ECONOMIC FEASIBILITY OF SMALL-SCALE BLACK-LIPPED PEARL OYSTER (PINCTADA MARGARETIFERA) PEARL FARMING IN THE CENTRAL PACIFIC

ABSTRACT

This work provides an analysis of the economic feasibility of one of many small-scale aquaculture operations being considered, black pearl oyster farms, as one type of supplemental economic activity for outer island communities in the Central Pacific. Specifically, projections of financial performance of a small-scale 25,000 seeded pearl oyster farm using the Tahitian long-line method are being conducted. Estimates of initial capital investment and annual operating costs are being formulated, an annual cash flow and enterprise budget are being developed. Results show that initial capital investment is $202,076. Annual operating expenses are $293,726 during full operation. The largest costs contributing to annual operating expenses are seeding (46%), labor including farm owner's opportunity cost (24%), and depreciation (9%). The base model presented in this work suggests profitability over a 20-year horizon.

Net returns over a 20-year farm horizon based on an 8% discount rate indicate a positive NPV of $ 102945. Sensitivity analysis on profit due to the variability of market price, survival, and cost of seed and other inputs are conducted and results presented.     

Economies of scale for juvenile production of common snook (Centropomus undecimalis Bloch)

Abstract

Construction and operating costs for three common snook (Centropomus undecimalis) hatcheries in Florida, USA, are illustrated. Hypothetical capacities and targets of the three hatcheries (Scenarios I, II and III respectively) were 615, 000 juveniles (8 ‐ 10 g in weight) for stock enhancement, and 1, 275, 000 and 3, 000, 000 juveniles (1‐g in weight) for commercial grow‐out. Estimated production costs were lower than for many marine finfish species. The 20‐year mean costs per 1, 000 juveniles were estimated to be $324, $215, and $159, for hatcheries I, II, and III respectively, and the initial capital investments were $731, 660, $1, 162, 460, and $1, 896, 030¹, respectively. Major cost items of annual production were labor (22 ‐ 33%), supplies (14 ‐ 20%), fixed costs (15 ‐ 17%), and interest (13 ‐ 15%). The most profitable hatchery was the 3 million 1‐g juvenile hatchery due to the hatchery size effect, with a net present value (NPV) of $1, 760, 000, an internal rate of return (ERR) of 81%, a payback period of 3.6 years, and a profitability index of $2.86 for every dollar invested. Possible cost reductions to increase financial profitability were discussed.     

Economic Evaluation of Commercial-Scale, Saltwater Pond Production of Florida Red Tilapia in Puerto Rico

An economic analysis was performed of a proposed commercial-scale 20-ha saltwater pond culture operation for Florida red tilapia in Dorado, northern Puerto Rico. The analysis was based on actual cost and production data from a commercial-scale hatchery, pilot-scale grow-out trials conducted in six 0.2-ha saltwater (avg. = 22.7 ppt) ponds at the Dorado facility and on wholesale market prices ($4.96–5.18/kg) fetched by dressed-out (gilled, gutted and scaled) product. The proposed 20-ha growout facility is comprised of 25 0.8-ha earthen ponds, each supplied with sea water, brackish well water, drainage and aeration, which account for 60.8% of the capital costs. Ponds are stocked with fingerlings (0.85 g avg. wt.) at a density of 3.0 fish/m² (30,000/ha), and are harvested at 160 and 220 d, at an average weight of 545 g for a total yield of 11,445 kg/ha per crop. Imported feed ($0.55/kg), processing and distribution ($0.50/kg) and sex-reversed fry ($0.11/fry) are the highest variable costs, accounting for 30.7%, 15.4% and 13.9%, respectively, of the total annual costs. Salaries and benefits, and depreciation represent the highest fixed costs, accounting for 8.4% and 5.5%, respectively, of the total annual costs. Under these conditions, a wholesale price of $4.55/kg results in a positive cash flow by year eight, and a breakeven price, internal rate of return (IRR), net present value (NPV) and discounted payback period (DPP) of $4.08/kg, 7.6%, ($235,717) and >10 yr, respectively, suggesting that the proposed 20-ha operation is not economically feasible under these conditions. The proposed enterprise is marginally feasible if stocking density is increased to 3.5 fish/m² while at 4.0 fish/m² economic outlook is favorable. Costs can be lowered considerably by targeting production and market variables most sensitive to profitability indices, using locally-prepared feeds, and vertically integrating hatchery and growout operations.     

