IMPACT OF AQUACULTURE FARMING: A CASE STUDY IN

KAMPUNG FIKRI, SETIU, TERENGGANU

FARAJANNAH BT OTHMANNG XUE FENNOORMAZNI BT KALIL

NOR HASYIMAH BT ROSLI

MOHD NOOR AZIZI BIN DARUS

AHMAD AL ALAWI BIN RAMLYMASTER OF MANAGEMENT

INTEGRATED COASTAL ZONE MANAGEMENT

UNIVERSITI MALAYSIA TERENGGANU

2012

PENGAKUAN

Kami dengan ini mengaku bahawa kajian kes ini adalah berdasarkan kajian kami sendiri kecuali sumber dan petikan lain yang telah diperakui. Kami juga mengakui bahawa ia tidak pernah diserahkan untuk mana-mana ijazah samada UMT atau institusi lain.

FARAJANNAH BT OTHMAN (GSK 1231) ..

NG XUE FEN (GSK 1234)

..

NOORMAZNI BT KALIL (GSK 1281)

..

NOR HASYIMAH BT ROSLI (GSK 1291)

......................................

MOHD NOOR AZIZI BIN DARUS (GSK 0705)

.......................................

AHMAD AL ALAWI BIN RAMLY (GSK 1209)

.......................................

Tarikh: 4 September 2012

DECLARATION

We hereby declare that the case study is based on our original work except for quotations and citations which have been duly acknowledged. We also declare that it has not been previously or concurrently submitted for any other degree at UMT or other institutions.

FARAJANNAH BT OTHMAN (GSK 1231) ..

NG XUE FEN (GSK 12334)

..

NOOR MAZNI BT KALIL (GSK 1281)

..

NOR HASYIMAH BT ROSLI (GSK 1291)

......................................

MOHD NOOR AZIZI BIN DARUS (GSK 0705)

.......................................

AHMAD AL ALAWI BIN RAMLY (GSK 1209)

.......................................Date: 4 September 2012

ACKNOWLEDGEMENT

Thank God, we give thanks and great appreciation to Allah (swt) because by His grace and mercy we were finally able to set up a successful case study according to the time set. Various obstacles and trials we tackle in completing this study.

Here, we extend our thanks and great appreciation goes to the supervisors for Case Studies in Coastal Zone Management (SKL5202), Pror. Dr. Lokman Hussain as the head of supervision, Assoc. Prof. Dr. Nik Nik Mohd Fuad Kamil, Assoc. Prof. Dr. Ibrahim Mamat, Prof. Dato' Dr. Saharuddin Dato 'Abdul Hamid and Assoc. Prof Dr. Rosnan Yaacob for all the advices and knowledge that they gave in order to help us finish up this study.

In addition, our personal thanks to our Program Coordinator of Master in Integrated Coastal Zone (ICZM), Dr. Nanthakumar s/o Loganathan who also involved in providing support and guidance to us in order to complete this case study and other lecturers involved either directly or indirectly.Our appreciation also goes to all the government agencies that involved either directly or indirectly such as Setiu District and Land Office, Department of Environment, Department of Drainage and Irrigation, En. Adnan bin Ahmad, JKKK Kg. Fikri, En. Rosli bin Abdul Rahman, (Head of District Fisheries Office), operators and the residents of Kampung Fikri that give cooperation in helping us to completing this study.

We also want to thank to our parents and family members for their support and encouragement during the completion of this study. Also not forgot to our friends and others classmates who also help and encouragement us when we need their opinion.

Thank you.

ABSTRAK

Kajian ini bertujuan untuk mengkaji kesan aktiviti ladang akuakultur di Kampung Fikri, Setiu, Terengganu. Kajian ini dijalan dengan menggunakan kaedah berbentuk diskriptif di mana kaedah pengumpulan data yang digunapakai dalam kajian ini adalah berbentuk kualitatif dan kuantitatif. Terdapat dua jenis data yang digunakan dalam kajian ini iaitu data sekunder dan data primer. Data sekunder diperolehi daripada agensi-agensi dan pejabat akuakultur yang terlibat di Daerah Setiu, Terengganu. Manakala, data primer pula diperoleh melalui kaedah soal selidik dan temubual. Kaedah soal selidik telah dijalankan ke atas 85 orang penduduk Kampung Fikri yang berumur antara 20 hingga 51 tahun sebagai responden kajian secara rawak. Manakala, kaedah temubual pula telah dijalankan bersama pihak-pihak yang berkepentingan serta agensi-agensi yang terlibat dalam aktiviti akuakultur bagi mendapatkan data atau maklumat yang diperlukan dalam kajian ini. Hasil kajian mendapati terdapat kesan positif dan negatif dalam aktiviti ladang akuakultur terhadap kawasan kajian dan komuniti setempat yang perlu dinilai bagi memastikan kelestarian dapat dicapai. Kesan ini telah dinilai berdasarkan tiga aspek utama iaitu ekonomi, sosial dan alam sekitar. Kertas kerja ini turut mencadangkan beberapa langkah dan prinsip ICZM yang perlu diikuti supaya ladang akuakultur di Kampung Fikri ini mengikut standart amalan akuakultur yang baik dan mapan.

Kata kunci: kesan, ladang akuakultur

ABSTRACT

This study aimed the effects of aquaculture farming activities in Kampung Fikri, Setiu, Terengganu. This study has been carried out by using the descriptive method where the data collection method that has been used is to qualitative and quantitative measure. There are two types of data used in this study which is secondary and primary data. Secondary data were obtained from the agencies and offices involved in aquaculture of Setiu District, Terengganu. While, the primary data were obtained through questionnaires and interviews. Questionnaires were conducted on 85 people between the ages 20 to 51 years old has been randomly selected as respondent. Several interviews have been conducted with the interested parties and the involved agencies in the aquaculture sector to gain the data or information that are required for this study. From that interview, discovery of the positive and negative impacts of the aquaculture farming towards the studied area and also the community to ensure that sustainability can be achieved. This effect has been evaluated based on three main aspects, namely economic, social and environmental. This paper also recommended several ways and ICZM principles that should be followed so that aquaculture farming in Kampung Fikri could adhere to the standards of good practice and sustainable aquaculture.

Kata kunci: effects, aquacultur farming

TABLE OF CONTENTS

PAGES

DECLARATION i

ACKNOWLEDGEMENT ii

ABSTRACT iii

ABSTRAKiv

LIST OF TABLEvii

LIST OF FIGURE

LIST OF ABREVIATIONS

vii

ix

CHAPTER 1 INTRODUCTION

1.1 Aquaculture Definition1

9

11

11

12

13

13

13

14

14

15

16

1.2 Malaysian Aquaculture Industry

1.3 Aquaculture Growth in Malaysia

1.3.1 Fisheries Profile

1.3.2 Aquaculture Production

1.3.3 Brackishwater Aquaculture

1.3.3 (i) Brackishwater Pond Culture System 1.3.3 (ii) Brackishwater Cage Culture System

1.3.3 (iii) Brackishwater Tank Culture System

1.3.3 (iv) On-bottom Culture System

1.3.3 (v) The Rack Culture System

1.3.3 (vi)Ornamental Fish Culture

1.4 Fish Seed Production

1.5 Conclusion

16

22

CHAPTER 2 AQUACULTURE FARMING IN KAMPUNG FIKRI, SETIU

2.1 Introduction of Setiu23

2.2 Beach Zone24

2.3 History of Kampung Fikri25

2.4 Ecology in Kampung Fikri25

2.5 Demographic of Kampung Fikri27

2.6 Socio-Economic of Kampung Fikri

2.6.1 Occupation of local community in Kampung Fikri

2.6.2 Income level of local community

2.6.3 Vehicle ownership

2.6.4 Education level

2.7 Potential Development of Aquaculture Industry

2.8 Aquaculture Farming in Kampung Fikri

2.9 Problems Statement

2.10 Research Questions

2.11 Objectives

2.11.1 General Objectives

2.11.2 Specific Objectives

2.12 Conclusion29

29

31

31

33

37

38

39

39

39

40

40

CHAPTER 3 LITERATURE REVIEW

3.1 Introduction

3.2 Selected Literature Review41

41

CHAPTER 4 METHODOLOGY

4.1 Introduction

52

4.1.1 Secondary Data

52

4.1.2 Primary Data

53

4.2 Conclusion

54

CHAPTER 5 RESULT AND DICUSSION

5.1 Introduction

55

5.2 Background of Respondents

55

5.2.1 Gender of Respondents

56

5.2.2 Distribution of Respondents' Race

56

5.2.3 Percentage of Respondents Age

57

5.2.4 Percentage of Respondents by Qualification

58

5.2.5 Employment Status of Respondents

58

5.2.6 Percentage of Respondents Income

59

5.3 Aquaculture Farming Towards Economic, Social and

Environmental Aspects in Kampung Fikri

60

5.3.1 Economic Aspect

60

5.3.2 Social Aspect

67

5.3.3 Environmental Aspect

69

CHAPTER 6 SUGGESSTION AND CONCLUSION

6.1 Introduction

74

6.2 Suggestions

74

6.3 ICZM Principles That Need to be Implemented for Aquaculture

81

Farming in Kampung Fikri

6.4Conclusion

86

References

87

LIST OF TABLE

Table No.

