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Preliminary analysis of the performance of the fry industry of the milkfish (Chanos chanos Forskal) in the Philippines
Aquaculture, 14 (1978) 199-219 o Elsevier Scientific Publishing Company, Amsterdam - Printed in The Netherlands
199
PRELIMINARY ANALYSIS OF THE PERFORMANCE OF THE FRY INDUSTRY OF THE MILKFISH (CHANOS CHANOS FORSKAL) IN THE PHILIPPINES
I.R. SMITH*, F.C. CAS, B.P. GIBE and L.M. ROMILLO SEAFDEC-PCARR, Aquaculture Research Program, Los Banos, Laguna (Philippines) *Dept. of Agricultural and Resource Economics, University of Hawaii, and Grantee, East- West Center Resource Systems Institute, Honolulu, Hawaii (U.S.A.) (Received 21 March 1978)
ABSTRACT Smith, I.R., Cas, F.C., Gibe, B.P. and Romillo, L.M., 1978. Preliminary analysis of the performance of the fry industry of the milkfish (Chanos chanos Forskal) in the Philippines. Aquaculture, 14: 199 --219. The fry industry of the milkfish (Chanos chanos Forskal) in the Philippines is alleged to suffer from certain inefficiencies, principal among which are an annual shortage to meet the stock requirements of the 176 000 ha of fishponds in the country, and the failure of the pricing system to direct and allocate the fry resources geographically. Contrary to these and other allegations, this paper presents a preliminary analysis that indicates a higher level of performance for the industry than hitherto supposed. Specifically, fry catch is estimated to be 1.35 billion, sufficiently high to meet present stocking requirements; less than 3% of trade flows between regions overlap; and monthly average fry prices between trading regions are significantly correlated, indicating the system responds to supply and demand changes and other stimuli. INTRODUCTION
Producers of milkfish (Charzos chanos Forskal) throughout Southeast Asia rely on the natural fry fishery for their ponds, since the milkfish does not reach sexual maturity or breed in confinement. It is widely assumed that a shortage of milkfish fry exists, constraining development and production from brackish-water ponds in Taiwan, the Philippines, and Indonesia. Annual fry catch levels are estimated to be up to 60% below annual stocking requirements. The alleged shortage of fry from the natural fishery provides the rationale for various government programs in all three countries, one of the most ambitious and far-reaching of which is the attempt to induce spawning of the milkfish under controlled conditions. Individual governments have also taken measures to control the supply and distribution of the fry. For example, the Philippine government now bans the export of fry and, in an effort to answer complaints of sectoral fry shortages, also places restrictions on free trade of
200
milkfish fry within the country. In short, the issue of fry shortage has important implications for the milkfish industry throughout the Southeast Asian region. The issue is also extremely provocative in that the assumptions of shortage are highly subjective, based more upon conjecture than carefully gathered catch data. With the exception of Taiwan, which has been gathering the statistics for decades, catch data are virtually non-existent. Occasional annual estimates have been made in Indonesia and in the Philippines, but the reliability of these estimates is suspect due to the industry’s admitted unwillingness to share business information with government researchers whom they fear will use it for tax purposes. Deanon et al. (1974) estimated the 1973 Philippine fry catch at 466 million, but admitted it was an understatement for the above reason. On the other hand, there is a tendency to overestimate Philippine and Indonesian stocking requirements where primarily extensive methods, rather than the intensive methods of Taiwan, yield lower average annual productivities of 580 kg/ha (Librero et al., 1977) and 358 kg/ha (Poernomo, 1974), respectively. Any real fry shortage in the Philippines is therefore obscured by an underestimation of existing fry catch and overestimation of stocking requirements. In addition to fry shortage, the fry distribution system in the Philippines is alleged to suffer from several other inefficiencies and imperfections. For example, (1) mortality rates in storage and transport prior to pond stocking are alleged to be high; transport over long distances in the Philippines is assumed to weaken fry so that nursery and rearing pond mortality rates are higher than those experienced in Taiwan. (2) Pond operators maintain that prices of fry (12-16 mm) and of fingerling (5-10 cm) are manipulated by fry dealers and by nursery pond operators who specialize in raising fry to fingerling size primarily for sale to fishpen operators in Laguna de Bay near Manila. Further, (3) pond operators in some fry ground areas claim to be excluded from sources of supply because of financing agreements between local dealers and Manila area pond operators. Finally, (4) it is alleged that the fry distribution system is price inefficient; that is, prices do not respond to supply and demand changes and other stimuli throughout the various regions in the country where fry are caught and where fishponds are located, thus causing regional shortages and surpluses which are not resolved by the marketing and distribution system. These allegations provide the rationale for government policies ranging from conservation measures to protect against possible overfishing to price controls and subsidy programs for fishponds of less than 10 ha. There is little factual evidence to support or contradict any of these allegations of shortages and other imperfections. Policy planning, nevertheless, is taking place without adequate knowledge of the structure and performance of the present fry gathering and distribution system, and consequently there is a danger of misdirected and restrictive regulations. Even if these imperfections exist in the nature and extent alleged, it remains to be seen if present
201
policies ameliorate or exacerbate these conditions. Reliable fry catch data for the Philippines are extremely difficult to collect. Fry grounds, as indicated in Fig.1, are spread all over the country. Two recent developments, however, have increased the availability of more reliable statistics. (1) In 1975 a joint project of the Southeast Asian Fisheries Development Center (SEAFDEC) and the Philippine Council for Agriculture and Resources Research (PCARR) collected primary data from fry gatherers, middlemen, and pond operators throughout the country. The data (Librero et al., 1976a, b, 1977; Nicolas et al., 1976) allowed, among other things, an estimation of fry stocked in Philippine fishponds in 1974. (2) A regulation requiring auxiliary invoices for inter-regional shipment of fry was instituted in 1974, and the monthly records have provided a better source of data. Inter-regional trade refers, in this case, to shipments between the various regions of the Philippines, and not to shipments between countries within the Southeast Asian area. As further data on technical or pricing efficiencies and evidence of exploitation in the fry marketing system were not available (although the SEAFDECPCARR data provided some insights), a preliminary analysis of the marketing and distribution of milkfish fry in the Philippines was planned, which would complement the SEAFDEC and PCARR project. Major objectives of the study were; (1) to estimate the annual catch of milkfish fry using the two sources of data described above; (2) to describe marketing channels, costs, and the socio-economic relationships between fry gatherers, middlemen, and rearing pond and fishpen operators; (3) to analyse the performance of the fry distribution system; and (4) to assess the effects of government regulations, particularly those restricting free fry gathering and distribution, on the structure, and performance of the milkfish industry. The results of the study are described in this paper. A field survey was initiated in March 1977, to follow milkfish fry from fry grounds through the marketing chain of concessionaires, dealers, agents, brokers, and nursery pond operators to rearing pond and fishpen operators. Fortyseven fry grounds in Southern Mindanao, Northern Mindanao, Western Visayas, Bicol, Southern Tagalog, and 110~0swere selected as beginning points due to their recurring high productivity levels. Financial constraints and peace and order conditions made selection of representative fry grounds from all twelve regions impractical. The field survey was completed in August 1977, with the 264 respondents distributed as shown in Table I. In addition to primary data collected from respondents, the survey team visited regional and district offices of the Bureau of Fisheries and Aquatic Resources (BFAR) to collect data recorded on permits and auxiliary invoices issued for inter-regional shipments of milkfish fry. This information, supplemented and adjusted by interview responses, was used to compile a picture of inter-regional trade for 1976. As the resolution of the alleged imperfections was the underlying task of the .present study, this paper reviews the initial findings regarding inter-regional
w 5 0
II .
