The Economic Impact of the Catfish,Ictalurus punctatus,Industry on Chicot County,Arkansas

Abstract

This study analyzed the contribution of the catfish industry to the economy of Chicot County, Arkansas, using an input-output model. The objective was to quantify the economic contribution of the industry in terms of creating new dollars, jobs, and income to the local community. Mail surveys and personal interviews were used to collect data from catfish farmers, processors and other businesses related to the catfish industry. For farmers, the information solicited included production and marketing costs, sales and employment. Out of approximately 85 questionnaires administered to catfish farms, 44 usable questionnaires were obtained for a response rate of 52%. Businesses directly related to the catfish industry provided information on employment and sales and included: processors, seiners and haulers, pond builders, tractor and equipment dealers, and feed bin manufacturers. Other businesses with indirect ties to the catfish industry included: input supply companies, banks, fertilizer and chemical companies, auto shops, electricians, and bookkeeping firms. The survey data were used to modify the IMPLAN database for Chicot County to reflect the 2001 level of catfish production, processing and services available to support the industry. This database was then used to estimate the economic impact of the industry to the county's economy. In 2001, the 85 catfish farmers in the county operated about 7,859 ha (19,500 acres). The farm-gate value of catfish production exceeded $63 million. Employment on catfish farms was approximately 510. In addition, 59 other businesses depended on the catfish industry. Results indicated that total employment created in Chicot County by businesses directly or indirectly involved with the catfish industry was 2,665 jobs. This represented 48% of all employment in Chicot County. Total tax revenue (federal, state, and local taxes) generated from both direct and indirect catfish businesses was $22 million. Combined, the total economic impact of the catfish industry in Chicot County, including direct, indirect and induced effects, was over $384 million. The output multiplier calculated for live catfish production was 6.05. Thus, each $1 of earnings by catfish farms generated $6.05 total economic activity in the Chicot County economy. If current economic difficulties should result in contractions in catfish acreage in Chicot County by 10%, unemployment rates would increase by 2%. This study demonstrates the importance of the catfish industry to the economy of Chicot County.     

Analysis of the use of credit facilities by small-scale fish farmers in Kenya

The government of Kenya encourages aquaculture development by offering credit facilities through the government agricultural finance institution, Agriculture Finance Corporation. Nevertheless, the level of credit use in fish farming is very low. Access to credit is among several factors that affect farmers’ decision of whether to use particular technology or services. The study examined factors that affected the decision of fish farmers in Kenya to utilize credit facilities in fish production using a probit model. The analysis suggests that farmers in the Western province will have a 19% more probability of using credit facilities for their fish farming operations than farmers from the other provinces such as the Rift Valley, Central, and the Eastern province. The effect of tilapia sales on the probability of credit use by fish farmers is more than three times that of catfish sales. Total pond acreage owned by fish farmers had a positive effect on credit use but the effect was very small and negligible. The level of fish farmers’ use of credit facilities is very low, and there is probably the need to educate farmers on credit use and for the government agricultural lending agency and other commercial agricultural lenders to invest in this enterprise. Kenyan lending institutions have financed traditional agricultural enterprises, and with the growing production of farmed fish, more research is needed to document the aquaculture business model to assist in assessing the profitability potential in aquaculture.     

Farm-level costs of settling basins for treatment of effluents from levee-style catfish ponds

Compelled by pending regulatory rule changes, settling basins have been proposed as a treatment alternative for catfish pond effluents, but the associated costs to catfish farmers have not been estimated. Economic engineering techniques were used to design 160 scenarios as a basis for estimating total investment and total annual costs. For static-water, levee-style catfish pond facilities, sizing of settling basins is controlled by factors such as type of effluent to be treated, pond layout, size of the largest foodfish pond, number of drainage directions, scope of regulations governing effluents, and the availability of land. Regulations that require settling basins on catfish farms would increase total investment cost on catfish farms by $126–2990 ha⁻¹ and total annual per-ha costs by $19–367 ha⁻¹. More numerous drainage directions on farms resulted in the greatest increase in costs. While both investment and operating costs increased with larger sizes of foodfish ponds, costs per ha were relatively greater on smaller than on larger farms. For farms on which existing fish ponds would have to be converted to settling basins, over half of the cost was due to the production foregone and annual fixed costs of the pond. Requiring catfish farmers to construct settling basins would impose a disproportionately greater financial burden on smaller farms. The magnitude of the increased costs associated with settling basins was too high relative to market prices of catfish for this technology to be economically feasible.     

