Aquaculture and Poverty Alleviation II.

Cage Culture in Coastal Waters of Vietnam

JOHN HAMBREY, LE ANH TUAN, and TA KHAC THUONG This is the second of two articles which assess demonstrating that cage culture has the potential of cage culture for the alleviation of poverty in some of the worlds poorest countries. The first article, which appeared in the last issue of World Aquaculture Magazine (March 2001), described freshwater activities in Bangladesh. This second article describes developments in the coastal waters of Vietnam. The approaches in the two countries were different. In Bangladesh cage culture was developed specifically as a poverty alleviation tool in association with local NGOs and the help of supporting research. The project in Vietnam was less technology focused, and sought to understand the causes of poverty and the needs, resources and capacity of poor people, using using rrapid and participatory rural appraisal techniques., and compare e Existing marine cage culture technologies were then compared with a range of possible alternatives in terms of their suitability for poverty alleviation. Aquaculture in Khanh Hoa Province Marine and brackish-water aquaculture is developing rapidly in Khanh Hoa Province, in south-central Vietnam. It started with brackishwater pond culture, mainly for marine shrimp (Penaeus spps.) and also some grouper (Epinephelus spp.), but in recent years the cage culture of spiny lobster (Panulirus spp.) has developed very rapidly. Cage culture production is dominated by individual family enterprises who own and operate one or more cages in the coastal lagoons and sheltered bays which are characteristic of the coastline of the Province. Cages are typically 10 - 30 m3 in volume, constructed with synthetic netting stretched over bamboo frames. Floating cages, supported by plastic drums, are also used. Families tend to aggregate their cages into groups, according to the quality and convenience of each site, which facilitates transportation, security, and the sharing of labor. Seed for both grouper and lobster are harvested from the wild, consequently there is a wide range of sizes, from about 3 10 cm. The seed is usually caught in traps by local fishermen, although juvenile lobsters are occasionally taken by hand. The diet provided is trash fish and shellfish, which is either purchased from dealers at local markets or caught locally and used directly. The majority of fish and lobster are sold and marketed live, handled mainly by through local buyers who sell on to the major exporting companies based in Ho Chi Minh City. So far the farmers have not encountered disease problems with lobster culture, and very little for grouper. Brief overview of lobster and grouper culture in Khanh Hoa** + pic**.. comparison with Bangladesh Causes of Poverty

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

There are many causes of poverty in Vietnam. The countryVietnam has a population of about 79 million people, with an annual growth rate of 1.5%. However, tThreequarters of the country is mountainous and hilly, and most of the population is concentrated along the coast and polarized around the main cultivated areas of the Red River delta in the north and the Mekong River delta in the south. In general the majority of people are landless. There is intense competition for land in these areas. Much of the land away from the alluvial plains is hilly and poor, roads are bad and readily washed out, and therefore access to markets is not easy. Moreover, forest fires and slash-and-burn agriculture practices have left new land open to erosion and further degradation. The climate varies from tropical in the south to sub-tropical in the north, with the most extreme weather conditions found in the north-central parts of the country, where summers can be hot and dry, and winters cold and wet. Monsoon rains in the north, and the occasional typhoon from the South China Sea crossing into Vietnam between May and January, frequently cause flooding. Relevant to the coastal regions, where most of the aquaculture practices do and will occurtakes place, poverty is again exacerbated by the migration of people to the coast. This has put pressure on public services, such as water and energy. Many people become fishers, in the search for free food resources, but consequently there is currently greatleading to over-exploitation of the coastal fisheries, and in some cases. Furthermore, the fishers are destroying the habitat with the use of destructive fishing gear methods are used (such as cyanide, explosives and electric fishing push nets). , and iIndustrial pollution and agriculture run-off, which now includes the nutrients loading discharged from coastal shrimp farms, is degrading water quality the important coral reefs habitats offshorein some places. Monsoon rains in the north, and the occasional typhoon from the South China Sea crossing into Vietnam between May and January, frequently cause flooding, but on the whole the country has an even inter-tropical seasonal climate with equatorial lowlands, high temperate plateaus, and alpine peaks. Pros and Cons of Cage Culture The main cThe auses of poverty and constraints to development were discussed with coastal villagers in Khanh Hoa Province. These varied from village to village, but included lack of investment capital; dense population and lack of land; poor and impoverished soils; erosion and flooding; forest fires; over-exploitation of inshore fisheries and the use of destructive fishing practices; habitat degradation, including coral reef and mangrove; shrimp disease (amongst small scale shrimp farmers); pollution from animal husbandry and shrimp aquaculture; and poor infrastructure in terms of freshwater supply, roads and access to markets. It is notable that many of these relate to overexploitation of natural resources and associated environmental degradation. Pros and cons of cage aquaculture Most villagers were keen to enter cage culture, since it was seen as a way round the problems and constraints described above. It requires relatively modest investment; it
Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

