Economic analysis of bonga shad Ethmalosa fimbriata processing in the Gambia.

Abstract

Fish processing activities are well developed along the Atlantic coast of the Gambia. The activity of smoking bonga shad (Ethmalosa fimbriata) in the Gambia's coastal region was studied by considering two factors: site and production scale. Both site and production scale have a significant impact on the cost of inputs and profitability. A series of statistical and economic models were applied to quantitatively measure the effects studied. The financial analysis revealed that bonga shad smoking was economically feasible in all sites studied. Larger scale producers from Bakau, Brufut and Tanji spend more on the unit cost of raw fish and labour and they obtained higher unit of net return in all their input variables. Meanwhile, small scale producerse from Sanyang, Gunjur and Kartong spend more on the unit cost of transport and they had to sell their products at lower price to avoid spoilage of the unsold fish. Furthermore, the profitability of the bonga shad smoking industry is affected by explanatory variables including the cost of fuel (wood), transportation expense, gender, type of oven, and extension services. Finally, a long-term strategy for development recommends that improving transport infrastructure, storage facilities and the efficient utilization of resources are important for social and economic reasons and to safeguard consumer health and the sustainability of the smoking industry.