Klemetson 1985 Aquacultural-Engineering 1

7/28/2019 Klemetson 1985 Aquacultural-Engineering 1

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Aq u a cu l t u r a l En g i n eer in g 4 (1985) 1-19

E n g i n e e r i n g a n d E c o n o m i c C o n s i d e r a ti o n s fo rA q u a c u l t u r e D e v e lo p m e n t

Stanley L. K lemetsonDepartment of Civil Engineering, Brigham Young University, Provo,Utah 84602, USA

andGary L. Rogers

University of Hawaii, Hawaii Institute of Marine Biology, PO Box 1346, Kaneohe,Hawaii 96744-1346, USA

A B S T R A C TThe deve lopmen t o f an economica l l y success fu l aquacu l ture s i t e requ i resb o t h en g in eer in g a n d eco n o m i c eva lu a ti on . A s p a r t o f a s t u d y f o r t h eS o u t h er n C o l or a d o Eco n o m i c D ev e l o p m en t D i st ri c t, co n s id er ab l e d a t a o npo ten t ia l s i t es were co l l ec t ed and eva lua ted on the bases o f s i t e , c l ima t i c ,eng ineer ing and ec ono m ic cons idera tions .

Ava i lab le resources, po nd requ i rem en t s , cons t ruc t ion and opera t ioncos t s and design requ i remen t s were in t egra ted fo r t he eva lua t ion o f t hem o s t f ea s ib l e s y s t em f o r t h e a r ea . Ec o n o m i c s u m m a r i e s w ere p r ep a redo u t l i n i n g t o t a l e xp ec t ed co s t s a n d r a t e s o f r e t u r n o n p r o d u c t i o n o fMacrobrachium rosenbergii prawns.

INTRODUCTIONPotential aquaculture sites must be evaluated on the basis of a set ofcriteria that has been determined by the aquaculture industry. Then,the costs of local site and facility development must be determined.Finally, all of the economic facets must be considered before a finaldecision about possible development is made. As an example of the

1Aquaeu l tura l Eng ineer ing 0144-8609/85/$03.30 Elsevier Applied SciencePublishers Ltd, England, 1985. Printed in Great Britain


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2 S.L. Klemetson, G. L. Rogersp r o c es s , m a n y o f t h e e n g in e e ri n g a n d e c o n o m i c f a c to r s o f p r o p o s e dg e o t h e r m a l / a q u a c u l t u r e s ite s in S o u t h e r n C o l o r a d o , U S A , w e r e c o n -s id e r ed . M a n y o f th e s e d a t a w e r e o b t a i n e d b y p e r s o n a l c o n t a c t w i t hi n d iv i d u a l s a n d f i r m s . S o m e o f t h e v a lu e s w e r e o b t a i n e d b y d i r e c te v a l u a t i o n o f l o c a l c o s ts . A s i m i la r a p p r o a c h w o u l d b e r e q u i r e d f o re v a l u a t io n o f a n y o t h e r s it e.

C R I T E R I A F O R S IT E S E L E C T I O N S

A l o n g l i st o f f a c t o r s m u s t b e c o n s i d e r e d in t h e s e l e c t i o n o f a s u i ta b l es it e f o r a n a q u a c u l t u r e p r o d u c t i o n f a c il it y . W h il e n o t a ll o f th e s e w i llb e e s s e n ti a l to d e t e r m i n e t h e e c o n o m i c f e a s i b il i t y o f t h e p r o je c t , m u c ho f t h e d a t a m u s t b e c o l l e c t e d s o o n e r o r l a t e r a n y w a y . T h i s lis t iss u m m a r i z e d i n T a b l e 1. E a c h o f t h e s e f a c t o r s w i l l b e d is c u s s e d b r i e f l y int h is s e c t i o n a n d s o m e w i l l b e p r e s e n t e d l a t e r in m o r e d e t a i l i n s e p a r a t es e c t i o n s .

T A B L E 1Criteria for site selection(A) Soil Propert ies

1. Soil ty pe2. Perc olation rate3 . Topography4. Particle s ize and shape5. Angle o f repose6. Fert i l i ty7. M icrobial pop ulatio n8. Absence of toxins9. Color - abso rption of l ight

10. pH = 6 .511. Low CaCO312. Windbreaks(B) Water Propert ies

1. Tem perature - geothermal and cold groundw ater(a) reservoir tem pera ture(b) surface temp erature2. W ater qua li ty


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E n g i n e e ri n g a n d e c o n o m i c c o n s id e r a ti o n s f o r a q u a c u lt u r e d e v e l o p m e n t 3T A B L E 1 - c o n t d .

3. Solutes(a) nu t r ien t s(b) gases(c ) t o x i c co m p o u n d s

4 . Bac ter io logy o f w ater5 . W atershed characteris t ics6 . Gro u n d wa te r s u p p ly7 . F low ra te o f wel l

(C) Cl imato log ica l Fac to rs1. Wind2. Solar radia t ion3 . Am b ien t t em p era tu re4 . Rela t ive hu m id i ty5. Precipi tat ion

(D) Biological Factors1 . Pho tosy n the t ic ac t iv i ty2. T rophic levels - eut rop hic at io n3. N atura l fee d available4 . Avai lab i li ty o f p rawns fo r s tock ing5 . De ns i ty o f s tocked p rawns6. Fee d avai labi li ty and s torage7. Harvesting

(E ) E co n o m ic Fac to r s1. Land

(a) costs(b) res tr ict ions(c) zoning regulat ions

2. Water(a) ava ilabili ty - ac cessibili ty(b ) wa ter r igh ts

3 . Labor(a) wages

4.

(b ) ava i lab il i ty o f l abor and man agem ent and engineers(c) unio n rules(d) l iabi l i ty(e) bookkeep ingT ran s p o r t a t i o n(a) acce ssibili ty to facili t ies(b ) t ranspor t to ma rke t ( t ime requ i red)(c) t ranspor t and hand l ing fac i li t ies


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4 S. L. Klemetson , G. L. RogersT A B L E 1 - contd.