PERCEPTIONS OF RISK AND RISK MANAGEMENT IN VIETNAMESE CATFISH FARMING: AN EMPIRICAL STUDY

Although Vietnamese catfish farming has grown at a rapid rate in recent years, the industry has also faced many problems that affect its sustainability. This paper explores the perceptions of catfish farmers regarding risk and risk management strategies in their production activities. The relationships between farm and farmer socioeconomic characteristics and perceptions of risk and risk management are also examined. Data for the study were collected in 2008 from a sample of 261 catfish farmers in the Mekong Delta, Vietnam using a questionnaire survey. The results show that, in general, price and production risks were perceived as the most significant risks. Farm management and technical measures were perceived to be more effective than other kinds of risk management strategies in risk reduction. Although price risks were rated as important, price risk management strategies were not perceived as important measures for risk mitigation. The results of the study are discussed to identify the implications for various industry stakeholders, including policymakers, processors, advisors, and developers of new risk management strategies.     

Comparison of Culture Traits of Channel Catfish,Ictalurus punctatus,and Blue Catfish I. furcatus

Culture of channel catfish, "Ictalurus punctatus," accounts for virtually all catfish production. Recently, however, an increasing number of catfish farmers are growing or are considering the culture of blue catfish, "I. furcatus." Current and past research the compared the culture traits of channel and blue catfish are reviewed. Blue catfish could be potentially advantageous for certain farm environments. Strain effects in both species are important. In general, channel catfish grow faster to market size than do blue catfish. However, some strains of blue catfish grow faster than many strains of channel catfish. Blue catfish are more vulnerable to parasites such as "Icthyophthirius" and to bacterial infections such as those from "Flexibacter columnaris when compared to channel catfish. Blue catfish do not tolerate handling as well as channel catfish, and handling stress often leads to infections in blue catfish. However, blue catfish have high resistance to enteric septicemia of catfish caused by "Edwardsiella ictaluri" and to channel catfish virus when compared to channel catfish. Blue catfish are twice as vulnerable to harvest by seining than channel catfish, and have a higher dress-out percentage than most strains of channel carfish. Channel catfish tolerate lower dissolved oxygen levels than do blue catfish. Blue catfish require one more year to reach sexual maturity than do channel catfish.     

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.     

Factors influencing the variance in expected yield on catfish farms in the United States

Analysis of data from a cross-sectional survey of 571 catfish farmers in the four major catfish-producing states in the United States showed that variability in production fell as farm size increased. Increasing pond size was associated with increasing variability in production. The variance of production was higher on operations that had watershed ponds than on operations with levee ponds.     

Assessing price integration and trade policy in the U.S. catfish market

In 2003, the United States adopted anti-dumping tariffs for Vietnamese catfish products entering the country. This study examines how these tariffs have impacted the price relationship between domestically produced and imported catfish products. Cointegration tests confirm a long-run price relationship between domestic and imported catfish, which has persisted despite the anti-dumping tariffs. However, imports are composed of catfish from Vietnam and other countries, with only the former subjected to tariffs. Results from vector error correction models suggest that Vietnamese catfish prices do not significantly influence domestic prices. Conversely, the price of catfish from countries other than Vietnam continues to impact prices received by domestic catfish farmers and processors. The domestic catfish industry is still affected by lower-priced imports from countries other than Vietnam, although some of these may be transshipments that truly originate in Vietnam. This research methodology could be adapted to investigate trade and price interactions among other aquacultured species, which will become increasingly important as global aquaculture expands.     

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.     

The Cost of Off-Flavor

Off-flavor problems in farm-raised catfish Ictalurus punctatus increase production costs and pose inventory management problems for catfish farmers. Multiperiod mathematical programming techniques were used to test the effect of 16 different off-flavor scenarios on expected net returns above variable cost with and without cash flow restrictions. The patterns of off-flavor incidence had less effect on farm profits than whether or not fish are off-flavor during certain key months of the year. To be feasible, systems designed to purge off-flavor from catfish would need to cost less than $0.05 to $0.06/kg (if cash flow is not a consideration) or $0.04/kg to $0.25/ke (with cash flow considerations).     