does not require land; and it is not directly affected by erosion, flooding, and habitat destruction. Unlike shrimp culture, it has been almost free of disease problems. So far also, there is little evidence of habitat degradation or pollution from cage culture. Access to markets is not considered a major problem since dealer/exporter networks are well established. Perhaps most importantly, it is known to generate relatively high levels of income. Despite these strengths, recognized by local people, there are some potential problems. While a shift from inshore fisheries to cage aquaculture will take the pressure off some coastal resources, the dependency on wild seed and trash fish feed may intensify pressure on others. Although destructive gears are not used in the collection of seed for grouper or lobster, over-exploitation of stocks is likely in the medium term - especially in the absence of any effective fishery management. In any case, availability and cost of seed will certainly become a constraint to growth of the sector in the not too distant future. capacity of cage culture to address and help relieve some of the causes of poverty were assessed by coastal villagers in Khanh Hoa Province. Many of the characteristics were given a high rating, as the causes of poverty were fundamental to the inland environment and were irrelevant to successful coastal aquaculture. For example, the poor agriculture soils, destructive forestry practices, erosion of land, seasonal flooding, and the lack of good roads inland and public services were to a large degree unimportant. Similarly the landlessness of most of the coastal population was not an issue, and there were many sites for cage culture available in the Province. Finally, the low average income of farmers in general was also given a high rating as cage culture generated a high return on investment compared with alternative activities. More important were the constraints which had direct relevance to the characteristics of the proposed coastal aquaculture. For example, over-fishing, destruction of coastal mangrove forests, and degradation of the coral reefs were only given low to medium ratings. On the one hand successful production of fish and lobsters would relieve some of the pressure on existing resources and habitat, but on the other current aquaculture practices relied entirely on the harvesting of wild juveniles for stocking cages, and trash fish and shellfish were still a principal part of the diet. The presence and competition from the growing marine shrimp industry was also given a low to medium rating. Intensive cage culture was an alternative incomeearning opportunity for the coastal farmers but, if large numbers of farmers concentrated in one place the accumulated waste might contribute to the heavy nutrient loading and increase the risk of pathogenic diseases. On the other hand, marine shrimp farming was producing a high-value product and transportation and marketing links were well-established, and consequently access to markets for the products of cage culture was given a high rating. In summary, the ratings given by the farmers suggested that cage aquaculture had the potential to address some of the constraints to improve their livelihoods and reduce poverty. The most significant question related to the pressure on inshore fishery resources, which were already over-exploited and therefore already a significant factor in the poverty among the poorest coastal villages. On the one hand cage culture might help reduce pressure on these over-fished resources by offering an alternative
Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

activity, but on the other hand it could exacerbate the problem because of its own demand on natural resources. Job SatisfactionLivelihoods Development workers are increasingly concerned about the impact of development interventions on the livelihoods and quality of life of poor people. Lack of income is only one aspect of deprivation. There are many more qualitative aspects such as insecurity, vulnerability, and poor health and well-being generally. The nature and importance of these will vary from place to place. In Khan Hoa, Ggroups of coastal villagers were asked to list the key characteristics of their current occupations and activities in terms of their suitability/unsuitability to meet their aspirations and livelihoods needs, other than in financial terms. Considerable discussion and prompting was required to specify these characteristics or criteria, which varied somewhat between occupations, but the following were finally agreed: the physical environment (shelter, comfort etc);, interest and stimulation;, stress;, sense of progress or creativity;, security of income or employment;, tradition, habit, or experience;, output (cCatch or production);, and inputs (quality and availability, etc.). A survey was undertaken among 42 individual fishing and aquaculture households to determine how they rated their main activity against these criteria. . Shrimp farming scored relatively badly because environmental quality was declining, yields were unpredictable or declining, and many farmers felt insecure. Although some farmers enjoyed very high returns, other farmers were losing 30 50 % of their crops to chronic disease problems. There were four qualifying activities, namely near-shore fishing, offshore fishing, shrimp farming, and grouper farming. Near-shore fishing also and shrimp farming scored poorly against most of these criteria, because stocks were are over-exploited and the coastal habitat degraded. Returns on labor are nowwere below US$1 a day. Shrimp farming also scored badly because even though returns could be very high many farmers were losing 30 50 % of their crops to chronic disease problems. Therefore returns were highly unpredictable and losses could be substantial. The work was also rated as exceptionally uninteresting. Offshore fishing rated very differently against different criteria, scoring badly in terms of stress, but well in terms of a sense of progress and promising future. Grouper farming and offshore fishing scored relatively well against most criteria. The scores for the various criteria were aggregated (arithmetically no weighting) into a single unweighted job satisfaction index, and the results are summarised in Figure 1. Figure 1: Job satisfaction aggregate ranking for different activities (Original Figure 5)