5 . Ma t e r i a l s and Se rv i ces( a ) f e e d( b ) f u e l( c ) e q u i p m e n t - p u m p s , a e r a t o rs , e t c .( d ) s e rv i ce( e ) m a i n t e n a n c e( 0 h a rv e st in g a n d p a c k a gi n g e q u i p m e n t( g ) l a b o r a t o r y( h ) b o a t

6 . C o n s t r u c t i o n( a ) e a r t h m o v i n g(b ) p i p i ng , va lves, pum ps , e t c .( c ) w e l l s(d ) bu i l d i ngs( e ) r o a d s

7 . C o m m u n i c a t i o n s( a ) t e l e p h o n e , t e l e x( b ) c a b l e

8 . P o w e r( a ) pub l i c gas and e l ec t ri c( b ) p r i v a te g e n e r a t o r s

9 . Marke t s10 . Taxes11 . D eprec i a t i on

( F ) S o c i a l F a c t o r s1 . C ommuni t y s e rv i ces

( a ) s c h o o l s( b ) m e d i c a l c a r e( c ) h o u s i n g( d ) p r o t e c t i o n(e ) cu l t u r a l r e sources

2 . L o c a l c u s t o m s - c o m m o n p r o p e r t y3 . E n v i r o n m e n t a l i m p a c t

( a ) a d v e rs e e f f e c t s o f d e v e l o p m e n t( b ) w a s t e d i s p o sa l

( G ) L e g a l F a c t o r s1 . Loca l , s t a t e and f ede ra l pe rmi t r equ i r emen t s2 . L i mi t a t i ons3 . W at e r r igh t s4 . I ncen t i ves to i nves t o r s


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E n g i n e e ri n g a n d e c o n o m i c c o n s id e r a ti o n s f o r a q u a c u l tu r e d e v e l o p m e n t 5Soil propert i esWhile all of the parameters listed may be important , from a const ructioncost standpoint, soil type, percolation rate, topography, and angle ofresponse are critical factors. On flat land with clay soils, the ponds canbe formed by pushing the soil into berms at a very low cost. In sandysoil, clays must be imported to make the basins watertight.Water properties

In most cases the quality of the geotherma l well water is quite adequateunless it is extremely hard. The dissolved gases in the well waters cangenerally be removed by aeration prior to entering the aquacultureponds.

The biggest concern for geothermal water in Southern Colorado wasits flowrate and t empera ture. Additional wells with larger flowrates andlfigher temperatures would need to be drilled to provide the neededheat to maintain large commerc ial scale aquaculture ponds. It was forthis reason that this study centered on methods of conserving heat andmaximizing the existing well capacities.Climatological facto rsThese data must be collected to determine the temperature profileswithin the ponds. Using the Maintenance of Aquaculture Pond Tempera-tures (MAPT) computer model developed by Klemetson and Rogers(1981), it was possible to estimate many of the factors that will deter-mine the economic viability of proposed projects based on the environ-mental conditions. Among these were heat inputs required, the resultingpond temperatures, and animal productivity.Biological factorsThe biological factors have a significant effect on the economics of theaquaculture system. Algae can be used as a food source for the prawnsand therefore are allowed to grow in the ponds. One of the significantcosts of operation is feed. If local feeds, such as discarded chickenmash, are available at lower costs, significant savings can be realized.Another large operating cost is prawn larvae for stocking. If these are


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6 s . L . K l e m e t s o n , G . L . R o g e r sp u r c h a s e d , t h e c o s t s a re h ig h . I t w o u l d b e b e t t e r t o d e v e l o p a h a t c h e r ya n d n u r s e r y b u i l d i n g t o s u p p l y t h e l o c a l n e e d s .E c o n o m i c f a ct o r s

I n i ti a l l y , s o m e o f t h e n e c e s s a r y e c o n o m i c f a c t o r s , s u c h as l a n d , w a t e ra n d l a b o r , w i ll n o t b e f u l l y c o v e r e d s i n c e t h e s iz e o f t h e d e v e l o p m e n tw i ll b e sm a l l . A f a r m e r w h o o w n s h i s l a n d , h a s a n e x i s t i n g w e l l , h a ss o m e u n u s e d b u i l d in g s , a n d h a s f u l l- t im e h e l p t h a t c a n o p e r a t e t h ep o n d s , c a n r e c e i v e a g o o d r e t u r n o n e v e n a s m a l l s c al e a q u a c u l t u r ep r o j e c t . I t d o e s n o t a p p e a r f e a s ib l e t o b u y e v e r y t h i n g t o s t a r t a s m a l la q u a c u l t u r e p r o j e c t o f o n l y a f e w a c r es , u n l e s s t h e y h a v e a lr e a d y p a i ds o m e o f th e d e v e l o p m e n t c o st s.S o c i a l f a c t o r sA n y p r o j e c t w i ll h a v e s o m e a f f e c t o n t h e lo c a l s o c ia l c o n d i t i o n s . I n t h ec a se o f m a n y a r ea s , i t m a y b e t h a t t h e s e f a c t o r s w il l b e p o s it i v e a s n e wj o b s a r e c r e a t e d b y t h e s e p r o j e c t s .L e g a l f a c t o r sA l l l eg a l c o s t s a n d r e q u i r e m e n t s m u s t b e c o n s i d e r e d a n d e n t e r e d i n t ot h e t i m e f r a m e f o r t h e p r o j e c t a s w e l l a s i ts p r o p o s e d c o s t s.

S Y S T E M E C O N O M I C SR o b e r t s a n d B a u e r (1 9 7 8 ) d i s c us se d t h e e c o n o m i c s o f M a c r o b r a c h i u mp r o d u c t i o n f o r g r o w - o u t p o n d s in S o u t h C a r ol in a . T h e n e t r e t u r n s w e r es m a l l b u t i t w a s t o o e a r l y t o p r e d i c t f e a s ib i l it y . R e f e r e n c e w a s g i ve n t os t u d i e s i n H a w a i i w h i c h h a v e p r o v e n e c o n o m i c a l l y f e a s i b l e . A d d i t i o n a lw o r k is n e e d e d t o d e t e r m i n e t h e v a r ia b i l it y o f r e s u lt s a n d ri sk s a n dr e t u r n s f o r p r a w n s g r o w n i n t e m p e r a t e a re a s.