Comparative Economics of US Catfish Production Strategies: Evidence from a Cross‐sectional Survey

Understanding the effects of specific management strategies on yields and economic outcomes on commercial catfish farms could provide useful guidance to catfish farmers on the most profitable sets of production practices. Data from the U.S. Department of Agriculture–National Animal Health Monitoring System (USDA–NAHMS) 2009 survey of production practices on catfish farms in Alabama, Arkansas, Louisiana, and Mississippi were used to identify five clusters of catfish farms that use various stocking densities, channel versus hybrid catfish, different aeration levels, and utilize automated oxygen sensors. The lowest production costs ($1.96/kg) were found in cluster 1 and were followed in order of increasing costs per kilogram of clusters 2 and 4 ($2.16/kg) and cluster 5 ($2.73/kg); the highest cost corresponded to cluster 3 ($2.84/kg). The lowest risk levels corresponded to the clusters with the lowest production costs per kilogram of fish and the highest risk levels to the highest production costs. This analysis demonstrated that different types of management models can achieve similar levels of production costs ($/kg), and it appears that there is not one single economically optimum way to raise catfish. The key to least‐cost production is to balance the use of inputs, their associated costs, and the yield produced to achieve economic efficiency within the farm's overall business and management model.     

Off-flavors in pond-grown ictalurid catfish: Causes and management options

Ictalurid catfish grown in ponds often acquire undesirable off-flavors prior to harvest. Off-flavors develop when odorous, lipophilic substances in food or water are absorbed across gut or gill epithelium and concentrated in edible tissues. The most common causes of catfish off-flavors are two nontoxic secondary metabolites of planktonic cyanobacteria: geosmin (causing an earthy off-flavor) and 2-methylisoborneol (causing a musty off-flavor). Off-flavored fish are unacceptable for processing, and harvest must be postponed until the source of the odorous compound disappears and the compound purges from edible fish tissue. Harvest delays caused by episodes of off-flavor increase production time, interrupt cash flow, and increase the risk of fish loss. Catfish farmers consider off-flavor to be one of their most important production-related problems. This paper reviews the causes of off-flavor in catfish, pharmacokinetics of uptake and loss of odorous compounds in catfish, seasonality and prevalence of off-flavors, farm- and industry-level impacts, the ecology of cyanobacteria in catfish ponds, and various strategies for preventing or treating cyanobacterial (and other) off-flavors. A decision-making system based on knowledge gained from research is presented as a guide to effective use of the limited tools available to manage off-flavors.     

Potential U.S. Retail Grocery Markets for Farm-Raised Catfish

In order to help develop a more comprehensive picture of catfish markets, the socio-economic factors that influence a store manager's decision to add catfish to the store's product line were assessed by a telephone survey of 1,800 grocery store managers. Quantitative analysis of these factors indicated that weekly sales volume, whether the store was part of a chain, and store size had a significant influence on the probability that a grocery store manager would choose to sell catfish. The results indicated that the probability that a store manager with high and middle income white clientele will choose to sell catfish is not different from that of the manager whose clientele is comprised of low income whites and/or non-whites. The results also suggested that the top three regions in terms of new market development were South Atlantic, East North Central, and Pacific.     

Channel Catfish Polyculture with Fathead Minnows or Threadfin Shad: Effects on Pond Plankton Communities and Catfish Fillet Flavor,Color, and Fatty Acid Composition