0
D
a
-
n
203
TABLE
I
Geographical Region
distribution
of sample
Fry gatherers
Concessionaires
Dealers
Luzon Visayas Mindanao
19 19 12
18 8 10
11 16 6
Total
50
36
33
Nursery pond operators
Rearing pond operators
27 2 -
41 22 17 86
29 ____..~_____
Fish
Total
Number offry grounds
-
152 67 45
25 13 9
30
264
47
pen operatow 30
trade flows, the relationships between average monthly fry prices in the major market areas, and a projection of the 1974 and 1976 fry catch. The paper documents for the first time the national scale and regional inter-relationships of the fry industry, and shows the dominant role played by nursery pond operators in the provinces of Bulacan and Rizal. The extent of overlapping trade-flows between regions, the degree of correlation between trading region prices, and adequacy of fry catch serve as criteria for evaluating the performance of the fry industry. THE
FRY
INDUSTRY
DESCRIBED
Milkfish fry are caught by the million from coastal areas and transferred to brackish-water ponds throughout the country. The Philippines has a total of approximately 176 000 ha of fishponds. The major pond areas are in the provinces of Iloilo (17 373 ha), Quezon (16 390 ha), Zamboanga de1 Sur (16 279 ha), Bulacan (16 173 ha), Capiz (11 240 ha), Negros Occidental (10 621 ha), Pangasinan (9 544 ha), and Pampanga (9 209 ha) (BFAR, 1976). High annual productivities of more than 800 kg/ha are achieved in Pangasinan, Bataan, Pampanga, Bulacan, Rizal, and Iloilo provinces (Ohshima, 1973). None of these more productive provinces has major fry grounds, hence fry must be imported from other areas in the country. Fig.1 indicates the locations of fry grounds and of fishponds throughout the country, and the national need for inter-regional transfer of fry. The milkfish fry of the Philippines are essentially a common property resource, but the government has provided use rights by giving coastal municipalities the power to grant exclusive fishing rights in municipal water through a public bidding process for the fry concession. Income from the concession goes directly to the municipality. This can be as high as 48% of the annual municipal income, as in Hamtik, Antique. Because of the high value of a concession compared with other components of the municipal income, the vast majority of fry grounds in the country are operated and managed under this system. Except in a few “free zones”, all fry gatherers are obligated to sell
204
their catch to the concessionaires who have monopsony rights in their respective areas. However, smuggling by fry gatherers is prevalent in some areas, especially in the south, as gatherers circumvent the concessionaires to supply fishpond operators directly and to increase the price they receive for their catch. Concessionaires are free to dispose of their fry as they please provided they comply with the government permits and auxiliary invoices for interregional shipment of fry. Milkfish are known by numerous names in the Philippines depending upon their stage of growth. Table II gives the names of fry, fingerling, marketable and adult milkfish. For this study only the “kawag” were important as this is the stage at which they are collected and transported in large numbers. TABLE II Stages of
development of milkfish (Chanos chanos Forskal)
Name English
Filipino
Fry
Kawag-kawag or semilya
Fingerling Marketable Adult
Hatirin Bangos Sabalo
Length (cm)
1.2-1.6 5-10 25-35 up to 100
Weight (g)
Age
- 0.08
3-14
days
1.2-5 200-400 up to 20 000
3-6 3-9 5-6
weeks months years
METHODS OF TRANSPORT
Although a small quantity of fry are transported inter-regionally by sea and overland, the vast majority are transported by air. Over short distances the fry are carried by hand in buckets or clay pots called “palayok”. For lengthy inter-regional transportation, the fry are packed in oxygenated water in plastic bags, measuring 50 cm wide, 83 cm long, and 0.0075 cm thick. Using double bags as a precaution against inadvertant rupture and leaks, the fry are then packed inside a ‘bayong’ or bag of woven palm leaves for transportation by surface, or Styrofoam boxes for transportation by air. The capacity of each bag is 4000-6000 fry, depending upon the time to be spent in transit. Twenty four hours without reoxygenation is the maximum period without risking total mortality. Timing is important and unscheduled delays, diverted flights, or off-loadings present serious problems to shippers. Close cooperation between shippers, commission men and consignees is essential, and telegraphic communications are used extensively. Large shipments of more than 500 000 pieces are often accompanied by the shipper himself or consignee’s agent to ensure the delivery. Inter-regional fry shipments within Luzon are primarily handled overland.
205
Jeeps, with a capacity of 100 woven pandan bags (500 000 fry), can be hired on a daily basis to transport fry. While the government requirements for auxiliary invoices are more readily enforceable for air shipments around the country, shipments overland in Luzon are more difficult to regulate. Several provinces have as yet no district collecting officers or mechanisms for collecting the 0.25 pesos (P)’ per 3000 fry auxiliary invoice fee, and it is relatively easy for shippers to avoid the government checkpoints because of the many overland routes open to them. CHOICE
OF MARKETING
OUTLETS
Sellers are theoretically free to exploit market opportunities based on prevailing prices throughout the country. However, four major factors - perishability, mistrust, financial obligations, and BFAR permits - limit the extent to which this is possible or desirable. Mortality of fry is a continuous threat to the concessionaires. Fry fed with the yolk of hard boiled eggs can be maintained by concessionaires with minimal loss only for periods up to two weeks, at the end of which they need the natural feeds only obtainable in the fishponds. Increasing mortality of the fry restricts the opportunities for the concessionaire to sell selectively, and the stock is sold to the first available buyer regardless of price. The lack of a method to count large numbers of fry accurately creates mistrust between buyers and sellers at all levels in the marketing channels. The small transparent fry or “kawag” are counted individually by the fry gatherers but this is impractical as the numbers accumulate. The belief in the opportunistic behavior of others leads to marketing decisions greatly influenced by the degree of trust between buyer and seller. This is particularly true for unaccompanied shipments by air. The seller must accept the word of the buyer regarding mortality in transit, and the actual number delivered. Partnerships or associations with relatives alleviate some risks of marketing. Financing is a third limiting factor of marketing. Buyers, particularly nursery pond operators in Bulacan and Rizal, use cash advances and partnerships to ensure continuous deliveries of fry and receive priority from sellers. Financing is required by concessionaires who pay their concession fee early in the fry season. These financing arrangements, though mutually beneficial to buyers and sellers, narrow the choice of marketing outlets. Finally, pond operators are required to secure permits for inter-regional transport of fry based on the capacity of their ponds. On the recommendation of the regional BFAR office in which the ponds of the operator are located, a transport permit is issued to him by the regional BFAR office from which the fry are sought. Pond operators, or their designated representatives, must therefore know the regions of potential supply when applying for their transport permit. Applying to more than one region for permits, while in’ US $1.00
= P7.32
during the period
of the study.
206
creasing the assurance of fry for the buyer, reduces the total he can import from any one region as his allocation is fixed. Transport permits are issued for a period of 30 days only, and renewals sought if the allocation is used or the permit expires. Under this regulation fry shippers are no longer free to transport fry without a permittee to receive the shipment at the other end, and against whose permit allocation the auxiliary invoice issued for individual shipments can be credited. Since only the larger rearing and nursery pond operators have the necessary contacts and finances to obtain and process permits, the net effect of this regulation has been to reduce the potential outlets available to sellers who wish to make inter-regional sales, and to make it more difficult for the smaller pond operators to secure fry. Since permits prohibit resale of fry, smaller nursery and rearing pond operators have found potential fry sources more limited. If it were not for the illegal resale of fry by permittees, and the smuggling of fry by shippers without permits or auxiliary invoices, it would be impossible for small pond operators to secure fry except from local sources. These may or may not be adequate. Permit processes have thus reduced and inhibited the extent of free market flow of fry. 1976 INTER-REGIONAL
TRADE
FLOWS
Fig.2 indicates the 15 trading regions selected in the study to represent inter-regional fry trade. These trading regions are an arbitrary regrouping of provinces for the purposes of this study and are not to be confused with the 12 government administrative regions of the Philippines. The provinces of Bulacan and Rizal, originally included in Central Luzon and Southern Tagalog regions, respectively, have been combined into a single trading region, and the islands of Palawan and Mindoro established as separate trading regions. The Bulacan/Rizal grouping was necessary as the auxiliary invoice records recorded Manila as the destination, rather than the actual destinations in Bulacan or Rizal provinces. Accurate data of inter-regional trade are difficult to assemble. The auxiliary invoice records include shippers’ intended understatements or unintentional underestimates. There are also known shipments without invoices, which is a form of fry smuggling distinct from that of the fry gatherer who deals with a non-concessionaire, and other direct and indirect factors which influence the compilation of statistical data. With regard to intentional understatements, it appears to be universal practice among shippers to declare less fry than packed. Shippers do this to avoid early renewal of the permit against which the auxiliary invoice is credited, and to hide the true volume of their business. Based on the admissions of respondents and random sampling of shipments during the survey, auxiliary invoice records were multiplied by 196% for all shipments to Bulacan and Rizal; 152% for all other shipments from Mindanao; 145% for all other shipments from Visayas; 102% for all other shipments from Bicol; and 200% for all shipments from Cagayan Valley. It is believed that these adjustment factors, especially
207
BI,I>A;ITRAL
TAGALOG
‘WHERN
-
r Fig.2.
yINDANA
1 Milkfish
fry trading regions,
1976.
in the case of Bicol, give a conservative estimate of the degree of underestimation. The lack of auxiliary invoice records in some regions, and of shipments made without the necessary papers, complicated the study and had to be resolved region by region, using information gathered from respondents, government officials and private individuals. In addition, it was necessary to adjust by 24% all fry imports to Bulacan and Rizal permittees which were then resold illegally to other pond operators. The survey found that about 28% of these resales were re-exported to Central Luzon and Southern Tagalog regions. Discounting the re-exports from Bulacan and Rizal to other trading regions, it was estimated that the total number of fry moving in inter-regional trade in 1976 was 745 029 900 pieces: the first quarter of the year accounted for 79 682 600 (10.7%); the second quarter for 492 144 300 (66.1%); the third quarter for 111306 300 (14.9%); and the fourth quarter for 61896 700 (8.3%). These inter-regional trade flows are summarized in Table III and shown graphically in Figs 3-6.
208
TABLE III Inter-regional fry trade: 1976 (complete year) Region
Receiving regions
-
nocos
-
Cagayan Valley Central Luzon Rizai & Bulacan South Tagalog Mindoro Palawan Bicol Western Visayas Central Visayas Eastern Visayas Western Mindanao Northern Mindanao Southern Mindanao Central Mindanao
1722.0 5000.0 -
Import sub-totals
6967.5
Percentage includina m-exports
*Reexports
-
(importsin
Cagayan Vailey
Ilocos
245.5
0.88
-
Central Luzon
1 363.2 -
Rizai & Bulacan
26 647.8 438.0 -
South Tagalog
-
Mindoro
-
Palawan
-
Bicol
-
7 082.4 -
6 924.0 14975.2 12 545.1 1 584.4 89 562.2 29 835.9 342.4 43440.5 1 934.9 302 486.4 117439.8
1.187.3* 497.4 14 946.0 133.0 860.8 -
-
768.0 -
-
51 472.3
648 166.6
16 994.1
630.4
-
768.0
-
6.52
2.16
0.08
-
0.10
-
43 026.7* -
thousands)
82.12
by permittees in Bulacan and R&al. Total trade less re-exports = 745 029.9
A number of relevant observations can be made on these results. First, the island of Mindanao, and Southern Mindanao region in particular, is the major fry exporter (62.3%), and the Bulacan and Rizal region of Luzon is the major importer (82.1%). This in part reflects the fact that Southern Mindanao, with only 4516 ha of fishponds, is a fry surplus area and that Bulacan and Rizal, with no fry catch and 18 095 ha of fishponds, is a fry deficit area. Bulacan and Rizal are also the suppliers of fingerlings to the 3000 ha of intensive fishpen systems in Laguna de Bay. However, the trade-flow mostly results from the financing of concessionaires in Southern Mindanao by the pond operators of Bulacan and Rizal. Only one in ten concessionaire respondents in Mindanao was able to finance his concession without a cash advance or partnership with buyers in Bulacan and Rizal. Second, fry are apparently available throughout the year in one area or another of the Philippines. A month by month breakdown of inter-regional shipments is shown in Table IV. The season begins in Mindanao, and moves northward as the year progresses, with the Visayas becoming the major exporter in the third quarter. Mindanao resumes its preeminence in the fourth quarter.