Formulation of aquaculture development at an ox-bow lake in Malaysia: economic feasibility analysis

Abstract. This paper summarizes the economic aspects of production models and discusses the economic feasibilities and some marketing requirements of a proposed fisheries-aquaculture development at an ox-bow lake, isolated from the Perak River, at Teluk Intan, Perak, Malaysia. Measures of feasibility from a budgetary simulation model are expressed in terms of net present values of return (NPV), internal rate of return (IRR) and return on sale; their changes recalculated in relation to practical ranges of variations in sale prices and yields, and under conditions of normal and 20% increment in operational costs, are also expressed. Using appropriate real production data, the cage culture complex has an NPV of M$4.068 million with an IRR of 68% and return on sales of 31% at a sale price of M$10/kg and yield of 12kg/m³ (US$1.00 = M$2.30); capture fisheries integrated with livestock have an NPV of M$252410, IRR of 42% and return on sales of 18% at a sale price of M$2.50/kg and yield of 33 tonnes; the hatchery facility has an NPV of M$0.963 million, IRR of 38% and return on sales of 20% at a sale price of M$0.39/fry and yield of 2 million; and prawn pond culture has an NPV of M$314000, IRR of 43% and return on sales of 36% at a sale price of M$11/kg and yield of 2.5 tons/ha. Overall, the modular project has an NPV of M$5.596 million with an IRR and return on sales of 53% and 28% respectively. Should the operational costs increase by 20% above normal, project unviabilities are obvious at specific levels: cage culture is unviable at sale prices ≤M$8.00/kg and yields ≤10 kg/m³; capture fisheries at sale prices ≤M$1.5/kg; hatchery facility at sale prices of fry ≤M$0.30/fry; prawn culture at sale prices ≤M$8.00/kg and yields ≤2 tons/ha; and the overall project is unviable when the sale level of fisheries products drops to 80% of the normal and operational costs increase to 120%. With greater efforts at raising sales and securing better prices, and raising yields while reducing operational costs, the projects have a markedly improved economic profit.     

ECONOMIC ANALYSIS OF LAND-BASED PRODUCTION OF CULTURED MARINE PEARLS IN INDIA

Land-based marine pearl culture is a novel technological concept suitable for all three important species of pearl oysters. Advantages include lack of fouling and avoidance of boring and predation. An economic evaluation of onshore marine pearl culture production was conducted to provide basic information about the practice. The average annual cost of production over the estimated 10-year period was $158,127 (U.S.), net operating income was $159,197 (U.S.) and the net income was $49,244 (U.S.). The average annual pearl production of 28 kg was higher than the break-even production of 15 kg. The break-even price was estimated at $6.60 (U.S.) per gram of pearl. Net Present Value (NPV) was estimated at $137,416 (U.S.) and the Benefit Cost Ratio (BCR) at 1.20 (20% discount rate). The Internal Rate of Return (IRR) was estimated at 28%.     

Economics of risk and uncertainty of alternative water exchange and aeration rates in semi‐intensive shrimp culture systems

Abstract

Reducing water exchange in shrimp aquaculture to minimize discharge of pollutants is a search for sustainability. In desert regions, like most of northwest Mexico, low water exchange must be complemented with artificial aeration to compensate for low levels of oxygen in warm and highly saline water. The economic yield of a low‐water‐exchange production system is compared against yield from a typical water‐exchange‐without‐aeration system for Penaeus vannamei culture. The difference between two systems is centered on pumping and aeration rates for a 100 ha semi‐intensive farm in northwest Mexico.

A bioeconomic model was built to compare the systems. Risk analysis is adopted to account for uncertainty of seed price, shrimp growth rate, survival rate, and shrimp prices.

The typical system was slightly more profitable than the low‐water‐exchange, aerated system. The latter used less electricity than the former in all of the three mortality‐rate scenarios. However, the difference in profitability is so small that for practical purposes both production systems provide similar economic yield. For a typical system, the probability of reaching a positive net present value (NPV) is high, therefore under the assumed risks, a 100 ha semi‐intensive shrimp farm in northwest Mexico is a good investment choice.     