Pages

1.1Aquaculture Industries, by volume, in 1999

5

1.2 Fisheries Landing/Production and Value, Malaysia, 2010

18

1.3 Fisheries Landing/Production and Value, Malaysia, 2009

19

2.1Zones in Setiu District with Land Areas

23

2.2 Villagers Distribution According to Ethnicity and Local Authority

24

2.3Total Individuals Living in Kampung Fikri According to Ethnicity

272.4 Show the occupation of local community in Kampung Fikri

292.5Numbers of Villagers as Registered Fisherman Categorized

by Village

30

2.6Number of registered fisherman and fishing vessels of each

district in Setiu, 2011

32

2.7 Education Level in Kampung Fikri

34

2.8 Fisheries Capture in Setiu District

34

2.9 Aquaculture Production in year 2010-2011

35

2.10 Brackish/Marine Water Aquaculture Activity in Setiu District

36

2.11 Freshwater Aquaculture Farming in Setiu District

36

5.1 Percentage of Respondents Gender

56

5.2Number of Respondents by Race

56

5.3 Percentage of Respondents Age and Marital Status

575.4 Percentage of Respondents by Qualification

58

5.5 Employment Status of Respondents

59

5.6 Percentage of Respondents Income

60

5.7Interim Water Quality Standards

73

5.8Range of Average Value WQI

73LIST OF FIGURE

Figure No.

Pages

1.1Value of Aquaculture Sub Sector, 2006 2010

20

1.2Estimated Production and Aquaculture Value from All

Aquaculture System 2000 2010

20

1.3Estimated Production and Value of Aquaculture from

All Brackish water Aquaculture System 2000-2010

21

1.4Aquaculture Production by Culture Systems 2010

21

2.1Population of Kampung Fikri According to Age Group

28

2.2 Income Level of Local Community in Kampung Fikri

31

2.3 Shows the Number of Vehicle Owned by the Local Communities

in Kampung Fikri.

33

2.4 Areas of Aquaculture Industry Zone in Kampung Fikri

37

5.1 Percentage of Respondents Age and Marital Status

57

5.2 (i) Response on whether aquaculture farming activities give impacts to

village economy

61

5.3(ii) Responses on employment opportunities created for villagers

62

5.4 (iii) Response on Increasing Income to Local Communities

63

5.5 (iv) Response on Aquaculture Farming Giving Negative Impacts

to Fisherman to Market Their Captured Fisheries

65

5.6(v) Response on start-up capital as main factor that prevents local

villagers from starting an aquaculture farming business

66

5.7(i) Percentage of respondent agree/disagree on stealing activities

occurred at aquaculture area

67

5.8 (ii) Percentage of respondent agree/disagree on grower were

fulfilled their corporate social responsibilities

68

5.9Percentage of Respondents on the Destruction of Mangrove Forests

70

5.10

72

LIST OF ABREVIATIONS

DOEDepartment of Environment

DOF Department of Fisheries

ICZM Integrated of Coastal Zone Management

LKIM Fisheries Development Authority of Malaysia

MDS Setiu District Council

FRI

Marine fish Production and Research Centre

IPM

Malaysian Fisheries Institute

CHAPTER 1

INTRODUCTION

1.1Aquaculture Definition.

According to Britannica Concise Encyclopedia aquaculture means rearing of fish, shellfish, and some aquatic plants to supplement the natural supply. Fish are reared in controlled conditions worldwide. Though most aquaculture supplies the commercial food market, many governmental agencies engage in it to stock lakes and rivers for sport fishing. It also supplies goldfish and other decorative fish for home aquariums and bait fish for sport and commercial fishing. Carp, trout, catfish, tilapia, scallops, mussels, lobsters, and oysters are well-known species raised through aquaculture.According to McGraw-Hill Science & Technology Encyclopedia aquaculture means The cultivation of fresh-water and marine species (the latter type is often referred to as mariculture). Aquacultural ventures occur worldwide. China grows macro algae (seaweeds) and carp. Japan cultures a wide range of marine organisms, including yellowtail, sea bream, salmonids, tuna, penaeid shrimp, oysters, scallops, abalone, and algae. Russia concentrates on the culture of fish such as sturgeon, salmon, and carp. North America grows catfish, trout, salmon, oysters, and penaeid shrimp.Europe cultures flatfish, trout, oysters, mussels, and eels. Presently, plant aquaculture is almost exclusively restricted to Japan, China, and Korea, where the national diets include substantial amounts of macro algae. The worldwide practice of aquaculture runs the all scopes from low-technology extensive methods to highly intensive systems. At one extreme, extensive aquaculture can be little more than contained stock replenishment, using natural bodies of water such as coastal embayment, where few if any alterations of the environment are made. Such culture usually requires a low degree of management and low investment and operating costs; it generally results in low yields per unit area. At the other extreme, intensive aquaculture, animals are grown in systems such as tanks and raceways, where the support parameters are carefully controlled and dependence on the natural environment is minimal. Such systems require a high degree of management and usually involve substantial investment and operating costs, resulting in high yields per unit area.A unique combination of highly intensive and extensive aquaculture occurs in ocean ranching, as commonly employed with anadromous fish (which return from the ocean to rivers at the time of spawning). The two most notable examples are the ranching of salmon and sturgeon. In both instances, highly sophisticated hatchery systems are used to rear young fish, which are then released to forage and grow in their natural environment. The animals are harvested upon return to their native rivers. Intensive aquaculture brings with it high energy costs, necessitating the design of energy-efficient systems. As this trend continues, aquaculture will shift more to a year-round, mass-production industry using the least amount of land and water possible. With this change to high technology and dense culturing, considerable knowledge and manipulation of the life cycles and requirements of each species are necessary. Specifically, industrialized aquaculture has mandated the development of reproductive control, hatchery technology, feeds technology, disease control, and systems engineering.Regardless of the type of system used, aqua cultural products are marketed as are fisheries products (which are caught in the ocean), except for some advantages. For one, fisheries products often must be transported on boats and may experience spoilage; whereas cultured products, which are land-based, can be delivered fresh to the various nearby markets. Also, intensively cultured products through genetic selection can result in a more desirable food than those caught in the wild, with uniform size and improved taste resulting from controlled feeding and rearing in pollution-free water.According to Gale Encyclopedia of Food & Culture aquaculture either the controlled or semi-controlled production of aquatic plants and animals, has increased at double-digit percentage rates since the early 1980s. This increase has been in response to declines in commercial harvests of wild stocks of fish and shellfish. Oceans of the world are currently at maximum sustainable yield. Since the late 1980s, there has been a concerted effort to maintain global commercial harvest of ocean fish at approximately 100 million metric tons (mmt).

However, as global population grows, demand for fish and shellfish increases, and the percentage of aquatic products grown in aquaculture must likewise rise to meet the supply of those products. Projections for increased production are in the range of 40100 mmt of new aquaculture production by about the year 2030. The lower range assumes only increases in world population; the upper figure represents increases in world population plus a 1 percent per year increase in per capita consumption. To put this number in perspective, the 1995 world production figures for soybeans was 137 mmt, swine was 83 mmt, and chickens was 46 mmt. Thus, to meet demand in the first part of the twenty-first century, we must realize significant growth. This increase in production will not be accomplished with a single species.There are fewer than thirty large species-specific aquaculture industries globally, and the fourteen largest industries are listed in the table. However, there are over twenty-five thousand species of fish and there are estimates that one thousand new species are being evaluated for their culture potential. The small percentage of species raised relative to the total number available is an indication that aquaculture is a new concept in many parts of the world. As a subsistence enterprise, aquaculture has been practiced for over four thousand years. As a series of large industries, aquaculture is less than fifty years old, often stimulated by declining wild stocks of fish. The channel catfish industry, which only began in the late 1960s in the southern United States, is illustrative of a relatively young industry. Today, over 90 percent of the U.S. supply of Atlantic salmon is cultured. In 1980, that figure was a fraction of 1 percent, at most. The global supply and demand characteristics created a good deal of volatility in production, which has only increased over time.Additional factors such as identification of new diseases and movement of those diseases contribute to the volatility in production. Inevitably, as new aquaculture species are brought into culture settings, new diseases are identified that were previously unknown. In the past ten years, new viral diseases have been identified in shrimp and salmon, both of which caused large-scale losses from production facilities.Table 1.1: Aquaculture Industries, by volume, in 1999The Largest Aquaculture Industries, by volume, in 1999

Values are in million metric tons

SpeciesVolume

Giant tiger prawn3,651,782

Pacific cupped oyster3,312,713

Japanese kelp3,023,240

Silver carp2,837,420

Grass carp2,743,194

Atlantic salmon2,448,280

Japanese carpet shell2,194,521

Roho labeo1,493,884

Rainbow trout1,350,168

Japanese amberjack1,282,090

Yesso scallop1,252,448

Nori1,249,923

Whiteleg shrimp1,062,774

Nile tilapia1,025,739

Source: Department of Fisheries (DOF).Of the approximate silver carp production was 2.2 mmt, grass carp production was 1.8 mmt, bighead carp product only 25 mmt of global aquaculture production, there are only a few industries that produced over 1 mmt in 1996. Several of the species of Asian carp and the common carp account for the largest industries. On was 1.1 mmt, and common carp production was 1.5 mmt. Virtually all of this production occurred in China with the exception of common carp, which is raised throughout Europe, its native range. Of the species typically available in U.S. markets, pen-raised Atlantic salmon accounted for 0.4 mmt, rainbow trout production for 0.3 mmt, channel catfish production for 0.2 mmt, and tilapia for 0.6 mmt. Production of several invertebrates was significant. Scallop production was 1.0 mmt, shrimp production was 0.9 mmt, oyster production was 1.1 mmt, mussel production was 1.0 mmt, and clam production was 1.0 mmt. Production of brown seaweeds was 4.5 mmt and red seaweed production was 1.6 mmt. Thus, the largest aquaculture industry is the production of brown seaweeds, largely for nonfood use. In the twenty-first century, greater demand will likely result in increased production.There are only a few production systems in use for aquaculture, and they include earthen ponds, raceways, cages or net pens, and indoor recirculating systems. Earthen ponds or cages placed in existing bodies of water are the oldest production system and the indoor recirculating systems are the newest. For successful culture, considerable technical expertise is required when using a recirculating system. All of the current industries use earthen ponds (catfish, tilapia, Asian carps, and shrimp), raceways (rainbow trout), or cages/net pens (Atlantic salmon, yellowtail, an amberjack from Southeast Asia). Producers are experimenting with indoor recirculating systems using a wide variety of species.

