HOLDING AND SALES OF LIVE CATIFSH: AN ECONOMIC OPPORTUNITY

Pond-based aquaculture can be an expensive enterprise, specifically in Kentucky where pond construction costs can be three times as expensive as other states due to widespread karst systems and rocky soil conditions.  Indoor fish farming is also very capital intensive with most enterprises requiring insulated building with road access, drainage, lighting, and temperature control.  Health and water quality issues are often difficult for farmers to maintain due to a lack of knowledge in fish culture.  These high costs of entry and high levels of risk serve as barriers to many socially-disadvantaged farmers and prevent them from pursuing aquaculture enterprises.

This project looks at how socially-disadvantaged farmers can sell live catfish through small-scale hauling and holding operations.  Fixed and variable costs were examined to determine the profitability of the enterprise as well as returns to land and operator's management.  The sales price for live catfish was set at $7.70/kg based on previous market research conducted in Hispanic communities around Kentucky.  

Results showed that small-scale hauling and holding systems can be profitable and only require an initial investment of $5,039, making this type of system suitable for socially-disadvantaged farmers.  However, this enterprise is highly sensitive to the overall survival of the fish with substantial decreases to returns on investment as mortality increases.