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

4 3.5 3 2.5 score 2 1.5 1 0.5 0 grouper farming off shore fishing near shore fishing shrimp farming 1= totally satisfied 5 = totally disatisfied

Comparative Economics Cage aquaculture of lobster and grouper were then compared with a range of other possible activities (shrimp farming, offshore fishing, and inshore fishing), using a set of 7 ratios and indicators, to in terms of their determine their relative financial and socio-economic attractiveness. Seven The 7 ratios and indicators were used:parameters were p profit per kilogram product;, profit margin;, return on investment;, return to labor;, employment per kilogram product;, start-up investment;, and investment per job created. Many of tThe data were generated from models developed with social local scientists and groups of villagers, and cross checked against Provincial production statistics. T The results are summarized in Table 1.
Table 1 (Original Table 3). Summary comparison of financial and economic indicators for alternative enterprises in the coastal zone.

Lobster Lobster culture (cages) Profit/kg Profit margin Return on investment Return to lLabor Employment/kg Enterprise (sStart-up) investment1
1

Grouper Grouper culture (cages) ** ** ** ** ** ***

*** ** *** *** *** ***

Semi-SemiSemiintensive shrimp farming ** ** ** *** * *

Offshore Offshore fishing na * * ** *

Inshore Inshore fishing (net) * * * * * **

This includes capital investment, and - for farming activities - working capital (for feed, seed etc) required for production of the first crop. Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

Investment/job *** ** ** * * = unfavourable; ** = favourable; *** = very favourable

**

Cage culture of lobster and grouper scored well on most financial and socio-economic criteria and compareds favourably with alternative activities currently available. Input-Output Profiles of Cage Culture Key financial characteristics and performance indicators of some of the cage culture options studied are presented in Table 2. They are calculated for 1 cubic metre of cage volume and one production cycle to allow for comparison with other systems such as those discussed in the article on cage culture in Bangladesh in the previous issue. These figures are illustrative, and actual performance varies considerably according to skills of the farmers and local circumstances.

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

Table 2 . Summary of typical costs (in US$), inputs and returns per cycle per m3 cage volume for three cage culture options. Grouper Labor (person days) Financial inputs Cage capital charge Seed Feed (trash fish and shellfish) Sales revenue Financial returns and risks Gross margin
(excluding labor )

Spiny lobster (large seed) 6 4.6 4 9.6 48 30 5 62% 9 14 5.4 45 51 220 119 8 56% 10 133 (1,796) 1

Spiny lobster (small seed) 20 7.2 20 38 165 100 5 60% 16 101 (1,375) 1

Return on labor ($/person day) Profit margin

(excluding labor)

Length of production cycle

(months)

Minimum start-up investment (for typical 13.5m3 cage) Payback period (no. of cycles)

38 (516) 1

In all cases returns are fairly rapid and relatively high, with all start-up investments paid off within a single production cycle. Return on labour is well above most alternative activities, apart from offshore fishing. The higher start-up capital for lobster compared with grouper is related to poor food conversion and the longer production cycle, as well as relatively high seed costs. Using small rather than large lobster seed implies a longer production cycle, higher use of labour, but lower seed costs. It should be emphasised that investment requirements are flexible. Smaller cages, low stocking densities, and small seed can be used if cash is not available. This negatively impacts return on labour but allows poor people to get started. Conversely, once some cash is generated, stocking rates can be increased and cages expanded leading to higher labour productivity and corresponding returns to labour.

