Ambio > Vol. 20, No. 2, Apr.

, 1991 > Economics and Wetland Management

GeoJournal
Volume 10, Number 3, 253-259, DOI: 10.1007/BF00462126

AQUACULTURE: PROMISES AND CONSTRAINTS

Aquaculture intensification under land and water limitations

Abstract

Two intensive aquaculture systems are described in which high yields are obtained for
relatively low inputs of land area, water and supplementary feed. The one is a
polyculture of a number of fish species in deep cotton irrigation reservoires (5–7 m deep)
in Israel. The large volume of water in these reservoirs improves the oxygen regime and
dilutes catabolites excreted by the fish. This allows the increase of fish density to
10,000–18,000 fish ha . It also enables the increase of the resevoir's productivity by
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manuring with liberal amounts of animal wastes. Yields obtained in this system reach
over 10 ton ha yr at very low feed conversion rates. The second system is practiced in
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Taiwan for the culture of red tilapia. Pond water is stirred mechanically by
paddlewheels to create a gentle current around a central water outlet. This supplies
ample oxygen and concentrates wastes in the center of the pond, from where it is
removed twice daily, thus alleviating the build-up of catabolite concentration in the
pond. Densities of fish amount to 215,000 to 430,000 fish ha , and the yields are
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accordingly high reaching more than 200 ton ha yr . The ecological principles involved
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in these systems are discussed.

Journal of the World Aquaculture Society

Volume 27, Issue 3, pages 275–289, September 1996

Economic Evaluation of Commercial-Scale, Saltwater Pond Production of Florida Red Tilapia

William D. Head,†, Alfonso Zerbi, Wade O. WatanabeArticle first published online: 3 APR 2007

DOI: 10.1111/j.1749-7345.1996.tb00609.x

Abstract
 An economic analysis was performed of a proposed commercial-scale 20-ha saltwater pond culture operation

for Florida red tilapia in Dorado, northern Puerto Rico. The analysis was based on actual cost and production

data from a commercial-scale hatchery, pilot-scale grow-out trials conducted in six 0.2-ha saltwater (avg. =

22.7 ppt) ponds at the Dorado facility and on wholesale market prices ($4.96–5.18/kg) fetched by dressed-out

(gilled, gutted and scaled) product. The proposed 20-ha growout facility is comprised of 25 0.8-ha earthen

ponds, each supplied with sea water, brackish well water, drainage and aeration, which account for 60.8% of

the capital costs. Ponds are stocked with fingerlings (0.85 g avg. wt.) at a density of 3.0 fish/m2 (30,000/ha),

and are harvested at 160 and 220 d, at an average weight of 545 g for a total yield of 11,445 kg/ha per crop.

Imported feed ($0.55/kg), processing and distribution ($0.50/kg) and sex-reversed fry ($0.11/fry) are the

highest variable costs, accounting for 30.7%, 15.4% and 13.9%, respectively, of the total annual costs.

Salaries and benefits, and depreciation represent the highest fixed costs, accounting for 8.4% and 5.5%,

respectively, of the total annual costs. Under these conditions, a wholesale price of $4.55/kg results in a

positive cash flow by year eight, and a breakeven price, internal rate of return (IRR), net present value (NPV)

and discounted payback period (DPP) of $4.08/kg, 7.6%, ($235,717) and >10 yr, respectively, suggesting that

the proposed 20-ha operation is not economically feasible under these conditions. The proposed enterprise is

marginally feasible if stocking density is increased to 3.5 fish/m2 while at 4.0 fish/m2 economic outlook is

favorable. Costs can be lowered considerably by targeting production and market variables most sensitive to

profitability indices, using locally-prepared feeds, and vertically integrating hatchery and growout operations.

Aquaculture Research

Volume 33, Issue 13, pages 1037–1048, October 2002

Evaluation of Nile tilapia pond management strategies in Egypt

B W Green1, Z El Nagdy2, H Hebicha2Article first published online: 15 OCT 2002

DOI: 10.1046/j.1365-2109.2002.00767.x

Keywords:

 economics;

 Egypt;

 Nile tilapia;

 production systems

Abstract
Five pond management strategies for Nile tilapia Oreochromis niloticus L. production were evaluated in 0.1-ha

earthen ponds in Egypt during a 145-day production cycle. Pond management strategies developed by the
Pond Dynamics/Aquaculture Collaborative Research Support Programme (PD/A CRSP) were compared with a

traditional and a modified Egyptian pond management strategy. Young-of-year Nile (mixed-sex or sex-

reversed) tilapia were stocked into ponds at 20 000 fish ha−1. Sex-reversed tilapia were stocked into chemical

fertilization, organic fertilization plus formulated feed and feed only treatment ponds, whereas mixed-sex tilapia

were stocked into organic fertilization plus formulated feed and chemical plus organic fertilization plus

formulated feed treatment ponds. Nile tilapia yields ranged from 1274 to 2929 kg ha−1. Nile tilapia yields in

organic fertilization plus formulated feed treatments were significantly greater than the yield from chemical

fertilization ponds. PD/A CRSP pond management strategies did not produce significantly greater Nile tilapia

yields than the traditional Egyptian system, but a larger percentage of harvested tilapia in the organic

fertilization plus feed treatments were classified in the first and second class size categories compared with the

traditional Egyptian system. Organic fertilization plus formulated feed pond management strategies had the

highest net returns, average rate of return on capital and the highest margin between average price and break-

even prices to cover total variable costs or total costs.