The Cost of Production of Giant Clam Seed Tridacna gigas

The costs of providing giant clam seed in Australia are examined for alternative annual volumes of production. Considerable economies of scale in production are available, both in relation to labor costs and non-labor costs (mostly capital costs). The fall in per-unit cost of producing giant clam seed is considerable when annual production is expanded from 100,000 to 500,000 seed clams per year. At 10% rate of interest, the unit cost per clam seed falls from $1.43–$2.04 at a production level of 100,000 to $0.41–$0.55 at a production level of 500,000. Per-unit operating costs also fall. They decline from $1.01–$1.22 to $0.29–$0.35. This suggests that there are likely to be cost economies in having large centralized hatcheries.     

Economic Evaluation of a Small-Scale Recirculating System for Ongrowing of Captive Wild Black Sea Bass Centropristis striata in North Carolina

An economic analysis of a hypothetical small‐scale marine recirculating aquaculture system (RAS) is conducted for ongrowing small, wild black sea bass Centropristis striata at the University of North Carolina Wilmington, Center for Marine Science (UNCW‐CMS) aquaculture facility in Wrightsville Beach, North Carolina (NC). The analysis is based on production data from field trials and marketing data from the sale of tank‐grown product. The growout facility consists of four 16.7‐m³ (dia. x ht. = 5.58 × 1 m) fiberglass tanks supported by state‐of‐the‐art RAS components, including particle traps and swirl separators, drum screen filter, trickling biological filter, UV sterilizer, heat pump, protein skimmer, and oxygen cone. Wild‐caught, above minimum legal size black sea bass (24.2 cm TL, 350 g, 0.77 lb) were purchased from a commercial fisherman for $3.14/ kg ($1.4011b), stocked at a density of 21.1 kg/m³, and grown to a final weight of 1 kg (2.24 lb) in 200 d at 23 C resulting in 1.8 production cycles per year. Fish were fed a commercial pelleted diet ($0.94/kg; $0.42/Ib) with a feed conversion ratio of 1.5. Final harvest density was 60 kg/m³ (0.50 lb/gal), and total harvestable weight was 3,982 kg (8,919 Ibs) of fish per cycle, or 6,760 kg (15,022 lb) per year. The economic analysis assumes that the facility owner manages and operates the system on coastal property zoned commercial/industrial, where full strength seawater is available on demand from natural sources. Under the base case scenario, initial investment in construction and equipment is $84,506 (10‐yr life), fish are grown to a harvestable weight of lkg/fish (2.24 lb/fish), product price (farm gate basis) is $10.10/kg ($4.50/lb), and breakeven price is $7.02/kg ($3.13/lb). Depreciation, fingerlings, interest paid, electricity, and feed, account for 19.6%,17.4%, 16.9%, 16.6%, and 12.3%, respectively, of total annual costs. Measures of financial performance for the base case, 10‐yr scenario are: annual return to management, $18,819; net present value (5% discount rate), $145,313; internal rate of return on initial investment, 37%; and discounted payback period on initial investment, 3.2 yr. Sensitivity analysis showed that product price changes have the largest impact on annual returns, while changes in daily growth rate, initial weight, and survival have a strong impact on financial performance. Moderate effects are seen with changes in fingerling costs, feed costs, feed conversion ratio (FCR), final weight, and interest rates.     

Management strategies to reduce operating costs in a commercial shrimp hatchery in NW Mexico

Strategies to reduce operating costs at an expanding shrimp hatchery in NW Mexico are presented for a period covering 3 years (2004–2006). The hatchery increased its greenhouse-type larval rearing halls from three (50 tanks, total water volume 996 m³) in 2004, to five (70 tanks, water volume 1,396 m³) in 2005, and to seven (94 tanks, total water volume 1,876 m³) in 2006. Production increased from 400 million postlarvae in 2004 to 579 million in 2005 to 760 million in 2006, but operating costs increased only 6% during this period and the unit cost for postlarvae was 44% lower. Administration expenses were the highest variable cost, but restructuring the company reduced them from 35% in 2004, to 29 in 2005 and to 21% in 2006. Feed was the second largest variable cost, reduced from 44 to 36 to 31 through improved feeding practices, changes in feed composition, and bulk purchases of commercial feeds. Costs for propane and the workforce increased, in part from higher consumption and additional staff and higher salaries to retain the trained workforce. Competition will continue to lower the market price for shrimp postlarvae, forcing hatcheries into a permanent improvement process. Increasing costs for energy will require investments in energy-saving technologies. Improved sanitation and strict bio-security procedures will increase the survival rate, thereby reducing unit costs still further.     

