Black Soldier Fly Larvae-Based Fish Feed Production: Financial Feasibility and Acceptability Analysis

Abstract

Conventional feed, which uses fishmeal is expensive and expected to be limited in the future due to potential decline in capture fisheries. Researchers have suggested the use of insects such as the Black Soldier Fly larvae (BSFL) as an alternative to fishmeal in fish feed. The major objective of the study was to ascertain the financial viability of BSFL meal and BSFLbased fish feed production and fish farmer’s acceptance of BSFL-based fish feed. Indicators such as Net Present Value (NPV), Benefit Cost Ratio (BCR) and Internal Rate of Return (IRR) were used for the financial viability analysis. A sample of 150 farmers were interviewed and a three point Likert scale used to solicit farmer’s responses to perception statements. The bidding game and the Tobit regression model were used to determine the maximum amount farmers were willing to pay and factors influencing the willingness to pay (WTP) amount respectively. Finally, a partial budget was used to estimate the gains made by fish farmer from substituting conventional feed with BSFL-based feed. The results of the study showed that the production of BSFL meal is viable with NPV of GH¢5.7m, BCR of 2.4, IRR of 32%. The production of BSFL-based fish feed is viable with NPV of GH¢8.1m, BCR of 1.95 and IRR of 30%. There was a high degree of acceptance amongst fish farmers as farmers perceived BSFL feed to be beneficial and were willing to pay an average of GH¢ 186.00/20Kg for the BSFL-based feed. The factors affecting WTP were marital status, annual income and awareness of insects as feed. A gain of GH¢6.53 can be made by fish farmers in replacing 14.6kg of conventional feed with 14.6 kg of BSFL-based fish feed. The study recommended the sensitization of entrepreneurs on the profitability of BSFL meal and BSFLbased fish feed production in order to encourage investment. Also, potential entrepreneurs should recognise the mean WTP amount when making pricing decisions in order to penetrate the market and allow fish farmers to make savings from substituting conventional fish feed with BSFL-based fish feed.