G o d f r i a u x e t a l . ( 1 9 7 8 ) i n v e s t ig a t e d t h e p o t e n t i a l f o r c u l t u r in g b o t hM a c r o b r a c h i u m a n d r a i n b o w t r o u t in p o w e r p la n t w a s t e w a t e r . U s in gh ig h d e n s i t y i n te n s iv e c u l tu r e in ra c e w a y s , t h e p r o d u c t i o n o f t r o u ta p p e a r e d ' v e ry a t t r a c ti v e '. U n d e r t h ei r c o n d i t io n s , c o m m e r c i a l p r o d u c -t i o n o f f r e s h w a t e r p r a w n s w o u l d n o t b r in g m u c h o f a r e t u r n o n in v es t-


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En g i neer in g a n d eco n o m i c co n s id er a ti o n s f o r a q u a cu lt u re d ev e l o p m en t 7m e n t u n t i l t h e o r g a n i s m c o u l d b e r e a re d a t h i g h e r d e n s it ie s . T h e p r o j e c th a s s i n c e d r o p p e d M a c r o b r a c h i u m p r o d u c t i o n a t t h e P S E & G M e r c e rG e n e r a t i n g S t a t i o n i n N e w J e r s e y (B . L . G o d f r i a u x , p e r s o n a l c o m -m u n i c a t i o n , J u l y 1 9 80 ).

F r e s h w a t e r p r a w n f a r m i n g i n a t r o p i c a l a r e a , s u c h a s H a w a i i , h a s b e e ns h o w n t o b e p r o f i t a b l e b y S h a n g a n d F u j i m u r a ( 1 9 7 7 ) . T h e i r a na ly s is o ft h e e c o n o m i c s o f p r o d u c t i o n s u g ge s t t h a t t h e r e is a g r e a t p o t e n t i a l f o rc u l t u r i n g M a c r o b r a c h i u m . T h e a u t h o r s g iv e c o st s a n d r e t u r n s e s t i m a t e df o r p o n d s r a n g i n g f r o m 1 a c re t o 1 0 0 a cr e s.

A s t u d y o n t h e f e a s i b il it y o f p r a w n c u l t u r e b y B l o o m s t e i n e t a l .( 1 9 7 7 ) w a s p r e s e n t e d a s a g u i d e l in e f o r i n v e s t m e n t s h r i m p f a r m i n g .S i n c e t h e m a r k e t p r i c e is va r ia b le , c o s ts o f p r o d u c t i o n w e r e c a lc u l a te d ,b u t n o t r e t u r n s . I t w a s s u g g e s t e d t h a t j u v e n i le s c o u l d b e h a t c h e d a n dg r o w n f o r U S $ 7 . 0 0 t o U S $ 8 . 0 0 p e r t h o u s a n d a n d t h a t a d u l ts co u l db e p r o d u c e d f o r $ 3 . 8 0 k g 1 t o $ 4 . 9 4 k g -1.

A l le n a n d J o h n s t o n ( 1 9 7 6 ) d e v e l o p e d a n e x te n s iv e m o d e l t o p r e d ic tt h e f e a si b il it y o f l o b s t e r c u l tu r e . T h e m o d e l w a s a p p l i e d to d a t a f r o mp r a w n f a r m s in H a w ai i w i t h p o o r s uc ce ss . T h e ' m y s t i q u e o f t h e p o n d ' o rp o o r u n d e r s t a n d i n g o f p r o c e s s es o c c u r in g in th e p o n d , w a s t h e re a s o nf o r t h e i n a b il it y to u s e t h e c o m p u t e r m o d e l f o r f r e s h w a t e r p r a w np r o d u c t i o n (W . E . J o h n s t o n , p e r s o na l c o m m u n i c a t i o n , J u l y 1 9 80 ).

M a d e w e l l ( 1 9 7 1 ) a n d W a l k er a n d B a a k e r - A r k e m a ( 1 9 7 5 ) h a v ec o n s i d e re d t h e e c o n o m i c s f o r c a t fi sh p r o d u c t i o n . T h e t e c h n i q u e s a ndp a r a m e t e r s d i sc u s s ed ar e a p p li c ab l e to p r a w n p r o d u c t i o n i n g r o w n - o u tp o n d s .

C o m p u t e r s i m u l a t io n m o d e l s h a ve b e e n d e v e l o p e d fo r e s t im a t i n gp r a w n n u m b e r s ( H u a n g e t a l . , 1 9 7 6 ) , m o d e l i n g p r a w n p r o d u c t i o n( M o r it a, 1 9 77 ) a n d in m a n a g e m e n t e c o n o m i c s f o r s h r im p f a rm i n g( S t a m p , 1 9 7 8) . T h e a p p l i c a t io n o f c o m p u t e r s tu d i e s t o a q u a c u l t u r eh a v e d i s t i n c t a d v a n t a g e s i n t h e d e s i g n o f a q u a c u l t u r e f a c i li ti e s t h a t w i l lb e n e f i t m a n a g e m e n t , r e d u c e o p e r a t i o n a l c o s ts a n d e l im i n a t e t ri al -a n d -e r r o r p o n d m a n a g e m e n t ( O r t h , 1 9 80 ).

T h e M a i n t en a n c e o f A q u a c u l tu r e P o n d T e m p e r a t u r e s ( M A P T ) m o d e ld e v e l o p e d b y K l e m e t s o n a n d R o g e rs ( 1 9 8 1 ) p r o v i d e d i n f o r m a t i o n o nt h e r e l a t io n s h i p b e t w e e n c l im a t i c c o n d i t i o n s , h e a t i n p u t s a n d p r a w np r o d u c t i v i t y p o t e n t i a l .

T h e g e n e r a l p r o c e d u r e f o r d i sc u s si n g t h e e c o n o m i c s o f p r o d u c t i o n iss im i l a r t h o u g h e a c h s t u d y is u n i q u e a n d b a s e d o n c r it e ri a f o r t h a tg e o g r a p h i c a l l o c a t i o n . T h e e c o n o m i c f e a s i b i l it y o f t h e s t u d i e s v a r ie s


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8 s . L . K l eme t so n , G . L . R o g e r s

s in c e s o m e a r e y e a r - r o u n d c u l tu r e s y s t e m s w h i le t h e g r o w i n g s e a s o n int e m p e r a t e a re as m a y b e a r o u n d s ix m o n t h s . I n a d d i t i o n , d i f fe r e n tm e t h o d s o f h a r v e s ti n g , d i f f er e n t m a r k e t p r ic e s, d i f f er e n t f e e d c o n v e r s i o nr a t io s a n d o t h e r f a c to r s m a y v a r y f r o m l o c a t i o n t o l o c a t i o n . F i g u r e 1 isa c h a rt w h i c h l i st s p a r a m e t e r s n e e d e d f o r a q u a c u l t u r e d e v e l o p m e n t .

