric tons of tilapia and catfish and mariculture farms
were able to supply 512.50 metric tons of grouper, oyster, and mussel.
In order to determine the benefits acquired by the small-scale aquaculture
operators from the industry, a cost and returns analysis was performed. Calculating for
the revenue and costs, the small-scale aquaculture operators obtained positive gross
profit, financial profit, and economic profit.
Results have shown that the average gross profit of a milkfish brackish water
operator is P 460, 449.00; while the average gross profit of a mussel mariculture operator
is P 53, 984.00 and P 29, 911.00 for an oyster maricuture operator. The average financial
profit of a milkfish brackish water operator is P 367, 701.00, P 7, 134.00 for a mussel
mariculture operator, and P 6, 107.00 for an oyster mariculture operator. Lastly, the
average economic profit for a milkfish brackish water operator, mussel mariculture
operator, and oyster mariculture operator is P 3, 443.00, P 1, 404.00, and P 1,768.00,
respectively.
However, due to the occurrence of different hydrometeorological events in Roxas
City, the small-scale aquaculture operators incurred losses. Between 2008 and 2013, the
city experienced nine hydrometeorological occurrences. Typhoon Yolanda is the most
devastating as it incurred a total loss of P 77,094,600.00 to the fishing industry alone.
Out of the total respondents, flood affected 12 (54.55%) milkfish brackish water
operators, 26 (29.55%) mussel mariculture operators, and six (7.79%) oyster mariculture
operators. Heavy rainfall affected four (18.18%) milkfish brackish water operators, six
(18.18%) mussel mariculture operators, and 30 (38.96%) oyster mariculture operators.
Typhoons affected almost all of the respondents except for one mussel farmer who
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started his aquaculture operation only in 2014. Furthermore, drought affected two
(9.09%) milkfish brackish water operators, two (2.27%) mussel mariculture operators,
and 13 (16.88%) oyster mariculture operators.
The average total cost of socio-economic impacts of the different
hydrometeorological events to the milkfish brackish water operators are P 19,372.00 for
flood, P 15,733.00 for heavy rainfall, P 111,706.00 for typhoon, and P 63, 490.00 for
drought. Mussel mariculture operators incurred a total average damage cost of
P 32, 891.00 for flood, P 154.00 for heavy rainfall, P 39, 138.00 for typhoon, and
P 105.00 for drought. Whereas, the average damage cost incurred by the oyster
mariculture operators is P 24, 681.00 for flood, P 18, 975.00 for heavy rainfall,
P 81, 780.00 for typhoon, and P 4, 815.00 for drought.
In order to adapt to these hydrometeorological events, the local government of
Roxas City provided the aquaculture operators, specifically the mariculture operators,
with trainings and seminars about capability building and skills trainings. However,
provision of such only started in 2011. Also, the local government provided a financial
assistance to the barangays that were affected by Typhoon Yolanda.
On average, milkfish brackish water operators employ two adaptation measures
for flood, one for heavy rainfall, seven for typhoon, and four for drought. Mussel
mariculture operators employ three adaptation measures for flood and eight for typhoon.
Whereas, oyster mariculture operators employ five adaptation measures for flood, two for
heavy rainfall, and 11 for drought. The adaptation measures that were employed for some
hydrometeorological event were practiced before and after the occurrence of the event.
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The total number of milkfish brackish water operators that applied different
adaptation measures is 13 for flood, three for heavy rainfall, 22 for typhoon, and three for
drought. For mussel mariculture farming, six operators and 87 operators employed
different adaptation measures for flood and typhoon, respectively. No adaptation
measures were employed for heavy rainfall and drought. Lastly, in oyster mariculture
farming the number of operators that employed different adaptation measures are 24 for
flood, 22 for heavy rainfall, and 77 for typhoon. In comparison with the mussel
mariculture, no adaptation measures were employed for drought.
The average cost spent by a milkfish brackish water operator on the adaptation
measures for flood is P 4,166.00, P 161.00 for heavy rainfall, P 37, 442.00 for typhoon,
and P 928.00 for drought. A mussel mariculture operator, on average, spends P 6, 680.00
for flood and P 27, 751.00 for typhoon. Meanwhile, oyster mariculture operators obtained
an average adaptation cost of P 22, 981.00 for flood, P 183.00 for heavy rainfall, and P
37,763.00 for drought. Accounted in these adaptation costs are the materials and inputs
that were brought as replacements and additional usage and labor.
Furthermore, results of an Ordinary Least Square regression analysis showed that
the factors that can affect an aquaculture operator’s adaptation cost are the frequency of
flood, frequency of rainfall, years as an aquaculture operator, years of education, and
revenue generated from the aquaculture farming.
