Are Fish Markets in Central Malawi Profitable and Efficient? Performance of Diploxatodon spp. (Ndunduma) Markets in Salima and Lilongwe Districts
Abstract
:1. Introduction
1.1. Fisheries Industry in Malawi
1.2. Diplotaxodon spp. (Ndunduma) Production in Malawi
2. Materials and Methods
2.1. Market Performance
2.2. Study Areas, Sampling and Data Collection
3. Results and Discussion
3.1. Profitability among Ndunduma Fishers in Salima
3.2. Profitability among Ndunduma Processors in Salima
3.3. Profitability among Ndunduma Retailers in Salima
3.4. Profitability of Ndunduma Markets among Wholesalers in Lilongwe
3.5. Profitability of Ndunduma Markets among Retailers in Lilongwe
3.6. Return on Capital Employed for Fishers, Processors, Wholesalers, and Retailers in Salima and Lilongwe
3.7. Ndunduma Marketing Channels in Salima and Lilongwe
4. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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Value (MWK) | Percentage of Sales | |
---|---|---|
Total monthly revenue | 10,945,585.16 | 100 |
Cost | ||
Boat and fishing gear hiring | 2,736,396.29 | 25 |
Fuel | 795,581.37 | 7.27 |
Battery charging | 17,842.11 | 0.16 |
Labour | 3,830,954.81 | 35 |
Fees and license | 3333.33 | 0.03 |
Profit margin | 3,561,477.26 | |
Net profit margin | 0.36 |
Processor | % of Sales | Retailer (Fresh) | % of Sales | Retailer (Semi-Fried) | % of Sales | |
---|---|---|---|---|---|---|
(MWK’000) | (MWK’000) | (MWK’000) | ||||
Revenue | 373.56 | 63.14 | 36.28 | |||
Costs | ||||||
Fish purchase cost | 186.28 | 50 | 30.92 | 48.97 | 22.61 | 62.32 |
Personal expenses | 2.32 | 1 | 1.55 | 0.5 | 0.57 | 1.57 |
Cooking oil | 33.92 | 9 | - | - | - | - |
Labour | 8.98 | 2 | 1.16 | 2 | - | - |
Firewood | 7.25 | 2 | - | - | - | - |
Market fee | 0.13 | 0.03 | 0.13 | 0.2 | 0.10 | 0.28 |
Transport | 30.67 | 8 | 1.38 | 4 | 0.63 | 1.74 |
Rent | 4.57 | 1 | 0.11 | 0.17 | 0.23 | 0.63 |
Fish damage or spoilage | - | - | 0.27 | 0.43 | 0.027 | 0.1 |
Storage cost | - | - | 0.18 | 0.29 | - | - |
Processing cost | - | - | - | - | 0.44 | 1.21 |
Ice cost | - | - | 1.18 | 1.87 | - | - |
Handling cost | - | - | - | - | 0.39 | 1.07 |
Packaging cost | - | - | 0.62 | 0.98 | 0.35 | 0.96 |
Net income | 97.13 | - | 24.1 | - | 11.07 | - |
Net profit margin | 26 | - | 38 | - | 31 | - |
Wholesaler (Fresh) | Wholesaler (Semi-Fried) | Retailer (Fresh) | Retailer (Semi-Fried) | |||||
---|---|---|---|---|---|---|---|---|
(MWK’000) | % of Sales | (MWK’000) | % of Sales | (MWK’000) | % of Sales | (MWK’000) | % of Sales | |
Revenue | 249.38 | 299.94 | 64.67 | 47.22 | ||||
Costs | ||||||||
Fish purchase cost | 123.73 | 49.62 | 174.66 | 58.23 | 42.75 | 66.11 | 34.96 | 74.04 |
Personal expenses | 4.64 | 2 | 1.63 | 0.5 | 1.02 | 1.58 | 0.70 | 1.48 |
Labour | 6.32 | 3 | 1.76 | 0.5 | 0.25 | 0.39 | - | - |
Market fee | 0.12 | 0.05 | 0.1 | 0.03 | 0.16 | 0.25 | 0.13 | 0.28 |
Transport | 45.56 | 18 | 22 | 7 | 1.38 | 2 | 1.01 | 2.14 |
Rent | - | - | 5.9 | 2 | 0.30 | 0.46 | 0.33 | 0.7 |
Fish damage or spoilage | 0.24 | 0.1 | 1.84 | 0.6 | 0.54 | 0.84 | 0.19 | 0.4 |
Storage cost | - | - | 0.69 | 0.23 | 0.30 | 0.46 | 0.035 | 0.07 |
Processing cost | - | - | 14.81 | 5 | - | - | - | - |
Ice cost | 8.23 | 3 | - | - | 1.04 | 1.61 | - | - |
Handling cost | - | - | - | - | 0.69 | 1.07 | 0.02 | 0.04 |
Packaging cost | - | - | - | - | 0.67 | 1.04 | 0.35 | 0.74 |
Net income | 63.22 | - | 77.85 | - | 15.94 | - | 12.19 | - |
Net profit margin | 25 | - | 26 | - | 24.65 | - | 24.77 | - |
MARKET ACTOR | STATISTIC | ||
---|---|---|---|