Constraints to Entry and Success

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

Most poor villagers were keen to start in cage culture. The main constraints to entry, as perceived by those not yet involved, were financial. They included, in order of priority: shortage of investment capital; lack of knowledge of the nature and profitability of alternative enterprises; high interest rates; inappropriate loan repayment schedules;, and poor management of existing financial resources

In practice, tTheir immediate needs in terms of facilitating access to the potential benefits of aquaculture included appropriate finance packages and improved technical knowledge, but alsoas well as allocation of appropriate water area and appropriate government policies. Of the Sseventeen cage-culture farmers were interviewed, and all perceived aquaculture positively, and. T thirteen said that they intended to expand production. Other households already engaged in shrimp culture and cage culture of grouper aquaculture households were questioned about the main constraints to success in their existing pursuits, which were cage shrimp culture and cage grouper. Financial credit was the most important constraint, followed by technical skills and seed supply. F After that, feed,, availability of appropriate quality land,; availability of aappropriate quality water,; and market access access were all considered to be significant but less important. were equally less important. Their suggestions in terms of immediate needs to make aquaculture more successful included improved technical support (67% of respondents), improved supply and quality of seed (67%); lower interest loans (57%) and higher farm gate price (52%). Surprisingly, the issue of disease, which results in the loss of more thansome 50% of shrimp crops was not raised as a major issue. This may be related to the perception of disease as an inevitable fact of life or feature of production. In contrast to the situation in Bangladesh (see previous article) Ttheft and vandalism wereas not a significant issues in Vietnam. This relates partly to scale of enterprise. Production from the larger cages and its high value supported full-time lLabor, therefore cages were effectively guarded. Furthermore farmers tended to establish their cages together, so that security tasks were also shared between them.

Sustainability of Cage Culture There are Ffour major issues related to the sustainability of marine cage aquaculture in Khanh Hoa Province. These are feed resources, the supply of seed, disease, and environmental capacity. A detailed study was undertaken of grouper seed supply, in terms of quantities landed and habitat requirements of juveniles. It was concluded that much of the habitat in

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

which the seed was caught was under pressure from a variety of developmentactivities, and in the long-term the wild seed supply was unlikely to support significant expansion of cage culture. Although no detailed study of the lobster seed was undertaken, it is probable that similar conclusions would be drawn. There was some suggestion that lobsters were breeding and spawning in holding cages, but that was not confirmed and requires further research. There are two possible ways forward to address this problem. One is to develop commercial hatchery technology for grouper and lobster. The former has been developed in Taiwan, although it is difficult and costly. but hHatchery production of spiny lobster is unlikely in the foreseeable future. The other, and probably more appropriate approach, is to develop hatcheries for other species that are easier to producemore easily produced. For example, hatchery production of Asian seabass (Lates calcarifer) is well established in the region, although farm gate prices are currently low. Also trials for hatchery production of kopia (Rachycentron canadum) have been very successful in northern Vietnam, and this fish has excellent growth characteristics and a good market in Asia. All cage production in Khanh Hoa is dependent on a diet of trash fish. Two issues related to this are of concern. The first is the long- term sustainability of supply. Commercial fisheries in Vietnam are subject to little regulationnot subject to many regulations, and there continues to be significant investment in larger offshore boats. ITherefore it is probable that more stocks will be over-fished, with implications for the cost of trash fish and knock-on impacts on the marine ecosystem. The second is the possible increase in price of trash fish related to increased demand, with negative impact on the nutrition of poor people who eat them. There is some overlap between good quality trash fish used for aquaculture feed and that purchased for food by poorer people. In the last five years there has also been a significant increase in the price of trash fish due to the increased demand for export, for fish sauce, for livestock feed, and for aquaculture. The relationships are complex, and price data is inadequate to address the issue comprehensively, but it is clear from many perspectives, such as cost, disease, and convenience, that a shift away from high dependence on trash fish would be desirable for the cage culture industry. Disease has not been a problem for cage culture of grouper or lobster in Khanh Hoa Province. This may be related to the relatively low stocking densities used, and the high quality of water. However, as the industry expands and production intensifies the risks of disease will increase. Currently there are no easily discernible impacts from cage culture on the environment or coastal ecosystems. All the cage complexesCages are sited in areas of good water exchange, and stocking densities are low. As the industry develops it is probable that more marginal sites will be developed and intensified, together with increased risks of environmental degradation. Fortunately there is widespread awareness of the issue of environmental capacitylimitation, and hopefully research will be directed to assess environmental capacity for different aquatic systems, and to develop appropriate approaches to allocate and manage this capacity.