Shrimp Yields and Economic Potential of Intensive Round Pond Systems

Three intensive growout trials using Penaeus vunnumei were conducted in round ponds in Hawaii in 1987. A 337 m² experimental pond was stocked at 100 shrimp/m² for two trials; a 2,000 m² commercial prototype pond was stocked at 75/m² for one trial. In the experimental pond trials, shrimp survival averaged 88 ± 10% (SE) and feed conversion averaged 2.2 ± 0.2. Growth averaged 1.5 ± 0.3 g/week, yielding 18.2 ± 1.7 gram shrimp in 80 ± 5.5 days. Combined production in the experimental trials was 32,272 kg/ha in 174 days (from stocking of trial 1 to harvest of trial 2). Comparing these results to 1986 results (Wyban and Sweeney 1988), it was concluded that shrimp growth is not affected and production is doubled by increasing stocking density from 45/m² to 100/m². Pooling data from 1986 and 1987, a significant linear regression was obtained when weekly growth of shrimp above four grams individual size was regressed on mean weekly pond temperature: growth = 0.37 * temperature - 8.44, (r²= 0.41; P < 0.01). Multiple regression to examine effects of shrimp size, pond biomass, and shrimp age on the temperature-growth relationship was not significant. In the commercial prototype pond trial, survival was 67% and feed conversion was 2.0. Growth averaged 1.4 g/week, yielding 18.1 gram shrimp in 88 days. Production was 9,120 kg/ha. Individual shrimp size distribution at harvest in the commercial pond was similar to experimental pond results, indicating that shrimp growth in the two systems was comparable. Financial characteristics of a hypothetical 24 pond shrimp farm using these results were determined using an electronic spreadsheet model (hung and Rowland 1987). Feed costs were 40% of total operating costs while postlarvae and labor were 14% and 16% of total operating costs, respectively. Breakeven price (BEP) was far more sensitive to changes in revenuedetermining inputs such as survival and growth than to comparable changes in costdetermining inputs such as feed and postlarvae costs. Together these results suggest that commercial scale round pond production mimics experimental scale production and that round pond technology has commercial potential.     

The economic viability for the production of live baits of White Shrimp (Litopenaeus schmitti) in recirculation culture system

Sportfishing is a growing segment in the fishing sector, which requires the supply of marine shrimps to meet the demand for live baits; however, the extraction of white shrimp from their natural habitat results in overfishing depleting natural stocks. Intensive cultivation in water recirculation system is a worldwide trend for shrimp farming, which, in addition to increasing productivity, minimizes the impact of effluent emission on the environment, reinforcing sustainability. This study analyzed the economic viability of establishing farms for the cultivation of white shrimp (Litopenaeus schmitti) in water recirculation system to meet the market demand of sportfishing for live baits. The indicators were used: internal rate of return (IRR), net present value (NPV) and payback period (PP). The best scenario, with 90 % survival rate and unitary selling prices of US$ 0.50, showed IRR 11.74 %, NPV (10 %) US$ 1,241.88 and PP 5.71 years, demonstrating financial risk for the production of live baits in the conditions proposed in this study.     

Economic analysis of tiger grouper <Emphasis Type="Italic">Epinephelus fuscoguttatus</Emphasis> and humpback grouper <Emphasis Type="Italic">Cromileptes altivelis</Emphasis> commercial cage culture in Indonesia

This study presents an economic analysis of tiger and humpback grouper at different production scales in Indonesia. The results highlight the non-viability of small-scale tiger grouper farming, with a 5-year projected negative cumulative cash flow of −IDR 18,102,650.00 and a negative net present value (NPV) of −IDR 22,059,576.28. An increased production scale of tiger grouper highlights a marginal viability for medium-scale farms (with a 5-year projected cumulative cash flow of IDR 198,320,673.00, a positive NPV of IDR 105,578,440.42; a benefit cost ratio of 1.25; an internal rate of return (IRR) of 88% and a payback period of 0.99 years), and an economically viable large-scale cage culture (with a 5-year projected cumulative cash of IDR 707,746,923.00; a NPV of IDR 406,801,749.07; a benefit cost ratio of 1.33; an internal rate of return of 157%; and a payback period of 0.57 years). The economic analysis of humpback grouper at different production scales highlighted a positive cumulative cash and NPV, a benefit cost ratio over 2, an internal rate of return over 300% and a payback period <1 year. A sensitivity analysis revealed that increased survival rate up to 80% would increase cumulative cash and NPV of small-scale tiger grouper cage culture. Additionally, improved profitability performance was associated with decreasing major production costs, increasing production and price of the product.     

