Trade-Offs Between Single- and Multiple-Batch Production of Channel Catfish,Ictalurus punctatus:

Economic trade-offs associated with single- and multiple-batch production of channel catfish, "Ictalurus punctatus," were analyzed using multi-period and risk programming mathematical models. Single-batch stocking strategies maximized net returns above variable cost, primarily because poorer feed conversions in multiple-batch systems resulted in lower net returns. In the absence of off-flavor, single-batch production would increase annual net returns by 5%. For every 25% reduction in off-flavor incidence, annual net returns increased by 1-3%. The 10-year average fall-to-spring price differential was less than the cost of holding fish through the winter, based on an assumed inventory holing cost of $0.08/kg/month. For each reduction in holding cost of $0.02/kg/month, annual net returns increased by 8-9%. Multiple stocking was selected as a risk-reducing strategy, but expected income decreased by 8% to 35% depending on the number of ponds stocked in multiple batches. Cash flow restrictions decreased annual net returns by 18% because multiple-batch stocking strategies were required to meet financial obligations.     

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.     

Production economics and profitability analysis of horizontal rack culture and horizontal rack culture coupled with raft-string culture methods: a case study of Pacific oyster (Crassostrea gigas) farming in Chiayi and Yunlin Counties,Taiwan

Because of the influence of an intertidal farming environment, the oyster breeding industry of Chiayi and Yunlin has adopted the use of a horizontal rack culture in the intertidal zone, as well as a raft-string culture, to increase oyster production. This study used the translog cost function to analyze and compare the horizontal rack culture and horizontal rack culture coupled with the raft-string culture, referred to as a mixed culture, to explore whether the two breeding methods demonstrated economies of scale and a relationship based on production input factor substitution. This study determined that both farming methods demonstrated increasing returns to scale. In addition, the mixed culture method yielded apparently higher returns to scale compared with the rack culture. The mixed culture was found to be more profitable than the horizontal rack culture because of higher production and lower average cost. Both farming methods exhibited an apparently significant substitution relationship regarding capital investment and juvenile oyster input, and capital investment and fishing gear, suggesting that increasing capital price leads to increased juvenile oyster and fishing gear input in substitution of the capital use.     

Pilot study on polyculture of juveniles spotted babylon, Babylonia areolata, with milkfish, Chanos chanos, to marketable sizes using large-scale operation of earthen ponds in Thailand

Growth, production and economic analysis was performed for the polyculture of juveniles spotted babylon, Babylonia areolata, and milkfish, Chanos chanos, to marketable sizes using a large‐scale production of earthen ponds in Thailand. The analysis was based on actual cost and production data from a pilot commercial‐scale farm. A total farm area of 0.8 ha was comprised of 0.3 ha grow‐out earthen ponds, a 0.4 ha seawater reservoir, and a 0.08 ha accommodation and office. Each pond was stocked with spotted babylon juveniles of 0.3 g initial body weight at a density of 200 snails m^?2, and they were harvested at a 7‐month period, at an average body weight of 4.6 g for a total yield per production cycle of spotted babylon and milkfish of 9875 and 6875 kg ha^?1 respectively. Based on farm data and harvest data used in this study, initial investment requirement was estimated to be $4837. The ownership cost and operating cost per production cycle were $2241 and $18 501 respectively. Total cost per production cycle was $20 742. The cost of producing spotted babylon marketable sizes in this grow‐out farm design was $6.56 kg^?1. The enterprise budgets based on the price of spotted babylon at a farm gate in 2003 of $9.00 kg^?1 results in gross return, net return, return to capital and management, and return on investment of $31 190, $10 448, $12 689 and 2.62 respectively. Milkfish was not calculated for any returns because they were less than marketable sizes.     

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.     