E C O N O M I C S I Z E O F P O N D SF e w d a t a e x i s t f o r a n e c o n o m i c p o n d s iz e. O n e m a y i n f er f r o m t h ew o r k o f o t h e r s t h a t a n i d e a l p o n d s i ze w i ll b r i n g a r e t u r n o n i ts i n v e s t-m e n t . R o b e r t s a n d B a u e r ( 1 9 7 8 ) s u g g e st t h a t t h e n e t r e v e n u e f or S o u t hC a r o l in a is a p p r o x i m a t e l y $ 7 6 3 h a -1 o r $ 3 0 8 a c r e -1 . T h i s w a s c a l c u l a t e df r o m r e tu r n s f r o m 1 ac re p o n d s . T h e c o s t o f j u v e n i l e s w a s n o t i n c l u d e din t h e c o m p u t a t i o n f o r p r o d u c t i o n c o s ts . O n e m a y s p e c u l a t e th a t inS o u t h C a r o l in a , w h e r e l a b o r c o s t s a re k e p t m i n i m a l , a b r ea k e v e n p o n ds i z e w o u l d b e a b o u t 5 a c r e s .

I n H a w a i i a n d o t h e r t r o p i c a l a re as , t h e e c o n o m y is q u i t e d i f f e r e n tf r o m t h a t o f p r a w n p r o d u c t i o n i n t e m p e r a t e a r ea s. S h a n g a n d F u j i m u r a( 1 9 7 7 ) f o u n d t h a t s m a ll er fa r m s ar e p r o f i ta b l e w h e n o p e r a t e d a s

C o s t F e e dC o n v e r s i o nS t o c k i n gF e e d i n g ~ " L a b o rM a i n t e n a n c eH a r v e s t i n g ~ "

Pumping E l e c t r i c i t yA e r a t i o nL a n dP o n d C o n s t r u c t i o n - - I n v e s tm e n tS t o ra g e S h e d ~ C o s t sE q u i p m e n t

E q u i p m e n t - - D e p r e c i a ti o n

P o n d - - I n te re s tI n v e s t m e n tPL's rC o s t - - J u v e n il esf o r S t o c k i n g

R e p a i r - -A d m i n is t r a ti o n - - M i s c

G r o w t h R a t ~ i z e o fL ~ ~ S t o c k i n g

M o r t a l i t y -P r o d u c t io n R e v e n u e i v a l

/ o h n e t l n R e t s t ~ e

Fig . 1 . E con om ic factors o f aquaculture.


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E n g i n e e ri n g a n d e c o n o m i c c o n s id e r a ti o n s f o r a q u a c u lt u re d e v e l o p m e n t 9a family venture. Freshwater prawn farming is profitable for farms of10 acres or larger and having an annual production of 3000 lb acre xand a sale price of about $4.00 lb-1.The desired economic size of an aquaculture operation would be 100acres; however, ponds as small as k acre could be used for a proposedaquaculture system. An outside investor who purchased or leased rightsto land and water, and had to pay for all development costs, could notexpect a near future return on less than about 10 acres. However, ifthe site is developed by the owner, with well and land costs alreadypaid, a net re turn could be possible on as little as k acre. While thereturns would be small, it could provide a starting point for largerdevelopments.

SITE DEVELOPMENT COSTSDetailed studies of site costs have been presented in the literature.Godfriaux e t a l . (1977) discussed the costs for intensive polyculture oftrout and prawns in waste thermal water from power plants. Allen andJohnston (1976) developed a model for determining the feasibilityof lobster culture. The parameters discussed are applicable to prawnproduction.

Shang and Fujimura (1977) and Roberts and Bauer (1978) havepresented pond construction costs for Hawaii and South Carolina,respectively. However, since pond construction costs are very sitespecific, the costs for Colorado have been determined by communica-tion with individuals within the State.

In the following sections, the costs of construction, operation andmaintenance, and other items, will be presented for a 1-acre pond.Following that a section will be presented on the costs of several heatloss reduction methods. Most of the costs have been approximatelyadjusted to current prices by a factor for inflation. True cost shouldbe obtained when specific pond requirements have been determined.Land costsLand costs are quite variable and depend upon the availability of waterrights. In Southern Colorado they vary from $750 acre x to about$1000 acre 1.


10/19

10 S. L. Klemetson, G. L. RogersC o n s t r u c t i o n c o s t sS i n c e e a c h s it e w i ll h a v e d i f f e r e n t c o n s t r u c t i o n c o s t s, t h e c o s t s o fa 1 0 - ac r e p o n d o n a p e r a c r e b a si s w il l b e t a b u l a t e d . S o m e o f t h e c o s t sw o u l d b e t h e s a m e w h e t h e r a 1 -a cr e p o n d o r a 1 0 0 -a c r e p o n d w e r e b u i lt .