Threadfin shad, Dorosoma petenense, or fathead minnows, Pimephales promelas, were co‐cultured with channel catfish, Ictalurus punctatus, in earthen ponds to determine the effects of planktivory on plankton community dynamics and catfish fillet quality. Fathead minnows had no effect on the plankton community structure or catfish fillet flavor, color, and fatty acid composition. Fillet color was also unaffected by the presence of threadfin shad. Small differences were found in fillet fatty acid composition for catfish from ponds with shad, but these differences probably have no biological significance. Threadfin shad did, however, have important impacts on the plankton community structure and catfish flavor. Size‐selective filter‐feeding by shad reduced cyanobacterial abundance relative to ponds with catfish‐only and fathead minnows. Relative abundance of smaller phytoplankton in the groups Chlorophyta, Cryptophyta, Bacillariophyceae, and Euglenophyta increased in ponds with shad. Relative abundance of small zooplankton (rotifers) also increased in shad ponds. Reduced abundance of large, colonial cyanobacteria that are known to produce odorous metabolites caused a corresponding reduction in off‐flavor prevalence and intensity in catfish from ponds with threadfin shad when sampled in September. Although threadfin shad dramatically reduced catfish off‐flavor prevalence during the warm season, they apparently caused a high prevalence of “fishy” off‐flavors in the February sample. This undesirable flavor appeared to be caused by catfish foraging on shad killed during a preceding period of exceptionally cold water temperatures. Use of threadfin shad for phytoplankton biomanipulation therefore presents a dilemma: catfish–shad polyculture reduces prevalence of cyanobacteria‐related off‐flavors in warm months but may cause undesirable forage‐related off‐flavors in the colder months. Catfish farmers must consider these benefits and risks when deciding to use threadfin shad as a management tool.     

Optimizing Tilapia, Oreochromis sp., Marketing Strategies in Nicaragua: A Mixed-integer Transshipment Model Analysis

Tilapia, Oreochromis sp., production has increased in the Central American region in recent years. Yet, commercial tilapia aquaculture has not developed in Nicaragua on the scale that it has in other neighboring countries. Although demand for tilapia products exists, lack of thorough understanding of domestic markets and coordinated production and marketing efforts have hampered the development of a domestic market. The objectives of this study were to quantify domestic marketing costs for tilapia produced in Nicaragua and develop a mixed-integer transshipment mathematical programming model to identify the most profitable marketing alternatives for tilapia farmers. Results suggested targeting primarily outlets with higher sales prices such as restaurants with supplemental production delivered to local supermarkets. The model chooses cities with weekly restaurant demand capable of absorbing the farm's production with excess product sold to alternative outlets. Supply of farm-raised tilapia production in most regions of Nicaragua was insufficient and created problems associated with frequent and dependable deliveries required by higher paying outlets (restaurants and supermarkets). Larger farms will generate greater returns with regular consistent deliveries to higher priced restaurant outlets. Smaller farms with limited production volumes were not able to meet weekly delivery requirements. Biannual deliveries reduced transportation cost and sales price and were not profitable. However, sustaining markets with infrequent deliveries may not be feasible. This analysis provides guidelines for targeting those specific markets that optimize returns to specific farm sizes in specific regions.     

The evolution of farm management,production efficiencies,and current challenges to catfish production in the United States

Abstract

The catfish industry is the most successful aquaculture business in the US. The development and growth of the catfish industry has resulted in complex fish farm businesses that require intensive management. Technological innovations have resulted in increased yields (land use efficiency). However, in more recent years, productivity gains have not kept pace with the rate of increase in input costs. Increasing intensification of catfish production over time has been accompanied by increased use of debt capital that results in higher levels of financial risk. While still a profitable activity, real profit margins have declined as financial risk has increased. New technologies will likely continue to increase productivity over time. Market‐oriented agribusiness approaches to catfish marketing are likely to become the norm. The challenge for the catfish industry is to coordinate adoption of new higher‐cost technologies with demand increasing market development to sustain farm price levels.     

Effects of Feeding Diets with and without Fish Meal on Production of Channel Catfish,Ictalurus punctatus,Stocked at Varying Densities

ABSTRACT

Animal protein, generally fish meal, has traditionally been used in the diet of channel catfish. However, our previous research indicates that animal protein is not needed for growing stocker-size catfish to food fish when the fish are stocked at densities typical of those used in commercial catfish culture. Whether this holds when fish are stocked at high densities is not known; thus, we conducted an experiment to evaluate the effect of feeding diets with and without fish meal to channel catfish stocked in earthen ponds at different densities. Two 32% protein-practical diets containing 0% or 6% menhaden fish meal were compared for pond-raised channel catfish, Ictalurus punctatus, stocked at densities of 14,820, 29,640, or 44,460 fish/ha. Fingerling channel catfish with average initial weight of 48 g/fish were stocked into 30 0.04-ha ponds. Five ponds were randomly allotted for each fish meal level?×?stocking density combination. Fish were fed once daily to satiation for two growing seasons. There was a significant interaction between stocking density and fish meal for net production; net production increased in fish fed a diet containing fish meal compared with those fed an all-plant diet at the highest stocking density, but not at the two lower stocking densities. Net production of fish fed diets with and without fish meal increased as stocking density increased. Viewing the main effect means, weight gain decreased and feed conversion ratio increased for fish stocked at the two highest densities, and survival was significantly lower at the highest stocking density. Visceral fat decreased in fish at the two highest stocking densities. Body composition data were largely unaffected by experimental treatment except for a reduction in percentage filet fat in fish at the highest stocking density, and fish that were fed diets containing fish meal had a lower percentage fillet protein and a higher percentage fillet fat. It appears that at stocking densities two to three times higher than generally used, animal protein (fish meal) may be beneficial in the diet of channel catfish. In regard to stocking densities, high stocking results in higher overall production, but the average fish size decreased as stocking density increased.     