THE FARMING PRACTICES AND ECONOMICS OF AQUACULTURE IN THAILAND

ABSTRACT

The paper reviews freshwater and coastal aquaculture practices in Thailand, and compares the productivity, costs, and benefits across various types of cultivation and various intensities of production. The paper is based on data that were collected in surveys conducted during 1998–2001 by the Department of Fisheries (DOF), Thailand and the WorldFish Center. More than 22% of Thailand's fish supply comes from aquaculture, with coastal aquaculture accounting for more than 88% of this in terms of value. Intensive culture of shrimp is the dominant form of coastal aquaculture, occupying 69% of the area under production. However, in some regions, the average net profit/kg of intensive shrimp culture is negative, and semi-intensive farming, with relatively lower fixed investment and operating costs, delivers the highest rate of return on investment. On the coast, grouper and sea bass are the most important cage-cultivated species, achieving an economic rate of return as high as 92%. In the same environment, culture of mollusks, such as green mussels, oysters, and blood cockles, is widespread. It can also be economically sustainable, with relatively low capital and operating costs. Although the relative share of freshwater aquaculture production is declining, the level of output has been increasing rapidly. While the average production from monoculture of carnivorous species is higher than that from polyculture, the average capital investment and operating costs associated with the former are also higher. The expansion of freshwater polyculture and of mollusk culture in coastal areas would greatly assist poor fish farmers.     

BIOECONOMIC MODELING OF SHRIMP AQUACULTURE STRATEGIES FOR THE MAHAKAM DELTA,INDONESIA

Bioeconomic modeling was used to evaluate traditional and extensive shrimp production in the Mahakam Delta and impacts of adopting Better Management Practices (BMP) for semi-intensive and integrated mangrove-shrimp culture. Modeling outcomes indicate that traditional production is not financially viable, failing to generate a positive 10-year Internal Rate of Return (IRR). Such practices persist in the Mahakam Delta as capital costs have been depreciated against past financial returns, input costs are negligible, risks are minimal, opportunity costs are low and options to intensify production have been retained by producers. Returns from BMP-guided semi-intensive culture (20% IRR) are marginally higher compared to extensive culture but entail a 10-fold increase in operating costs and greater risks. Integrated mangrove-shrimp production gives a reasonable IRR (53%) but costs remain high, management demanding and risks uncertain. Risk adverse operators with short-term leases may favor traditional and extensive practices. Sustainable intensification, allied to social capital development and rehabilitation of mangrove ecosystem services and environmental flows, is needed to reconcile multiple demands.     

Reviewing capital cost estimations in aquaculture

This article reviews the discount rate or cost of capital (WACC) used as an input to estimate the net present value (NPV) in aquaculture research over the last 25 years. To that end, aquaculture articles, published in peer-reviewed journals using the Web of Science, Scopus, and ScienceDirect databases were collected. This article provides an approximate minimum profitability for new aquaculture feasibility studies according to the type of aquaculture marine commodities, the project type, and the location or country. The results show that the average WACC was 10.6%; this rate was significantly higher a) for algae than for crustaceans, mollusks, and fish; and b) for projects installed in developing countries than for developed countries. Because precisely estimating the WACC for each new project takes considerable time and is expensive, this study provides a useful baseline for many stakeholders, such as private investors, research centers, and government bodies, that provide financial support to aquaculture projects. This work will also benefit those who evaluate projects in other fields.     