An Analysis of Biological, Economic, and Engineering Factors Affecting the Cost of Fish
Production in Recirculating Aquaculture Systems

1. Thomas M. Losordo1,

2. Philip W. Westerman2

Article first published online: 3 APR 2007

DOI: 10.1111/j.1749-7345.1994.tb00181.x

Journal of the World Aquaculture Society

Volume 25, Issue 2, pages 193–203, June 1994

Abstract
Aquaculture production in recirculating systems has been the focus of research and development efforts for

decades. Although considerable resources have been expended on these systems in the private sector, there

is a scarcity of data on the economic or engineering performance of commercial scale recirculating production

systems. This paper presents the results of a computer simulation of tilapia production in a small recirculating

production system. Much of the performance data has been developed at a demonstration facility at North

Carolina State University. Given the assumptions of the base case simulation, the cost of producing a kilogram

of tilapia in the recirculating system described is estimated to be $2.79 ($1.27/lb). The results of a model

sensitivity analysis indicate that while improvements in the performance efficiency of system components did

not greatly affect fish production costs, reductions in feed costs and improvements in the feed conversion ratio
caused the greatest reduction of production cost of all of the operational variables investigated. The analysis

further indicates that the greatest gains to be realized in improving profitability are those associated with

increasing the productive capacity or decreasing the investment cost of a recirculating fish production system.

Economic Evaluation of Different Stocking Densities for Various Sized in Texas

1. Johannes A. D. Lambregts,

2. Sayra G. Thacker,

3. Wade L. Griffin

Article first published online: 3 APR 2007

DOI: 10.1111/j.1749-7345.1993.tb00145.x

Journal of the World Aquaculture Society

Volume 24, Issue 1, pages 12–22, March 1993

Abstract
There has been a trend toward intensification of shrimp farming in the U.S. FiCteen simulated farms were used

to evaluate economies of scale and to compare three Penaeus vannclmei commercial production strategies:

semi-intensive, intensive, and very-intensive. Large economies of scale were associated with each production

strategy. Over the range of farm sizes considered, investment cost per hectare decreased approximately 50%

and production cost decreased approximately 25%. Farms' returns were measured with Internal Rate of Return

(IRR). When investment was greater than $0.75 million, the intensive strategy provided slightly better returns to

the investor than semi-intensive or very-intensive strategies. At investment levels less than $0.75 million, the

semi-intensive strategy provided the highest IRR.

Aquaculture
Volume 259, Issues 1-4, 8 September 2006, Pages 315-327

doi:10.1016/j.aquaculture.2006.05.047

A bioeconomic evaluation of a commercial scale

Abstract
This study, based on 3 years of commercial data, presents the results of an economic analysis of a 20-tonne
per annum (TPA) commercial recirculating aquaculture system (RAS) facility located in Warrnambool, Victoria,
Australia. Based on the assumptions of the analysis, results highlight the non-viability of the facility, with a 10-
year projected negative cumulative cash flow of − $648,038, and negative net present value (NPV) of −
$707,546. Economies of scale were assessed by the development of economic models for hypothetical 50-
TPA and 100-TPA facilities, based on the actual figures obtained from the 20-TPA case study. These
analyses highlighted marginal viability for the 50-TPA facility (with a ten-year projected cumulative cash flow of
$1,030,300; negative NPV of − $167,651 and internal rate of return (IRR) of 11.75%), and an economically
viable 100-TPA facility (with a ten-year projected cumulative cash flow of $3,176,750; NPV of $522,200 and
IRR of 21.03%). Sensitivity analysis highlighted that the greatest gains to be realised in improving profitability
were those associated with increasing the productive capacity of the facility, increasing the sale price of the
product, and decreasing the capital costs of RAS facilities. Contradictions between the results from the
present study to similar studies clearly highlight a need for further economic analyses of commercial RAS
facilities, using commercial data sets and standard economic analysis procedures.
Keywords: Recirculating aquaculture systems; Economics; Murray cod; Production; Profitability

Optimizing Tilapia, Oreochromis sp., Marketing Strategies in Nicaragua: A Mixed-integer

Carlos M. Leyva,†, Carole R. EngleArticle first published online: 22 MAY 2008

DOI: 10.1111/j.1749-7345.2008.00165.x

Journal of the World Aquaculture Society

Volume 39, Issue 3, pages 339–351, June 2008

Abstract
Tilapia, Oreochromis sp., production has increased in the Central American region in recent years. Yet,

commercial tilapia aquaculture has not developed in Nicaragua on the scale that it has in other

neighboring countries. Although demand for tilapia products exists, lack of thorough understanding of

domestic markets and coordinated production and marketing efforts have hampered the development

of a domestic market. The objectives of this study were to quantify domestic marketing costs for tilapia

produced in Nicaragua and develop a mixed-integer transshipment mathematical programming model

primarily outlets with higher sales prices such as restaurants with supplemental production delivered

to local supermarkets. The model chooses cities with weekly restaurant demand capable of absorbing

the farm’s production with excess product sold to alternative outlets. Supply of farm-raised tilapia

production in most regions of Nicaragua was insufficient and created problems associated with

frequent and dependable deliveries required by higher paying outlets (restaurants and supermarkets).

Larger farms will generate greater returns with regular consistent deliveries to higher priced restaurant

outlets. Smaller farms with limited production volumes were not able to meet weekly delivery

requirements. Biannual deliveries reduced transportation cost and sales price and were not profitable.

However, sustaining markets with infrequent deliveries may not be feasible. This analysis provides

guidelines for targeting those specific markets that optimize returns to specific farm sizes in specific

regions.