Prospects, determinants and profitability of aquaculture insurance among fish farmers in the Eastern Region of Ghana, Dr. Nicholas Mensah, Ernest Amrago, Emmanuel Mensah, Jeffery Asare and Samuel Anang
Dr. Nicholas Oppong Mensah, Ernest Christlieb Amrago, Jeffery Kofi Asare, Samuel Afotey Anang
Department of Agricultural Economics, Agribusiness and Extension
University of Energy and Natural Resources, Sunyani
Emmanuel T.D. Mensah
Aquaculture Research and Development Centre, CSIR-Water Research Institute
Ministry of Fisheries and Aquaculture Development (MoFAD), Quito
Purpose: Aquaculture insurance has the potential of redressing climate-change because it serves as an alternative source of finance in the event of unforeseen circumstances. To this end, the authors examine the prospects, determinants and profitability of aquaculture insurance among fish farmers in the Eastern region of Ghana.
Design/methodology/approach: A total of 140 fish farmers were sampled for the study. Thematic analysis was used to determine perceived aquaculture insurance prospects. The Heckman's two-stage model, profitability index (PI) and return on investment (ROI) was employed to respectively determine the factors influencing aquaculture insurance participation and amount intensity and the profitability of aquaculture.
Findings: The thematic analysis revealed three themes on the perception of aquaculture insurance prospects: loss recovery, farm renovation and promotes agriculture. Different sets of demographic and institutional factors have varying influences on aquaculture insurance participation and amount intensity. Profitability index (PI) and return on investment (ROI) were respectively 2.07 and 3.2%.
Originality/value: The research provides relevant information on perceived aquaculture insurance prospects, aquaculture insurance participation, and amount intensity and profitability of aquaculture which can contribute to enhancing aquaculture insurance and the aquaculture industry in Ghana.
Keywords: Aquaculture; Insurance; Fish farmers; Profitability; Ghana.
Citation: Mensah, N.O., Amrago, E.C., Mensah, E.T.D., Asare, J.K. and Anang, S.A. (2021), "Prospects, determinants and profitability of aquaculture insurance among fish farmers in the Eastern Region of Ghana", World Journal of Science, Technology and Sustainable Development, Vol. 18 No. 4, pp. 494-512. https://doi.org/10.1108/WJSTSD-02-2021-0018