This paper examines the cost and returns, and the determinants of fish hatchery operations in
agricultural extension zones of Ogun state. The simple random sampling method was used in selecting
120 fish hatchery operators out of 388 registered ones using multi-stage sampling techniques. The
primary data were collected in 2010 production season with the aid of well-structured, validated and
pre-tested interview guides, administered through face to face interview and direct observations so as
to elicit information from the fish breeders. The data collected were analyzed using descriptive
statistics and budgeting technique. The mean total income of N1,088,933.3, N1,072,133.3, N1,122,166.7
and N976,151.3 were generated on sales of fish seeds in the zones, respectively. The Benefit-Cost ratio
of 1.4, 2.1, 2.6 and 2.8 in the four zones, respectively indicated that fish hatchery operations were
profitable and viable enterprises. Poor marketing, poor genetic brood stocks, high inflation rate in the
economy, poor infrastructural facilities and lack of finance were the major constraints hindering fish
seeds production and development. Hence, hatchery operations are profitable and viable enterprises.
There is a need for the establishment of brood stock banks to ensure genetically improved fish seed
availability, provision of infrastructural facilities by the government and improve marketing strategy for
fish seed.