209
Western Visayas
Central Visayas
Eastern Viiayas
-
-
508.6 399.6
-
-
11935.0 5 000.0 18 886.5 1 664.1 -
-
275.3 989.9 -
-
10 599.9 687.6 49.883.3
6.32
304.3 6 098.3 790.3 7 192.9
0.91
1265.2
0.16
Western Mindanao
215.2 -
-
-
7.2
-
Southern Mindanao
Central Mindanao
-
-
-
-
Northern Mindanao
731.6
-
3 146.0 -
-
1 594.8 -
114.5 -
56.7 -
45.6
-
-
-
-
222.4
5 472.4
114.5
104.3
0.03
0.69
0.02
0.01
Export sub-totals
28 2 5 44 7 14 24 21 90 51 6 49 1 322 118
011.0 160.0 000.0 996.6 821.0 975.2 480.1 908.9 141.8 335.6 440.7
086.5 934.9 624.3 027.4
Percentage including m-exports
3.56 0.27 0.63 5.70 0.99 1.90 3.10 2.78 11.42 6.50 0.62 6.22 0.26 40.86 14.99
789 243.9 Total fry trade
Third, the industry can be severely affected by the typhoon season. The effects of the May typhoon in 1976 produced the unusually poor season in 110~0s. In that year, fry exports from 110~0s almost ceased after the second quarter, whereas the season normally extends well into the third quarter. Finally, there is the unnecessary and inefficient distriktion of fry when two-way trade is taking place between regions during the same month, and when a region imports and exports fry at the same time. On analysis of the auxiliary invoices, however, about 57% of these monthly exchanges involved less than 200 000 fry representing at most one or two small individual shipments. The reason for overlap was mostly convenience to local operators, for example the availability of transportation, or usually in response to an urgent need on a particular date. Others (43’S), however, were explainable more specifically. One example of inefficient shipment of fry occurred in the second quarter in Northern Mindanao. While 1336 200 fry were being exported from the fry grounds of Misamis Oriental to Manila, 4 956 300 fry were being imported from elsewhere in Mindanao to neighboring Agusan de1 Norte, another province of Northern Mindanao. In that case, the Misamis Oriental concessionaires had financial
I
I
$
z0
I
E
1 596.2 802.6 82 422.3 155 788.5 277 927.9 137 876.4
January February* March April May June
0.2 0.1 10.4 19.7 28.9 17.5
Percentage of annual July August September October November December
Month
66 27 23 29 28 8
370.8 027.1 623.5 200.7 332.4 275.5
Quantity
8.4 3.4 3.0 3.7 3.6 1.0
Percentage of annual
Total
April May June July August September
Month
10 835.0
1430.0 2 750.0 2 750.0 1760.0 1292.5 852.5
Palawan
4 625.0
340.0 1815.0 1 380.0 45.0
1045.0 -
Bicol
Imports from
9 190.3
3 351.2 4 538.1 1 301.0 -
Mindanao
18 519.0
.4 177.7 10 875.2 3 287.9 178.2 -
Central Visayas
710.2
121.6 26.8 398.9 156.5 6.4
Others
Second and third quarter fry trade: Western Visayas (thousands)
TABLE V
003.9 284.9 404.7 453.1 829.0 903.9 43 879.5
10 18 6 5 2
Total imports
756.5 015.0 156.2 521.5 694.6 338.6 79 482.4
5 11 27 18 8 8
Total exports
*This is an understatement of February trade. Unfortunately, the auxiliary invoice records from Southern Mindanao for that month were incomplete and provided no basis for an estimate of exports.
Quantity
Month
Monthly inter-regional fry trade, 1976 (thousands)
TABLE IV
32 365.2
5 11 6 5 2
756.5 015.0 404.7 453.1 829.0 903.9
Over-
lap
213
obligations to Manila buyers, and had to give them priority. Also the road over which fry would travel the 189 km between Misamis Oriental and Agusan de1 Norte is rough and unpaved. Fry can be shipped by air to Manila safely and in less time than it takes to reach Butuan City in Agusan de1 Norte by road. More significant incidents apparently occurred in Western Visayas in the second and third quarters. In the second quarter, exports totalled 43 927 700 and imports 34 693 500. In the third quarter, exports totalled 35 554 700 and imports 9 186 000. A monthly breakdown for these two quarters illustrates the extent of that overlap (Table V). The total overlap was estimated to be 32 365 200 pieces. For the most part individual overlaps were explained as re-exports, particularly as the fry crossed and recrossed the arbitrary boundaries of the Western Visayas trading region that separates neighbouring islands or divides islands. For example, the 10 835 000 pieces imported from Cuyo, Palawan were partially re-exported. Shipments from Cuyo come by boat, the only available means of transportation, and about 12% (1 300 200) were reexported through Iloilo City on Panay Island to Manila. Imported pieces (4 600 000) from the island of Masbate in Bicol were smuggled fry for fishponds in Capiz Province, and actually travelled a shorter distance than did fry from Antique Province on the other side of Panay’Island. Of the 18 519000 pieces imported from Central Visayas, however, about 6 985 900 (37.7%) were actually shipments within one island, from Negros Oriental in Central Visayas to Negros Occidental in Western Visayas. The division of the island of Negros into two fry trading regions and the aggregation of trade flows between regions gave the impression of inefficiency. Re-exports were also readily explainable. Iloilo, alarge city in the center of the Philippines, is the fry trading center of the whole Visayas area, and concessionaires in Central Visayas often ship their fry to Iloilo contacts who have exposure to a wider group of buyers from other regions. With those exceptions, and a few other minor ones in other regions, the survey found about 19 479 100 pieces in overlapping, seemingly inefficient, trade flows. Knowing that Western Visayas concessionaires were financially obligated to Manila buyers to varying degrees (for example, one area in Antique supplied 90% of its fry catch of 15 000 000 pieces to Manila) the survey concluded that apparent distribution inefficiencies were primarily due to the financial obligations of the concessionaires, and to the lack of, or use of, alternative markets. It is reasonable to conclude that the fry distribution system of the Philippines exhibits a high level of distribution efficiency in its interregional trade. INTER-REGIONAL
PRICE RELATIONSHIPS
Another criterion for judging efficiency namely the correlation of average monthly
was analysed in the survey results, fry prices between trading regions.
214
Prices react and adjust to stimuli (supply and demand, for example) and the rates of reaction are indicators of the degree of interrelationship between markets. Correlation coefficients between prices in different markets provide a measure of the information flow between them. Daily prices of milkfish fry in each region, appropriately lagged, would have been desirable for this analysis, but were unobtainable. Instead, monthly weighted average prices were provided by the respondents and used (nonlagged) to compute correlation coefficients between major trading regions and between trading provinces within regions. Because the fry season begins at different times in different regions, monthly data were not available for every region for each month. Price data were reasonably complete, however, for the major trading regions. Fig.7 illustrates average monthly fry prices for Bulacan and Rizal provinces. The data collected from respondents illustrated the extreme seasonal variation of fry prices. The peak of the season in April to July, with corresponding lower prices, is distinct and typical of the wide fluctuations in quantity and price in all regions. The wide price range of P20-llO/lOOO fry illustrates why pond operators, particularly the smaller ones, stock fry only once annually to take advantage of low fry prices. Calculation of correlation coefficients between prices in different trading regions indicated a high level of information flow between markets. Of the 17 trading partners for which the correlation coefficient (r) was computed,
_-
JPMAYJJASOHDJP#AWJJA 1876 -
is77
Fig.7. Fry prices: Bulacan and Rizal provinces.
215
ZAMBOANGAW
Fig.&
Mapping
of price correlation
-
coefficients.
