ECONOMIC IMPACT OF CHANNEL-BLUE HYBRID CATFISH GROWTH VARIABILITY ON PRODUCTION

Hybrid catfish (channel catfish, Ictalurus punctatus, ♀ x blue catfish, I. furcatus, ♂) farming is a prime example of yield intensification, but has witnessed, to some minor extent, growth variability problem.  Analyzing the economic impact of such problem is critical in order to understand fish producers' profitability as the fish processors' demand certain premium size fish.  A comprehensive industry-wide fish sampling as well as survey were, therefore conducted in Mississippi, Arkansas, and Alabama from 2015 to 2017. In total, 164 ponds were randomly sampled, which included single batch (N=25), multiple batch (N=16), split pond (N= 98) and in-pond raceway system (IPRS, N=25). Out of these IPRS, four raceways were selected from research settings while the rest were selected from research conducted at commercial settings.  Two comparative economic scenarios (A, B) were developed using a standard enterprise budget. Preliminary results suggest that the breakeven price above variable cost is in the range of $1.54/kg to $2.42/kg if the fish processor pays $2.62/kg for premium sized food fish (0.45-1.81 kg), but pays 50% less ($1.31/kg) for  undersized (<0.44kg) and oversized fish (>1.82 kg), Scenario A. In Scenario B, the breakeven price above variable cost ranged from 1.83/kg to $2.95 if the processor pays $2.62/kg only for premium size food fish, but pays zero ($0.00/kg) for undersized and oversized fish (Fig 1). Moreover, income above variable cost is positive and significant for scenario 'A' but is marginal or negative for Scenario B. The income above variable and total costs are inversely dependent on coefficient of variation (CV) for growth. Earlier preliminary analysis on growth variability of hybrid catfish showed that CV was in the expected range of 12-56%. Split pond system appears to be the most profitable enterprise as compared to single, multiple batch and IPRS.