1 . E a r t h m o v i n g . C o s t s c a l c u l a t e d o n t h e b a s i s o f $ 1 . 5 0 y a r d - : i na s a n d y a r e a a n d $ 2 . 0 0 y a r d - : in a r o c k y a r e a. S h r in k a g e d u e t oc o m p a c t i o n h a s n o t b e e n i n c l u d e d .( a) C o m p l e t e e x c a v a t io n :

(b )(1 a c r e ) ( 5 ft d e e p ) = 8 0 6 7 y a r d s a t $ 1 . 5 0 y a r d - : = $ 1 2 , 1 0 0

ac re -1B e r m a r o u n d 1 -a cr e p o n d s b y m o v i n g s u r f a c e m a t e r i a ls i n t ob e r m .V o l u m e o f b e r m = 8 4 0 l i n e al f e e t ( L F ) 8 0 f t -- 2 4 8 9 y a r d s( 5 f t e f f e c t i v e )B e r m b u i l t 4 f t h i g h , w i t h a 1 2 f t w i d e t o p a n d 1 : 2 s l o p es .S i n c e s o il w i ll n o t b e h a u l e d a w a y , a n e a r t h m o v i n g c o s t o f$ 0 . 5 0 y a r d -1 w a s e s t i m a t e d .E x c a v a t i o n c o s t s = 2 4 8 9 y a r d s a t $ 0 . 5 0 = $ 1 2 4 5 a c r e- :

2 . C l a y l i n e r t o s e a l p o n d s . C o s t c o m p u t e d o n b a s i s o f $ 4 y a r d - : t oi m p o r t c l a y a n d i n s t a ll in t w o 4 - i n li ft s:( 1 a c r e ) (8 in d e e p ) = 1 0 7 6 y a r d s a t $ 4 y a r d - : = $ 4 3 0 4 a c r e - :

3 . C o n c r e t e l in e r . C o s t s c o m p u t e d a t $ 9 0 y a r d - : i n s ta l le d a n d 3 i nt h i c k n e s s :(1 a c r e ) ( 3 in t h i c k ) = 4 0 3 y a r d s a t $ 9 0 y a r d -1 = $ 3 6 , 3 0 0 a c r e - :

4 . P l a s t i c l in e r s . C o s t s f o r 1 0 m i l a n d 2 0 r a i l P V C l i n e r s :1 0 m i l - ( 1 a c r e ) a t $ 0 . 2 6 f t - : = $ 1 1 , 3 2 5 a c r e - : i n s t a l l e d2 0 m i l - ( 1 a c r e ) a t $ 0 . 3 1 f t - : -- $ 1 3 , 5 0 4 a c r e - : i n s t a l l e dU s e o f P V C a l so r e q u i r e d 1 2 i n o f s o il c o v e r ( W a t e r sa v e r C o . ,p e r s o n a l c o m m u n i c a t i o n s ) .

5 . P i p i n g , va l ve s , e t c . F a c i l it ie s m a y b e r e q u i re d f o r d r a i n d o w n f o rp r a w n h a r v e st in g . C o s t s e s t i m a t e d a t $ 2 8 9 7 a c r e - : ( R o b e r t s a n dB a u e r ( 1 9 7 8 ) , c o s t s i n f l a te d 3 6 % ) .


11/19

Engineering and economic considerations for aquaculture deveIopment 1 16. Feed storage bin. Estimated costs = $1746 (Roberts and Bauer(1978), costs inflated 36%).7. Pumps and assembly. Estimated cos ts = $3376 (Roberts andBauer (1978), costs inflated 36%).8.Aerators. Estimated co st s= $476 (Roberts and Bauer (1978),costs inflated 36%).

E q u i p m e n t co s tsSeveral pieces of equipment are required for the ponds. These are totalcosts rather than costs per acre.1. Laboratory instruments. A large facility can justify greater invest-

ment in lab. instruments than could a 1-acre pond. The parametersgenerally measured on a regular basis are temperature, pH, dissolvedoxygen and conductivity. Inexpensive equipment could beobtained for about $500 or the more expensive Digital 4041, fromHydrolab Corp. (Austin, Texas), could be obtained at $3500.

2. Row boat. Costs assumed at $449 (Roberts and Bauer (1978), costinflated 36%).3. Harvesting and packaging equipment . The equipment needs forharvesting and packaging will be the same for a few acres as theywill be for 1 acre. The harvesting seine (net) will cost approxi-mately $544 and a small quick-freeze freezer would be availablefor around $500. A larger operation would require better freezercapacity. (Roberts and Bauer (1978), costs inflated 36%.)

4. Shop and maintenance equipment. Most of the small facilities thatwould be built in Southern Colorado would already have someshop and maintenance facilities available; therefore, a $500 limiton miscellaneous equipment should be adequate.

Operation costsMost of these costs are highly site dependent. The costs were deter-mined on the basis of expected local costs for the Southern Coloradoarea. Many of them were obtained by personal communications withresponsible parties in that region.

1. Feed. It is desirable to use locally available waste products forfeed; however, if these are not available marine ration Ralston


12/19

12 S. L. Klemetson, G. L. RogersP u r i n a c a n b e p u r c h a s e d a t $ 3 2 0 t o n -1 a n d a f e e d in g r a t io o f 2 : 1u s e d . O n t h e b a s is o f a p r o d u c t i o n r a t e o f 6 0 0 k g a c r e- 1 o r 0 . 6 6t o n s a c r e -x, 1 . 32 t o n s o f f e e d w o u l d b e u s e d a t a c o s t o f $ 4 2 0a c r e -1. P r o d u c t i o n r a t e s a n d f e e d c o s t s m a y b e h ig h e r.

2 . I m p o r t e d s to c k . T h e p u r c h a s e o f p o s t- l a rv a e c a n b e a m a j o r c o s t i ns t o c k in g a p o n d w i t h a d e n s i t y o f a b o u t 6 5 , 0 0 0 a c re -1. I f p u r c h a s e df r o m A q u a t i c F a r m s in K a n e o h e , H a w a i i, t h e c o s t is $ 3 0 p e r 1 0 0 0o r $ 1 9 5 0 a c r e -I . A s s u m i n g t h a t s u f f i c i e n t d e m a n d is c r e a t e d i nS o u t h e r n C o l o r a d o o r s u r r o u n d i n g s ta t es to j u s t i f y t h e c o n s tr u c -t i o n o f a h a t c h e r y a n d n u r s e r y , t h e c o s t c a n b e r e d u c e d to l es st h a n o n e q u a r t e r o f th is a m o u n t .3 . L a b o r . L a b o r c o s t s a r e q u i t e v a r i a b le s in c e v e r y l it tl e e x t r a w o r k isr e q u i r e d t o h a n d l e s e ve r a l a c r es o f p o n d r a t h e r t h a n 1 a c re . L a b o rc o s t s w e r e d e t e r m i n e d a t $ 4 . 5 0 h - I.