15 had significance levels of l%, and the other two (Davao-Manila and LaoagDagupan) significance levels of 5%. Price correlation coefficients are illustrated in Fig.8. The results implied the existence of a marketing network with regions closely interrelated by price movements. Telegram and telephone communications and a network of itinerant commission men are effective in keeping buyers and sellers aware of supply and demand, and the resulting prices. FRY
SHORTAGE
The question of a national fry shortage was resolved indirectly and by extrapolation from the SEAFDEC-PCARR data. Indirect evidence, particularly falling prices and a stoppage of fry gathering despite available resources of fry, indicated that the fry catch is sufficient to meet the annual demands in the Philippines. To compare the data of 1976 inter-regional trade with other
216
years, an estimate was made of fry stocked in rearing and nursery ponds in 1974. From data collected by the SEAFDEC-PCARR project, which reported average stocking rates for both fry and fingerling in ponds on a regional basis and on mortality rates before harvesting, it was estimated that 640 919 480 fry were stocked in rearing ponds in 1974 (Tables VI and VII). This represented an average stocking rate of 3640 pieces/ha year-’ for fishponds, which is substantially lower than the 10 000 pieces/ha year-’ commonly used to project annual Philippine stocking requirements. An additional 510 417 160 fry were stocked in nursery ponds and reared to fingerlings to supply fishponds and the fishpens of Laguna de Bay. The estimate of 1974 fry catch from this total 1 151 336 600 stocking figure, was made by adjusting for mortality in gathering and storage prior to transport (5.6%) and in transport (11%) as observed by Librero (1976a, 1977). Estimated 1974 fry catch was 1 349 550 700. Since 1974 the number of ha of fishpens in Laguna de Bay has declined by half to approximately 3000 ha, resulting in a decreased demand for fingerlings. In 1976, assuming the same fishpond and fishpen stocking rates as in 1974, total fry requirements would have been reduced by 160 866 660 or equal to a catch of 1 160 989 200 after adjusting for mortality in storage and transport. This 1976 catch estimate is roughly consistent with the earlier estimate of 745 029 900 fry in inter-regional trade, which does not include fry caught and stocked within regions and thus moving only intra-regionally. These results imply fry resources far greater than was previously supposed, and a strong indication that the Philippines has not yet fully exploited them. TABLE VI Calculation of effective rearing area, by region (1974) Regions
I
Ilocos
II III IV V VI VII VIII IX X XI
Cagayan Central Luzon Southern Luzon Bicol Western Viiayas CentraIViiayas Eastern Visayas Western Mindanao Northern Mindanao Southern Mindanao
Total
(A) Total ha of fishponds
(B) % of total area that is operational
(C) Effective operational area (ha) (A) x (B)
(D) % of operational area devoted to rearing purposes
(E) Effective rearing area (ha) (C) x (D)
10 483.84 881.26 30 620.42 30 575.30 11519.53 43 266.44 5 768.02 9 368.52 17 612.10 9 081.91 6 853.96
0.86 0.48 0.99 0.82 0.67 0.79 0.74 0.45 0.78 0.95 0.66
9 016.10 423.00 30 314.22 25 071.75 7 718.09 34 180.49 4 268.93 4 215.83 13 737.44 8 627.81 4 523.61
0.770 0.922 0.836 0.831 0.861 0.795 0.899 0.901 0.909 0.963 0.857
6 942.40 390.01 25 342.69 20 834.62 6 645.28 27 173.49 3 837.77 3 798.46 12 487.33 8 308.58 3 876.73
176 032.10
0.81
142 097.27
0.842
119 637.36
Sources: (A): BFAR (1976). (B): Librero et al. (1977). p. 319. Non-operational area is that which, though included in the fishpond area, is still undeveloped for fishpond purposes. (D): Librero et al. (1977), p. 27. Non-rearing areas are nursery and transition ponds, catching ponds and dike area. Note: Eleven governmental administrative regions existed in 1974. Recently, Mindanao has been subdivided into four regions, making 12 in all, as referred to elsewhere in this paper.
(G):
(F):
(D):
5.36
7.56 3.14 1.99 6.15 1.85 9.16 4.26 2.76 2.36 4.39 6.73
Fishpond fry stocking: rate/ha of effective rearing area (000’S)
(B)
484.54 224.63 431.95 132.91 868.47 909.16 348.90 483.75 470.10 474.67 090.39
-
640 919.48
52 1 50 128 40 248 16 10 29 36 26
stocked in fishponds (000’S) (A)x (B)
(0 Fry
89 713.12 17 917.77 1 528.41 11141.13 -
3.54 0.86 0.23 0.41 -
747.77 125 491.34
0.09 -
1.05
-
4 443.14 -
__~~
Fingerling stocked in fishponds (000’s) (A) x (D)
(El
0.64 -
Fishpond fingerling stocking: rate/ha of effective rearing area (000’s)
CD)
208 026
-
208 026 -
-
Fingerling stocked in fishpens (000’S)
(F)
by region
-
0.69
0.69 -
-
0.70 0.63 0.69 0.84 -
0.63 -
(G)
Survival rate fry to fingerling
-
161.60 640.90 215.09 263.25 -
510 417.16
1083.72 -
128 358 2 13
7 052.60 -
(G)
Effective fry requirement to suPPlY fingerling stock (000’s) 1(E) + (F)l
W
537.14 224.63 593.55 773.81 083.56 172.41 348.90 483.75 470.10 558.39 090.39 1 151 336.6
59 1 178 486 43 262 16 10 29 37 26
Total stocking of fry (000’s) (C) + (H)
(1)
From previous table. Drawn from SEAFDEC-PCARR survey data. These per hectare/stocking rates include ponds that stock both fry and fingerling and are therefore different from those rates for those ponds that stocked only fry [see Libero et aI. (1977), p. 671, which are generally higher. Drawn from SEAFDEC-PCARR survey data. Because not all ponds stocked fingerling, these regional average per hectare stocking rates are lower than those rates for ponds that stocked only fingerling [see Libero et al. (1977), p. 751, which are much higher. Fishpens located at Laguna de Bay, Rizai and Laguna Provinces, Southern Luzon Region. 5850 ha of fishpens in 1974 stocking average of 35 560 pieces/ha year-’ [Nicolas et al. (1976), p. 661. Unpublished data collected by SEAFDEC-PCARR AquacuRure Program.
119 637.36
25 20 6 27 3 3 12 8 3
390.01 342.69 834.62 645.28 173.49 837.77 798.46 487.33 308.58 876.73
6 942.40
Effective rearing area (ha)
(A)
Sources: (A): (B):
Total
I II III IV V VI VII VIII IX X XI
Region
Calculation of quantity fry stocked in rearing ponds and nursery ponds (1974),
TABLE VII
?
21.8
The rapidly falling prices as experienced in 1977 indicate that the upward swing in annual average fry prices in the early 1970’s may be traced to the increased fingerling demand of the Laguna de Bay fishpen operators. With the more recent decline in ha in fishpens, allegations of fry shortage appear, at the present time, to be overstated. SUMMARY AND CONCLUSIONS
The preliminary results of the study document the existence of a milkfish fry marketing system in the Philippines that is national in scale, with a predominant role played by concessionaires and dealers inMindanao and by nursery pond operators in Bulacan and Rizal, and which has a high level of performance. First, fry trade between regions appears efficient in the sense that there is minimal overlapping of imports and exports. Exceptions can be explained by the four major factors that limit potential market sources and outlets for buyers and sellers; that is, (1) by perishability of fry; (2) by mistrust due to the lack of an accurate counting mechanism; (3) by financial obligations of sellers due to cash advances from and partnerships with buyers, particularly in Bulacan and Rizal; and (4) by the Bureau of Fisheries and Aquatic Resources (BFAR) permit and auxiliary invoice system that prohibits interregional transport of fry except by pond operators or their authorized representatives. Second, correlation coefficients computed between monthly weighted average prices for 17 trading partners show a system that is efficient in transmitting information regarding demand, supply, and other stimuli between regions. The relationship between regional fry prices was found to be highly significant or significant in all cases examined. Finally, the evidence points to a system that supplies far greater numbers of fry to fishponds than had hitherto been assumed, and it is concluded that allegations of fry shortage have been greatly exaggerated. ACKNOWLEDGEMENTS
For making this project possible, appreciation is expressed to the Southeast Asian Fisheries Development Center (SEAFDEC) and the East-West Food Institute for financing, to the staff of the Socio-Economics Research Division of the Philippine Council for Agriculture and Resources Research (PCARR) for administrative support and invaluable guidance during the field survey, and to the Bureau of Fisheries and Aquatic Resources (BFAR) for logistical support and cooperation. Above all, appreciation is due to respondents for their hospitality and willingness to share details of their milkfish fry and fingerling businesses.
219
REFERENCES BFAR (Bureau of Fisheries and Aquatic Resources), 1976. Fisheries Statistics of the Philippines, 197 5. Economics and Information Division, Manila, 115 pp. Deanon, R.P., Ganaden, R.A. and Llorca, M.N., 1974. Biological Assessment of the Fish Fry Resources (Bangos, Shrimps, Eel) in Luzon, Visayas, Mindanao. A terminal report of the Bureau of Fisheries and Aquatic Resources and the Philippine Council for Agriculture and Resources Research Joint Project, Manila, 54 pp. Librero, A.R., Tidon, A.G., Ramos, D.G. and Alzona, R.L., 1976a. Fry Gathering Patterns, Costs and Returns, and Socio-Economic Conditions of Fry Gatherers in the Philippines. Research Paper Series No, 1, SEAFDEC-PCARR, Los Banos, Laguna, Philippines, 124 pp. Librero, A.R., Dizon, S.P., Tidon, A.G., Ramos, D.G., and Alzona, R.L., 1976b. Patterns of Fry Purchase and Sale in the Philippines: A Study of Fry Concessionaires and Dealers. Research Paper Series No. 3, SEAFDEC-PCARR, Los Banos, Laguna, Philippines, 124 pp. Librero, A.R., Nicolas, E.S., and others, 1977. Milkfish Farming in the Philippines: A Socio-Economic Study. Research Paper Series No. 8, SEAFDEC-PCARR, Los Banos, Laguna, Philippines, 367 pp. Nicolas, E.S., Librero, A.R., Callo, R.A. and Pamulaklakin, E.R., 1976. A Socio-Economic Study of Fish Pen Aquaculture in the Philippines. Research Paper Series No. 5, SEAFDEC PCARR, Los Banos, Laguna, Philippines, 162 pp. Ohshima, G., 1973. A Geographical Study on Aquaculture in the Philippines. Kwansei Gakwin University Annual Studies, Vol. XXII, 17 pp. Poernomo, A, 1974. Status, Problems and Innovation of the Technology of Brackish Water Pond Fish Culture in Indonesia. Workshop on Artisanal Fisheries Development in Indonesia, 4-7 March, 16 pp.
