Economic analysis of alternative protein levels in channel catfish feeds

Abstract

Nutritional requirements for catfish (Ictalurus punctatus) feeds based solely on maximizing growth may not lead to the best economic performance. In addition, the choice of protein level may have important implications for dress‐out percentages in the processing sector. Processors may be able to send pricing signals to farmers to improve processing efficiencies. The objectives of this paper are to quantify the economic incentives to use different protein levels in catfish feeds and to investigate the possibility of processor incentives to affect these decisions. Data from research ponds, in conjunction with pricing and cost data, were used to quantify the changes in net returns associated with alternative protein levels. Both experimental results and estimates using commercial practices were developed. In addition these data were utilized in developing price premiums that might be implemented by the processing sector to provide incentives that would result in higher dress‐out percentages and thus greater processing efficiency. In a restricted‐feeding regime, selection of the higher protein feeds resulted in higher net returns, however, in a satiation‐feeding regime, lower protein levels resulted in higher net returns. Specifically, catfish enterprise profitability could be enhanced by feeding a 38% protein ration when fish are fed on a restricted basis whereas, in a satiation‐feeding regime profitability could be enhanced by feeding a 26% protein ration. Results indicate that the potential for a price premium policy that encourages a higher dress‐out percentage might be adopted in the future by the’ catfish processing sector as has been done in other meat processing industries.