There are a few successful producers using indoor systems, but the number will inevitably grow as both the systems themselves and information on targeted species increase. Successful aquaculture can be viewed as the correct match of species under a certain set of market conditions with production system. Some species do not tolerate some of the production systems or do not thrive in those systems. Behavioral characteristics of the various species often point toward the appropriate culture systems. For example, sedentary fish (bluegill, catfish, and flounder) should probably be raised in systems without significant water flow (earthen ponds, cages/net pens), whereas those that typically swim a great deal (tuna, trout, and striped bass) can be raised in raceway systems with a constant flow of water.Fish are generally considered good quality food for human consumption because of the low saturated fat levels and generally high levels of n-3 fatty acids. Fish tend to retain the fatty acids that are in their diet. Thus, we can manipulate the fatty acid concentrations of fish and produce "designer fish" for targeted markets. Further, we can control the fat concentration in muscle through selected feed and produce a low-fat or high-fat fish depending on the demands of the market. Cultured aquatic animals can be safer products for consumption than wild fish because they are raised in a defined environment, and pollutants can be eliminated. Wild fish can be exposed to environmental pollutants and retain those they encounter. Organoleptic properties (taste) of fish and shell-fish raised in aquaculture can be quite different from wild stocks. Fish flavor can be manipulated by dietary ingredients fed to the target species. If the diet contains a relatively high percentage of fish meal, the fish can taste fishier than if the diet contains a relatively high percentage of corn and soybean products. Fish fed the latter diets are often described as "milder" tasting, which is a desirable characteristic in certain markets. There is also a taste consideration with environment. Some species can survive both fresh-and saltwater, but osmoregulation changes to meet the challenges of those environments. This physiological change affects taste because of the chemical compounds used to regulate ionic balance. A good example of this is the freshwater shrimp. When raised in freshwater, taste has been described as mild, whereas if the shrimp is placed in saltwater for one to two weeks, it will taste more like a marine shrimp. Even with these positive attributes, aquaculture is experiencing growing pains.Culture of aquatic animals produces the same wastes as other animal production industries. The problem is confounded by the fact that those wastes are discharged as rearing water is renewed. There have been incidences of environmental degradation resulting from aquaculture. One of the focal points of aquaculture research is waste management, focusing on phosphorus and nitrogen dynamics originating in the diet. Those efforts, as well as efforts related to sitting aquaculture operations, land-use practices, and economic development, have become the focal point of sustainable aquaculture development. Along with the overall focus on sustainability, there are significant concerns about the feed used to achieve aquaculture's successes. Fish meal is a high-quality ingredient, yet it is a finite resource similar to all other species in the oceans. Ingredients made from soybeans, corn, canola, wheat, legumes, peanuts, and barley, as well as the by-products of the brewing industries and animal packing operations is needed.

Growth of aquaculture in the twenty-first century will most likely be similar to growth in terrestrial animal production seen in the twentieth century. Fish and shell-fish are the last major food item humans still hunt and gather from wild populations. The sustainable nature of aqua cultural production probably will be the focal point of research in the early part of the twenty-first century and those results should facilitate the production increases necessary for sufficient quantities of fish and shell-fish in the future.1.2Malaysian Aquaculture Industry

Generally, aquaculture can be defined as rearing aquatic animals or cultivating aquatic plants such as crustaceans, shellfish or other saltwater organisms. In short, aquaculture is the process of agriculture in the ocean. The purpose of expanding aquaculture activity is to balance the seafood industry and marine ecosystem. When dealing with aquaculture, you will stumble upon other terms such as mariculture which refers to the practice of aquaculture in marine environments or algaculture that can be defined as cultivation of seaweed or other algae. In Malaysia, fisheries activities are governed by Fisheries Act 317 (1985). The regulation indicates that inland fisheries and aquaculture matters are regulated by the state authorities. On the other hand, marine fisheries and aquaculture are under the federal government provision. The Ministry of Agriculture and Agro-based Industry (MOA) is responsible in developing and expanding marine and inland farming, encourage inland aquaculture and to offer sufficient fish-breeding facilities and training centres.

Maritime Institute of Malaysia (MIMA) deals with issues and matters related to local and international maritime. On the other hand, Freshwater Fisheries Research Centre must ensure continuous development of freshwater aquaculture and handle aquatic resources accordingly. In line with MOAs objective to further expand aquaculture industry in Malaysia, the department has introduced the Aquaculture Industry Zone programme (ZIA). This is a program to encourage further expansion of commercial scale aquaculture activities by segregating suitable zoning and coastal areas for such purposes. The main goal to establish ZIA is to boost fish, prawn and shellfish production as drafted under the Third National Agriculture Policy (DPN3).ZIA was introduced by former Prime Minister Tun Abdullah Ahmad Badawi. This is often referred to as high impact project as the department predicts aquaculture industry can generate up to RM6.3 billion by 2010. Conducted correctly, the project will bring major impact to the society and countrys economic development. Among some of the objectives to set up ZIA areas are to increase the income for aqua culturists to a minimum of RM3, 000 monthly. Besides that, government also aims to produce only high quality fish products for the market.To ensure the on-going development of fisheries and aquaculture activities in Malaysia, it requires some of the advanced technologies such as echo sounder, trawl net, purse seine, drift net, fish trap, longline and handline. Echo sounder was introduced in mid-1960s. Back then, only a handful of fishermen chose to use echo sounder but thanks to MOA, this fishery equipment is now widely used in Mersing, Perlis, Pangkor Island and Langkawi Island. Generally, only large boats used echo sounder with a combination of purse seines and trawl nets. Fishermen tend to use echo sounder to find out location of the fishes as well as water depth. On the other hand, purse seines are used to determine exact location of fishes. This is an efficient and effective fishery tool as it saves a fishermans time since they do not have to dive into the water anymore. Echo sounder, trawl net and purse seine must be used together for an effective outcome. First of all, echo sounder is used to identify the water depth follow by trawl net to determine the type of aquatic animals in the water. Notice that most of the tools mentioned here are used for fisheries. Since MOA has introduced ZIA, the areas cordoned off for aquaculture requires similar equipments to rear the aquatic animals and cultivate organisms. 1.3Aquaculture Growth in Malaysia1.3.1Fisheries ProfileAccording to Department of Fisheries Malaysia (DOF) in the year 2010, the fisheries sector which comprised of marine capture fisheries, inland fisheries and aquaculture including seaweeds, produced 2,014,534.84 tonnes of fish with a value of RM9, 495.28 million. The ornamental fish production for the year 2010 was 341,757,064 pieces valued at RM430.31 million while aquatic plants was 143,651,684 bundles valued at RM14.47 million. As compared with the total national fish production and value in 2009, it recorded an increase of 8.86% and 10.02% respectively. In the year 2010, the fisheries sector contributed 1.3% to the GDP*.The aquaculture sub-sector recorded a production of 581,048.41 tonnes with a value of RM2, 798.74 million. It contributed 28.84% to the total fish production. This sub-sector showed an increase in production and value of 28.02% and 23.36% respectively as compared to the year before.The production of ornamental fish in 2010 was 341,757,064 pieces decreasing by 32.62%. The value of the ornamental fish decreased by 44.12% to RM430.31 million. The aquatic plants production and value also recorded an increase of 15.11% to 143,651,684 bundles and 14.12% to RM14.47 million respectively in the same year. The workforce of the fisheries sector consisted of 129,622 fishermen working on licensed fishing vessels while 26,291 fish culturists were involved in various aquaculture systems. 1.3.2Aquaculture Production

In the year 2010, national production from the aquaculture sub-sector was 581,048.41 tonnes valued at RM2, 798.74 million, contributed mainly by production from seaweed, brackishwater ponds and freshwater ponds. The production and its value increased by 28.02% and 23.36% respectively compared to 2009 which was 453,860.13 tonnes valued at RM2, 268.74 million. On the whole, the aquaculture sub-sector contributed 28.84% to the overall fish production in the country.In the year 2010, a total of 26,291 fish farmers and culturists were involved in the aquaculture industry increasing by 9.61% as compared with 23,986 persons in 2009. The majority of the workforce of 19,946 persons was involved in the freshwater aquaculture sub-sector which accounted for 75.87% of the total fish farmers/culturists in the country. The remaining 24.13% or 6,345 fish farmers/culturists were involved in the brackishwater aquaculture industry. The increasing number of fish farmers being influenced by ornamental fish farmers had been included in the table beginning this year as requested.1.3.3Brackishwater AquacultureIn 2010, brackishwater aquaculture contributed 73.26% of the total aquaculture production. This contribution went up by 33.59% to 425,649.77 tonnes in 2010 from 318,621.32 tonnes the previous year. The value for the overall brackishwater aquaculture also rose by 25.88% to RM2, 038.40 million in 2010 from RM1, 619.33 million in 2009.i.Brackishwater Pond Culture System

