assessing the viability of inland saltwater shrimp farming in south central alabama
DESCRIPTION
ASSESSING THE VIABILITY OF INLAND SALTWATER SHRIMP FARMING IN SOUTH CENTRAL ALABAMA Anthoney S. Deanes, P. O. Box 2269, Mt Pleasant, TX 75456-2269, [email protected] Advisors: Dr. Ntam Baharanyi & Dr. Barrett T. Vaughan TUSKEGEE UNIVERSITY, Tuskegee, AL GS04-036, GRADUATE STUDENT PROJECT. - PowerPoint PPT PresentationTRANSCRIPT
ASSESSING THE VIABILITY OF INLAND SALTWATER SHRIMP FARMING IN SOUTH CENTRAL ALABAMA
Anthoney S. Deanes, P. O. Box 2269, Mt Pleasant, TX 75456-2269, [email protected]: Dr. Ntam Baharanyi & Dr. Barrett T. Vaughan
TUSKEGEE UNIVERSITY, Tuskegee, ALGS04-036, GRADUATE STUDENT PROJECT
Objectives
1. Describe the production of farm-raised saltwater shrimp as an agricultural enterprise
2. Identify the constraints and risks associated with inland saltwater shrimp farm industry
3. Compare the cost efficiencies of farms via scales of production
Intended Outcomes
Case Study Profile on each farmer
Comparison of farm practices
Development of Enterprise Budget
Development of Break-even Analysis
Research Methods
Methods – Case Study Approach Data Collection
– Semi-standard Questionnaire– Interviews– Telephone Conversations– Farm Visits
Data Analysis– Qualitative Method– Descriptive Statistics
Other Significant Findings
Developed individual case profiles for each farm
Lack of knowledge and experience amongst some of farmers
Disparity in farm practices Lack of a well define marketing plan The enterprise is more cost-effective as a
sole enterprise on the 50 acre scale versus a 5 acre scale
Significant Findings – Table 3
MAJOR COSTS ASSOCIATED WITH INLAND SALTWATER SHRIMP FARMING
Case Major Costs
1 Feed PLs Electricity Processing Aeration
2 Feed PLs Electricity Processing Aeration
3 Feed PLs Electricity Processing Aeration
4 Feed PLs Electricity Labor Aeration
5 Feed PLs Electricity Aeration Tractors
6 Feed PLs Electricity Labor Aeration
Significant Findings – Table 4
MAJOR CONSTRAINTS ASSOCIATED WITH INLAND SALTWATER SHRIMP FARMING
Case Major Constraints
1 Marketing PL Availability
Local Infrastructure
2 Capital Knowledge
Local Infrastructure
3 Marketing PL Availability Affordable Feed
4 Knowledge Marketing PL Availability
5 Marketing Labor
Local Infrastructure
6 Weather Marketing Labor
FIVE-ACRE SALTWATER SHRIMP FARM ENTERPRISE BUDGET
Category Unit Unit Price, $ Quantity Total, $ 1. Income Shrimp Lb 7.00 13,100 91,700.00 2. Variable Costs PLs 1000 8.00 653.4 5,227.20 PL Delivery Freight 200.00 1 200.00 Feed Tons 900.00 24 21,600.00 Fuel gallons 2.25 720 1,620.00 Chemicals, Minerals, etc. Total 300.00 1 300.00 Production Labor Hr 7.00 100 700.00 Processing Lb 0.63 13,100 8,253.00 Harvesting Labor Hr 7.00 80 560.00 Transportation of Harvest Day 50.00 3 750.00 Electricity Total 1,600.00 1 1,600.00 Operating Capital Total 10,000.00 1 10,000.00 Interest on Operating Capital Total 0.10 10,000 1,000.00 Marketing Total 2,000.00 1 2,000.00 3. Total Variable Cost 53,810.20 4. Income Above Variable Cost 37,889.80 5. Fixed Costs Interest on Invest. Capital Year 0.10 200,000 20,000.00 Taxes and Insurance Year 2,500.00 1 2,500.00 Owner Labor Hr 10.00 900 9,000.00 Pickup Truck Mo 500.00 5 2,500.00 Monitoring Equipment Mo 100.00 4 400.00 Tractor & Equipment Mo 600.00 4 2,400.00 Emergency Aerator Mo 150.00 4 600.00 Emergency Generator Mo 200.00 4 800.00 Land Yr 15,000.00 1 15,000.00 Construction Yr 5,000.00 1 5,000.00 Acclimation Facilities Yr 500.00 1 500.00 Frozen Storage Yr 1,200.00 1 1,200.00 Harvesting Equip. & Suppl. Yr 500.00 1 500.00 6. Total Fixed Costs 60,400.00 7. Total Costs 114,210.20
8. Estimated Returns (22,510.20) 9. Break-even price/ lbs produced