199
PRELIMINARY ANALYSIS OF THE PERFORMANCE OF THE FRY INDUSTRY OF THE MILKFISH (CHANOS CHANOS FORSKAL) IN THE PHILIPPINES
I.R. SMITH*, F.C. CAS, B.P. GIBE and L.M. ROMILLO SEAFDEC-PCARR, Aquaculture Research Program, Los Banos, Laguna (Philippines) *Dept. of Agricultural and Resource Economics, University of Hawaii, and Grantee, East- West Center Resource Systems Institute, Honolulu, Hawaii (U.S.A.) (Received 21 March 1978)
ABSTRACT Smith, I.R., Cas, F.C., Gibe, B.P. and Romillo, L.M., 1978. Preliminary analysis of the performance of the fry industry of the milkfish (Chanos chanos Forskal) in the Philippines. Aquaculture, 14: 199 --219. The fry industry of the milkfish (Chanos chanos Forskal) in the Philippines is alleged to suffer from certain inefficiencies, principal among which are an annual shortage to meet the stock requirements of the 176 000 ha of fishponds in the country, and the failure of the pricing system to direct and allocate the fry resources geographically. Contrary to these and other allegations, this paper presents a preliminary analysis that indicates a higher level of performance for the industry than hitherto supposed. Specifically, fry catch is estimated to be 1.35 billion, sufficiently high to meet present stocking requirements; less than 3% of trade flows between regions overlap; and monthly average fry prices between trading regions are significantly correlated, indicating the system responds to supply and demand changes and other stimuli. INTRODUCTION
Producers of milkfish (Charzos chanos Forskal) throughout Southeast Asia rely on the natural fry fishery for their ponds, since the milkfish does not reach sexual maturity or breed in confinement. It is widely assumed that a shortage of milkfish fry exists, constraining development and production from brackish-water ponds in Taiwan, the Philippines, and Indonesia. Annual fry catch levels are estimated to be up to 60% below annual stocking requirements. The alleged shortage of fry from the natural fishery provides the rationale for various government programs in all three countries, one of the most ambitious and far-reaching of which is the attempt to induce spawning of the milkfish under controlled conditions. Individual governments have also taken measures to control the supply and distribution of the fry. For example, the Philippine government now bans the export of fry and, in an effort to answer complaints of sectoral fry shortages, also places restrictions on free trade of
200
milkfish fry within the country. In short, the issue of fry shortage has important implications for the milkfish industry throughout the Southeast Asian region. The issue is also extremely provocative in that the assumptions of shortage are highly subjective, based more upon conjecture than carefully gathered catch data. With the exception of Taiwan, which has been gathering the statistics for decades, catch data are virtually non-existent. Occasional annual estimates have been made in Indonesia and in the Philippines, but the reliability of these estimates is suspect due to the industry’s admitted unwillingness to share business information with government researchers whom they fear will use it for tax purposes. Deanon et al. (1974) estimated the 1973 Philippine fry catch at 466 million, but admitted it was an understatement for the above reason. On the other hand, there is a tendency to overestimate Philippine and Indonesian stocking requirements where primarily extensive methods, rather than the intensive methods of Taiwan, yield lower average annual productivities of 580 kg/ha (Librero et al., 1977) and 358 kg/ha (Poernomo, 1974), respectively. Any real fry shortage in the Philippines is therefore obscured by an underestimation of existing fry catch and overestimation of stocking requirements. In addition to fry shortage, the fry distribution system in the Philippines is alleged to suffer from several other inefficiencies and imperfections. For example, (1) mortality rates in storage and transport prior to pond stocking are alleged to be high; transport over long distances in the Philippines is assumed to weaken fry so that nursery and rearing pond mortality rates are higher than those experienced in Taiwan. (2) Pond operators maintain that prices of fry (12-16 mm) and of fingerling (5-10 cm) are manipulated by fry dealers and by nursery pond operators who specialize in raising fry to fingerling size primarily for sale to fishpen operators in Laguna de Bay near Manila. Further, (3) pond operators in some fry ground areas claim to be excluded from sources of supply because of financing agreements between local dealers and Manila area pond operators. Finally, (4) it is alleged that the fry distribution system is price inefficient; that is, prices do not respond to supply and demand changes and other stimuli throughout the various regions in the country where fry are caught and where fishponds are located, thus causing regional shortages and surpluses which are not resolved by the marketing and distribution system. These allegations provide the rationale for government policies ranging from conservation measures to protect against possible overfishing to price controls and subsidy programs for fishponds of less than 10 ha. There is little factual evidence to support or contradict any of these allegations of shortages and other imperfections. Policy planning, nevertheless, is taking place without adequate knowledge of the structure and performance of the present fry gathering and distribution system, and consequently there is a danger of misdirected and restrictive regulations. Even if these imperfections exist in the nature and extent alleged, it remains to be seen if present
201
policies ameliorate or exacerbate these conditions. Reliable fry catch data for the Philippines are extremely difficult to collect. Fry grounds, as indicated in Fig.1, are spread all over the country. Two recent developments, however, have increased the availability of more reliable statistics. (1) In 1975 a joint project of the Southeast Asian Fisheries Development Center (SEAFDEC) and the Philippine Council for Agriculture and Resources Research (PCARR) collected primary data from fry gatherers, middlemen, and pond operators throughout the country. The data (Librero et al., 1976a, b, 1977; Nicolas et al., 1976) allowed, among other things, an estimation of fry stocked in Philippine fishponds in 1974. (2) A regulation requiring auxiliary invoices for inter-regional shipment of fry was instituted in 1974, and the monthly records have provided a better source of data. Inter-regional trade refers, in this case, to shipments between the various regions of the Philippines, and not to shipments between countries within the Southeast Asian area. As further data on technical or pricing efficiencies and evidence of exploitation in the fry marketing system were not available (although the SEAFDECPCARR data provided some insights), a preliminary analysis of the marketing and distribution of milkfish fry in the Philippines was planned, which would complement the SEAFDEC and PCARR project. Major objectives of the study were; (1) to estimate the annual catch of milkfish fry using the two sources of data described above; (2) to describe marketing channels, costs, and the socio-economic relationships between fry gatherers, middlemen, and rearing pond and fishpen operators; (3) to analyse the performance of the fry distribution system; and (4) to assess the effects of government regulations, particularly those restricting free fry gathering and distribution, on the structure, and performance of the milkfish industry. The results of the study are described in this paper. A field survey was initiated in March 1977, to follow milkfish fry from fry grounds through the marketing chain of concessionaires, dealers, agents, brokers, and nursery pond operators to rearing pond and fishpen operators. Fortyseven fry grounds in Southern Mindanao, Northern Mindanao, Western Visayas, Bicol, Southern Tagalog, and 110~0swere selected as beginning points due to their recurring high productivity levels. Financial constraints and peace and order conditions made selection of representative fry grounds from all twelve regions impractical. The field survey was completed in August 1977, with the 264 respondents distributed as shown in Table I. In addition to primary data collected from respondents, the survey team visited regional and district offices of the Bureau of Fisheries and Aquatic Resources (BFAR) to collect data recorded on permits and auxiliary invoices issued for inter-regional shipments of milkfish fry. This information, supplemented and adjusted by interview responses, was used to compile a picture of inter-regional trade for 1976. As the resolution of the alleged imperfections was the underlying task of the .present study, this paper reviews the initial findings regarding inter-regional
w 5 0
II .