Regulatory costs on U.S. salmonid farms

The economic effects of the implementation of regulations on aquaculture farms in the United States, while of concern, are not well understood. A national survey was conducted of salmonid (trout and salmon) farms in 17 states of the United States to measure on‐farm regulatory costs and to identify which regulations were the most costly to this industry segment. The response rate was 63%, with a coverage rate of 94.5% of the U.S. production of salmonids. The regulatory system resulted in increased national on‐farm costs of $16.1 million/year, lost markets with a sales value of $7.1 million/year, lost production of $5.3 million/year, and thwarted expansion attempts estimated at $40.1 million/year. Mean farm regulatory costs were $150,506/farm annually, or $2.71/kg; lost markets with annual sales values of $66,274/farm; annual lost production of $49,064/farm; and an annual value of thwarted expansion attempts estimated at $375,459/farm. Smaller‐scale farms were affected to a disproportionately greater negative extent than larger‐scale farms. Per‐farm regulatory costs were, on average, greater for foodfish producers than for producers selling to recreational markets, but per‐kg regulatory costs were greater for those selling to recreational compared to foodfish markets. Regulatory costs constituted 12% of total production and marketing costs on U.S. salmonid farms. The greatest regulatory costs were found to be effluent discharge regulations. The majority of regulatory costs were fixed costs, but regulatory barriers to expansion precluded compensatory adjustments to the business in spite of growing demand for salmonid products. Results of this study show that the on‐farm regulatory cost burden is substantial and has negatively affected the U.S. salmonid industry's ability to respond to strong demand for U.S. farm‐raised salmonid products. Results also suggest that the regulatory system has contributed to the decline in the number of U.S. salmonid farms. While regulations will necessarily have some degree of cost to farms, the magnitude of the on‐farm regulatory cost burden on U.S. salmonid farms calls for concerted efforts to identify and implement innovative regulatory monitoring and compliance frameworks that reduce the on‐farm regulatory cost burden.     

Size Economies of a Pacific Threadfin Polydactylus sexfilis Hatchery in Hawaii

A spreadsheet model has been developed to determine the viable scale for a commercial Pacific threadfin Polydactylus sexfilis hatchery in Hawaii. The production scheme is modeled after current practices performed at the Oceanic Institute in Waimanalo, Hawaii. For a hatchery enterprise producing 1.2 million fry per year, the cost associated with raising one 40‐d‐old 1.00‐g fry is estimated at 22.01ø. The largest variable costs are in labor and supplies, which comprise 49% and 9% of the total production cost. The combined annualized fixed cost for development and equipment is approximately 12% of total production cost. At a sale price of 25ø per fry, the 20‐yr internal rate of return (IRR) is 30.63%. In comparison to the 22.01ø unit cost for 1.2 million fry production, analyses of smaller enterprises producing 900,000 and 600,000 fry per year reflected significant size diseconomies with unit costs of 27.41ø and 38.82ø, respectively. Demand to support a large scale Pacific threadfin commercial hatchery is uncertain. Since smaller scale commercial hatcheries may not be economically feasible, facilities may seek to outsource live feed production modules or pursue multiproduct and multiphase approaches to production. An analysis of the production period length, for example, indicates that the cost for producing a day‐25 0.05‐g fry is 17.25ø before tax and suggests the financial implications of transferring the responsibility of the nursery stage to grow‐out farmers. Evaluation of the benefits gained from changes in nursery length, however, must also consider changes in facility requirements, mortality, and shipping costs associated with transit, and the growout performance of and market demand for different size fry. Sensitivity analyses also indicate the potential cost savings associated with the elimination of rotifer, microalgae, and enriched artemia production. Managerial decisions, however, must also consider the quality and associated production efficiencies of substitutes.     

Production Costs of Juvenile Penaeid Shrimp in an Intensive Greenhouse Raceway Nursery System

This analysis compared the use of an intensive nursery raceway system with direct stocking of post-larval shrimp into growout ponds. The intensive raceway system allows two crops to be produced in Texas where only one crop is feasible with direct stocking. Both investment and operational costs are analyzed for three types of greenhouses and three types of raceways where the types vary in cost and lengths of life. Three growout pond stocking densities and two farm sizes were evaluated for each combination of greenhouse and raceway type. Investment costs ranged from $142,000 for the small farm using the least expensive greenhouse and raceway and utilizing the lowest stocking density, to about $2.3 million for the large farm using the most expensive greenhouse and raceway and the highest stocking density in the growout ponds. The operational cost was $7.60 and $9.71 respectively per 1,000 one gram juveniles produced. Under technology available at the time of this analysis, direct stocking growout ponds with PIS and producing one crop per year is more profitable than stocking one gram juveniles and producing two crops per year on the Texas coast.     