E n t i r e s e a s o nh U S $

S t o c k i n g , ~ d a y 4 1 8F e e d i n g , 2 0 0 d a y s a t 1 h d a y -1 2 0 0 9 0 0M a n a g e m e n t a n d t e s ti ng , 2 0 0 d a y s

a t 3 h d a y -1 6 0 0 2 7 0 0H a r v e s t i n g , 2 d a y s 1 6 7 2T r a n s p o r t t o m a r k e t - 1 0 0T o t a l 8 1 0 + 3 7 9 0

M a n y o f t h e s e c o s t s c o u l d b e r e d u c e d o n a f a m i l y f a r m b a s is , o rw h e r e t h e p o n d s a r e a p a r t o f s o m e o t h e r p r o d u c t i o n u n it .

4 . M a r k e t i n g . T h e c o s ts o f m a r k e t i n g c o u l d v a ry f ro m n o t h i n g t oa b o u t 1 0% o f t o t a l re v e n u e . A h i g he r v a l u e c o u l d b e e x p e c t e d a tt h e b e g i n n in g ; h o w e v e r , s e v e ra l o f t h e c o n t a c t s i n t h e p r o j e c tr e g i o n i n d i c a t e d t h a t a ll o f th e p r a w n s w o u l d b e s o ld l o c a ll y a t t h eb e g i n n i n g .

5 . C o m m u n i c a t i o n s . M i n i m u m e x p e n s e s f o r te l e p h o n e a n d m a i l a ree x p e c t e d .6 . P o w e r . E l e c t r i c i t y c o s t s a re a p p r o x i m a t e l y $ 0 . 1 4 k W - h -1 . T h a t r a tew il l v a r y w i t h l o c a t i o n a n d a m o u n t o f u se .


13/19

Engineering and eco nom ic considerations fo r aquaculture dev elop m ent 137 . T a x e s . T h e p r o p e r t y t a x e s a r e b a s e d o n 3 0 % o f t h e a s se s se d v a l ue

t i m e s a m i l l l e v y o f 1 1 . 2 ( A l a m o s a C o u n t y A s s e s s o r) .8 . D e p r e c i a t io n . D e p r e c i a t i o n w a s f i g u re d a t 1 2 % o f c a p i ta l c o s t s a n d

w i ll v a r y w i t h e a c h u n i t o f t h e f a c i li ty .9 . B o o k k e e p i n g a n d a d m i n i s t r a t io n c os ts . T h e s e c o s t s m a y b e

i n c l u d e d u n d e r t h e l a b o r c o s t s o f i t e m 3 o r as a s e p a r a t e i t e me q u a l t o 1 - 3 % o f g ro s s r e c e i p ts . T h e y w i ll v a r y c o n s i d e r a b l yd e p e n d i n g u p o n p o n d m a n a g e m e n t m e t h o d s .

I n c o m e

D e p e n d i n g u p o n t h e o ve r al l e c o n o m i c o r g a n i z a ti o n o f t h e p o n d s y s t e m ,e i t h e r a p r o f i t o r l o ss c a n b e o b t a i n e d . A p o o r l y r u n o r i n a d e q u a t e l ym a n a g e d s y s t e m m a y p r o d u c e o n l y 1 0 0 0 lb s o f l iv e s to c k p e r ac re p e ry e a r , w h i le a w e l l r u n s y s t e m w i t h o p t i m a l t e m p e r a t u r e s c o u l d y i e l do v e r 3 0 0 0 l b s p e r a c r e p e r y e a r .

T h e m a r k e t v a l u e o f t h e p r a w n is s o m e w h a t d e p e n d e n t u p o n i ts s iz e,w i t h t h e a v e r a g e s i ze s b r i n g i n g a b o u t $ 5 lb -1 a n d l a r g e r s iz e s y i e l d i n g $ 8t o $ 1 0 l b -1. O f c o u r s e , p r o d u c t i o n r a t e w o u l d b e s a c r if ic e d t o a c h i e v et h e l a r g e r s i z e s .H e a t lo s s r e d u c t i o n m e t h o d c o s t s

T h e c o n s t r u c t i o n c o s t s as s o c ia t e d w i t h h e a t l os s r e d u c t i o n m e t h o d s a rec o n s i d e r e d a s e p a r a t e a d d i t i o n a l c o s t t o t h e n o r m a l p o n d s y s t e m .H o w e v e r , t e m p e r a t e c l im a t e s re q u i re t h a t t h es e m e t h o d s b e u s e d i fa n e x t e n d e d g r o w i n g s e a s o n i s d e s ir e d .T h e t h r e e t y p e s o f m e t h o d c o m p a r e d w e r e w i n d sh e a r f e n ce s , s u r fa c ec o v e r s a n d s t r u c t u r a l s h e lt e rs . T h e c o s t s o f e a c h w i ll b e p r e s e n t e db e l o w .W i nd s h e a r f e n c e sI t w a s a s s u m e d t h a t f e n c e s w o u l d b e p l a c e d in p a r a ll e l r o w s a b o u t 1 0f e n c e - h e i g h t s a p a r t. F o r a 4 - f t f e n c e , a 2 4 f t w i d e b y 1 8 1 5 f t l o n g p o n dw o u l d b e c o n s t r u c t e d ( o r it s e q u i v a l e n t) f o r ea c h a c re o f p o n d r e q u ir e d .T h e c h e a p e s t c o n s t r u c t i o n w o u l d u s e a 9 8 in s n o w f e n c e ( s la t s ] i n X1 in , o p e n i n g s 2 ~ i n ) w h i c h s e ll s f o r a b o u t $ 3 5 f o r 5 0 f t . S t e e l p o l e s


14/19

14 s. L. Klemetson, G. L. Rogersw o u l d b e p l a c e d e v e r y 2 0 f t a n d c o s t $1 e a c h . T h e t o t a l c o s t f o r 1 a c r ew o u l d b e $ 1 3 6 1 f o r m a t e r i a ls o n l y .