0
D
a
-
n
203
TABLE
I
Geographical Region
distribution
of sample
Fry gatherers
Concessionaires
Dealers
Luzon Visayas Mindanao
19 19 12
18 8 10
11 16 6
Total
50
36
33
Nursery pond operators
Rearing pond operators
27 2 -
41 22 17 86
29 ____..~_____
Fish
Total
Number offry grounds
-
152 67 45
25 13 9
30
264
47
pen operatow 30
trade flows, the relationships between average monthly fry prices in the major market areas, and a projection of the 1974 and 1976 fry catch. The paper documents for the first time the national scale and regional inter-relationships of the fry industry, and shows the dominant role played by nursery pond operators in the provinces of Bulacan and Rizal. The extent of overlapping trade-flows between regions, the degree of correlation between trading region prices, and adequacy of fry catch serve as criteria for evaluating the performance of the fry industry. THE
FRY
INDUSTRY
DESCRIBED
Milkfish fry are caught by the million from coastal areas and transferred to brackish-water ponds throughout the country. The Philippines has a total of approximately 176 000 ha of fishponds. The major pond areas are in the provinces of Iloilo (17 373 ha), Quezon (16 390 ha), Zamboanga de1 Sur (16 279 ha), Bulacan (16 173 ha), Capiz (11 240 ha), Negros Occidental (10 621 ha), Pangasinan (9 544 ha), and Pampanga (9 209 ha) (BFAR, 1976). High annual productivities of more than 800 kg/ha are achieved in Pangasinan, Bataan, Pampanga, Bulacan, Rizal, and Iloilo provinces (Ohshima, 1973). None of these more productive provinces has major fry grounds, hence fry must be imported from other areas in the country. Fig.1 indicates the locations of fry grounds and of fishponds throughout the country, and the national need for inter-regional transfer of fry. The milkfish fry of the Philippines are essentially a common property resource, but the government has provided use rights by giving coastal municipalities the power to grant exclusive fishing rights in municipal water through a public bidding process for the fry concession. Income from the concession goes directly to the municipality. This can be as high as 48% of the annual municipal income, as in Hamtik, Antique. Because of the high value of a concession compared with other components of the municipal income, the vast majority of fry grounds in the country are operated and managed under this system. Except in a few “free zones”, all fry gatherers are obligated to sell
204
their catch to the concessionaires who have monopsony rights in their respective areas. However, smuggling by fry gatherers is prevalent in some areas, especially in the south, as gatherers circumvent the concessionaires to supply fishpond operators directly and to increase the price they receive for their catch. Concessionaires are free to dispose of their fry as they please provided they comply with the government permits and auxiliary invoices for interregional shipment of fry. Milkfish are known by numerous names in the Philippines depending upon their stage of growth. Table II gives the names of fry, fingerling, marketable and adult milkfish. For this study only the “kawag” were important as this is the stage at which they are collected and transported in large numbers. TABLE II Stages of
development of milkfish (Chanos chanos Forskal)
Name English
Filipino
Fry
Kawag-kawag or semilya
Fingerling Marketable Adult
Hatirin Bangos Sabalo
Length (cm)
1.2-1.6 5-10 25-35 up to 100
Weight (g)
Age
- 0.08
3-14
days
1.2-5 200-400 up to 20 000
3-6 3-9 5-6
weeks months years
METHODS OF TRANSPORT
Although a small quantity of fry are transported inter-regionally by sea and overland, the vast majority are transported by air. Over short distances the fry are carried by hand in buckets or clay pots called “palayok”. For lengthy inter-regional transportation, the fry are packed in oxygenated water in plastic bags, measuring 50 cm wide, 83 cm long, and 0.0075 cm thick. Using double bags as a precaution against inadvertant rupture and leaks, the fry are then packed inside a ‘bayong’ or bag of woven palm leaves for transportation by surface, or Styrofoam boxes for transportation by air. The capacity of each bag is 4000-6000 fry, depending upon the time to be spent in transit. Twenty four hours without reoxygenation is the maximum period without risking total mortality. Timing is important and unscheduled delays, diverted flights, or off-loadings present serious problems to shippers. Close cooperation between shippers, commission men and consignees is essential, and telegraphic communications are used extensively. Large shipments of more than 500 000 pieces are often accompanied by the shipper himself or consignee’s agent to ensure the delivery. Inter-regional fry shipments within Luzon are primarily handled overland.
205
Jeeps, with a capacity of 100 woven pandan bags (500 000 fry), can be hired on a daily basis to transport fry. While the government requirements for auxiliary invoices are more readily enforceable for air shipments around the country, shipments overland in Luzon are more difficult to regulate. Several provinces have as yet no district collecting officers or mechanisms for collecting the 0.25 pesos (P)’ per 3000 fry auxiliary invoice fee, and it is relatively easy for shippers to avoid the government checkpoints because of the many overland routes open to them. CHOICE
OF MARKETING
OUTLETS
Sellers are theoretically free to exploit market opportunities based on prevailing prices throughout the country. However, four major factors - perishability, mistrust, financial obligations, and BFAR permits - limit the extent to which this is possible or desirable. Mortality of fry is a continuous threat to the concessionaires. Fry fed with the yolk of hard boiled eggs can be maintained by concessionaires with minimal loss only for periods up to two weeks, at the end of which they need the natural feeds only obtainable in the fishponds. Increasing mortality of the fry restricts the opportunities for the concessionaire to sell selectively, and the stock is sold to the first available buyer regardless of price. The lack of a method to count large numbers of fry accurately creates mistrust between buyers and sellers at all levels in the marketing channels. The small transparent fry or “kawag” are counted individually by the fry gatherers but this is impractical as the numbers accumulate. The belief in the opportunistic behavior of others leads to marketing decisions greatly influenced by the degree of trust between buyer and seller. This is particularly true for unaccompanied shipments by air. The seller must accept the word of the buyer regarding mortality in transit, and the actual number delivered. Partnerships or associations with relatives alleviate some risks of marketing. Financing is a third limiting factor of marketing. Buyers, particularly nursery pond operators in Bulacan and Rizal, use cash advances and partnerships to ensure continuous deliveries of fry and receive priority from sellers. Financing is required by concessionaires who pay their concession fee early in the fry season. These financing arrangements, though mutually beneficial to buyers and sellers, narrow the choice of marketing outlets. Finally, pond operators are required to secure permits for inter-regional transport of fry based on the capacity of their ponds. On the recommendation of the regional BFAR office in which the ponds of the operator are located, a transport permit is issued to him by the regional BFAR office from which the fry are sought. Pond operators, or their designated representatives, must therefore know the regions of potential supply when applying for their transport permit. Applying to more than one region for permits, while in’ US $1.00
= P7.32
during the period
of the study.
206
creasing the assurance of fry for the buyer, reduces the total he can import from any one region as his allocation is fixed. Transport permits are issued for a period of 30 days only, and renewals sought if the allocation is used or the permit expires. Under this regulation fry shippers are no longer free to transport fry without a permittee to receive the shipment at the other end, and against whose permit allocation the auxiliary invoice issued for individual shipments can be credited. Since only the larger rearing and nursery pond operators have the necessary contacts and finances to obtain and process permits, the net effect of this regulation has been to reduce the potential outlets available to sellers who wish to make inter-regional sales, and to make it more difficult for the smaller pond operators to secure fry. Since permits prohibit resale of fry, smaller nursery and rearing pond operators have found potential fry sources more limited. If it were not for the illegal resale of fry by permittees, and the smuggling of fry by shippers without permits or auxiliary invoices, it would be impossible for small pond operators to secure fry except from local sources. These may or may not be adequate. Permit processes have thus reduced and inhibited the extent of free market flow of fry. 1976 INTER-REGIONAL
TRADE
FLOWS
Fig.2 indicates the 15 trading regions selected in the study to represent inter-regional fry trade. These trading regions are an arbitrary regrouping of provinces for the purposes of this study and are not to be confused with the 12 government administrative regions of the Philippines. The provinces of Bulacan and Rizal, originally included in Central Luzon and Southern Tagalog regions, respectively, have been combined into a single trading region, and the islands of Palawan and Mindoro established as separate trading regions. The Bulacan/Rizal grouping was necessary as the auxiliary invoice records recorded Manila as the destination, rather than the actual destinations in Bulacan or Rizal provinces. Accurate data of inter-regional trade are difficult to assemble. The auxiliary invoice records include shippers’ intended understatements or unintentional underestimates. There are also known shipments without invoices, which is a form of fry smuggling distinct from that of the fry gatherer who deals with a non-concessionaire, and other direct and indirect factors which influence the compilation of statistical data. With regard to intentional understatements, it appears to be universal practice among shippers to declare less fry than packed. Shippers do this to avoid early renewal of the permit against which the auxiliary invoice is credited, and to hide the true volume of their business. Based on the admissions of respondents and random sampling of shipments during the survey, auxiliary invoice records were multiplied by 196% for all shipments to Bulacan and Rizal; 152% for all other shipments from Mindanao; 145% for all other shipments from Visayas; 102% for all other shipments from Bicol; and 200% for all shipments from Cagayan Valley. It is believed that these adjustment factors, especially
207
BI,I>A;ITRAL
TAGALOG
‘WHERN
-
r Fig.2.
yINDANA
1 Milkfish
fry trading regions,
1976.
in the case of Bicol, give a conservative estimate of the degree of underestimation. The lack of auxiliary invoice records in some regions, and of shipments made without the necessary papers, complicated the study and had to be resolved region by region, using information gathered from respondents, government officials and private individuals. In addition, it was necessary to adjust by 24% all fry imports to Bulacan and Rizal permittees which were then resold illegally to other pond operators. The survey found that about 28% of these resales were re-exported to Central Luzon and Southern Tagalog regions. Discounting the re-exports from Bulacan and Rizal to other trading regions, it was estimated that the total number of fry moving in inter-regional trade in 1976 was 745 029 900 pieces: the first quarter of the year accounted for 79 682 600 (10.7%); the second quarter for 492 144 300 (66.1%); the third quarter for 111306 300 (14.9%); and the fourth quarter for 61896 700 (8.3%). These inter-regional trade flows are summarized in Table III and shown graphically in Figs 3-6.
208
TABLE III Inter-regional fry trade: 1976 (complete year) Region
Receiving regions
-
nocos
-
Cagayan Valley Central Luzon Rizai & Bulacan South Tagalog Mindoro Palawan Bicol Western Visayas Central Visayas Eastern Visayas Western Mindanao Northern Mindanao Southern Mindanao Central Mindanao
1722.0 5000.0 -
Import sub-totals
6967.5
Percentage includina m-exports
*Reexports
-
(importsin
Cagayan Vailey
Ilocos
245.5
0.88
-
Central Luzon
1 363.2 -
Rizai & Bulacan
26 647.8 438.0 -
South Tagalog
-
Mindoro
-
Palawan
-
Bicol
-
7 082.4 -
6 924.0 14975.2 12 545.1 1 584.4 89 562.2 29 835.9 342.4 43440.5 1 934.9 302 486.4 117439.8
1.187.3* 497.4 14 946.0 133.0 860.8 -
-
768.0 -
-
51 472.3
648 166.6
16 994.1
630.4
-
768.0
-
6.52
2.16
0.08
-
0.10
-
43 026.7* -
thousands)
82.12
by permittees in Bulacan and R&al. Total trade less re-exports = 745 029.9
A number of relevant observations can be made on these results. First, the island of Mindanao, and Southern Mindanao region in particular, is the major fry exporter (62.3%), and the Bulacan and Rizal region of Luzon is the major importer (82.1%). This in part reflects the fact that Southern Mindanao, with only 4516 ha of fishponds, is a fry surplus area and that Bulacan and Rizal, with no fry catch and 18 095 ha of fishponds, is a fry deficit area. Bulacan and Rizal are also the suppliers of fingerlings to the 3000 ha of intensive fishpen systems in Laguna de Bay. However, the trade-flow mostly results from the financing of concessionaires in Southern Mindanao by the pond operators of Bulacan and Rizal. Only one in ten concessionaire respondents in Mindanao was able to finance his concession without a cash advance or partnership with buyers in Bulacan and Rizal. Second, fry are apparently available throughout the year in one area or another of the Philippines. A month by month breakdown of inter-regional shipments is shown in Table IV. The season begins in Mindanao, and moves northward as the year progresses, with the Visayas becoming the major exporter in the third quarter. Mindanao resumes its preeminence in the fourth quarter.
