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Are Fish Markets in Central Malawi Profitable and Efficient? Performance of Diploxatodon spp. (Ndunduma) Markets in Salima and Lilongwe Districts

Author

Listed:
  • Wedson Phiri

    (Department of Agribusiness Management, Lilongwe University of Agriculture & Natural Resources (LUANAR), Lilongwe P.O. Box 219, Malawi)

  • Moses Limuwa

    (Aquaculture & Fisheries Science Department, Lilongwe University of Agriculture & Natural Resources (LUANAR), Lilongwe P.O. Box 219, Malawi)

  • Joseph Dzanja

    (Department of Agribusiness Management, Lilongwe University of Agriculture & Natural Resources (LUANAR), Lilongwe P.O. Box 219, Malawi)

Abstract

The production of underexploited small fish species has surpassed that of bigger and more valuable species, such as Oreochromis species . However, profitability and efficiency of the key players in the marketing chain and system associated with these small fish species are yet to be understood. Therefore, this article aims to analyze the profitability and efficiency of Diplotaxodon spp. (an example of a small fish species) fish marketing systems in Malawi. The analysis was based on data collected in 2019 through field surveys from 265 respondents, which included fishers, processors, wholesalers, and retailers. Gross margin, return on capital employed (ROCE), and the Acharya and Agarwal’s market efficiency index were used in our empirical strategy. The results reveal that Diplotaxodon spp. trading was profitable to all actors. Firm-level efficiency showed that all actors used their capital efficiently, except for fishers, who had lowest return on capital employed, while retailers had the highest return on capital employed. All marketing channels identified were inefficient, due to high marketing margins and low fisher’s share of the consumer price, attributed to high transportation cost. The study concludes that, unless efforts are taken to improve efficiency of Ndunduma marketing system, through improving marketing margins and fisher’s share of consumer price, Diplotaxodon spp. will continue to be under-exploited, thereby sustaining or exacerbating the fish supply gap.

Suggested Citation

  • Wedson Phiri & Moses Limuwa & Joseph Dzanja, 2022. "Are Fish Markets in Central Malawi Profitable and Efficient? Performance of Diploxatodon spp. (Ndunduma) Markets in Salima and Lilongwe Districts," Businesses, MDPI, vol. 2(2), pages 1-13, May.
    • Handle: RePEc:gam:jbusin:v:2:y:2022:i:2:p:14-213:d:814551
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    References listed on IDEAS

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    1. Chiwaula, L. & Jamu, D. & Chaweza, R. & Nagoli, J., 2012. "The Structure and margins of the Lake Chilwa fisheries in Malawi: a value chain analysis," Monographs, The WorldFish Center, number 39912, April.
    2. Torell, Elin C. & Jamu, Daniel M. & Kanyerere, Geoffrey Z. & Chiwaula, Levison & Nagoli, Joseph & Kambewa, Patrick & Brooks, Alan & Freeman, Peter, 2020. "Assessing the economic impacts of post-harvest fisheries losses in Malawi," World Development Perspectives, Elsevier, vol. 19(C).
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