Profitability and management of low-tech catfish farming: The case of Kentucky SmnHARTHA DASGUPTA AND ROBERT DuRBORow1 The channel catfish industry in the United States is primarily designed around intensive production practices coupled with large scale processing plants producing fillets as their main output. The industry is concentrated mostly in a few southern states including Mississippi, Arkansas, Alabama and Louisiana. This is due partly to cost-reducing factors, such as available land and water resources suitable for pond culture, the presence of local feed mills, availability of abundant low-wage labor and a warm climate necessary for catfish growth. While Kentucky is traditionally a southern state, it does not have the land and water resources necessary to construct a catfish industry commensurate with Mississippi or Arkansas. Despite these limitations, there is a small, intensive catfish production cooperative in southwest Kentucky, with 160-200 ha of ponds that supply fish to a local processing plant, which sells frozen fillets as their primary product. Kentuckians have a strong liking for catfish as an item for food and entertainment, especially fee fishing. Although, frozen catfish fillets are easily available, many individuals prefer fresh fish and, sometimes, live fish. This demand has encouraged the growth of a small-scale catfish industry designed to supply local markets. The small-scale catfish industry consists of part-time producers, with 0.2-0.8 ha ponds and very little experience in aquaculture. Limitations 14 MARCH 2007 in both management experience and management time are usually not conducive to using intensive, high management production methods. The producers also face a market that would accept only a few hundred kilograms of fish per month, which also makes intensive production, with yields of 4,500 kg/ha/yr, unsuitable. Aquaculture specialists in Kentucky have identified extensive catfish production to be an appropriate technology for these farmers. Wurts and Wynne (1995) identified the salient characteristics of extensive, or low-input catfish production methods in Kentucky. Farmers stock large fingerlings (45 g, length = 21 cm) in spring or fall at sufficiently low densities that would permit a maximum feeding rate of 34 kg/ha/ day or less. At those feeding rates, the pond environment will adequately process uneaten feed and fish waste and keep water quality at acceptable limits for catfish, without a requirement for supplemental aeration or chemical use (Swingle 1958, Tucker et al. 1979). Hence, substantial water quality management, which is of crucial importance in an intensive system, is not required for extensive production, allowing farmers with few management skills to produce limited quantities of catfish. This article investigates the economics of extensive channel catfish production and identifies optimal management activities for addressing different markets. Description of Extensive Catfish Farming in Kentucky Most aquaculture ponds in Kentucky are small, 0.2-0.8 ha. The ponds are usually filled by runoff and by water pumped from local streams. New catfish ponds are used for 10 consecutive years prior to draining and renovation. We assumed pond size to be 0.4 ha and pond construction cost to be US$3,000/pond, which is typical of central and western Kentucky. Many farms have existing ponds, some of which can be converted for aquaculture use, provided they are not too deep and are free of trees/stumps or other major irregularities. Kentucky aquaculture experts place a pond conversion cost at $1,000/0.4 ha pond. Land is valued at US$2,500/ha. Extensive catfish farming requires little , equipment. A pickup truck (US$15,000), riding mower (US$1,000), water pump (US$540) and a feed storage facility (US$3,000) are necessary. We assumed that the truck and mower are used only 10 percent of their operational time on catfish culture. Harvesting equipment, such as a seine (US$450) and livecars (US$250/unit) are very useful. We assumed that harvested fish are held in livecars pending sale for 1-2 days. Water quality inside livecars is maintained by a continuous water exchange using the water pump. Catfish stocking typically occurs in spring and fall in Kentucky. For the purpose of this model, we assumed
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