The brackishwater pond culture production went up by 28.99% from 80,582.99 tonnes in 2009 to 103,943.21 tonnes in 2010. Its value also increased by 25.46% from RM1, 093.61 million in 2009 to RM1, 372.08 million in 2010. The total culture area recorded in 2010 was 7,722.82 hectares, an increase of 5.16% compared to 7,344.21 tonnes in 2009. The main species cultured were White Prawns (69,084.10 tonnes valued at RM789.38 million), Tiger Prawns (18,118.51 tonnes valued at RM389.58 million) and Barramundi (11,919.58 tonnes valued at RM164.51 million).ii.Brackishwater Cage Culture System

In 2010, production from the brackishwater cage culture in Malaysia was 24,326.31 tonnes, increasing by 8.03% compared with 22,519.06 tonnes in 2009. Its value also increased by 15.48% to RM480.02 million in 2010 from RM415.67 million the previous year. The total area for brackishwater cage culture rose by 14.21% to 1,988,744.33 square metres in 2010 from 1,741,333.87 square metres in 2009. The main species of fish cultured were Barramundi (7,992.09 tonnes valued at RM108.38 million), Red Snapper (4,844.92 tonnes valued at RM75.00 million) and Grouper (4,521.63 tonnes valued at RM188.32 million). The state of Johor was the top producer of fish from this culture system contributing 7,164.27 tonnes valued at RM118.14 million.iii.Brackishwater Tank Culture System

In 2010, production from the brackishwater tank culture system increased by 126.27% to 121.35 tonnes from 53.63 tonnes in 2009. Its value also increased from RM0.91 million the previous year to RM2.24 million in 2010. The total area under this culture system also increased to 182,097.82 square metres in 2010 from 5,691.00 square metres in 2009.

iv.On-bottom Culture System

The cockle production constitutes 18.33% of the total production from brackish water culture systems. In 2010, cockle production increased by 20.15% to 78,024.70 tonnes from 64,938.51 tonnes in 2009. Its value also increased by 33.53% to RM91.60 million in 2010 from RM68.60 million the previous year. The state of Selangor produced the most cockles amounting to 41,410.05 tonnes valued at RM51.87 million. The overall area under cockle culture also increased by 4.44% to 10,383.09 hectares in 2010 as compared to 9,941.76 hectares in 2009.v.The Rack Culture System

Mussels

The production of mussels decreased by 0.63% to 10,529.06 tonnes in 2010 from 10,596.08 tonnes in 2009. Its value also decreased to RM5.05 million in 2010 from RM6.23 million the previous year, decreasing by 18.94%. The state of Johor remained as the top producer of mussels amounting 10,407.70 tonnes valued at RM4.79 million. However, in terms of area under mussel culture, there was an increase of 57.89% from 180,851.23 square metres in 2009 to 285,540.29 square metres in 2010.

Oysters

In 2010, production from oysters decreased to 812.75 tonnes compared with 1,075.15 tonnes in 2009. Its value also decreased to RM3.73 million in 2010 from RM6.54 million the previous year. The total acreages under oyster culture increased by 8.13% to 364,908.08 square metres compared with 337,461.67 square metres in 2009.

Seaweeds

The seaweed production increased this year by 49.72% to 207,892.40 tonnes (wet weight) from 138,855.90 tonnes in 2009. Its value also showed an increase of RM83.16 million from RM27.77 million the previous year. Meanwhile, the total acreages under seaweed culture recorded an increase of 5.33% to 7,940.50 hectares in 2010 compared to 7,538.46 hectares in 2009.

vi. Ornamental Fish CultureProduction of ornamental fish for the year 2010 showed a decline of 32.62% to 341,757,064 pieces compared with 507,216,127 pieces in 2009. This decline was influenced by the restrictions imposed on the export of ornamental fish by the European Union countries. The aquatic plants also showed an increase of 15.11% from 124,792,872 bundles in 2009 to 143,651,684 bundles in 2010. Its value showed a decrease of 44.12% to RM430.31million in 2010 from RM770.12 million the previous year. The value of the aquatic plants increased by 14.12% to RM14.47 million in 2010 compared to RM12.68 million in 2009. The state of Johor was the largest producer of ornamental fish (including aquatic plants) contributing 233,396,440 pieces of ornamental fish valued at RM317.89 million and 143,575,044 bundles of aquatic plants valued at RM14.36 million.1.4Fish Seed Production

In 2010, a total of 1,853.86 million pieces of freshwater and brackish water fish hatchlings/fries were produced by government and private hatcheries as compared to 2,922.84 million pieces of hatchlings/fries produced in 2009, decreasing by 36.57%. The total production of brackish water and freshwater prawn nauplii/fries in 2010 was 13,542.03 million pieces, which was a decrease of 45.25% from 24,736.52 million pieces in 2009.

The production of freshwater fish hatchlings and fries in 2010 was 1,046.24 million pieces from 247 government hatcheries and private hatcheries. A total of 24.65 million pieces of fish hatchlings and fries were produced from government hatcheries, increasing by 29.81% from 18.99 million tails in 2009. The main species produced were Freshwater Catfish, Red Tilapia and Javanese Carp. A total of 1,021.59 million tails of freshwater fish hatchlings and fries were also produced from 218 private hatcheries, a decrease of 14.40% from 1,193.46 million pieces in 2009.In 2010, there were 246 government as well as private brackish water hatcheries which produced 807.62 million pieces of fish hatchlings and fries. The government hatcheries produced 28.02 million pieces of fish hatchlings and fries, decreasing by 78.30% from 129.11 million pieces in 2009. A total of 779.60 million pieces of fish hatchlings and fries were produced by the private hatcheries decreased by 50.70% compared to 1,581.27 million in 2009. The main species of brackish water hatchlings and fries bred were Barramundi and Grouper.The production of brackish water and giant freshwater prawn nauplii/fries from the three (3) government hatcheries in 2010 were 11.99 million pieces, increasing from 4.55 million pieces in 2009. However, production of the prawn nauplii/fries from 88 private hatcheries decreased by 45.29% to 13,530.04 million pieces in 2010 compared to 24,731.97 million pieces the previous year. In the year 2010, a total of 3.08 million pieces of freshwater fish fries were released to public water bodies and miscellaneous uses, decreasing by 13.24% from 3.55 million pieces in 2009. A total of 12.41 million pieces of freshwater fish fries were distributed to the fish farmers in 2010 as compared to 14.12 million pieces in 2009.

Table 1.2: Fisheries Landing/Production and Value, Malaysia, 2010

Quantity(Tonnes)Value(RM Million)

Marine Capture Fisheries

Inshore 1,108,897 5,362.97

Deep Sea 319,984 1,288.92

Total Marine Capture Fisheries 1,428,881 6,651.89

Freshwater Aquaculture

Ponds 92,833.45 430.85

Ex-Mining Pools 20,758.18 104.13

Cages 9,828.61 79.18

Cement Tanks 4,196.59 20.25

Pen Culture 27,371.72 124.47

Canvas Tanks 410.09 1.44

Total Freshwater Aquaculture 155,398.63 760.34

Brackishwater/Marine Aquaculture

Ponds 103,943.21 1,372.08

Cages 24,326.31 480.02

Cockles 78,024.70 91.60

Mussels 10,529.06 5.05

Oysters 812.75 3.73

Seaweeds 207,892.40 83.16

Marine Tanks 121.35 2.76

Total Brackishwater /Marine Aquaculture 425,649.77 2,038.40

Total Aquaculture 581,048.41 2,798.74

Total Marine Capture Fisheries and Aquaculture Production 2,009,929.41 9,450.63

Landing of Freshwater Fisheries (Public Water Bodies) 4,605.43 44.67

Total National Fish Production 2,014,534.84 9,495.30

Total Food Fish* 1,806,642.44 9,412.14

Ornamental Fish ** 341,757,064 430.31

Aquatic Plants*** 143,651,684 14.47

* - Excluding Seaweeds

** - Quantity in Pieces

*** - Quantity in BundlesSource: Annual Fisheries Statistic (2010), Volume 1, DOF.Table 1.3: Fisheries Landing/Production and Value, Malaysia, 2009

Quantity(Tonnes)Value(RM Million)

Marine Capture Fisheries

Inshore 1,096,663 5,184.45

Deep Sea 296,563 1,138.12

Total Marine Capture Fisheries 1,393,226 6,322.57

Freshwater Aquaculture

Ponds 113,792.73 490.24

Ex-Mining Pools 18,083.72 82.71

Cages 7,900.44 73.59

Cement Tanks 3,328.96 15.03

Pen Culture 9,009.10 40.94

Canvas Tanks 515.62 1.80

Total Freshwater Aquaculture152,630.57 704.30

Brackishwater/Marine Aquaculture

Ponds 80,582.99 1,093.61

Cages 22,520.56 415.68

Cockles 64,938.51 68.60

Mussels 10,596.08 6.23

Oysters 2,128.20 4.86

Seaweeds 138,855.90 27.77

Marine Tanks 53.63 0.91

Total Brackishwater /Marine Aquaculture 319,675.87 1,617.66

Total Aquaculture 472,306.44 2,321.97

Total Marine Capture Fisheries and Aquaculture Production 1,865,532.44 8,644.54

Landing of Freshwater Fisheries (Public Water Bodies) 4,468.37 39.27

Total National Fish Production 1,870,000.81 8,683.81

Total Food Fish* 1,731,144.91 8,656.04

Ornamental Fish ** 507,216,127 770.12

Aquatic Plants*** 124,792,872 12.68

* - Excluding Seaweeds

** - Quantity in Pieces

*** - Quantity in Bundles

Source: Annual Fisheries Statistic (2009). Volume 1, DOF.Figure 1.1: Value of Aquaculture Sub Sector, 2006 - 2010

Based on the chart, above we can see the growth in all type of aquaculture except in ornamental fish and aquatic plant sub sector.Figure 1.2: Estimated Production and Aquaculture Value from All Aquaculture System 2000 2010

Source: Annual Fisheries Statistic (2010), Volume 1, DOF.Based on the Figure 1.2, we can see the growth trends in the production (tonnes) and aquaculture value (RM million) of all aquaculture system from year 2000 until 2010.

