sue aquaculture farming
DESCRIPTION
This has to do with Catfish farming with ponds, earthen or concreteTRANSCRIPT
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Pond Aquaculture: Production Economics and Enterprise Budgeting
Susan T. Kohler, Ph.D.Office of Economic and Regional Development
Southern Illinois University CarbondaleCarbondale, IL
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HAVE YOU MADE AN ESTIMATE OF HAVE YOU MADE AN ESTIMATE OF INVESTMENT COSTS, OPERATING INVESTMENT COSTS, OPERATING
COSTS AND RETURNS?COSTS AND RETURNS?
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WILL THE EXPECTED PROFIT WILL THE EXPECTED PROFIT PROVIDE AN ADEQUATE RETURN PROVIDE AN ADEQUATE RETURN
FOR YOUR LABOR, FOR YOUR LABOR, MANAGEMENT AND RISK?MANAGEMENT AND RISK?
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COSTS TO CONSIDERCOSTS TO CONSIDER
• Investment or capital costs
• Variable costs
• Fixed costs
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INVESTMENT REQUIREMENTSINVESTMENT REQUIREMENTS
Capital and construction coststhat must be committed before
the first fish is stocked
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INVESTMENT REQUIREMENTSINVESTMENT REQUIREMENTS• Land• Pond construction• Drain pipe & fittings• Wells / water supply• Water pumps and pipes• Electric power lines• Aerators• Boat and motor• Hauling tanks & agitators• Truck• Feed storage bins
• Tractor • Mower• Oxygen meter• Water testing equipment• Seines • Dip nets • Feed wagon/blower• Waders and boots• Baskets and buckets• Storage buildings• Miscellaneous equipment
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VARIABLE COSTSVARIABLE COSTS
Costs which vary with the level of
production
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VARIABLE COSTSVARIABLE COSTS
• Fingerlings • Feed • Interest on operating
capital • Labor•• Repair & maintenance of Repair & maintenance of
equipmentequipment
• Electricity • Fuel• Chemicals• Sales / harvest costs• Office equipment
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FIXED COSTSFIXED COSTS
Costs which once the enterprise is underway, are incurred regardless of the level of
production
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FIXED COSTSFIXED COSTS
• Interest on investment• Depreciation• Permits • Licenses• Property taxes• Insurance
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VARIABLEVARIABLE--FIXED COST RATIOFIXED COST RATIO
Variable Cost (83Variable Cost (83--85%)85%)
Fixed Cost Fixed Cost (15(15--17%)17%)
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BREAKDOWN OF VARIABLE COSTS BREAKDOWN OF VARIABLE COSTS FOR A CATFISH OPERATIONFOR A CATFISH OPERATION
Feed Feed -- 64%64%
FingerlingsFingerlings15%15%
Other CostsOther Costs21%21%
Chemicals Chemicals -- 6%6%
Electricity Electricity -- 5%5%
Interest Interest -- 4%4%
Repairs Repairs -- 3%3%
Misc. Misc. -- 3%3%
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MAJOR INVESTMENT AND MAJOR INVESTMENT AND OPERATING COSTSOPERATING COSTS
• Land• Pond construction• Water• Equipment• Fingerling costs• Feed costs• Electricity and fuel• Labor
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LANDLAND
• Is the land a current asset?
• What is the cost of suitable land for fish farming?
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LANDLAND
• 80-85% of the total land area will be used for ponds
• 15-20% will be in levees, drains, storage areas, etc.
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POND CONSTRUCTIONPOND CONSTRUCTION
• Dirt moving
• Drainage structures
• Gravel
• Vegetative cover
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WATER SUPPLYWATER SUPPLY
• Dependable supply of water free of fish and pollutants
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WATER IS NEEDED TO:WATER IS NEEDED TO:
• Fill the ponds• Compensate for evaporation and
seepage
• Improve pond water quality
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WATERWATER
• HSB culture requires more water than catfish production
• Flow rate of 35 gallons per minute per water acre
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WELL SIZEWELL SIZE
• A flow rate of 35 gallons per minute per water acre
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EQUIPMENTEQUIPMENT
• Greater than 80% of the equipment used on a fish farm is specialized aquaculture equipment such as aerators, feeders, harvesting equipment, and water quality testing equipment
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EQUIPMENTEQUIPMENT
• One electrical aerator and one-third use of an emergency aerator per pond
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HSB FINGERLINGSHSB FINGERLINGS
• The price of one gram fingerlings over the past five years has been around $0.20 each
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FEED COSTSFEED COSTS
• Bulk feed costs average $560/ton
• Protein content derived from fish and soybean meal
• Average feed conversion is 2 to 2.5
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ELECTRICITY AND FUELELECTRICITY AND FUEL
Primarily used for:
• Aeration
• Water movement
• Feeding
• Mowing
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ELECTRICITY AND FUELELECTRICITY AND FUEL
• Increased aeration demands drive up fuel costs
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LABORLABOR
• Day-to-day operations
• Transferring & harvesting
• Management
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LABORLABOR
• Increased labor required to receive and transfer fingerlings, feed, monitor water quality, harvest and arrange sales and transport
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RULE OF THUMBRULE OF THUMB
• You can expect to spend at least $5,000 per acre before you sell your first fish
• It will probably take at least 18 months from the time you begin pond construction before any fish are large enough to harvest
Source: Catfish Farmer’s Handbook, Cooperative Extension Service, Mississippi State University
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CONCLUSIONCONCLUSION
• Gain knowledge
• Plan
• Start small
• Grow with success