Principal economic effects of cormorant predation on catfish farms

Substantial economic losses of farmed catfish to fish‐eating birds such as the double‐crested cormorant, Phalacrocorax auritus, continue to be reported on U.S. catfish farms. An economic analysis was conducted of the on‐farm effects of both the increased expenditures to scare fish‐eating birds from catfish farms and of the value of the catfish that were consumed by cormorants. A survey was conducted of U.S. catfish farmers in the Delta region of Mississippi and Arkansas, to obtain farm‐level data on expenditures to scare birds. Estimations of the lost revenue from catfish consumed by cormorants were developed from a concurrent study on cormorant distribution, abundance, and diet in the region. The economic effects of bird predation in terms of both fish consumption and management costs were evaluated across three farm sizes and nine catfish production practices. Catfish farmers spent on average $704/ha ± $394/ha to scare birds, making bird‐scaring costs one of the top five costs of raising catfish. The greatest cost components of scaring birds were manpower (39% of all bird‐scaring costs) and the variable and fixed costs of trucks used to scare birds (34% of all bird‐scaring costs). Losses were greater on hybrid than channel catfish fingerling ponds. Industry‐wide, the value of catfish losses averaged $47.2 million (range of $25.8–$65.4 million). Total direct economic effects (including both the increased costs to scare birds and the revenue lost from fish consumed by cormorants despite bird‐scaring attempts) averaged $64.7 million (ranging from $33.5 to $92.6 million). Profitability improved by 4% to 23% across the farm size/production strategies analyzed upon removal of the economic effects from bird predation, with greater effects occurring on smaller‐scale farms. One‐third of the farm size and production scenarios analyzed changed from being unprofitable to showing a profit in the absence of such negative economic effects associated with bird depredation. Overall, the combined effects of increased farm expenditures to scare birds from farms and the value of the catfish lost to predation by cormorants caused substantial negative economic effects on catfish farms.     

Cost of regulations on US catfish farms

Understanding the economic effects of regulations on US aquaculture farms provides insights into which compliance costs create the greatest compliance burden on farms. This can further guide strategies to improve the efficiency of regulatory frameworks and potentially reduce on-farm compliance costs while maintaining adequate oversight. This study estimated the regulatory compliance burden on US catfish farms as part of a national effort to quantify the cost of regulations on US aquaculture farms. Completed survey interviews of catfish farms in the major catfish-producing states covered 63% of the total US catfish production area. Total regulatory costs of the US catfish industry were estimated at $45 million annually. Lost farm revenues (measured as the value of lost production, the value of markets lost from regulations, and the value of business opportunities lost because of regulations) were estimated to be $35 million per annum. Catfish-producing states outside the Alabama/Arkansas/Mississippi region had the highest ($2856/ha) and Alabama the lowest ($1127/ha) regulatory costs per hectare among the surveyed states. The greatest regulatory cost burden on catfish farms ($18 million) was caused by environmental regulations related mostly to the management of federally protected piscivorous migratory birds, followed by labor regulations ($12 million), and taxes/insurance ($7 million). Regulatory costs ($/kg) were 2.6 times higher on smaller (<80 ha) farms relative to larger (>300 ha) farms. Attention is needed to identify alternative regulatory frameworks that provide the same degree of regulatory oversight but are more cost-efficient.     

