Investor Presentaiton
Percentage
45
40
35
30
ROD50
Poor Transport Network
Insufficient Storage...
Inadequate Fund
Constraints
High Cost of...
IIFET 2012 Tanzania Proceedings
Series1
Figure 3: Constraints facing artisanal fish marketers
Profitability Analysis
Table VII presents profitability analysis with respect to Gross Margin and Net Returns of the
respondents. The variable costs include cost of purchase, cost of transportation, labour cost and
other operating expenses, while fixed costs covered cost of implements and interest on loan. The
results showed that the mean revenue of the fish sellers was N175296274.4, while the mean total
variable cost was № 98424781. Also, the average fixed cost and average total cost were
#3468564.70 and N101893345.7 respectively. The gross margin per kg realized by the artisanal
fish marketers was N143.58, while average net-return of the fish marketers in the study area per
kg was 137.10. This implies that artisanal fish marketing in the study area is profitable.
Therefore, people are advised to go into this business so as to make a living.
Table VII: Profitability Analysis of the Respondents
Variables
Value
Quantity of fish sold (kg)
535397
Cost of Purchase
(N)
88418161
Cost of transportation (N)
4780430
Wages (N)
Other operating expenses()
Total variable costs()
Fixed costs (N)
3829625
1396565
98424781
3468564.70
Total costs (N)
101893345.7
Total revenue (N)
175296274.4
Gross margin()
76871493.4
Net profit
(N)
73402928.7
Marketing margin(N)
86878113.4
Gross margin/kg
143.58
Net profit/kg
137.10
Marketing margin/kg
162.27
From Oparinde and Ojo (2011)
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