Economic Analysis of Nile Tilapia (<i>Oreochromis niloticus</i>) Production in Tanzania

Abstract

Abstract In Tanzania, Nile tilapia culture is a promising aquaculture enterprise. Information on production costs could assist fish farmers in economic and financial planning. Economic profitability of small‐scale Nile tilapia production in Tanzania is analyzed using a model that simulates individual fish growth and takes into account fish population dynamics in the pond. The results suggest that the current practiced mixed‐sex tilapia culture without predation is not economically sustainable. Extension efforts should be geared toward developing a Nile tilapia production system that is based on a hand‐sexed all‐male tilapia. Meanwhile catfish can be introduced in ponds to control overcrowding in mixed‐sex tilapia culture without predation. Studies to determine optimal pond sizes, availability of feed, and a quality fingerling supply chain are also fundamental for developing a sustainable Nile tilapia production system in Tanzania. Under improved Nile tilapia production systems, returns are high enough to justify investment through borrowed capital from formal institutions.