Mean (MWK) | Minimum (MWK) | Maximum (MWK) | |
FISHER (SA) | |||
Capital invested | 3,785,263.16 | 100,000 | 7,000,000 |
Net profit margin | 3,561,477.26 | ||
ROCE | 93.4% | ||
PROCESSOR (SA) | |||
Capital invested | 227,063.49 | 25,000 | 400,000 |
Net profit margin | 971, 328.45 | ||
ROCE | 427.78% | ||
RETAILER, FRESH (SA) | |||
Capital invested | 42,857.14 | 20,000 | 60,000 |
Net profit margin | 240,970.26 | ||
ROCE | 562.26% | ||
RETAILER, SEMI-FRIED (SA) | |||
Capital invested | 24,117.65 | 10,000 | 50,000 |
Net profit margin | 110,657.17 | ||
ROCE | 458.82% | ||
WHOLESALER, FRESH (LL) | |||
Capital invested | 208,750 | 50,000 | 500,000 |
Net profit margin | 632,228.4 | ||
ROCE | 302.86% | ||
WHOLESALER, SEMI-FRIED (LL) | |||
Capital invested | 290,625 | 100,000 | 500,000 |
Net profit margin | 778,499.6 | ||
ROCE | 267,87% | ||
RETAILER, FRESH (LL) | |||
Capital invested | 36,166.67 | 15,000 | 80,000 |
Net profit margin | 159,407.92 | ||
ROCE | 440.76% | ||
RETAILER, SEMI-FRIED (LL) | |||
Capital invested | 34,117.65 | 10,000 | 30,000 |
Net profit margin | 121,914.07 | ||
ROCE | 357.33% |
Channel 1 | Channel 2 | Channel 3 | Channel 4 | |||
---|---|---|---|---|---|---|
SA | LL | LL | SA | LL | LL | |
Fisher | ||||||
Beach price | 213.77 | 213.77 | 213.77 | 213.77 | 213.77 | 213.77 |
Selling price | - | 427.08 | - | - | - | - |
Marketing cost | - | 72.23 | - | - | - | - |
Net margin | - | 141.08 | - | - | - | - |
Marketing margin | - | 213.31 | - | - | - | - |
Processor | - | |||||
Buying price | - | - | - | 213.77 | 213.7 | 213.77 |
Selling price | - | - | - | 417.65 | 493.75 | 350 |
Marketing costs | - | - | - | 61.58 | 109.36 | 61.58 |
Net margin | - | - | - | 142.3 | 170.45 | 83.13 |
Marketing margin | - | - | - | 203.88 | 279.98 | 136.23 |
Wholesaler | ||||||
Buying price | - | - | 213.77 | - | - | 350 |
Selling price | - | - | 427.08 | - | - | 493.75 |
Marketing costs | - | - | 72.23 | - | - | 81.79 |
Net margin | - | - | 141.08 | - | - | 62.84 |
Marketing margin | - | - | 213.31 | - | - | 143.63 |
Retailer | ||||||
Buying price | 213.77 | 427.08 | 494.42 | 417.65 | 550.2 | 550.2 |
Selling price | 464.58 | 746.67 | 746.67 | 647.06 | 774.26 | 774.26 |
Marketing costs | 41.62 | 69.66 | 60.93 | 45.64 | 47.35 | 47.35 |
Net margin | 209.19 | 182.43 | 178.72 | 181.61 | 176.71 | 176.71 |
Marketing margin | 250.81 | 532.9 | 252.25 | 229.41 | 224.06 | 224.06 |
Total marketing cost | 41.62 | 141.89 | 133.16 | 107.22 | 109.36 | 108.93 |
Total gross marketing margin | 250.81 | 532.9 | 532.9 | 433.29 | 560.49 | 560.49 |
Fisher’s share (%) | 46 | 47.5 | 28.6 | 33 | 27.6 | 27.6 |
Marketing efficient index | 0.73 | 0.32 | 0.32 | 0.40 | 0.32 | 0.32 |
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Phiri, W.; Limuwa, M.; Dzanja, J. Are Fish Markets in Central Malawi Profitable and Efficient? Performance of Diploxatodon spp. (Ndunduma) Markets in Salima and Lilongwe Districts. Businesses 2022, 2, 201-213. https://doi.org/10.3390/businesses2020014
Phiri W, Limuwa M, Dzanja J. Are Fish Markets in Central Malawi Profitable and Efficient? Performance of Diploxatodon spp. (Ndunduma) Markets in Salima and Lilongwe Districts. Businesses. 2022; 2(2):201-213. https://doi.org/10.3390/businesses2020014
Chicago/Turabian StylePhiri, Wedson, Moses Limuwa, and Joseph Dzanja. 2022. "Are Fish Markets in Central Malawi Profitable and Efficient? Performance of Diploxatodon spp. (Ndunduma) Markets in Salima and Lilongwe Districts" Businesses 2, no. 2: 201-213. https://doi.org/10.3390/businesses2020014