Chlorination of Channel Catfish Ponds

Abstract— Laboratory studies with pond water samples revealed that 5 mg/L active chlorine was needed to provide enough chlorine residual to reduce biological activity. Treatment of channel catfish ponds with repeated, 0.1-mg/L doses of active chlorine from calcium hypochlorite at 6- to 8-d intervals, as sometimes done by catfish farmers, had little influence on water quality. Dissolved oxygen, total ammonia-nitrogen, and chlorophyll a concentrations and pH were similar between treated and control ponds. Concentrations of chemical oxygen demand and particulate organic matter were seldom different between treated and control ponds. Channel catfish survival and net production were not improved by chlorine treatment. Thus, chlorination of production ponds during the grow-out period is not a useful technique. Treatment of sediment samples from ponds with up to 1,200-mg active chlorinelkg soil did not reduce bacterial abundance, so chlorination of bottoms of empty ponds may not he an effective disinfection procedure. Chlorination of pond waters with 30-mg/L active chlorine caused complete kill of bacteria 24 h after treatment, although heterotrophic bacteria quickly re-populated the water. Thus, chlorination can be an effective way to disinfect ponds before stocking.     

农村土地承包经营权稳定与承包地调整的冲突及解决对策

土地承包经营制是具中国特色的一种土地利用制度,国家长期以来致力于在政策及法律上推进土地承包关系的稳定工作,并多次表示要在稳定的前提下继续完善现行土地承包经营制。但目前土地承包经营制运行中亟待解决的问题之一是承包地调整,土地承包经营权稳定与承包地调整成为土地承包经营制实施中的突出问题。本文对承包地调整的现状与原因,国家稳定土地承包经营权的努力及困境进行分析,并提出赋予农民土地永久使用权,深入推进土地承包权物权化进程作为解决土地承包经营权稳定与承包地调整冲突的解决对策。     

An Econometric Estimation of Market Growth for the U.S. Processed Catfish Industry

Inadequate information pertaining to the growth potential of the US. processed catfish industry has been a major factor leading to cyclical periods of excess supply or demand resulting in misal-location of resources and price instability. Better information for industry planners (e.g., producers, processors, government regulatory agencies, and university researchers) on future sales potential would assist in decreasing the misuse of resources. An econometric model of wholesale demand for US. processed catfish was developed to provide estimates of future sales under various scenarios. In addition to the standard variables included in models of demand for food items—price, income, and population—the effects of product life cycle and industry-sponsored generic advertising are quantitatively incorporated. Seasonality of demand and rigidities in marketing and consumer behavior are additional considerations explicitly modeled via monthly dummy variables and a Ner-lovian partial adjustment mechanism, respectively.
Model results indicate the impact of alternative future price scenarios on wholesale processed caffish sales. At the mean real wholesale price of $1.60 (December 1988 dollars) for whole-dressed caffish and a real generic advertising expenditure of one million dollars postulated for 1995, projected aggregate sales are 219.2 million pounds, a 23% increase over 1989 sales. Projected 1995 wholesale sales are very sensitive to price with alternative price postulations of $1.40 and $1.80 resulting in projected sales of 252.3 and 193.6 million processed pounds, respectively. An estimated 7% average increase in wholesale sales of catfish was attributed to the industry-sponsored generic advertising campaign. Model projection estimates and impacts are posed as a quantitative source of information to be used with other information in resource allocation issues faced by industry decision makers.