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Conclusion
As shown by the data, the aquaculture industry of Roxas City is a profitable venue
for revenue generation. The industry is of big help to the small-scale aquaculture
operators because of the profit that they obtained from the aquaculture farms. The result
indicated that aquaculture farming is highly profitable in the short run as the operators
were able to generate a gross profit of P 460,449.00 for the milkfish operators, P
53,984.00 for the mussel operators, and P 29,911.00 for the oyster operators. The
industry is also profitable in the long run because all the operators were able to generate a
positive economic profit of P 3,443.00, P 1,404.00, and P 1,768.00 for the milkfish,
mussel, and oyster operators, respectively.
Despite the high profitability of aquaculture it is still vulnerable to the different
hydrometeorological events because Roxas City is exposed to the said weather-related
events. In 2008 to 2014, alone, the city experienced nine hydrometeorological events.
The aquaculture farmers, in general, are also exposed to flood, heavy rainfall, typhoon
and drought. Milkfish operators are vulnerable to hydrometeorological events such as
flood and typhoon. More than 50 percent of the milkfish farmers were affected by flood
and all were affected by typhoon. The hydrometeorological events greatly decreased the
harvest of milkfish as the operators incurred a total loss of P 107,217.00 for this impact.
Mussel operators were mostly affected by flood and typhoon. The occurrence of such
events greatly decreased the profit of these small-scale mussel operators as they incurred
a loss of more than P 10,000 for the decrease in harvest, decrease in price of harvested
mussels, and damage on their stakes and rafts. Oyster operators, on the other hand, are
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the most affected among the operators as most of them are highly dependent on
aquaculture farming as their livelihood. The operators are highly vulnerable to heavy
rainfall and typhoon. Damage on transportation vessels and machineries incurred the
highest total loss at P 30,345.00.
Results showed that among the hydrometeorological events, typhoon affected
the aquaculture industry the most. The said event significantly affected and damaged the
farm structures, transportation vessels, tools and equipments and variable inputs of the
aquaculture operators. Heavy rainfall incurred the least cost of damages to the milkfish
brackish water operators. Drought incurred the least cost of damages for both the mussel
and oyster mariculture operators.
Furthermore, it was observed that the local government does not have a
comprehensive adaptation plan for the occurrence of the different hydrometeorological
events. It was not until 2011 that that the government started to provide different
trainings and programs to the small-scale aquaculture operators.
The adaptation measures employed were mostly reactive as most of these were
applied after the occurrence of a hydrometeorological event. All of the operators spent a
significant monetary amount on employing different adaptation measures for typhoon as
this hydrometeorological event, as stated before hand, inflicted the aquaculture farms the
most.
Despite being affected by flood, heavy rainfall, typhoon, and drought, several
aquaculture operators do not employ adaptation measures to some hydrometeorological
event. One possible reason for this is that some operators, specifically mussel and oyster
mariculture farmers, perceived that some of the socio-economic impacts of the events are
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not highly damaging to their aquaculture farms. Since these farmers are operating a
small-scale farm it will not be rational for them to spend a significant amount of money
to the employment of adaptation strategies.
The study showed that with an increase in education and years as an operator, the
adaption cost also increases. This is because with an additional knowledge regarding the
different adaptation techniques the operators are likely to seek better and more effective
adaptation measures; thus, incurring a higher cost. Also with an increase in revenue
generated from the aquaculture operation, the adaptation cost also increases since the
operators are more capable in spending higher monetary amount in employing different
adaptation measures.
Lastly, increase in the frequency of heavy rainfall increases the adaptation cost as
this is an indication of forthcoming hydrometeorological events such as typhoon and
flood. In this regard, the operators tend to spend more on the employment of adaptation
strategies for heavy rainfall.
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Recommendations
Since the aquaculture industry is a good source of revenue to the local
government and is an effective livelihood source to the small-scale fish operators, the
local government should develop the industry by promoting the aquaculture products
during different tourism-related activities.
The local government offices should also keep a comprehensive damage
assessment reports following the occurrence of a hydrometeorological event as to
determine the extent of the vulnerability of the city and the small-scale aquaculture
operators.
Moreover, it is recommended that the aquaculture operators should not solely
depend on aquaculture farming as their primary source of livelihood but also venture on
other alternative livelihoods that are climate-resilient as the results showed that they
incurred significant losses from the hydrometeorological events.
However, as with the improvement of the aquaculture industry, the government
should also increase the adaptation strategies that they employ and provide the
aquaculture farmers with. It should increase its provision of trainings regarding capability
enhancement in coping up with the occurrence of weather-related occurrences. In line
with this, the local government should not only limit the provision of trainings and
seminars to the mariculture operators but also to the fishpond operators. Even though
they are capable enough to spend a significant amount of money in the employment of
their adaptation strategies they should also be educated as to what are the proper and
effective adaptation techniques.
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Lastly, as with the employment of sustainable adaptation measures, the
government should employ projects that will enable the operators to integrate different
climate change adaptation techniques to their aquaculture farming so as their costs for
employment of the adaptation measures to the hydrometeorological events will be lesser.
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