Figure 1.3: Estimated Production and Value of Aquaculture from All Brackishwater Aquaculture System 2000-2010

Based on the chart above we can see the growth trends in the production (tonnes) and aquaculture value (RM million) of all brackishwater aquaculture system from year 2000 until 2010.Figure 1.4: Aquaculture Production by Culture Systems 2010

Source: Annual Fisheries Statistic (2010), Volume 1, DOF.

From the pie charts above we can see the aquaculture production by culture system for 2010.1.5Conclusion

Aquaculture is a common practice all over the world and makes up a very large portion of the food industry. Aquaculture is necessary for keeping up with the demand of seafood-loving world and comes with an assortment of advantages like create numerous jobs for people and provides nutritional food likes protein, omega-3 fish oil and other nutrient that are highly beneficial to impoverished area. In contrast to that, aquaculture industry can also contributed to negative impact like environment degradation, loss of habitat and species, pollution and disease spreading.In Malaysia aquaculture sector is increasing since 2006 up to 2010. In the year 2010, national production from the aquaculture sub-sector was 581,048.41 tonnes valued at RM2, 798.74 million. The production and its value increased by 28.02% and 23.36% respectively compared to 2009 which was 453,860.13 tonnes valued at RM2, 268.74 million. This pattern of increase will be expected in the near future. So, to minimize the negative impacts on environment, social and economic aspect considerable effort should been done by all sectors which involved in this industry.

CHAPTER 2

AQUACULTURE FARMING IN KAMPUNG FIKRI2.1Introduction of Setiu

Setiu is the smallest district in Terengganu state with the land area of 135,905.80 hectares. The land area comprises of 10.49% from the total acreage of Terengganu state. Setiu was founded in 1 January 1985 as a result of inclusion from other some small provinces of Kuala Terengganu and Besut. Setiu district is further divided into several zones. Table 2.1 shows the zones that are in Setiu district with its respective land area. Table 2.1: Zones in Setiu District with Land AreasNo.ZoneLand Area(ha)

1Nerus Upstream54,523.30

2Chalok20,589.60

3Setiu Upstream23,292.90

4Guntung16,348.50

5Lake5,827.10

6Beach8,499.40

7Merang6,825.00

Source: Works Department of Setiu, 2012.2.2Beach Zone

Kampung Fikri is located under the district administration of beach zone local authority. It is estimated that approximately 5,994 individuals living in the beach zone. Table 2.2 shows the villagers distribution according to ethnicity and local authority. Table 2.2: Villagers Distribution According to Ethnicity and Local Authority.District AdministrationTotalMalaysian NationalityNon-Malaysian Nationality

BumiputeraChineseIndianOthers

MalayBumiputeraLain

Chalok14,85414,59832121229

Guntung7,4247,379-2-340

Nerus Upstream12,5921 1,89062736660

Setiu Upstream3,1983,150-51537

Merang3,1983,245111--17

Beach5,9945,910-55-128

Lake7,2277,1151924582

Source: Works Department of Setiu, 2012.2.3History of Kampung Fikri

Kampung Fikri (GPS coordinate: 5.6376, 102.7487) is located under the local authority of beach zone. A brief historic overview of Kampung Fikri started in the 1940s as a small port for ships and boats to berth before heading to their next destination. As the port develops, it increases the demand for basic necessities such accommodation and food. People started coming to live in the coastal area and the settlement soon developed into a village which was named Kampung Payang.Due to the geographical area of Kampung Payang which is located by the South China Sea, it is subjected to massive beach erosion annually during the monsoon months. The erosion constantly put the villagers life at risk as they go about their daily lives. As it is dangerous for the villagers, Tan Sri Ibrahim Fikri Muhammad, a prominent community leader at that time suggested moving the village to a safer site. In the year 1962, villagers of Kampung Payang moved into the new safer site and renamed their village Kampung Fikri in honors of the community leader. From that day onwards, the villagers continued living a modest life as a fisherman but in peace and harmony.2.4Ecology in Kampung Fikri

The ecology in Kampung Fikri encompasses lagoon, estuarine, river and wetlands which are:a) Lagoon: The term lagoon is commonly applied to bodies of ocean water surrounding tropical islands and where the water bodies are semi-enclosed within fringing coral reefs. Kjerfve (1994) said that lagoons constitute a common coastal environment around the world and he also notes that lagoons can span the range of salinities from hyper saline to completely fresh.b) Estuarine: According to Pritchchard (1967), an estuary is a semi-enclosed coastal body of water which has a free connection with the open sea and within which sea water is measurably diluted with fresh water derived from land drainage. Meanwhile Day (1981) said that an estuary is a partially enclosed coastal body of water which is either permanently or periodically open to the sea and within which there is a measurable variation of salinity due to the mixture of sea water with fresh water derived from land drainage.c) River: In Wikipedia, a river is fresh water flowing across the surface of the land, usually to the sea and its flows in achannel. The bottom of the channel is called thebedand the sides of the channel are called thebanks. Meanwhile, according to The USGS Water Science School a river is a surface of water finding its way over land from a higher altitude to a lower altitude, all due to gravity.d) Wetlands: Wetlands are lands that either is inundated by shallow water less than 2m deep during low water events or have soils that are saturated long enough during the growing season to become anoxic and support specialized wetland plants (hydrophytes).2.5Demographic of Kampung Fikri

Kampung Fikri is a small village in Setiu District located approximately 18 miles from Permaisuri Town. The area of the village is about 1,000 square acres. Kampung Fikri together with nearby village, Kampung Gong Batu, Kampung Saujana, Kampung Beris Tok Ku and Kampung Pangkalan Gelap are managed under the town council of Permaisuri.Kampung Fikri is a fishing village that is famous for is anchovies fishing activities. It is categorized as a coastal district. The population of Kampung Fikri has approximately 659 individuals from 130 families and 125 houses. From the 659 individuals living in the village, 322 individuals are males and 337 individuals are females. Table 2.3 below shows that the total number of individuals living in Kampung Fikri according to ethnicity.Table 2.3: Total Individuals Living In Kampung Fikri According to Ethnicity.EthnicMale

(ind)Female

(ind)Total

(ind)Percentage (%)

Malay27631659289.83

Chinese1716335

Indian----

Others:

Cambodian133162.43

Bangladesh/Pakistan16-162.43

Thailand-220.3

TOTAL659100

Source: JKKK of Kampung Fikri, 2012.

Malays are the majority in Kampung Fikri amounting to a number of 592 individuals. These numbers also consist of 89.83% from the total population in Kampung Fikri. There are 33 Chinese individuals, and 34 other foreign labors from Cambodia, Pakistan, Bangladesh and Thailand living in Kampung Fikri.Figure 2.1: Population of Kampung Fikri According to Age Group

Source: JKKK of Kampung Fikri, 2012.

The population of Kampung Fikri as categorized by age group is shown in Figure 2.1. The age group of 21 years old to 40 years old has the highest percentage of individuals with 26.71%, representing 176 individuals. This category is the working class of the local community. The second highest percentage of individuals is the age group of 7 to 12 years old which serves as the second generation of the community with 22.15%, representing 146 individuals.2.6 Socio-Economic of Kampung Fikri

2.6.1Occupation of local community in Kampung FikriKampung Fikri is a fishing village of which majority of the local community works as a fisherman. The rest of the population in Kampung Fikri works as farmer, government officer, self-employed, labor or unemployed. Table 2.4 shows the occupation of the local community in Kampung Fikri.Table 2.4 Show the occupation of local community in Kampung FikriOccupationsMale

(ind)Female

(ind)Total

(ind)Percentage (%)

Self employed113148.86

Cultivator16-1610.13

Businessman69159.49

Craftsman1-10.63

Fisherman28-2817.72

Government Servant1852314.56

Pensioner4153.16

Not working9233220.25

Others

Private/ Labor1772415.19

TOTAL158100

Source: JKKK of Kampung Fikri, 2012.As the table shown, majority of local communities in Kampung Fikri works as fisherman (17.72%) or are unemployed (20.25%). Fishermans job pays very little and is a very risky job.Fishermans life is at natures mercy whenever they go out to fish. The income of fisherman is unstable due to overfishing. Sometimes they are forced to come back with just a little catch or empty handed. To make matter worst, Terengganu state is experience monsoon season annually in the month of November to January. This deters them from going out to sea to fish and turning them unemployed during the period. The unemployment rate is very high in the village as 20.25% of the villagers reported not working.According to table 2.5 by the fisheries department, Kampung Fikri is the second village with the highest number of fisherman in Setiu district with 196 registered individuals involved in the fisheries sector.Table 2.5: Numbers of Villagers as Registered Fisherman Categorized by Village