A t a ll e r, 8 f t c e d a r f e n c e ( 5 0 % p e r m e a b l e ) c o u l d b e p u r c h a s e d a ta b o u t $ 8 L F -1. T h e f e n c e s p a c in g w o u l d b e 8 0 f t a l lo w i n g a 6 4 f t b y6 8 1 f t p o n d t o b e i n s ta l l ed . T h e t o t a l c o s t f o r 1 a c r e w o u l d b e $ 5 4 4 8f o r m a t e r i a ls . T h e c h o i c e o f t h is f e n c e is u n l i k e l y .S u r f a c e c o v e r s

S e v e r a l t y p e s o f s u r f a c e c o v e r w e r e c o n s i d e r e d . T h e f l o a t in g , U Vr e s i st a n t , p l a st i c c o v e rs w e r e a p p r o x i m a t e l y $ 1 . 5 0 f t -1 i n s ta l le d ( T .S n o w , p e r s o n a l c o m m u n i c a t i o n , S t a f f I n d u s tr i e s) . U s in g c h e a p e r ,4 m i l , n o n - U V r e s i s t a n t , P V C f il m o n a o n e y e a r d i s p o s a b l e c o s t b as is ,t h e c o s t w a s $ 0 . 0 2 f t -1 o r a b o u t $ 1 0 4 5 a c r e 1 p l u s a b o u t $ 1 0 0 i n l a b o rf o r in s t a l la t i o n . T h i s c o v e r w o u l d b e d i s c a r d e d a t t h e e n d o f e a c hs e a s o n .

A m o n o m o l e c u l a r f i l m c o u l d b e p u r c h a s e d w i t h a n a p p l i c a t o r f o ra b o u t $ 1 5 0 a c re 1. H o w e v e r , s o m e t y p e o f g r id s y s t e m w o u l d b er e q u i r e d o n t h e s u r fa c e t o k e e p t h e t h i n f il m f r o m b l o w i n g a w a y . T h i sc o s t c o u l d r u n a s h i g h a s $ 2 5 0 0 a c r e 1.

I n f l a t a b l e s u r f a c e c o v e r s o r i n e x p e n s i v e p l a s t ic - c o v e r e d g r e e n h o u s e sa r e le ss e x p e n s i v e t h a n g l a ss - co v e re d g r e e n h o u s e s a n d m o r e e x p e n s i v et h a n a p l a st i c c o v e r p l a c e d d i r e c t l y o n t h e s u r f a c e o f t h e w a t e r . D e p e n d -i ng u p o n t h e w i d t h o f th e p o n d s a n d t h e t y p e o f c o v e r u s e d , t h e co s tsc o u l d r a n g e f r o m a l o w o f $ 0 . 1 0 t o $ 1 . 0 0 f t 1. D e t a i l e d c o s t s s h o u l d b ep r e p a r e d f o r a s p e c i f i c s it e .

S t r u c t u r a l c o v e r s

R o b e r t s ( 1 9 7 5 ) p r e s e n t e d m a t e r i a l o n g r e e n h o u s e s tr u c t u re s . A m o n gt h e f a c t o r s c o n s i d e r e d in t h e d e s i g n o f g r e e n h o u s e s ar e t h e l a t i t u d e ,o r i e n t a t i o n , r o o f s lo p e , c o v e r i n g m a t e r i a l s , s t r u c t u r a l s u p p o r t a n da v a i l a b le s i z es o f c o v e r i n g m a t e r i a l s . B u i ld i n g s c a n h a v e w o o d e n f r a m e s ,s t ee l a r c h e s , s t e e l t ru s s e s a n d p o s t a n d c a b l e s y s t e m s . T h e l a t t e r m e t h o dis n o t r e c o m m e n d e d f o r s n o w l o a d a re a s s i n ce i t is a ir i n f l a t e d a n d m a yc o l la p s e u n d e r h i g h s n o w l o a d s. A l d r i c h ( 1 9 7 5 ) h a s p r e s e n t e d i n f o r m a -t i o n o n t h e e n g i n e e r i n g c h a r a c t e r i s t ic s o f g la ss a n d o t h e r t y p e s o fc o v e r i n g m a t e r i a l s .


15/19

Engineer ing and econ om ic cons idera t ions for aquacu l ture dev e lop m ent 15T h e b a s i c c o s t s o f a g r e e n h o u s e c a n b e c o m p u t e d f r o m t h e d a t a

p r e s e n t e d b y R o b e r t s ( 1 9 7 5 ) a n d h e r e i n l i s t e d in T a b l e 2 . S i n c e th ed a t a a r e 11 y e a r s o ld , a l l o f t h e c o s t s s h o u l d b e d o u b l e d . T h e c u r r e n tc o n s t r u c t i o n c o s t s f o r a g l a ss g r e e n h o u s e a r e a b o u t $ 6 . 5 2 f t -1 , f o rp l e x i g l a s i t i s $ 6 . 1 4 f t -1 , a n d f o r a t e m p o r a r y p l a s t i c c o v e r o n a r ig idf r a m e i t is a b o u t $ 2 . 5 2 f t -1 .

A l l o f t h e e c o n o m i c d a t a h a v e b e e n s u m m a r i z e d in T a b l e 3 fo rP o n c h a H o t S p r i n g s , C o l o r a d o . S h o w n a re t h e b a s e c as e c o s t s a n d th ee f f e c t o f h e a t l o s s r e d u c t i o n m e t h o d s o n c o s t s .

C O N C L U S I O N ST h e p a p e r h a s b e e n p r e s e n t e d a s a s o u r c e o f i n f o r m a t i o n o n t h e c o s t sa s s o c ia t e d w i t h t h e c o n s t r u c t i o n a n d o p e r a t i o n o f p r o p o s e d a q u a c u l t u r e

T A B L E 2E s t i m a t e d A n n u a l F i x e d C o s t s f o r G r e e n h o u s e O p e r a t i o n i n M i d w e s t , 1 9 73 D a t a

( F r o m t a b l e 3 o f R o b e r t s , 1 9 7 5 ; D o u b l e a ll C o s t s t o B r i n g t o J a n u a r y 1 9 8 4 )Ty p e o f c o n s tru c t io n

I te m ize d Glass Fiberglass Tem pora ryfix ed co st ($ acre -1 ) ($ acre -x ) plast ic($ acre-1 )

In i t i a l i nv es tm en t 142 106 133 580 54 945In te r e s t a 4 974 4 675 1 923Tax es b 1 421 1 336 -I n s u r a n c e 6 9 6 8 4 8 3 4 4M a i n t e n a n c e c 9 9 0 9 9 0 2 6 1 3De prec ia t ion a 7 105 13 358 10 987T ota l f ixed costs 15 186 21 207 15 869$ f t -2 0 .35 0 .49 0 .36a B a s e d u p o n a 7% m i d p o i n t v a l u a t i o n .b Based upo n 1% of an in i t ia l i nve s tm en t .c I n c l u d e s p l as t ic r e p l a c e m e n t a n n u a l l y f o r t e m p o r a r y p l a st i c c o n s t r u c t i o n .a De prec ia t io n schedu le o f 20 yea rs fo r gl ass, 10 yea r s fo r f ibe rg la ss , and 5 yea r s fo r

t h e f r a m e a n d s t r u c t u r e o n t e m p o r a r y p l a s ti c f ac il it ie s .