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

Input-Output Profiles of Cage Culture 2 e data require LaborLabor These figures are illustrative and actual performance varies considerably according to skills of the farmers and local circumstances. 2 (Original Table 4). (in US$). LaborCSFGuding LaborRLaborPuding LaborLM Potential of cage culture for poverty alleviation in Comparisons between Vietnam and Bangladesh Strengths It is clear that small- scale cage culture is particularly suited to poverty alleviation in both Vietnam and Bangladesh (described in the first article in the last issue). is particularly suited to poverty alleviation in both those countries. Perhaps the greatest strength is the lack of requirement for land. In Bangladesh many of the rural poor are landless. In Vietnam most households have land rights of some form, but holdings are typically very small. Where soils are poor, flooding and erosion is common, these holdings are inadequate to provide a decent livelihood. Inshore fishery resources are in decline. A second major strength is the flexibility of cage culture especially in terms of investment requirements. Cage aquaculture can be started using a small cage and/or low stocking densities, with correspondingly low start-up costs. In the case of Bangladesh, a range of species and systems is available from low investment/modest return to high investment/high return, which allows steady low-risk progression out of poverty. The returns from cage culture both in terms of return on investment, and more importantly for small scale enterprises, return on labour compares well with most alternative activities. Once farmers are able to afford a few cages, or larger cages, return on labour is much higher than alternatives. In Bangladesh the fish is produced for both food and income, andThe key strengths of small-scale cage culture are: It is a micro-business with minimal investment It offers higher return on investment than most alternative activities It is independent of access to land or ownership of water fishA return can be realized harvested in small or large packets as and when required. This is important as a strategy to deal with the seasonal nature of poverty in that country. Investment can be made when cash is available, and income realized during periods of hardship. In Vietnam on the other hand the product is higher value and is rarely used for food, but the seasonality of poverty is less of an issue there. It generates food for the family and/or cash income It has many options, from low investment/modest return to high investment/high return, which allows steady low-risk progression out of poverty These various strengths are significant, especially given the very limited options for improving the livelihoods of poor people in these countries., and especially those with little or no land.

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

In practice, however, the suitability of cage culture and the appropriate practice, depends on local circumstances, and the needs and capacity of the farmer. It is important that specific forms of cage aquaculture are not promoted, but rather the range of options should be discussed first with each farming family and then developed and adapted according to their particular needs. Sustainability Despite the clear potential of cage aquaculture for poverty alleviation, there remain some questions related to sustainability. Disease is a common problem of cage aquaculture throughout the world, and while this has not been a problem in Bangladesh or Khanh Hoa Province of Vietnam, it may well become an issue as production, density of development and stocking densities increase. Closely related is the issue of environmental capacity. Any initiatives to promote cage aquaculture must include strategies for disease prevention and management, and for the assessment and allocation of environmental capacity. A second important issue is the dependence on trash fish or fish meal in more intensive systems and those rearing carnivorous species. At present this is hardly an issue in Bangladesh, but if farmers are successful, there will be strong incentives to expand and intensify, and the use of compound feeds with trash fish and/or fishmeal will almost certainly increase. The implications of this, in terms of resource use efficiency and the availability of low cost fish for poor people, deserve careful assessment. In Bangladesh most seed used is hatchery produced and relatively cheap. In Vietnam it is caught from the wild. It is expensive, and will probably soon become limiting. Over-exploitation may lead to adverse impacts on capture fisheries. It is therefore essential that hatchery production of these or alternative species is developed as soon as possible. While commercial operators are well placed to develop their own approaches to deal with these issues, poor people generally cannot. Improved planning and management of the new sector, coupled with appropriate extension and research funded by the respective governments with assistance from international aid, are still required to address these problems. Implications for promotion and extension The data from the two projects in Vietnam and Bangladesh show that the different systems have very different strengths and weaknesses, and their relative importance will depend upon the status and circumstances of the farmer. These must be fully understood by both extension workers and potential beneficiaries. Cage size is a good indicationexample. ; for example, wWhere the risk of failure is significant for whatever reason, where flexibility is paramount, or where access to credit is limited, small cages have significant advantages. Where risks are lower, full-time labor is available, and credit is available, then larger cages may be preferable. Starting with small cages and graduating to larger cages may be the best option in many situations. It may be that smaller cages could be introduced in Vietnam as a means of facilitating access of the poorest to the benefits of marine cage culture. However, tBioHambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