Local Crew Foreign CrewTotalPercentage

PortMalayChineseThailandVietnam (%)

Gong Batu101010110.1

Peng. Gelap124161.2

Kg. Fikri192419619.2

Nyatoh25252.5

Mangkok96969.6

Penarek220181024822

Bukit Chalok21212.1

Rhu Sepuluh66666.6

Bari Kechil12121.2

Bari Besar990.9

Telaga Papan11411411.4

Merang951969.5

TOTAL96352210100096.3

Source: Department of Fisheries (DOF), 2012.2.6.2Income Level of Local CommunityFrom the earning aspect, majority of the local communities earns below RM 1,000 as reported by 111 individuals or 77.09%. It is reported that there were 68 families living under the poverty level and are receiving assistance in terms of equipment and financial support from various quarters. The average earning of the villagers is estimated to be around RM 300.00 to RM 400.00 per month. Figure 2.2 shows the income level of the local communities in Kampung Fikri.Figure 2.2: Income Level of Local Community in Kampung FikriSource: JKKK of Kampung Fikri, 2012.2.6.3Vehicles OwnershipTable 2.6 shows a report by the fisheries department of Setiu district that strengthens the claim that, Kampung Fikri is a fishing village that has a large number of fishermen with 61 registered fishing vessels. Kampung Fikri is close behind Penarek village which has 64 registered fishing vessels.ExternalInternal EngineTotal

EngineZone AZone BZone C

Port / GearPDDNPDDNHNTLNPNTVPSaDrNPSDrNPS

Gong Batu52052

Peng. Gelap41117

Kg. Fikri211316114561

Nyatoh1414

Mangkok1431911231

Penarek311712110264

Bukit Chalok1111

Rhu Sepuluh28533

Bari Kechil66

Bari Besar55

Telaga Papan16325531

Merang16118641

TOTAL21830353911114601712356

Fishing Gears

Notes :PD: Pole and LinePS : Purse Seine

DN : Drift NetPN : Pull Net

HN: Hand NetDrN : Drag Net

LN : Lift NetTV : Transport Vessel

T: TrapPSa : Purse Seine anchovies

Source: Department of Fisheries (DOF), 2012.

From another point of view, vehicles ownership could also be used to evaluate the economic standing of the community. This data further strengthens the point that, the local community of Kampung Fikri is poor as more than 50% of the community could only manage to own a bicycle (52.17%). 32% of the community owns a motorcycle and only 15% of the villagers could own a car. Just a mere 3 villager owns a lorry although majority of them works as a fisherman who needs a lorry to transport their fish.Figure 2.3: Shows the Number of Vehicle Owned by the Local Communities in Kampung Fikri.Source: JKKK of Kampung Fikri, 2012.2.6.4Education Level

Majority of the population in Kampung Fikri studied until primary school accounting of 69.57% of the population of 207 villagers surveyed as during that time, only Fikri (P) Primary School was available for them. However, things are better now as Saujana Secondary School had been built near the village. Table 2.7 shows the education level of the local communities in Kampung Fikri.Table 2.7: Education Level in Kampung Fikri

Education LevelMale

(ind)Female

(ind)Total

(ind)Percentage (%)

Kindergartens1562110.15

Primary School608414469.57

Secondary School25103516.91

College0110.48

University5162.90

TOTAL207100

Source: JKKK of Kampung Fikri, 2012.

2.7Potential Development of Aquaculture Industry

The total captured fisheries in Setiu district dwindle from 3,571.51 million tonne (MT) in 2010 to 3,164.19 MT in 2011 which also decrease the value from RM 35.72 millions to RM 31.84 millions. Table 2.8 shows the numbers of captured fisheries in Setiu District obtained from the department of fisheries. The decrease of the total capture might be from the impact of overfishing that is occurring all over the world where fish stocks are being reported to be overexploited.Table 2.8: Fisheries Capture in Setiu DistrictYearTotal Capture (million tonne)Value

20103,571.51 MTRM 35.72 million

20113,184.19 MTRM 31.84 million

Source: Department of Fisheries (DOF), 2012.On the contrary to the industry of captured fisheries, the aquaculture sector of Setiu district is doing well as shown in Table 2.9 of the aquaculture production in year 2010 to 2011 reported by the Department of Fisheries. In the year 2011, aquaculture sector of Setiu district produced RM32.06 million worth of aquaculture produce which weights 1,921.86 MT.It was a sharp increase as Setiu only manages to produce RM 20.11million of aquaculture produce which weights 1,675.43 MT in the year 2010. This improvement is considered remarkable for Setiu district as it was able to increase the value of production to more than RM 12 million in a short one year period.Table 2.9: Aquaculture Production in year 2010-2011

YearTotal ProductionValue

20101,675.43 MTRM 20.11 million

20111,921.86 MTRM 32.06 million

Source: Department of Fisheries, 2012.Activity in Setiu district is basically divided into 2 major waters, brackish/marine water in the estuarine, lagoon or sea and freshwater in the inland. This is to enable the culture of difference species. Brackish/marine water is for the culture of grouper, sea bass, prawns and seawater tilapia while freshwater is for the culture of tilapia, catfish, giant freshwater prawn other freshwater species. Table 2.10 shows the brackish/marine water aquaculture activity in Setiu district. Brackish water cage farming is the leading culture system mostly used by 163 entrepreneurs in a total of area of 82,424m2 with 2717 parcels. The highest usage of land area is for marine shrimp culture in pond which used 1, 0342.21 ha of land divided in 167 ponds, managed by 8 individuals.Table 2.10: Brackish/Marine Water Aquaculture Activity in Setiu District

No.Farming SystemTotal AreasNumber of UnitNumber of Entrepreneur (Individuals)

1.Brackish water cage farming82,424 m22,717 parcels163

2.Marine shrimp culture in pond1,034.21 ha167 ponds8

3.Brackish water/ marine fry care20.78 ha122 ponds26

4.Oyster raft system culture3,066 m2120 parcels5

5.Hatcheries (central marine fish seeding)2.69 ha255 tanks4

Source: Department of Fisheries (DOF), 2012.For the freshwater aquaculture activity in Setiu district, fish and shrimp ponds has the highest participant of entrepreneur with the highest usage of land area with 146 individuals managing a total 29.30ha of land in 277 ponds as shown in Table 2.11. Table 2.11: Freshwater Aquaculture Farming in Setiu District

No.Farming SystemTotal AreasNumber of UnitNumber of Entrepreneur (Individuals)

1.Freshwater Cage Fish Farming4,562.0 m2164 parcels28

2.Fish/ Shrimp in Ponds29.30 ha277 ponds148

3.Breeding Livestock in Tank/ Canvas/ Ponds2,689.96 m2579 tank70

4.Hatcheries (Freshwater Fish Seeding Center)1.5 ha65 Tank4

Source: Department of Fisheries (DOF), 2012.2.8Aquaculture Farming in Kampung Fikri

Aquaculture activities in Kampung Fikri can be categorized into 3 types which are brackish water cage culture, marine prawn cultivation and fingerling culture of brackish and marine fish. In brackish water cage culture, Kampung Fikri has a total of 475 ponds with a land area of 15,215 m2managed by 43 entrepreneurs. For marine prawn cultivation, 7 entrepreneurs manage 67ponds in an area of 34.21 ha. While for fingerling culture of brackish and marine fish, 54 ponds were built in an area of 13.16 ha by 16 entrepreneurs (DOF, 2011). The species that are commonly cultured are Seabass, Tilapia, African catfish, Giant freshwater prawns, Tiger prawns and White prawns. Other than, aquaculture activities, 530 ha were used as cultivation of various plants such as watermelons, pumpkins and various vegetables while 140 ha of land are currently used for housing development.Figure 2.4: Areas of Aquaculture Industry Zone in Kampung Fikri

Source: Setiu District Office.2.9Problem Statement

All sorts of developmentin various sectors are encouraged inthe country provided that they are developed in a proper manner. In this study we focus on aquaculture development of Kampung Fikri, Setiu which we are going to analyse theimpacts arises from this activity. Aquaculture development in Kampung Fikri is expected to bring positive change to the villagers such as increasing their economic standing by providing more jobs opportunity, relieves social pressures and improves the environment. But without proper management and adherence to strict best-practice guidelines, it may do more harm than good. Aquaculture is a self-degrading industry where it needs a constant good water quality but at the same time polluting the same environment that it needs to survive. Kampung Fikri is situated in Setiu Wetland which it is suitable for the aquaculture farming because of the influx of fresh water, brackish water, and sea water. Wetland or Mangrove swamp is often considered as an economically land of low value, hence developing aquaculture in this area is the best utilization of land space. In addition to that, mangrove swamp is a natural breeding and nursery site of young fishes and is very suitable for culturing and propagating of fishes.Kampung Fikri is the largest aquaculture shrimp farming and second largest village of aquaculture activity after Kampung Gong Batu in Setiu district. The total area of Aquaculture Zone Industry allocated in Kampung Fikri is 113.983 ha. Kampung Fikri is one of the top contributors to Terengganus aquaculture economic revenue. It is important to analyze the impacts of aquaculture development based on environment, economic and social aspect of the villagers and to provide some improvement suggestions to the aquaculture farming.2.10 Research Question

Based on the problem statement above, the research question can be pointed out as follows:

1. What are the environment impacts of aquaculture farming to the local community?2. What are the economic impacts of aquaculture farming to the local community?3. What are the social impacts of aquaculture farming to the local community?4. What are the steps needed to overcome the negative impacts?2.11 ObjectivesTo achieve the target of study, the formations of very important objectives of the study are as follows:

2.11.1General Objectives

To study and identify the impacts of aquaculture farming in Kampung Fikri and to suggest and recommend mitigating steps needed to overcome the negative impact.2.11.2Specific Objectives

To identify environment impacts from aquaculture farming towards the local community. To identify economic impacts from aquaculture farming toward the local community. To identify social impacts from aquaculture farming towards the local community. To suggest mitigating steps needed to overcome the negative impact.2.12Conclusion

Kampung Fikri is a poor fishing village slowing turning into a aquaculture hub of Setiu as fisherman slowly switch to aquaculture as a more reliable source of income. Kampung Fikri is suitable for aquaculture project as it is a lagoon located in the estuarine sheltered by heavy wetlands vegetation. Many of the villagers are still earning less than RM 1000.00 per month and aquaculture seems to be a stable and reliable way to lead them away from poverty.