209
Western Visayas
Central Visayas
Eastern Viiayas
-
-
508.6 399.6
-
-
11935.0 5 000.0 18 886.5 1 664.1 -
-
275.3 989.9 -
-
10 599.9 687.6 49.883.3
6.32
304.3 6 098.3 790.3 7 192.9
0.91
1265.2
0.16
Western Mindanao
215.2 -
-
-
7.2
-
Southern Mindanao
Central Mindanao
-
-
-
-
Northern Mindanao
731.6
-
3 146.0 -
-
1 594.8 -
114.5 -
56.7 -
45.6
-
-
-
-
222.4
5 472.4
114.5
104.3
0.03
0.69
0.02
0.01
Export sub-totals
28 2 5 44 7 14 24 21 90 51 6 49 1 322 118
011.0 160.0 000.0 996.6 821.0 975.2 480.1 908.9 141.8 335.6 440.7
086.5 934.9 624.3 027.4
Percentage including m-exports
3.56 0.27 0.63 5.70 0.99 1.90 3.10 2.78 11.42 6.50 0.62 6.22 0.26 40.86 14.99
789 243.9 Total fry trade
Third, the industry can be severely affected by the typhoon season. The effects of the May typhoon in 1976 produced the unusually poor season in 110~0s. In that year, fry exports from 110~0s almost ceased after the second quarter, whereas the season normally extends well into the third quarter. Finally, there is the unnecessary and inefficient distriktion of fry when two-way trade is taking place between regions during the same month, and when a region imports and exports fry at the same time. On analysis of the auxiliary invoices, however, about 57% of these monthly exchanges involved less than 200 000 fry representing at most one or two small individual shipments. The reason for overlap was mostly convenience to local operators, for example the availability of transportation, or usually in response to an urgent need on a particular date. Others (43’S), however, were explainable more specifically. One example of inefficient shipment of fry occurred in the second quarter in Northern Mindanao. While 1336 200 fry were being exported from the fry grounds of Misamis Oriental to Manila, 4 956 300 fry were being imported from elsewhere in Mindanao to neighboring Agusan de1 Norte, another province of Northern Mindanao. In that case, the Misamis Oriental concessionaires had financial
I
I
$
z0
I
E
1 596.2 802.6 82 422.3 155 788.5 277 927.9 137 876.4
January February* March April May June
0.2 0.1 10.4 19.7 28.9 17.5
Percentage of annual July August September October November December
Month
66 27 23 29 28 8
370.8 027.1 623.5 200.7 332.4 275.5
Quantity
8.4 3.4 3.0 3.7 3.6 1.0
Percentage of annual
Total
April May June July August September
Month
10 835.0
1430.0 2 750.0 2 750.0 1760.0 1292.5 852.5
Palawan
4 625.0
340.0 1815.0 1 380.0 45.0
1045.0 -
Bicol
Imports from
9 190.3
3 351.2 4 538.1 1 301.0 -
Mindanao
18 519.0
.4 177.7 10 875.2 3 287.9 178.2 -
Central Visayas
710.2
121.6 26.8 398.9 156.5 6.4
Others
Second and third quarter fry trade: Western Visayas (thousands)
TABLE V
003.9 284.9 404.7 453.1 829.0 903.9 43 879.5
10 18 6 5 2
Total imports
756.5 015.0 156.2 521.5 694.6 338.6 79 482.4
5 11 27 18 8 8
Total exports
*This is an understatement of February trade. Unfortunately, the auxiliary invoice records from Southern Mindanao for that month were incomplete and provided no basis for an estimate of exports.
Quantity
Month
Monthly inter-regional fry trade, 1976 (thousands)
TABLE IV
32 365.2
5 11 6 5 2
756.5 015.0 404.7 453.1 829.0 903.9
Over-
lap
213
obligations to Manila buyers, and had to give them priority. Also the road over which fry would travel the 189 km between Misamis Oriental and Agusan de1 Norte is rough and unpaved. Fry can be shipped by air to Manila safely and in less time than it takes to reach Butuan City in Agusan de1 Norte by road. More significant incidents apparently occurred in Western Visayas in the second and third quarters. In the second quarter, exports totalled 43 927 700 and imports 34 693 500. In the third quarter, exports totalled 35 554 700 and imports 9 186 000. A monthly breakdown for these two quarters illustrates the extent of that overlap (Table V). The total overlap was estimated to be 32 365 200 pieces. For the most part individual overlaps were explained as re-exports, particularly as the fry crossed and recrossed the arbitrary boundaries of the Western Visayas trading region that separates neighbouring islands or divides islands. For example, the 10 835 000 pieces imported from Cuyo, Palawan were partially re-exported. Shipments from Cuyo come by boat, the only available means of transportation, and about 12% (1 300 200) were reexported through Iloilo City on Panay Island to Manila. Imported pieces (4 600 000) from the island of Masbate in Bicol were smuggled fry for fishponds in Capiz Province, and actually travelled a shorter distance than did fry from Antique Province on the other side of Panay’Island. Of the 18 519000 pieces imported from Central Visayas, however, about 6 985 900 (37.7%) were actually shipments within one island, from Negros Oriental in Central Visayas to Negros Occidental in Western Visayas. The division of the island of Negros into two fry trading regions and the aggregation of trade flows between regions gave the impression of inefficiency. Re-exports were also readily explainable. Iloilo, alarge city in the center of the Philippines, is the fry trading center of the whole Visayas area, and concessionaires in Central Visayas often ship their fry to Iloilo contacts who have exposure to a wider group of buyers from other regions. With those exceptions, and a few other minor ones in other regions, the survey found about 19 479 100 pieces in overlapping, seemingly inefficient, trade flows. Knowing that Western Visayas concessionaires were financially obligated to Manila buyers to varying degrees (for example, one area in Antique supplied 90% of its fry catch of 15 000 000 pieces to Manila) the survey concluded that apparent distribution inefficiencies were primarily due to the financial obligations of the concessionaires, and to the lack of, or use of, alternative markets. It is reasonable to conclude that the fry distribution system of the Philippines exhibits a high level of distribution efficiency in its interregional trade. INTER-REGIONAL
PRICE RELATIONSHIPS
Another criterion for judging efficiency namely the correlation of average monthly
was analysed in the survey results, fry prices between trading regions.
214
Prices react and adjust to stimuli (supply and demand, for example) and the rates of reaction are indicators of the degree of interrelationship between markets. Correlation coefficients between prices in different markets provide a measure of the information flow between them. Daily prices of milkfish fry in each region, appropriately lagged, would have been desirable for this analysis, but were unobtainable. Instead, monthly weighted average prices were provided by the respondents and used (nonlagged) to compute correlation coefficients between major trading regions and between trading provinces within regions. Because the fry season begins at different times in different regions, monthly data were not available for every region for each month. Price data were reasonably complete, however, for the major trading regions. Fig.7 illustrates average monthly fry prices for Bulacan and Rizal provinces. The data collected from respondents illustrated the extreme seasonal variation of fry prices. The peak of the season in April to July, with corresponding lower prices, is distinct and typical of the wide fluctuations in quantity and price in all regions. The wide price range of P20-llO/lOOO fry illustrates why pond operators, particularly the smaller ones, stock fry only once annually to take advantage of low fry prices. Calculation of correlation coefficients between prices in different trading regions indicated a high level of information flow between markets. Of the 17 trading partners for which the correlation coefficient (r) was computed,
_-
JPMAYJJASOHDJP#AWJJA 1876 -
is77
Fig.7. Fry prices: Bulacan and Rizal provinces.
215
ZAMBOANGAW
Fig.&
Mapping
of price correlation
-
coefficients.
