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Yolanda T. Garcia,Maria Esperanza T. Garcia,Arnulfo G. Garcia 한국무역학회 2019 한국무역학회 국제학술대회 Vol.2019 No.08
This study aims to estimate the welfare gains of the Philippine milkfish industry in establishing local fry hatcheries to reduce imports from Indonesia and Taiwan. It also seeks to establish the industry stakeholders who gain from this import substitution industrialization (ISI). The economic surplus model was used to estimate the welfare gains from ISI of hatchery-bred milkfish fry in the fishery sector. Specifically, the changes in consumer and/or producer surplus per stakeholder were compared to determine who the biggest gainers are. Results of the study showed that the consumer surplus from the milkfish fry industry was larger than its producer surplus. On the other hand, the reverse was true for the grow-out industry. It is interesting to note that the consumers in the fry industry and the producer in the grow-out industry were the same set of stakeholders, i.e., the milkfish grow-out operators, who gained the most from the ISI of the hatchery-bred fry. The study also showed that the commercialization of the local milkfish hatchery technologies can bring about more benefits to the country than importing frys and fingerlings. Hence, ISI of local hatcheries for other aquaculture species can be expected to bring similar welfare gains. More importantly, the technical and financial assistance that were extended by the government’s fishery sector through the GAINEX project as pioneered by DOST-PCAARRD can serve as an effective catalysts to prospective hatchery operators in reducing the risks, especially when setting-up a new enterprise like the hatchery-bred fry for an emerging aquaculture species in the country.