Economic performance CARRAGEENAN SEAWEED FARMING: ECONOMIC AND SOCIAL

124 and letting the seaweed attach itself to the rock and grow and 2 the “broadcast method” which involves placing seaweed in fences made of netting materials.

3.2 Economic performance

The economic performance of two seaweed K. alvarezii farming methods used in Tanzania are examined below. One is the traditional off-bottom method; the other is deep-water floating lines method. Comparison of costs was achieved using data from Zuberi 2000, Msuya et al. 2007a, Msuya 2006b, Msuya 2009b, and the current study through interviews with seaweed buying companies and a number of NGOs. Capital cost The traditional off-bottom method remains the most widely used technique in Tanzania. This method uses 4-mm diameter lines with varying lengths between 4 and 20 m, depending on the characteristics of the site and the ability of farmers. In Zanzibar and in some mainland areas, farmers only use 4- or 5-m lines. However, in areas such as Bagamoyo, Tanga, Mtwara and Lindi, farmers use long lines 10−20 m, see Figure 7 to which buoys are sometimes attached. Table 1 summarizes the investment requirements and the corresponding amortized annual capital costs i.e., depreciation of an off-bottom farm. The farming system comprises ropes, tie-tie, floaters and stakes. Thirty pieces of 10-m ropes are needed. One roll of tie-tie is required for every three lines of 10-m rope. Floaters are made of recycled plastic water bottles. Two floaters per line are required for a total of 60 floaters one floater per 5-m length of line. Floaters normally need to be replaced after three months; hence totally 180 floaters are needed for one year of operation. Two stakes per line are required, which normally need to be replaced after 6 months; hence 120 stakes in total are needed for one year of operation. TABLE 1 Initial investment and amortized annual capital costs for an off-bottom farm Items Quantity Unit cost TZS Total investment cost TZS Lifespan years Annual amortized capital costTZS Farming system 19 490 19 490 Ropes m 300 27.8 8 340 1 8 340 Tie-tie roll 10 275.0 2 750 1 2 750 Floaters 180 30 5 400 1 5 400 Stakes pegs 120 25 3 000 1 3 000 Boat and equipment 20 500 7 328 Boat construction 1 7 413.8 7 414 10 741 Boat maintenance 1 86.2 86 1 86 Diving masks 1 10 000.0 10 000 2 5 000 Knife 1 1 000.0 1 000 2 500 Machete 1 2 000.0 2 000 2 1 000 Post-harvest facilities 20 000 6 900 Drying rack frame 1 7 000.0 7 000 5 1 400 Palm fronds for rack 30 50.0 1 500 1 1 500 Tarps m 10 1 000.0 10 000 4 2 500 Plastic bags 10 150.0 1 500 1 1 500 Total 54 890   33 718 Source: Modified from Msuya et al. 2007. Non-motorized boats are routinely used by farmers; the cost of constructing one boat is TZS 430 000. In the case of the 58-member cooperative, each farmer would contribute TZS 7 413.80. The useful life of the boat is about 10 years and boat maintenance is performed once a year at a cost of TZS 5 000 each cooperative member contributes TZS 86.21 per year. Equipment and tools include knives and machetes for cutting and sharpening the stakes, snorkelling masks for inspecting the plots during high tide, and gloves and rubber shoes to prevent scratches in hands and legs. Traditionally, seaweeds are dried on palm fronds and cloth materials placed directly on the ground Figure 10. To improve quality, drying racks made of wooden stakes and palm fronds that elevate the drying surface off the ground are recommended Ask, 1999; MNRT, 2005; Msuya, 2006b. Farmers have begun constructing racks as they learn the importance of thorough drying. Thus the cost of constructing a drying rack is included in this analysis. A drying rack frame is built using two bundles of wooden stakes, each costing TZS 2 000, 15 palm fronds at a cost of TZS 50 per frond the palm fronds are normally changed every three harvests, thus a total of 30 palm fronds are required, and two rolls of rope, each costing TZS 500. The labour cost for the construction of one rack is approximately TZS 2 000. In the rainy season, plastic materials i.e., tarps are needed to cover the seaweed while it is drying. Plastic bags 10 pieces are used for transporting the wet seaweed from the farm to the drying area and for storage of the dry seaweed. Table 2 summaries the investment requirements and the corresponding amortized annual capital costs of a deep-water floating-lines farm with 30 pieces of 12-meter lines. The raft frames require one roll of 12-mm lines for the frame, one roll of 10-mm anchor lines, one roll of 8-mm lines for tying anchors, and three rolls of 4-mm lines for tying seaweed. Anchors consist of fertilizer bags filled with sand or stones depending on the availability of sand and the nature of the tidal flat environment muddy bottoms would demand more frequent replacement of the sand bags. Recycled oil cans are used both as large buoys and markers while the plastic water bottles are used as floaters. A commercially profitable floating system should be at least 20×10m. The boat, equipment and post-harvest facilities used in the floating-lines system are assumed to be the same as the off-bottom farm. FIGURE 10 Drying seaweed in Kiuyu Pemba Island, with storage sheds shown at the background 126 TABLE 3 Initial investments and amortized annual capital costs: off-bottom vs. floating lines Items of capital investments Total investment cost Amortized annual capital cost Capital cost per km Total cost USD Share of total cost Annual cost USDyear Share of Annual cost Total USDkm Annual USDyear km Off-bottom 30×10 m - Farming system 15.5 32 15.5 58 51.8 51.8 - Vehicle and equipment 16.3 34 5.8 22 54.4 19.5 - Post-harvest facilities 15.9 33 5.5 20 53.1 18.3 Total 47.8 100 26.9 100 159.3

89.6 Floating lines 27×12 m