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ECONOMICS IMPORTANT OF CATFISH

Economics Channel catfish farming is a capital
intensive enterprise in both facility
development and production.
Prospective producers should
complete an economic feasibility
study before investing in an enterprise. Most lending
institutions will require a detailed
economic prospectus before
considering a loan to a new or
established producer. Production Costs Feed and fingerlings are significant
variable costs in the production of
channel catfish.
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LOCAL FISH PROCESSING, SPOILAGE AND PRESERVATION

However, the
quality of feed and fingerlings are
important to the success of a farm
and should not be compromised. Other fixed and variable costs need
to be considered. Depending on the
location, existing equipment (if
any), and other available
resources, production costs will
vary from farm to farm and across the country. Producers should
determine their own production
costs based on their situation. Tables 1 and 2 can be used as a
guide or adapted to your location
and resources to estimate the
potential profitability of a catfish
farm. Table 1. Catfish Budget,
Estimated Cost and Returns. Pond size __________ Stocking Rate
per acre __________ Item Quantity Price/Unit Value 1. Gross Receipts Catfish 2. Variable Costs Fingerlings Floating Feed Hired Labor Chemicals Fuel, Oil and Lube Equipment Repairs Interest on Operation Capital Total Variable Cost 3. Income Above Variable Costs 4. Fixed Costs Overhead Depreciation Interest on Investment Taxes and Insurance Total Fixed Costs 5. Total Costs 6. Returns to Land, Operator's Labor
and Management Less: Operator Labor 7. Returns to Land and Management Less: Mangement Charge 8. Returns to Land Table 2. Investment and Fixed
Cost Item New
Cost Charged to Catfish Proportion Charged to Catfish Value Useful Life Annual Depreciation Pond Feed Shed Dissolved Oxygen
Kit Aerator Mower Tractor (40 H.P.) Truck (½ ton) Feed Wagon Boat Electric Motor Battery Battery Charger Seines Live Cars Nets 1. Total Catfish Investment: 2. Total Depreciation: 3. Interest in Investment: (Investment x Interest Rate)/2:
__________ x __________% = __________ 4. Taxes and Insurance: (Investment x 1.4%)/2: __________ x
1.4% = __________ Harvesting and transporting costs
also should be considered in a
feasibility study. Generally it costs
2-3 cents per pound to harvest fish
and, depending on distance and
water temperatures, 1-5 cents per pound or more to transport fish. If
on-farm processing is considered,
these costs also need to be
determined. Alternative Production Systems Alternative production systems
may include cages, raceways and
tanks with filters (Figure 4). These
systems are higher risk methods
than traditional pond culture. All of
them require more management time and expertise and cost more.
Many require high densities of fish
in confined areas. This increases
animal stress, diseases and parasite
problems and requires a more
expensive and complete feed ration. Prospective producers
considering an alternative culture
system should carefully compare
anticipated costs to costs using a
pond culture system.
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RELATED LINKS

local fish pond construction my area 
construction of a fish pond in nigeria processes   
types of pond contruction for fish farming
feasibility study on local fish farming
how to own a mega fish farm business in nigeria 
feasibility report or study on fish farming
LOCAL FISH PROCESSING, SPOILAGE AND PRESERVATION

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