CHAPTER 3

LITERATURE REVIEW3.1 Introduction

This chapter presents an overview of previous work on related topics that provide the necessary background for the purpose of this research. The literature review focused on the effects towards the aquaculture farming in Kampung Fikri, Setiu, Terengganu. For the understanding of the aquaculture farming towards economic, social and environmental impacts, a review of literature is required in reading the articles and journals and theoretical strength evaluation. The literature review begins with the studies related and relevant concept with our group case study.3.2Selected Literature ReviewAquatic farming has been considered, during the last decades, as the fastest growing food production industry powered by governmental and technological impulsion. Compensation for fisheries decline, creation of new jobs and source of financial windfall are the most important benefits. However, similar to most of the human food-production activities, aquaculture raised several issues related to the environmental welfare and consumer safety. According Grigorakis and Rigos (2011) an effort to record the aquaculture-environment and human safety interactions with regard to the Mediterranean mariculture, is attempted herein. The authors focused on this geographical area due to its individualities in both the hydrological and physicochemical characteristics and the forms of aquaculture activities. The cage farming of euryhaline marine fish species and more recently of blue fin tuna and mollusk farming are the dominating aquaculture activities. The impacts of these activities to the environment, through wastes offloads, introduction of alien species, genetic interactions, disease transfer, release of chemicals, use of wild recourses, alterations of coastal habitats and disturbance of wildlife, are analytically considered. Also the consumer safety issues related to the farming are assessed, including generation of antibiotic-resistant microorganisms; contaminants transferred to humans though food chain and other hazards from consumption of aquaculture items. Within these, the major literature findings are critically examined and suggestions for scientific areas that need further development are made. The major tasks for future aquaculture development in this region are: (i) to ensure sustainability and (ii) to balance the risks to public or environmental health with the substantial economical benefits. In regard with monitoring, tools must be created or adapted to predict the environmental costs and estimate consumer impact. At a canonistic and legal basis, the establishment of appropriate legal guidelines and common policies from all countries involved should be mandatory.According to Arthur et al. (2001), the shrimps aquaculture in the perspective of economic contributes to the earning of foreign exchange, creation of formal sector jobs, increase inflow of foreign direct investment and technological transfer. Negative externalities are in the aspect of social, economic and environmental. From the aspect of environmental, negative externalities are mangrove forest deforestation for shrimps aquaculture development, pollution of the surrounding water, biodiversity habitat destruction, and destruction of wild fry stocks and alteration of gene pools. From economics aspect, the producers face a cost-price squeeze where the prices of product decrease but the cost of production keeps on increasing daily due to higher cost of input material. From social aspect, aquaculture decrease poverty, increasing landlessness, breakdown of traditional livelihood support systems, diminishing food security and the transfer of land and wealth to local and national elites. The factors that contribute to the shrimp aquaculture economic development is the lacking of independent analysis affecting the production strategies of private firms in the industry and the need to overcome polarization in order to promote sustainable shrimps aquaculture. The author concluded that, wider perspective on shrimps aquaculture will be beneficial to formulate a policy so that it can self sustain the interest of shrimp producers and to incorporate the external cost of production into planning decisions. Paper by Mahfuzuddin and Mylene (2002) provides a framework for examining aquacultures linkages to food and nutritional security by elucidating key hypotheses concerning the role of aquaculture in household food and income systems in developing countries. Taking examples from developing Asia, where aquaculture showed a steady growth over the last decade, the implications of aquaculture development are examined from the standpoint of its impact on employment, income and consumption. Analysis revealed clear evidence of positive income and consumption effects of aquaculture on households. However, employment effects are still not significant. The context of targeting small-scale and subsistence-oriented farmers as a means of improving food security in the developing countries has also been analyzed by identifying key socio-economic and policy factors affecting aquaculture adoption and its impact on the poor. The paper concludes that national policies for aquaculture development will need to concurrently address the food security and poverty questions more sharply than has been done at present, by providing institutional and infrastructure support for access to resources such as land and water and to markets by poor households. Finally, more empirical evidence should be collected on the varied opportunities aquaculture would provide to improve the income, employment and food consumption levels within households.The wide variety of goods and services provided by the coastal zone (food, medicines, nutrient recycling, control of flooding, typhoon protection) account for its many uses (fisheries, aquaculture, agriculture, human settlements, harbors, ports, tourism, industries). Aquaculture now provides a third of total fisheries production. Half of the total aquaculture yield comes from land-based ponds and water-based pens, cages, longlines and stakes in brackish water and marine habitats. But the opportunities for employment, income and foreign exchange from coastal aquaculture have been overshadowed by negative environmental and social effects. The environmental impacts include: mangrove loss, by catch during collection of wild seed and broodstock, introductions and transfers of species, spread of parasites and diseases, misuse of chemicals, and release of wastes. The socioeconomic impacts include: privatization of public lands and waterways, loss of fisheries livelihoods, food insecurity, and urban migration. The paper by Primavera (2006) gives recommendations on the attainment of responsible and sustainable aquaculture with emphasis on herbivorous and omnivorous species, polyculture, integration with agriculture and mangroves, and self-regulation in the form of codes of conduct and best management practices. Recommended approaches include holistic Integrated Coastal Zone Management (ICZM) based on stakeholder needs, mechanisms for conflict resolution, assimilative capacity of the environment, protection of community resources, and rehabilitation of degraded habitats, to improvements in the aquaculture sector pertaining to management of feed, water, and effluents.The studied by Louise et al (2011) where to quantify the present and historical contribution of small-scale fisheries to national economies and focused on the small-scale fishing sector in Sabah, Malaysia. The researchers found that showed that the socio-economic contribution of small-scale fisheries to Sabah society have been substantially undervalued or even unaccounted for historically and in present fisheries statistics. This result showed that undervaluation also that fishing pressure on Sabahs inshore marine resources is probably a lot higher than presently perceived, raising concerns about the long-term sustainability of these fisheries resources, and the capacity for Sabahs inshore fisheries to support coastal livelihoods into the future.According to Asche et al. (2009), substantial growth in the aquaculture industry has made possible for aquaculture to become an important food source. It had the responsible for creating some significant environmental challenges. It is a conventional wisdom among many consumers and environmental nongovernmental organizations in North America and Europe that farming practices for salmon and shrimp are two of the most important aquaculture species that are harmful to the environment. Environmental concerns go in several directions such as the emissions from the farms in the form of unused feeds, feces, antibiotics and other emissions that can lead to the substantial local environmental changes, in the form of damage to surrounding ecological systems. Other issues are land use issues which shrimps farming had significant impact on mangrove forests and the impact of wild fish stocks. This concern arises due to the fact that fingerlings are commonly harvested from the wild. The increase of demand for fish feed lead to increased fishing pressure for species used to produce feed. The genetic pool of wild fish is also polluted through the escape of farmed fish that may be genetically enhanced or abnormal.Chua et al. (1989) conducted a study on the environmental impact of aquaculture and the effects of pollution on coastal aquaculture development in Southeast Asia. Factors that pollute the environment from aquaculture activities are sulphuric acid leaching into the pond and thus release to the environment, usage of lime, pesticide, fertilizer and overfeeding. Large scale conversion of mangrove areas for brackish water fish and shrimp pond also impaired the ecological balance of the estuarine. In addition to the self degrading aquaculture development, effluents such as sewage discharge from human settlements and tourist resorts; heavy metals and suspended solids, oils from industries and pollutants from various land based activities also contributed to the rapid deterioration of water quality for aquaculture. It is urged in the study to improve the environment management and to develop relevant policy to keep all aquaculture development in check.According Sarah et. al (2009) were investigate the potential of using microbial community differences as an indicator of the impact of commercial aquaculture operations on the surrounding ecosystem, within a tropical environment. The result also found that from microbial community profiling within the current study indicated potential differences in key functional bacterial groups. The Conclusions from the result was the bacterial diversity analysis were supported by direct bacterial counts, which correlated higher total bacterial numbers under cages relative to control sites. The discussion focused on better assessment of microbial diversity should also be investigated with pyrosequencing platforms allowing greater diversity assessment of dominant and rare microbial community members.According Xie and Yu (2007) China has been one of the worlds largest shrimp producers since 1988. Although the industry suffered disease outbreaks and environmental problems, shrimp farming has recently seen a rapid expansion in China. This study provides some necessary background to shrimp aquaculture in China. It focuses briefly on the operating characteristics of shrimp aquaculture. Emphasis is placed on the shrimp farming impact on the environment. The promising strategy for reductions in nutrient release from shrimp aquaculture is analyzed. The effective management measures to resolve or mitigate the adverse environmental impact of shrimp farming development have now become necessary and urgent. According to Dierberg and Kiattisimukul, 1996; Goldburg and Triplett, 1997; Naylor et al., 1998, 2000, aquaculture have a significant impacts on the environment and natural resources, and there a lot of number concern about this that was expressed by both environmental activists and scientists. To impose effluent regulations on aquaculture is the pressure that government faced from environmental groups. These regulations will be unnecessarily restrictive and expensive for shrimp and fish producers. Most pond aquaculture cannot be conducted without discharge. It is difficult and may be impossible using the application of traditional effluent treatment methods to meet effluent standards, as done for point source pollution. The purposed of this study which is conducted by Claude E. Boyd (2003), is to discuss actions that have been initiated to improve the management of aquaculture farms for the purpose of preventing or lessening the pollution of natural waters by pond effluents. Effluent standards and permits, codes of conduct, best management practices (BMP), farm-level status and certification is something that was proposed to prevent pollution from arises. But many parties that involved in aquaculture sectors believe that application of best management practices (BMPs) is the best ways that could be a reasonable and affordable way to improve the quality and reduce the volume of pond effluents. International development organizations, industry groups, a research center and state agencies are organizations that suggested the systems of BMPs, in order to make pond aquaculture more environmentally responsible. BMP was make producers are becoming more aware of environmental issues. There is an obvious attempt by producers in Latin America, Asia, Australia, and the United States to improve production practices, and some producers are voluntarily adopting BMPs. The effect of BMPs is many shrimp producers have been installed settling basins, and a few large shrimp farms monitor effluent quality. Discussion among producers and governmental agencies in several nations regarding BMPs were made, and it is expected that regulatory programs based on BMPs will be forthcoming.Study by P. Read and T. Fernandes (2003) were focused to identify some of the main issues relevant to the management of environmental impacts of marine aquaculture. Researchers found that there are large differences between countries in the rate of growth and development of marine aquaculture, and also in the sophistication and complexity of its regulation, control and monitoring procedures. OSullivan, 1992; Garrett et al., 1997; Midlen and Redding, 1998 said that the potential impacts of aquaculture are wide-ranging, from aesthetic aspects to direct pollution problems. According to Nature Conservancy Council (NCC), 1989, impacts would be minimized or negated by the adoption of appropriate culturing procedures and environmental safeguards including regulatory, control and monitoring procedures. Planning and management for sustainable coastal aquaculture development is essential that such safeguards are formulated from the best available science and technology and from the best available experience and expertise. There are lessons that can be learned from the strategy and regulatory framework for the regulation, control and monitoring of environmental impacts of marine aquaculture within the European Union (EU). Researchers were reviews EU and international policy and regulations in their study and provide one example of a strategy for the management of the environmental impacts of marine aquaculture by reference to the marine aquaculture industry in Scotland. This study is concerned with marine finfish culture, although brief reference is made to shellfish culture. So, researchers was examines a number of current, key environmental concerns pertaining to the impact and regulation of marine aquaculture, which whilst being the subject of divergent views, are pivotal to the development of the industry. There are several ways that have been found to address this concern which are recommendations for systems, procedures and research.Study conducted by Jerome M.E. Hussenot (2003) was proposed different techniques that are beginning to be implemented by aqua culturists in order to limit effluent loading. Coastal wetlands are the most suitable sites for land-based fish culture in ponds and tanks, but environmental constraints on effluent discharges are stringent for these areas. Researcher was review on the existing practices in European coastal wetlands and of the characteristics of effluents of the main types of aquaculture facilities which are large traditional extensive ponds, semi-intensive ponds built in now-defunct saltworks, intensive growout systems and intensive hatcherynursery systems. A result of original data acquired on water treatment systems used experimentally on private farms in France to evaluate their performance, and discusses the potential future development of these systems after their economic feasibility has been demonstrated. The result is the continuous mass culture of microalgae has been the subject of experiments converting ammonia and phosphates into diatoms, with the systematic addition of required amounts of limiting nutrients by using the fish farm effluents. Researchers also found that the sedimentation ponds built by aquaculturists are not all efficient at reducing the effluent concentrations of solid particles.Study by Stuart W. Bunting and Muki Shpigel (2009) is to summarize the approach to developing bioeconomic models to evaluate the performance of horizontally integrated temperate and warm water land-based marine aquaculture systems. Negative environmental impacts, competition for resources and conflict are the impacts that are frequently associated from coastal aquaculture development. Stakeholders is important in this sector, so a new paradigm of ecologically-sound, socially responsible and economically viable aquaculture development should be done based on systems-thinking, resource use efficiency and joint analysis with them. Combining aquaculture production systems to optimize resource use efficiency constitutes a promising approach in horizontal integration. According to Bunting, 2001a; Muir, 2005, horizontal integration has been proposed as one approach to managing aquaculture systems which will combining the production of complementary aquatic species, thus making more efficient use of resources (by-products, nutrients and water), farm infrastructure (land, buildings, machinery and services), husbandry skills and marketing opportunities. To evaluate the economic potential, researchers were discuss on several things such as modeling analysis outputs, commercialization constraints, opportunities for enhanced horizontal integration and bioeconomic modeling. Based on the discussion, researchers found that bioeconomic modeling constitutes a promising approach to assessing prospects for horizontal integration. However, experience of past studies shows the importance of testing and validation using a range of operating and input variables.CHAPTER 4

