1. Economic Comparison of Commercial- Scale Multiple-batch and “Modular” Catfish Production Systems Dr. Jim Steeby National Warmwater Aquaculture Center Mississippi State University and Dr. Terry Hanson Department of Agricultural Economics Mississippi State University

2. 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

3. Present Production System Multiple-batch 1,350-acre Catfish Farm MS Delta

4. 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.

5. 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.

6. 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.

7. 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

8. 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

9. 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.

10. 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.

11. Net Returns to Land Gross receipts Variable or Operating Costs –Including management charge Fixed Costs –Depreciation –Interest on Loans –Repairs and Maintenance –Taxes –Insurance

12. 75 cent fish

13. 55 cent fish 75 cent fish

14. 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 average price received curves above. However, the norm was not followed in 2001.

15. 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 average price received curves above. However, the norm was not followed in 2001. 2001 price

16. 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 average price received curves above. However, the norm was not followed in 2001 and 2002. 2001 price

17. What is being taken into account for this comparative analysis? Farm size Production (fingerlings stocked, pounds harvested, feed fed) Labor Chemicals Other Variable & Fixed Costs Machinery and Equipment

18. Farm Size - Acreage Comparison

19. Thus, Comparing…All Costs for 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

20. Production - Fingerlings Stocked

21. Production - Pounds

22. Production - Feed Consumed

23. The MODULAR system has an additional 4 seining crew employees over the MULTI-BATCH production system, or an additional $72,000 per year in labor and management costs. Labor Comparisons

24. Chemical Comparisons

25. 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

27. Breakeven Analysis

28. 55 cent-modular 55 cent-batch 75 cent modular 75 cent-batch

29. Conclusions Modular system in use currently –Economic analysis shows increased net returns –Other ‘non-cash’ reasons to pursue this system are: Producers have additional control –Size and stocking rates Reduced risk of over- or under-stocked ponds –Single batch or “1-1/2 batch” system –Better inventory control Dead fish evident sooner More efficient use of foodfish pond space

30. Conclusions Changing over to a Modular system will be more or less difficult depending on your present production system type and acreage New genetic strains of channel catfish may also yield good results (larger fingerlings may be available with a reduction in growout time).