Preliminary Comparisons of Yield and Profit Achieved from Different Rainbow Trout,Oncorhynchus mykiss,Production Systems in Inland Western Australia

Abstract

Farmers throughout the wheatbelt of Western Australia are interested in farming rainbow trout, Oncorhynchus mykiss, in saline groundwater on salt-affected farmland, to generate an alternative source of income. We compared the relative productivity and profitability of three different production systems: extensive (trout stocked in earthen ponds and totally reliant on natural food); semi-intensive (trout stocked in earthen ponds and provided with supplementary diet); intensive (trout stocked in closed, recirculating tanks). The yield of fish increased with increasing production intensity. The mean wet weight (±SE) of trout after 4 months of grow-out was 61.3±2.7 g in extensive systems, 157.9±5.2 g in semi-intensive systems and 137.9±3.9 g in intensive systems, giving mean yields of 10.8 kg/pond (13.5 kg/ha), 27.9 kg/pond (34.8 kg/ha) and 54.9 kg/tank (21.1 kg/m³), respectively. A preliminary economic analysis of the different production systems showed that the increases in yield were sufficient to balance the extra operating costs involved in semi-intensive systems, but not in intensive systems. We conclude that semi-intensive production systems deserve further study for the commercially viable production of rainbow trout from saline groundwater in Western Australia.     

INLAND AQUACULTURE IN INDIA: PAST TREND,PRESENT STATUS AND FUTURE PROSPECTS

ABSTRACT

In India, inland aquaculture has emerged as a fast-growing enterprise and a viable alternative to the declining capture fisheries. The present paper is an attempt to assess Indian inland aquaculture with respect to its resource base, output trends, systems and activities, yield gaps, adoption and impact on aquaculturists, economics, returns to inputs, investment needs, and future prospects. The paper is largely based on existing literature and observations made as part of an ICAR-WorldFish demand supply project. Indian aquaculture is primarily limited to inland sector and carp-oriented; for that reason, this activity received special attention. Freshwater aquaculture observed tremendous growth in the past 15 years, but immense scope still exists for horizontal expansion and increases in productivity (vertical expansion). This is evidenced by the fact that the average farm fish yield is only one-third of that achieved in farm trials. The difference was mainly due to much higher input use in on-farm trials. Most of the aquaculturists were practicing extensive aquaculture, but aquaculturists with semi-intensive operations benefited most from adoption of technology. The benefit:cost ratios for different systems of aquaculture varied between 1.22 to 1.86. The return to capital was much higher than the return to labor, due to the low labor input. The semi-intensive aquaculture system would receive the greatest return from projected macrolevel investments, followed by extensive and intensive systems. Dedicated efforts are needed to meet the demand for quality fish seed and feed in order to achieve the desired 45% increase in area and greater than 50% increase in productivity. Based on the observations, activities designed to foster inland aquacultural development in India are recommended.     

Management strategies of stocking density and length off culture period for the Catarina scallop Argopecten circularis (Sowerby): a bioeconomic approach

A bioeconomic analysis was made to help define management strategies of stocking density and length of culture period for the scallop Argopecten circularis (Sowerby). The internal rate of return (IRR) was used as a criterion for maximizing profit at different plant sizes. Analyses were made at low and high stocking rates. For plant sizes larger than 1.2 million juveniles, using high densities improved the IRR but had higher risk because of critical inconsistencies in survival. High sensitivity of the IRR to stocking density and culture period required these variables to be strictly controlled to maximize the IRR. The sensitivity of IRR to changes of ± 5% in the values of the parameters of the bioeconomic model was found to be significantly different (P < 0.01) between plant sizes. The IRR was particularly sensitive to the maximum size attainable by the organisms, mortality, sale price and cost of equipment for grow-out. The importance of considering uncertainty in the parameter estimates when projecting a pilot plant is addressed.     

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%.     

饥饿对凡纳滨对虾仔虾摄食行为和消化酶活力的影响

2004年5月,在中国海洋大学海水养殖教育部重点实验室内营造半精养、精养养殖模式,研究短期饥饿(0(对照组)、1、2、3、4、5、6d)对凡纳滨对虾仔虾摄食行为、摄食率及消化酶的影响。结果表明,两种模式中仔虾的摄食行为和摄食率都随饥饿天数的增加而呈现先上升后下降的趋势;半精养模式中,经饥饿再投喂后仔虾的胃蛋白酶、类胰蛋白酶和淀粉酶活力均随饥饿天数的增加呈现先上升后下降的趋势;精养模式中,胃蛋白酶活力也呈现以上趋势,但类胰蛋白酶和淀粉酶活力则在饥饿初期波动,然后下降。凡纳滨对虾仔虾遭遇饥饿胁迫后,通过提高摄食强度、摄食率及消化酶的分泌量来进行能量补充。但随着饥饿时间的延长,其应对饥饿胁迫的能力下降,各种消化酶活力呈降低趋势。实验表明,在半精养模式中,凡纳滨对虾对饥饿胁迫的承受能力高于精养模式。     