METHODOLOGY4.1 Introduction

A research methodology is an important aspect that should be described in a study. According to the Kamus Dewan (2010), methodology refers to a system that includes rules and principles that apply in an activity, discipline and so forth. Therefore, this study uses a descriptive survey. Through this study, the method of information collection is used more qualitative design. Among the methods used in obtaining information and data is to use secondary data and primary data.4.1.1Secondary Data

Through secondary data collection methods, data collection is done to get some form of data needed for this case study. First, the basic data about the local population which includes the study area. Database consists of the total population in the study area, the fraction of the population employment, population and income so derived from the JKKK of Kampung Fikri. In addition, data and information on aquaculture farming in Kampung Fikri gathered from Setiu District Fisheries Office, District Council Setiu, Setiu District Land Office, Chendering Fisheries Officies, Fisheries Development Authority of Malaysia, Chendering.

Underlying data and information obtained is important to give a clearer picture of the economic, social and local environment as a result of this aquaculture. Apart from this, secondary data collection methods were used in obtaining the information and data on environmental quality. Among the information obtained of the area is water quality as a result of the development of aquaculture in Kampung Fikri. This information is obtained from the Department of Environment, Kuala Terengganu and Marine Fish Production and Research Centre (FRI), Tanjung Demong.4.1.2Primary DataPrimary data used in this study is divided into three categories such as questionnair, and interviews.i. QuestionnairQuestionnaires obtained from research conducted on on the 85 respondents represented the whole of Kampung Fikri population. This data is intended to collect details associated with aquaculture farming and their impact on economic, social and environmental.The questionnaire it is divided into the two parts in which the Section A focus on demographic aspects such as respondents gender, race percentage of the respondents, the percentage of respondents' age, education level, occupation and income of the respondents, while, Section B relating to the impact of aquaculture on the economic, social and environmental in Kampung Fikri.ii. InterviewsWe used select questions from the questionnaires as an interview guide in conducting the interviews with the key informants in government research institutions. We asked interviewees their opinions about the constraints or problems in aquaculture farming in Kampung Fikri and effects they knew existed from the industry. In this preliminary analysis, the quantitative questions in the surveys were analyzed using descriptive statistics such as percentages and proportions and the qualitative questions were either coded and analyzed using descriptive statistics or analyzed qualitatively. All interviews were transcribed and stored to await analysis with the surveys.

4.2 ConclusionIn conducting this study data collection and application theory of the study is that important elements. All the data analysis process outlined in this section will be carried out to obtain results in support of research questions. All results will be analyzed and described in the next section.CHAPTER 5RESULTS AND DISCUSSION5.1IntroductionThis section will discuss the results of this study derived from the methodology used approach is through the collection of secondary data and primary data namely questionnaires, interviews and observations. For the questionnaire, it is divided into the two parts in which the Section A focus on demographic aspects. While, Section B relating to the impact of aquaculture on the economic, social and environmental in Kampung Fikri. The results of this accumulation were subsequently evaluated whether these aquaculture activities positive or negative impact on the residents of Kampung Fikri. 5.2 Background of Respondents

Overall, the profile of the respondents of this study consists of six main profile. The profile covers the respondents gender, race percentage of the respondents, the percentage of respondents' age, education level, occupation and income of the respondents. This descriptive analysis is an important aspect as it aims to strengthen the results of studies on the impact of aquaculture on the residents of Kampung Fikri.5.2.1Gender of Respondents

Table 5.1 shows the distribution of respondents based on gender in which the data gathered from questionnaires conducted on 85 respondents that represented the entire of Kampung Fikri population. Of these respondents, found the percentage of men is 96.5%, which is 82 people, while the women are involved only three people, which is 3.5%.GenderFrequencyPercentCumulative Percent

Men8596.596.5

Women53.5100.0

Total100.0

Table 5.1: Percentage of Respondents GenderSource: Questionnair, 2012.

5.2.2Distribution of Respondents' RaceBased on Table 5.2, found that the distribution of respondents' race is divided into two types, namely the Malay and Chinese communities as a result of survey conducted. From the total respondents of 85 people, a total of 80 respondents were Malays which 94.1% while, the remaining 5.9% refers to the Chinese race that representing 5 people.RacesFr