Economic Comparison of Economic Comparison of Commercial-Scale Multiple- Commercial-Scale Multiple- batch and “Modular” Catfish batch and “Modular” Catfish Production Systems Production Systems Dr. Jim Steeby Dr. Jim Steeby National Warmwater Aquaculture National Warmwater Aquaculture Center Mississippi State Center Mississippi State University University and and Dr. Terry Hanson Dr. Terry Hanson Department of Agricultural Department of Agricultural Economics Economics Mississippi State University Mississippi State University
Transcript
Economic Comparison of Commercial-Economic Comparison of Commercial-Scale Multiple-batch and “Modular” Scale Multiple-batch and “Modular”
Catfish Production SystemsCatfish Production Systems
Dr. Jim Steeby Dr. Jim Steeby
National Warmwater Aquaculture Center National Warmwater Aquaculture Center Mississippi State UniversityMississippi State University
and and
Dr. Terry HansonDr. Terry Hanson
Department of Agricultural EconomicsDepartment of Agricultural Economics
Mississippi State UniversityMississippi State University
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
Present Production System
Multiple-batch
1,350-acre Catfish Farm
MS Delta
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.
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.
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.
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
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
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.
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.
Net Returns to Land• Gross receipts
• Variable or Operating Costs– Including management charge
• Fixed Costs– Depreciation– Interest on Loans– Repairs and Maintenance– Taxes– Insurance
Net Return to Land for a Multiple-batchCatfish Production System in the Delta of MS
Net Return to Land for a Multiple-batchCatfish Production System in the Delta of MS
(1,000 acre farm)
-1,600
-1,200
-800
-400
0
400
800
1,200
Feed Price, $/ton$/ac
re
55 cent fish
75 cent fish
50.0
55.0
60.0
65.0
70.0
75.0
80.0
Jan
Feb
Mar Ap
r
May Jun
Jul
Aug
Sep Oct
Nov
Dec
$/lb
Pon
d B
ank
Pri
ce
'1990-2000 Avg '1995-2000 Average
Catfish Price Paid to Producer, $/lb
10-year avg
5-year avg
There is a strong seasonal aspect to pond-bank pricing as seen in the 5 and 10-year averageprice received curves above. However, the norm was not followed in 2001.
50.0
55.0
60.0
65.0
70.0
75.0
80.0
Jan
Feb
Mar Ap
r
May Jun
Jul
Aug
Sep Oct
Nov
Dec
$/lb
Pon
d B
ank
Pri
ce
2001 '1990-2000 Avg '1995-2000 Average
Catfish Price Paid to Producer, $/lb
10-year avg
5-year avg
There is a strong seasonal aspect to pond-bank pricing as seen in the 5 and 10-year averageprice received curves above. However, the norm was not followed in 2001.
2001 price
50.0
55.0
60.0
65.0
70.0
75.0
80.0
Jan
Feb
Mar Ap
r
May Jun
Jul
Aug
Sep Oct
Nov
Dec
$/lb
Pon
d B
ank
Pri
ce
2001 '1990-2000 Avg '1995-2000 Average 2002
Catfish Price Paid to Producer, $/lb
10-year avg
5-year avg
2002 price
There is a strong seasonal aspect to pond-bank pricing as seen in the 5 and 10-year averageprice received curves above. However, the norm was not followed in 2001 and 2002.
2001 price
What is being taken into account for this comparative analysis?
• Farm size
• Production (fingerlings stocked, pounds harvested, feed fed)
• 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
Production - Fingerlings StockedMulti-batch Modular Change
1,050 acres x7,500 5"fingerlings peracre
200 acres x50,000 5"fingerlings peracre
+ 2.13 million 5"fingerlings
=$393,750 =$500,000 + $106,250
$ 375 / acre $455 / acre + $ 80 / acre
Production - PoundsMulti-batch
(1,050 acres)Modular(900 acres)
Change
8.21 mill. lb 8.85 mil. lb + 0.64 mil. lb
4,961 lb/ac/yr 6,500 lb/ac/yr +1,539 lb/ac/yr
Production - Feed Consumed
Multi-batch Modular Change
Fed 5.96ton/ac/yr
FCR = 2.40
$1,312 / acre / yr
Fed 5.91ton/ac/yr
FCR = 2.22
$1,300 /ac/yr
- 0.05ton/ac/yr
- 0.18 lb feed perlb fish gain
- $ 12 / ac / yr
Labor Requirements for a:1,350 water acre MODULAR Delta MS catfish farm
Total AnnualPay Amount Number Cost, $ Position and responsibilityOperations Management
60,000 $/year 1 60,000$ Manager - overall manager and does feeding40,000 $/year 2 80,000$ Assistant manager (1 for feeding and 1 for seining)
Subtotal 3 140,000$
20,000 $/year 1 20,000$ Bookkeeper/secretary30,000 $/year 1 30,000$ Shop foreman20,000 $/year 1 20,000$ Shop helper20,000 $/year 4 80,000$ Night dissolved oxygen monitoring workers18,000 $/year 9 162,000$ People doing mowing and seining (no custom harvesting)
Subtotal 16 312,000$
TOTAL 19 452,000$
The MODULAR system has an additional 4 seining crew employeesover the MULTI-BATCH production system,or an additional $72,000 per year in labor and management costs.
Labor Comparisons
Salt Diuron Copper TOTALMULTI-BATCH SYSTEM Sulfate Acres treated 1,050 6,300 1,050 Cost per acre 53 9 9 Total Cost 55,650 56,700 9,450 121,800$ COST PER ACRE 116$
MODULAR SYSTEM Acres treated 1,100 5,400 1,100 Cost per acre 53 9 9 Total Cost 58,300 48,600 9,900 116,800$ COST PER ACRE 106$ Salt - 1 ton/acre/yearDiuron - for off-flavor treatment, 6 treatments per pond per year
Chemical Comparisons
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
