Economic Comparison of Commercial-Scale Multiple-batch and

1
Economic Comparison of Commercial-Scale
Multiple-batch and Modular Catfish Production
Systems

• Dr. Jim Steeby
• National Warmwater Aquaculture Center Mississippi
  State University
• and
• Dr. Terry Hanson
• Department of Agricultural Economics
• Mississippi State University

2
Current situation

• Decreasing price received
• Increasing fish size required by processor
• Decreasing profitability
• Inconsistent yields and fish too small
• Needs
• A production system that will work over the
  long-term with changing conditions, prices, and
  fish size

3
Present Production System

• Multiple-batch
• 1,350-acre Catfish Farm
• MS Delta

4

• Multiple-batch
• 1,350-acre Catfish Farm
• MS Delta
• Traditionally
• Small fingerlings (4-5 in) are stocked yearly
  because they are readily available,
• inexpensive and easily moved in large numbers.

5

• Multiple-batch
• 1,350-acre Catfish Farm
• MS Delta
• Usually 4-5 in fingerlings take 18-24 months to
  reach average current market size (1.75 0.5
  lb).
• Survival rates range from 55-84 so that yields
  and size are both highly variable.

6

• Multiple-batch
• 1,350-acre Catfish Farm
• MS Delta
• Larger fingerlings-stockers can reduce the
  production period to 8-14 months but are costly
  to purchase, not in large supply, and difficult
  to move large distances.

7

• Modular System
• 1,350-acre Catfish Farm
• MS Delta
• Solution
• Purchase small fingerlings to grow
• to stockers (7-9 in)
• Place the stockers in growout ponds the
• second year for more consistent yields
• and fish sizes

8

• Modular System
• 1,350-acre Catfish Farm
• MS Delta
• Solution
• 4-5 in Fingerlings are stocked at
• 40-50,000/acre in the stocker ponds
• Some acreage lost to stocker production
• Additional fish movement required

9

• Modular System
• 1,350-acre Catfish Farm
• MS Delta
• Solution
• Fingerlings are stocked at
• 40-50,000/acre in the stocker ponds
• These fish feed very actively and grow well when
  stocked at these rates but some additional
  aeration should be allocated.

10

• Modular System
• 1,350-acre Catfish Farm
• MS Delta
• Solution
• This modular system is currently in use on
  several farms and has produced good results.

11
Net Returns to Land

• Gross receipts
• Variable or Operating Costs
• Including management charge
• Fixed Costs
• Depreciation
• Interest on Loans
• Repairs and Maintenance
• Taxes
• Insurance

12
75 cent fish
13
75 cent fish
55 cent fish
14
Catfish Price Paid to Producer, /lb
5-year avg
10-year avg
There is a strong seasonal aspect to pond-bank
pricing as seen in the 5 and 10-year
average price received curves above. However,
the norm was not followed in 2001.
15
Catfish Price Paid to Producer, /lb
5-year avg
10-year avg
2001 price
There is a strong seasonal aspect to pond-bank
pricing as seen in the 5 and 10-year
average price received curves above. However,
the norm was not followed in 2001.
16
Catfish Price Paid to Producer, /lb
5-year avg
10-year avg
2001 price
2002 price
There is a strong seasonal aspect to pond-bank
pricing as seen in the 5 and 10-year
average price received curves above. However,
the norm was not followed in 2001 and 2002.
17
What is being taken into account for this
comparative analysis?

• Farm size
• Production (fingerlings stocked, pounds
  harvested, feed fed)
• Labor
• Chemicals
• Other Variable Fixed Costs
• Machinery and Equipment

18
Farm Size - Acreage Comparison
19
Thus, ComparingAll Costs for

• 1,050 grow-out acres in the multiple batch
  production system to...
• 900 grow-out acres in the modular production
  system PLUS
  
  all costs involved in 200-acres of
  fingerling-to-stocker production

20
Production - Fingerlings Stocked
21
Production - Pounds
22
Production - Feed Consumed
23
Labor Comparisons
The MODULAR system has an additional 4 seining
crew employees over the MULTI-BATCH production
system, or an additional 72,000 per year in
labor and management costs.
24
Chemical Comparisons
25
Equipment Differences

• Same Rule for each system
• 1 tractor PTO emergency aerator for every 3
  ponds
• 2 10-hp electric aerators per 10-acre pond
• Modular System had two boom loading trucks and
  multi-batch system had one

26
(No Transcript)
27
Breakeven Analysis
28
75 cent modular
75 cent-batch
55 cent-modular
55 cent-batch
29
Conclusions

• Modular system in use currently
• Economic analysis shows increased net returns
• Other non-cash reasons to pursue this system
  are
• Producers have additional control
• Size and stocking rates
• Reduced risk of over- or under-stocked ponds
• Single batch or 1-1/2 batch system
• Better inventory control
• Dead fish evident sooner
• More efficient use of foodfish pond space

30
Conclusions

• Changing over to a Modular system will be more or
  less difficult depending on your present
  production system type and acreage
• New genetic strains of channel catfish may also
  yield good results (larger fingerlings may be
  available with a reduction in growout time).