15 had significance levels of l%, and the other two (Davao-Manila and LaoagDagupan) significance levels of 5%. Price correlation coefficients are illustrated in Fig.8. The results implied the existence of a marketing network with regions closely interrelated by price movements. Telegram and telephone communications and a network of itinerant commission men are effective in keeping buyers and sellers aware of supply and demand, and the resulting prices. FRY
SHORTAGE
The question of a national fry shortage was resolved indirectly and by extrapolation from the SEAFDEC-PCARR data. Indirect evidence, particularly falling prices and a stoppage of fry gathering despite available resources of fry, indicated that the fry catch is sufficient to meet the annual demands in the Philippines. To compare the data of 1976 inter-regional trade with other
216
years, an estimate was made of fry stocked in rearing and nursery ponds in 1974. From data collected by the SEAFDEC-PCARR project, which reported average stocking rates for both fry and fingerling in ponds on a regional basis and on mortality rates before harvesting, it was estimated that 640 919 480 fry were stocked in rearing ponds in 1974 (Tables VI and VII). This represented an average stocking rate of 3640 pieces/ha year-’ for fishponds, which is substantially lower than the 10 000 pieces/ha year-’ commonly used to project annual Philippine stocking requirements. An additional 510 417 160 fry were stocked in nursery ponds and reared to fingerlings to supply fishponds and the fishpens of Laguna de Bay. The estimate of 1974 fry catch from this total 1 151 336 600 stocking figure, was made by adjusting for mortality in gathering and storage prior to transport (5.6%) and in transport (11%) as observed by Librero (1976a, 1977). Estimated 1974 fry catch was 1 349 550 700. Since 1974 the number of ha of fishpens in Laguna de Bay has declined by half to approximately 3000 ha, resulting in a decreased demand for fingerlings. In 1976, assuming the same fishpond and fishpen stocking rates as in 1974, total fry requirements would have been reduced by 160 866 660 or equal to a catch of 1 160 989 200 after adjusting for mortality in storage and transport. This 1976 catch estimate is roughly consistent with the earlier estimate of 745 029 900 fry in inter-regional trade, which does not include fry caught and stocked within regions and thus moving only intra-regionally. These results imply fry resources far greater than was previously supposed, and a strong indication that the Philippines has not yet fully exploited them. TABLE VI Calculation of effective rearing area, by region (1974) Regions
I
Ilocos
II III IV V VI VII VIII IX X XI
Cagayan Central Luzon Southern Luzon Bicol Western Viiayas CentraIViiayas Eastern Visayas Western Mindanao Northern Mindanao Southern Mindanao
Total
(A) Total ha of fishponds
(B) % of total area that is operational
(C) Effective operational area (ha) (A) x (B)
(D) % of operational area devoted to rearing purposes
(E) Effective rearing area (ha) (C) x (D)
10 483.84 881.26 30 620.42 30 575.30 11519.53 43 266.44 5 768.02 9 368.52 17 612.10 9 081.91 6 853.96
0.86 0.48 0.99 0.82 0.67 0.79 0.74 0.45 0.78 0.95 0.66
9 016.10 423.00 30 314.22 25 071.75 7 718.09 34 180.49 4 268.93 4 215.83 13 737.44 8 627.81 4 523.61
0.770 0.922 0.836 0.831 0.861 0.795 0.899 0.901 0.909 0.963 0.857
6 942.40 390.01 25 342.69 20 834.62 6 645.28 27 173.49 3 837.77 3 798.46 12 487.33 8 308.58 3 876.73
176 032.10
0.81
142 097.27
0.842
119 637.36
Sources: (A): BFAR (1976). (B): Librero et al. (1977). p. 319. Non-operational area is that which, though included in the fishpond area, is still undeveloped for fishpond purposes. (D): Librero et al. (1977), p. 27. Non-rearing areas are nursery and transition ponds, catching ponds and dike area. Note: Eleven governmental administrative regions existed in 1974. Recently, Mindanao has been subdivided into four regions, making 12 in all, as referred to elsewhere in this paper.
(G):
(F):
(D):
5.36
7.56 3.14 1.99 6.15 1.85 9.16 4.26 2.76 2.36 4.39 6.73
Fishpond fry stocking: rate/ha of effective rearing area (000’S)
(B)
484.54 224.63 431.95 132.91 868.47 909.16 348.90 483.75 470.10 474.67 090.39
-
640 919.48
52 1 50 128 40 248 16 10 29 36 26
stocked in fishponds (000’S) (A)x (B)
(0 Fry
89 713.12 17 917.77 1 528.41 11141.13 -
3.54 0.86 0.23 0.41 -
747.77 125 491.34
0.09 -
1.05
-
4 443.14 -
__~~
Fingerling stocked in fishponds (000’s) (A) x (D)
(El
0.64 -
Fishpond fingerling stocking: rate/ha of effective rearing area (000’s)
CD)
208 026
-
208 026 -
-
Fingerling stocked in fishpens (000’S)
(F)
by region
-
0.69
0.69 -
-
0.70 0.63 0.69 0.84 -
0.63 -
(G)
Survival rate fry to fingerling
-
161.60 640.90 215.09 263.25 -
510 417.16
1083.72 -
128 358 2 13
7 052.60 -
(G)
Effective fry requirement to suPPlY fingerling stock (000’s) 1(E) + (F)l
W
537.14 224.63 593.55 773.81 083.56 172.41 348.90 483.75 470.10 558.39 090.39 1 151 336.6
59 1 178 486 43 262 16 10 29 37 26
Total stocking of fry (000’s) (C) + (H)
(1)
From previous table. Drawn from SEAFDEC-PCARR survey data. These per hectare/stocking rates include ponds that stock both fry and fingerling and are therefore different from those rates for those ponds that stocked only fry [see Libero et aI. (1977), p. 671, which are generally higher. Drawn from SEAFDEC-PCARR survey data. Because not all ponds stocked fingerling, these regional average per hectare stocking rates are lower than those rates for ponds that stocked only fingerling [see Libero et al. (1977), p. 751, which are much higher. Fishpens located at Laguna de Bay, Rizai and Laguna Provinces, Southern Luzon Region. 5850 ha of fishpens in 1974 stocking average of 35 560 pieces/ha year-’ [Nicolas et al. (1976), p. 661. Unpublished data collected by SEAFDEC-PCARR AquacuRure Program.
119 637.36
25 20 6 27 3 3 12 8 3
390.01 342.69 834.62 645.28 173.49 837.77 798.46 487.33 308.58 876.73
6 942.40
Effective rearing area (ha)
(A)
Sources: (A): (B):
Total
I II III IV V VI VII VIII IX X XI
Region
Calculation of quantity fry stocked in rearing ponds and nursery ponds (1974),
TABLE VII
?
21.8
The rapidly falling prices as experienced in 1977 indicate that the upward swing in annual average fry prices in the early 1970’s may be traced to the increased fingerling demand of the Laguna de Bay fishpen operators. With the more recent decline in ha in fishpens, allegations of fry shortage appear, at the present time, to be overstated. SUMMARY AND CONCLUSIONS
The preliminary results of the study document the existence of a milkfish fry marketing system in the Philippines that is national in scale, with a predominant role played by concessionaires and dealers inMindanao and by nursery pond operators in Bulacan and Rizal, and which has a high level of performance. First, fry trade between regions appears efficient in the sense that there is minimal overlapping of imports and exports. Exceptions can be explained by the four major factors that limit potential market sources and outlets for buyers and sellers; that is, (1) by perishability of fry; (2) by mistrust due to the lack of an accurate counting mechanism; (3) by financial obligations of sellers due to cash advances from and partnerships with buyers, particularly in Bulacan and Rizal; and (4) by the Bureau of Fisheries and Aquatic Resources (BFAR) permit and auxiliary invoice system that prohibits interregional transport of fry except by pond operators or their authorized representatives. Second, correlation coefficients computed between monthly weighted average prices for 17 trading partners show a system that is efficient in transmitting information regarding demand, supply, and other stimuli between regions. The relationship between regional fry prices was found to be highly significant or significant in all cases examined. Finally, the evidence points to a system that supplies far greater numbers of fry to fishponds than had hitherto been assumed, and it is concluded that allegations of fry shortage have been greatly exaggerated. ACKNOWLEDGEMENTS
For making this project possible, appreciation is expressed to the Southeast Asian Fisheries Development Center (SEAFDEC) and the East-West Food Institute for financing, to the staff of the Socio-Economics Research Division of the Philippine Council for Agriculture and Resources Research (PCARR) for administrative support and invaluable guidance during the field survey, and to the Bureau of Fisheries and Aquatic Resources (BFAR) for logistical support and cooperation. Above all, appreciation is due to respondents for their hospitality and willingness to share details of their milkfish fry and fingerling businesses.
219
REFERENCES BFAR (Bureau of Fisheries and Aquatic Resources), 1976. Fisheries Statistics of the Philippines, 197 5. Economics and Information Division, Manila, 115 pp. Deanon, R.P., Ganaden, R.A. and Llorca, M.N., 1974. Biological Assessment of the Fish Fry Resources (Bangos, Shrimps, Eel) in Luzon, Visayas, Mindanao. A terminal report of the Bureau of Fisheries and Aquatic Resources and the Philippine Council for Agriculture and Resources Research Joint Project, Manila, 54 pp. Librero, A.R., Tidon, A.G., Ramos, D.G. and Alzona, R.L., 1976a. Fry Gathering Patterns, Costs and Returns, and Socio-Economic Conditions of Fry Gatherers in the Philippines. Research Paper Series No, 1, SEAFDEC-PCARR, Los Banos, Laguna, Philippines, 124 pp. Librero, A.R., Dizon, S.P., Tidon, A.G., Ramos, D.G., and Alzona, R.L., 1976b. Patterns of Fry Purchase and Sale in the Philippines: A Study of Fry Concessionaires and Dealers. Research Paper Series No. 3, SEAFDEC-PCARR, Los Banos, Laguna, Philippines, 124 pp. Librero, A.R., Nicolas, E.S., and others, 1977. Milkfish Farming in the Philippines: A Socio-Economic Study. Research Paper Series No. 8, SEAFDEC-PCARR, Los Banos, Laguna, Philippines, 367 pp. Nicolas, E.S., Librero, A.R., Callo, R.A. and Pamulaklakin, E.R., 1976. A Socio-Economic Study of Fish Pen Aquaculture in the Philippines. Research Paper Series No. 5, SEAFDEC PCARR, Los Banos, Laguna, Philippines, 162 pp. Ohshima, G., 1973. A Geographical Study on Aquaculture in the Philippines. Kwansei Gakwin University Annual Studies, Vol. XXII, 17 pp. Poernomo, A, 1974. Status, Problems and Innovation of the Technology of Brackish Water Pond Fish Culture in Indonesia. Workshop on Artisanal Fisheries Development in Indonesia, 4-7 March, 16 pp.