8.72
Significant Findings – Table 6
FIFTY-ACRE SALTWATER SHRIMP FARM ENTERPRISE BUDGET
Category Unit Unit Price, $ Quantity Total, $ 1. Income Shrimp Lb 7.00 131,000 917,000.00 2. Variable Costs PLs 1000 8.00 6,534 52,272.00 PL Delivery Freight 500.00 1 500.00 Feed Ton 900.00 231 207,900.00 Fuel Gal 2.25 960 2,160.00 Chemicals, Minerals, etc. Total 2,000.00 1 2,000.00 Production Labor Hr 7.00 300 2,100.00 Processing Lb 0.63 131,000 82,530.00 Harvesting Labor Hr 7.00 500 3,500.00 Transportation of Harvest Da 250.00 12 3,000.00 Electricity Mo 1,000.00 7 7,000.00 Operating Capital Total 50,000.00 1 50,000.00 Interest on Operating Capital 10% 0.10 50,000 5,000.00 Marketing Yr 10,000.00 1 10,000.00 3. Total Variable Cost 427,962.00 4. Income Above Variable Cost 489,038.00 5. Fixed Costs Depreciation Yr 24,900.00 1 24,900.00 Interest on Investment Capital dollars 0.10 875,000 87,500.00 Taxes and Insurance Yr 5,000.00 1 5,000.00 Owner Labor Hr 15.00 1200 18,000.00 Pickup Truck Yr 3,600.00 1 3,600.00 Computer Yr 500.00 1 500.00 Monitoring Equipment Yr 2,000.00 1 2,000.00 Tractor & Equipment Yr 10,000.00 1 10,000.00 Emergency Aerator Yr 500.00 1 500.00 Emergency Generator Yr 10,000.00 1 10,000.00 Pond Feeder Yr 2,000.00 1 2,000.00 Harvester Yr 10,000.00 1 10,000.00 Land Yr 75,000.00 1 75,000.00 Construction Yr 50,000.00 1 50,000.00 Trailer & Furniture Yr 2,500.00 1 2,500.00 Acclimation Facilities Yr 5,000.00 1 5,000.00 Harvesting Equipment & Supplies Yr 2,000.00 1 2,000.00 Frozen Storage Yr 10,000.00 1 10,000.00 6. Total Fixed Cost 318,500.00 7. Total Cost 746,462.00 8. Estimated Returns 170,538.00 9. Break-even price/ lbs produced 5.70
Significant Findings – Table 7
4,0442,0302,0135.552.782.76217,800.003,7631,7492,0136.453.003.45174,240.003,4811,4682,0137.963.364.60130,680.003,2001,1872,01310.974.076.9087,120.00
lbsdollars/lbPLs/acre
TCVCFCTCVCFCStocking
Rate
Break-even Production Levels to PayBreak-even Prices to Cover
Assumptions: 5 acres of production. Market Price is $6.
2,8661,7401,1264.592.781.80217,800.002,6251,4991,1265.253.002.25174,240.002,3841,2581,1266.363.363.00130,680.002,1431,0171,1268.574.074.5087,120.00
lbsdollars/lbPLs/acre
TCVCFCTCVCFCStocking
Rate
Break-even Production Levels to PayBreak-even Prices to Cover
Assumptions: 5 acres of production. Market Price is $7.
3,0331,5231,5105.552.782.76217,800.002,8221,3121,5106.453.003.45174,240.002,6111,1011,5107.963.364.60130,680.002,4008901,51010.974.076.9087,120.00
lbsdollars/lbPLs/acre
TCVCFCTCVCFCStocking
Rate
Break-even Production Levels to PayBreak-even Prices to Cover
Assumptions: 5 acres of production. Market Price is $8.
BREAK-EVEN ANALYSIS FOR FIVE-ACRES OF PRODUCTION
Significant Findings – Table 8
BREAK-EVEN ANALYSIS FOR FIFTY-ACRES OF PRODUCTION
2,7851,7571,0283.232.410.82217,800.002,5041,4761,0283.552.531.02174,240.002,2231,1951,0284.092.731.36130,680.001,9429131,0285.173.132.0587,120.00
lbsdollars/lbPLs/acre
TCVCFCTCVCFCStocking
Rate
Break-even Production Level to PayBreak-even Price to Cover
Assumptions: 50 acres of production. Market Price is $6.
238715068813.232.410.82217,800.00214612658813.552.531.02174,240.00190510248814.092.731.36130,680.0016647838815.173.132.0587,120.00
lbsdollars/lbPLs/acreTCVCFCTCVCFC
Stocking Rate
Break-even Production Level to PayBreak-even Price to Cover
Assumptions: 50 acres of production. Market Price is $7.
2,0891,3187713.232.410.82217,800.001,8781,1077713.552.531.02174,240.001,6678967714.092.731.36130,680.001,4566857715.173.132.0587,120.00
lbsdollars/lbPLs/acre
TCVCFCTCVCFCStocking
Rate
Break-even Production Level to PayBreak-even Price to Cover
Assumptions: 50 acres of production. Market Price is $8.
Significant Findings – Table 9