AQUACULTURE AGRIBUSINESS CLUSTERS FORMATION AROUND NATURAL WATER SOURCES: IMPLICATIONS FOR ECONOMIC PROGRESS IN DELTA STATE, NIGERIA

Abstract

Objective: In the study, the primary, secondary and induced economic effects of aquaculture clusters operations around natural water sources were evaluated in Delta state, Nigeria. Material and Methods: Primary data collected with questionnaire from purposively selected 150 cluster operators, were analyzed with descriptive and inferential statistics. Results: The findings indicated that aquaculture agribusinesses that cluster around natural water sources generated significant and positive primary, secondary and induced economic effects.The income of principal operators of clustered aquaculture, the consumption expenditures of aquaculture inputs suppliers and taxes harvested from aquaculture agribusiness operators by government contributed significantly (p<0.05) to the total amount of money in circulation (economic bouyancy). Conclusion: The operators of agribusiness clusters earned more income than their counterparts that operated in isolation in the hinterland, indicating the importance natural water source as a requirement for aquaculture cluster location.The finding shows that agribusiness clusters indirectly impacted economic bouyancy through the income of laborers and input suppliers.Tax Taxes paid by all agribusiness participants had an induced positive effect on the economy. Considering the evidence of prospects for development derivable from aquaculture agribusiness clusters, it is imperative to expand its frontier in Delta State, Nigeria.