ECONOMICS OF SUPER-INTENSIVE RECIRCULATING SHRIMP PRODUCTION SYSTEMS: THE MANUAL

Economic analysis of research focused on developing sustainable and cost-effective super-intensive shrimp production systems with no water exchange has been on-going for over 10 years. The Texas A&M AgriLife Research Mariculture Laboratory at Flour Bluff in Corpus Christi, Texas has been researching innovative shrimp culture practices for the last three decades. This has resulted in regular yields of marketable Litopenaeus vannamei of up to 10 kg/m³ with high survival, low FCR, and significantly improved economic viability.

The economics of indoor, biofloc production of shrimp is presented as a chapter in the practical manual being developed for entrepreneurs, technicians and researchers.  The chapter summarizes and presents:

1) Enterprise budgeting as a flexible tool to evaluate the economic feasibility of a super-intensive recirculating shrimp production system;

2) Description and explanation of a bio-economic model for those considering developing a business plan or wanting to conduct an alternative scenario analyses;

3) Capital investment examples covering design, materials, construction, and economies of scale;

4) Factors affecting cost of production and their impact on financial viability;

5) Economic analyses of 2013 and 2014 research trials at the Texas A&M AgriLife Research Mariculture Lab;

6) General marketing principles and sensitivity analyses, and

7) Conclusions.

Models taking research results to commercial scale are included. Results are presented as detailed budget examples providing cost of production and net returns from research trials to commercial-scale operations. Financial indicators of profitability, such as internal rate of return, net present value and payback period are explained and demonstrated for case examples.  Developed budgets are analysed and uncover the factors that most affect cost of production and financial viability. Research has been the core behind the analyses presented and two examples are presented.  Marketing principles are provided with examples of shrimp price trends over time and how that affects profitability, specifically toward final shrimp size and its effect on production quantity and indicators of profitability. The manual is scheduled for publication by WAS in 2016.