tinformation is also to knowechnical issues are also important, as some marine species may perform less well in smaller cages. Exploring these issues with potential or actual fish farmers is crucial to the identification of effective poverty alleviation strategies. Therefore tThere is an urgent need for supportingto develop extension materials which effectively summarise the key resource and financial characteristics of the aquaculture options, their individual strengths and weaknesses, the levels of risk associated with them, and alternative income generating activities. Attempts to introduce cage culture to Bangladesh in the past have failed, despite its success in other countries in Asia. This was almost certainly related to the development approach, which treated cage culture as a single fixed technology, rather than as a range of options. However, there are some questions associated with the sustainability. Facilitating entry It is sometimes pointed out that those who enter aquaculture, and especially more intensive forms of aquaculture, are not the poor. Indeed this is sometimes used to suggest that aquaculture is unsuitable as a tool for poverty alleviation. There is no doubt that the barriers to entry are higher for the poor than for the rich; but this is true of entry into any new technology or enterprise indeed into any activity that might make the poor significantly better off. Eradicating poverty requires that government and aid organizations work to reduce the barriers which prevent the poor entering new and suitable enterprises, increase the chances of success, and reduce risk to a minimum. This is no easy task, but research in both Bangladesh and Vietnam suggests that cage aquaculture is particularly suitable in many respects, and deserves a significant place in poverty alleviation strategies. These include of cage aquaculture: Risks associated with disease Complete dependence on trash fish or fish meal in more intensive systems Lack of seed, or over-dependence on wild seed, Potential for over-development leading to environmental degradation from nutrient loading, and disease epidemics While commercial operators are well placed to develop their own approaches to deal with these issues, the poor people are not and therefore their activities for self-help are extremely vulnerable Therefore inew , and appropriate research funded by the respective governments with assistance from , are still required to address these problems. Conclusion In summary, the conclusion of these research and development projects in Vietnam and Bangladesh is that small-scale cage culture has significant potential for poverty alleviation in both countries and in both freshwater and marine environments. The constraints to entry, success, and sustainability are different in each country, although the universal issues of seed and feed, , in terms of availability, cost, quality, sustainability,,are common to both.

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

Authors Notes John Hambrey is a Director of Nautilus Consultants Limited in the U.K. He undertakes consultancy and research in natural resource economics, development and management, with particular emphasis on aquaculture, environment and development issues. He can be reached fax +44 131 554 5902 or through e-mail: john@nautilus-consultants.co.uk. URL: www.nautilus-consultants.co.uk John Hambrey is XXX with Nautilus Consultants Ltd., in Edinburgh. He has ----He can be reached at XXXX Le Anh Tuan and Ta Khac Thuong are XXX researchersfaculty with the University of Fisheries, Nha Trang, in Khanh Hoa Province, Vietnam. They have research interests in marine cage aquaculture, shrimp culture and development issues. They can be reached at Fax: (0084) 58 8311147, and email: leanhtuan@dng.vnn.vn

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

Figure 1: Satisfaction with alternative activities for coastal villagers in Khanh Hoa Province

4 3.5 3 2.5 score 2 1.5 1 0.5 0 grouper farming off shore fishing near shore fishing shrimp farming 1= totally satisfied 5 = totally disatisfied

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).

Photos and captions 1. A large aggregation of suspended cages for the rearing of spiny lobster (Panulirus spp) in Khanh Hoa Province, Vietnam. Most families own 1 or two cages. Re-stocking grouper (Epinephelus) in cages in Vietnam Preparing feed (trash fish and shellfish) for spiny lobster in VietnamXXXXX

2. 3.

Hambrey, J., Tuan, L. A., Thuong, T.K. 2001. Aquaculture and poverty alleviation 2: cage culture in coastal waters of Vietnam. World Aquaculture. Vol 32 No. 2 (in press).