Aquaculture America 2023

February 23 - 26, 2023

New Orleans, Louisiana USA

ECONOMIC RISK OF COMMERCIAL CATFISH PRODUCTION PRACTICES

Morgan Cheatham*, Ganesh Kumar, Jeff Johnson, Jimmy Avery, and Suja Aarattuthodi.         Delta Research and Extension Center, Thad Cochran National Warmwater Aquaculture Center, Mississippi State University, Stoneville, Mississippi-38776 USA, email: mcc362@msstate.edu

 



The U.S. catfish industry has adopted numerous production practices that encounter varying degrees of economic risk. This study utilized commercial farm data to quantify the economic risk associated with common production strategies while identifying production parameters contributing most to economic risk. Stochastic Monte Carlo simulations employing established enterprise budgets found fish yield, feed price, and FCR contributing most to variations in BEP/TC. Multiple batch farming of channel catfish was the least risky production strategy with greater probabilities of lower cost of production. However, split ponds and intensively aerated ponds were stochastically dominant (second-order) strategies and have a greater probability of maximizing returns. Among channel catfish production strategies, multiple batch and intensively aerated production were stochastically dominant to medium intensity single batch production. For hybrid catfish production strategies, split pond and intensively aerated production were stochastically dominant to medium intensity single batch production. Multiple-batch and intensively aerated culture of channel catfish were more susceptible to price (market) risk while hybrid catfish production was more susceptible to yield (production) risks. Price risk was not a significant contributor to economic risk for any production strategy in short-run (1-year) as fish prices remained relatively high and less fluid. First order stochastic dominance of split-pond technology on larger farms as compared to low intensity culture on smaller farms suggested that yield increasing intensive production practices supersede low intensity technologies and help achieve economies of scale (Figure 1). The results of this study will provide critical information on relative risk associated with varying catfish production strategies under varying economic or price conditions.