Red Drum Sciaenops ocellatus Field Trials: Economic Implications

Abstract.– Although recent changes in coastal fisheries regulations in several Gulf states have renewed interest in the economic potential for culture of red drum S. ocellatus , few decision making tools with up-to-date information on production economics are available. From 1988 to 1995, estimates of investment costs, equipment specifications and typical input utilization in commercial-scale production were developed from field trials involving complete or partial grow-out of S. ocellatus . Operating costs and expected yields were subsequently estimated based on "best-case" data from a 70-wk production trial in which 5–7 cm fingerlings were stocked on 1 July and grown to marketable size by the following November, thus avoiding a second overwintering period and the associated risks of losses from freezing temperatures. To allow an evaluation of potential returns with earlier or staggered stocking dates, however, growth and mortality rates from the 70-wk trial were used in a computer-based simulation to estimate yields and costs associated with a hypothetical growout period beginning 1 April, deemed the earliest suitable date to avoid fingerling mortality resulting from abrupt or extreme cold temperatures. The April stocking simulation projected a preferred market size of 1.4 kg prior to a second overwintering period, with yield increasing from 3,454 kg/ha to 4,203 kg/ha and a reduction in breakeven costs from $5.97/kg to $5.53/kg. Partial budget analysis, based on a current average market price of $5.72/ kg, suggested April 1 stocking could result in a positive net change of $1,679 per ha over July 1 stocking.