16/19

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18 s. L. Klemetson, G. L. Ro gersf a c il it ie s i n S o u t h e r n C o l o r a d o . A t r u e c o s t a n al y si s w o u l d r e q u i r e t h es e l e c t io n o f a n a c t u a l s it e a n d t h e e v a l u a t i o n o f a ll o f t h e f a c t o r s f o r it sd e v e l o p m e n t . A c t u a l s i te dr a w i n gs a n d o t h e r d e ta i l s w o u l d n e e d t o b ed e t e r m i n e d t o c o m p l e t e t h e e c o n o m i c a n a l y s i s .

A C K N O W L E D G E M E N T SS o u t h e r n C o l o r a d o E c o n o m i c D e v e l o p m e n t D i st ri ct , u n d e r g r a n t n o .F C R C n o . 2 9 2 -3 9 9 - 1 0 4 -8 , d o c u m e n t n o . 1 0 9 - 5 01 0 4 .

R E F E R E N C E SAldrich, R. A. (1975). Greenhouse coverings. In: Greenhouse Vegetable Workshop,

Tennessee Valley Authority, Bullet in Y-94, pp. 51-3.Allen, P. G. & Johns ton, W. E. (1976 ). R esearch direction and eco nom ic feasibili ty:

an example o f systems analysis for lobster aquaculture, Aquacu l ture , 9, 155-80.Bloom stein, E., Deese, H. & M cVey, J. P. (19 77 ). Socio-econom ic feasibility studies

o f Macrobrachium rosenbergii, Farming in Palau, Proc. Eighth An nua l Meetingo f World Maricul ture Society , pp . 747-63 .Edinger, J . E., Duttweiler, D. W. & Gey er, J . C. (19 68 ). The response of wa ter

temperatures to meteorological condit ions, W ate r Resources Res . , 4 (5) ,1 1 3 7 -4 3 .

Eisentat , S. M. (1978). Geothermal resource development in Israel , GeothermalEnergy Magazine, 6 (1), 8, 17.Go dfriaux , B. L., Guerra, C. R. & Resh, R . W. (197 8). Venture analysis for intensivewaste heat aquacul ture, Proc. Nin th An nua l Me et ing W orm Maricul ture Society ,pp . 707-22 .

Goss , L. B. and Scot t , L . (1980). Factors A f fect in g Pow er Plant Heat Ut il ization,Pergamon Press, Ne w York.

Huang, W . Y., W ang, J . K. & Fujimura, T. (19 76 ). A mo del for estimating prawnpopulat ions in ponds , Aquacu l ture , 8 , 57-70 .H uber ts, W. A. & M adewell , C. E. (19 78) . State-of-the-art waste heat util ization foragriculture and aquaculture, NF DC Bul le t in No . Y-132 , TVA and EPRO.Klemetson, S. L. & Rogers, G. L. (1981 ). D evelopment o f geothermal-aquaculturesystems in Colorado uti l izing the Macrobrachium rosenbergii prawn, KlemetsonEngineering, Orem, Utah.

M adewell , C. (1971 ). Eco nom ic and related considerations befo re expandinga commercial catfish or trout farming operation, Fish Farming Conference,Berns, Tennessee.


19/19

Engineering and eco nom ic considerations fo r aquaculture dev elop m ent 19M o r i t a , S . L . (1 9 7 7 ) . An eco n o m i c m o d e l o f p rawn p o n d p ro d u c t i o n , Proc. EighthAn nua l Meet ing World Maricul ture S ociety , pp . 741-6 .Or th , D, J . (1980) . App l ica tions o f opera t ions research and sys tems science inaquacu l tu re , Fisheries Society Bulletin, 5 (1) , 7-9 .Powers, J . E. (1974). Cri t ical variables in foo d i tem p op ula t ion d yna m ics in a waste-

water aquacu l tu re sy s tem in was tewater use in the p rodu ct ion o f food and f iber,EPA 660 /2-74-041 , p p . 4 9 7 -5 0 3 .Roberts , D. J . & Bauer, L. L. (1978). Costs and returns for Macrobrachium grow

out in Sou th Caro l ina , USA Aquac u l ture , 1 5 , 3 8 3 - 9 0 .Rob er t s , W . J . (1975) . G reenhouse s t ruc tu res , In : Greenhouse Vegetable Workshop,

Tennessee Val ley Au tho r i ty B u l le t in Y-94 , pp . 4 8-50 .Shang , Y. C . & Fu j im ura , T . (1977) . The p rodu ct ion economics o f f reshwa terp rawn (Macrobrachium rosenbergii) fa rming in Hawai i , Aquacu l ture , 11 , 99-

I0 0 .Sonn ichsen , J . C . (1978) . Calcu la t ion o f evapora tive loss coef f ic ien t s fo r therm alpower p lan t s , Ha nford Engineering D evelop me nt Laboratory paper no. TME,

pp . 78-83 .S t am p , N . H . E . (1 9 7 8 ) . C o m p u t e r t e ch n o l o g y an d f a rm m an ag em en t eco n o m i cs i n

sh r imp fa rming , Pro c. N inth An nua l M eet ing W orld Mariculture Society , pp .3 8 3 - 4 0 4 .Velz, C. T. (197 0). Appl ied Stream Sani tat ion, Joh n W i ley and Sons , New York .Walker , L . R . & Baaker-Arkem a, J. (19 75) . P ond warm ing and f i sh cu l tu re , A n n u a lMe et ing Am erican Society o f Agricultural Engineers .

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Klemetson 1985 Aquacultural-Engineering 1

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