Format and mode of artificial substrate fixation affect the performance of Litopenaeus vannamei in high‐density rearing systems

We investigated whether the positive impacts of artificial substrates on shrimp performance are altered in any way by their format or mode of fixation in the tanks. To examine this question, substrates were fixed vertically in the water column in three different configurations: SCF treatment (Substrate Completely Fixed), SPF treatment (Substrate Partially Fixed) and SFF (Substrate in Frond Format). Another treatment received no substrate and served as control (WS = Without Substrate). The shrimp were cultured for 38 days in intensive biofloc culture tanks at a stocking density of 1,125 shrimp m^?3. In general, water quality variables were similar among treatments and remained within the appropriate range for shrimp culture. The final biomass was higher (8.5 kg m^?3) and the feed conversion ratio (FCR) lower (1.6) in all tanks with substrates when compared with the WS treatment tanks (final biomass = 6.3 kg m^?3 and FCR = 3.1). However, only shrimp from the SCF and SPF treatments had a higher survival rate (>95.0%) compared to those in WS tanks (75.9%), which was statistically similar to the SFF treatment (88.0%). These results show that substrate format and its mode of fixation in tanks can alter shrimp performance. In well‐aerated intensive tanks, substrates in frond format are constantly pushed to the tank surface, making it difficult for shrimp to adhere to the screens. In such situation, the extra surface provided by the substrates is not always available to the shrimp, a fact that minimizes the positive effects of substrate.     

基于GFM和GAMM模型分析对虾白斑综合征(WSSV)对黄海和东海北部水域虾类生物量的影响

虾类是海洋生态系统功能群的重要组成部分,其生物量变化受到多重因素的影响。本研究在开展黄海和东海北部水域虾类白斑综合征病毒(white spot syndrome virus, WSSV)流行病学调查的基础上,利用梯度随机森林模型(gradient random forest model, GFM)和广义加性混合模型(generalized additive mixed models, GAMM),分析了2016—2018年间黄海和东海北部水域WSSV流行对虾类生物量的影响。分子检测结果显示,调查所获取的26种虾类中,11种被检测为WSSV阳性;2016、2017和2018年WSSV阳性采样站点的比率分别为48.40%、38.75%和21.74%,虾类样品中WSSV阳性检出比率分别为16.86%、9.60%和4.80%。GFM模型分析显示,解释变量“阳性样品数的对数(ln_posi)”对响应变量“虾类生物量的对数(ln_Abu)”的重要性最高。GAMM分析中,根据赤池信息准则(Akaike information criterion, AIC)最小原则筛选出的最优模型为：ln_Abu~WSSV阳性率(P_rate)+ln_posi+经度(Long),该模型中ln_posi和P_rate是影响虾类生物量的极显著相关因子,ln_Abu随着P_rate的升高而降低。研究表明,WSSV在黄海和东海北部水域虾类中流行,推测对该海域的虾类生物量存在影响。     

Economics of Tray Culture of the Mother-of-pearl Shell Pinctada margaritifera in the Red Sea, Sudan

An economic analysis of tray cultured oysters in Dongonab Bay, Red Sea was conducted based on production costs collected by the Red Sea Fisheries Research Centre. The analysis showed that oflbottom oyster farming was economically attractive at a price around 1.5 Sudanese pounds (US $0.75) per kilogram of shell and discount rates of 40% or less.     

Production and economic return of shrimp aquaculture in coastal ponds of different sizes and with different management regimes

Coastal shrimp (Penaeus monodon) aquaculture in Bangladesh is mostly practiced in a special type of field/pond situated by the side of a river -- called a Gher -- that is used to cultivate rice in winter and shrimp in summer. Ghers of different sizes are managed in different ways. In order to understand the effects of Gher size and their corresponding management practices on the production and economic returns of shrimp farming, we conducted an on-farm study in three small (1–5 ha), three medium (6–10 ha) and three large (>10 ha) Ghers located in the coastal Southwest region of Bangladesh. The mean harvest weight of shrimp was similar in all Ghers, but survival rates were higher in the small (50%) and medium (37%) ones than in the large (18%) ones. The high mortality in the large units led to a production that was lower than one-half of that in the small Ghers (about 80 and 200 kg/ha, respectively). The total variable costs per unit area were similar in all Ghers, but the importance of different items varied with Gher size. In the small Ghers, there are relatively high investments on inputs and labor. This expenditure results in lower shrimp mortality and higher production, which in turn results in gross returns that are larger than the total costs -- hence, a positive and high net return. In large Ghers, the fixed costs are larger than in the small ones simply because of the size of the pond. Variable costs include higher investments in post-larvae and labor than in small Ghers, and lower inputs applied only at pond preparation. This results in higher shrimp mortality and lower production, which in turn results in gross returns that are smaller than the total costs -- hence, a negative or low net return. These findings have positive implications for the future policy formulation of coastal shrimp aquaculture in Bangladesh.