Economic analysis of aquaponics and hydroponics production in the U.S. Midwest

This article examined the profitability of aquaponics in the U.S. Midwest. Three sources of data were considered for the study: (1) three active aquaponics farms, (2) a university greenhouse experiment, and (3) published research. The first analysis compares the economics of aquaponics and hydroponics systems under similar operations. Results suggest that the aquaponics system requires higher investment and operating cost but has lower production of vegetables compared with the hydroponics system. However, if aquaponics vegetable production is managed as an organic production, and the produce is sold at 20% premium price, aquaponics becomes profitable. The second analysis constructed three different representative farm sizes of aquaponics production of basil and tilapia—small, medium, and large. The production of basil provides better economic returns than the fish. All farm sizes are feasible when the basil price is above $10.00 per kg. The larger farm has the best results because of lower cost of production.     

PRODUCTIVE EFFICIENCY OF CATFISH FARMS IN CHICOT COUNTY,ARKANSAS

Technical, allocative, and cost efficiency measures of a sample of small-and medium-sized catfish farms in Chicot County, Arkansas were estimated using a weight-restricted data envelopment analysis technique. A measure of cost efficiency is used to determine operator characteristics, farm practices, and institutional support services that are likely to lead to higher levels of efficiency. Experience of the operators and extension contacts were important factors positively influencing farm level efficiency. Extension services in Chicot County generated about $5.2 million in cost savings among catfish farms or about $2,737 per contact. Importantly, higher cost efficiency of catfish farm efficiency in Chicot County, Arkansas, can be achieved by adjusting inputs used in production to optimal levels rather than by adjusting the scale of operation.     

Economic Feasibility of Small-Scale Sponge Farming in Pohnpei,Federated States of Micronesia1

Interest exists in the commercial culture of sponges in the Pohnpei region of the Federated States of Micronesia. Sponge culture is appealing in that capital and labor investment is minimal. Investment requirements for a 0.4-ha sponge farm totals $650. Average annual production costs total $500. The sponge farm yields 2,400 sponges per 0.4 ha annually. Annual net returns are approximately $1,744 per 0.134 ha component, beginning in Year 4. Profitability is most sensitive to changes in opportunity wage rate, survival rate, and market price. Commercial sponge farming in Pohnpei shows promise as a source of supplemental income.     

The Effect of Hybrid Catfish Fingerling Prices on the Relative Profitability of Hybrid Channel Catfish

Previous studies have indicated that the price premium charged for hybrid catfish fingerlings may be a significant factor in the adoption and profitability of hybrid catfish production. An enterprise budgeting simulation analysis was developed to compare costs, risk, and effect of hybrid fingerling costs. Feed, fingerling, and total costs ($/ha and $/kg) were highest for hybrid catfish production, intermediate for NWAC‐103, and lowest for normal channel catfish production. Net returns were highest for hybrid catfish production, but breakeven prices were also highest. Risk analysis showed that downside risk (risk of losing money) was higher for hybrid production for all farm sizes. Risk‐averse farmers would not select hybrid catfish at the mean fingerling values used in the analysis. However, at hybrid fingerling prices less than $0.0081/cm, hybrid catfish production was superior in profitability and breakeven cost of production. Thus, for hybrid catfish production to be preferred economically to normal channel catfish, the price premium for hybrid catfish fingerlings can be no more than 84% ($0.0037/cm) above that of normal channel catfish fingerlings and 57% ($0.0025/cm) above that of NWAC‐103 fingerling prices.