A TECHNO-FINANCIAL ANALYSIS OF TILAPIA PRODUCTION IN THE RECIRCULATING AQUACULTURE SYSTEMS

Document Type : Original Article

Author

Agricultural and Bio-Systems engineering Department, Faculty of Agriculture, Benha University, Moshtohor, Toukh, Qlubia,Egypt

Abstract

The extensive fish farming in Egypt is mainly dependent on drainage water of agriculture, where pollution is most probably occurs. By law the Ministry of Public Affairs does permit raising fish on fresh water. Moreover, extensive fish farming in Egypt means tremendous losses in both land and water. To produce one kg of fish needs around 2 m2 of land and 5 m3 of water. The most feasible solution to overcome such problems is to develop a semi-intensive fish farming.
A techno financial analysis of tilapia production was conducted using a recirculating aquaculture system facility, situated at the Banha University, Agriculture College. Tilapia (1.0g), were stocked in the tanks; temperature and water quality parameters were carefully managed until the fish reached the harvestable size (500g) after 180days. The survival rate and feed conversion ratio (FCR) were 90% and 1.5 respectively.
The results showed that, the operational cost involving the system production was suited and economically viable.
Breakeven price above variable cost, breakeven price above fixed cost and breakeven yield estimated were L.E. 7.96, L.E. 9.33and 155,495kg respectively. The sensitivity analysis revealed that, increasing in the fixed cost by +10% decreased the internal return rate (IRR) from34% to23%. Also, decreasing the revenue by -10% decreased internal return rate (IRR) from 34% to 22%. While, change both increasing in the fixed cost by +10% and decreasing the revenue by -10% at the same time decreased internal return rate (IRR) from 34% to 11%.

Keywords

Main Subjects


Alceste, C.C. and Jory, D.E. (2002). World tilapia farming. available at:http://www.aquaculturemag./com/siteenglish/printed/buyers/eb.tilapia.html.
Ali, S.A., Z.A. El-Haddad and A. Ghareib. (2006). Design and Management of El-Nenaeia Fish Farm: as a Recirculating Aquaculture System. Misr Society of Agr. Eng., April (2006): Vol. 23(2):
Bjørndal, T. (1987). Bio economic analyse, pp. 92-131. In T. Bjørndal (ed.) Aquaculture economics, pages 173. J. W. Cappelens, J.W. Publisher AS, Oslo, Norway.
De Ionno, P.N., Wines, G.L., Jones, P.L., Collins, R.O. (2006). A bio economic evaluation of a commercial scale recirculating finfish grow out system: An Australian perspective. Published in Aquaculture journal volume 259, - page 315–327.
FAO. (2009). Fisheries global information system. In FAO, accessed on World Wide Web: http://www.fao.org/fishery/statistics/en.
FAO. (2010 ). Fisheries global information system. In FAO, accessed on World Wide Web: http://www.fao.org/fishery/statistics/en.
FAO GLOBEFISH (2011a) Tilapia Market Report. URL: http://www.globefish.org/tilapiafebruary- 2012.html.
Helfrich, L.A., and Libey, G. 1990. Fish Farming in Recirculating Aquaculture Systems. Department of Fisheries and Wildlife Sciences, Virginia Tech, Virginia. Accessed on the URL: http://www .aces.edu /dept/fisheries/aquaculture/documents/recirculatingVT.pdf.
Hoff, K. G. (1998). Cost performance volume analysis, p. 379-403. In K. G. Hoff (ed.) Basic Business Management, 493 p. TanoAschehoug, AiTEnger AS, Otta, Norway.
Jahncke, M.L., Schwarz, M.H. (2000). Application of hazard analysis and critical control point (HACCP) Principles as a risk management approach for re-circulating aquaculture systems (RAS). Proceedings of the Third International Symposium on Recirculating Aquaculture Systems, Roanoke, Virginia, July.
Kazmierczak Jr., R.F., Caffey, R.H. (1995). Management ability and the economics of recirculating aquaculture production systems. Published in Marine Resource Economics volume 10, 187–209. URL: http://ageconsearch.umn.edu/bitstream/49031.
Losordo, T. M., and P. Westerman., (1994). An Analysis of Biological, Economic, and Engineering Factors Affecting the Cost of Fish Production in Recirculating Aquaculture Systems. Pages 1-9 In Workshop on the Design of High-Density Recirculating Aquaculture Systems. Louisiana Sea Grant College Program, Louisiana State University, Baton Rouge.
Martins, C.I.M., Eding, E.H., Verdegem, M.C.J., Heinsbroek, L.T.N., Schneider, O., Blancheton, J.P., Rogue d’Orbcastel E., and Verreth J.A.J. (2010) : New developments in recirculating aquaculture systems in Europe: A perspective on environmental sustainability. Aquacultural Engineering, November 2010, Volume 43, Issue 3, Pages 83- 93.
Martins, C.I.M., Eding, E.H., Schneider, O., Rasmussen, R., Olesen, B., Plesner, L., Verreth, J.A.J. (2005). Recirculation Aquaculture Systems in Europe. CONSENSUS. Oostende, Belgium, Consensus working Group, European Aquaculture Society: 31.
Masser, M.P., Rakocy, J. and Losordo, T.M. (1999). Recirculating Aquaculture Tank Production Systems: Management of Recirculating Systems. SRAC Publication No. 452, Page 12. In Martins, C.I.M., Eding, E.H., Verdegem, M.C.J., Heinsbroek, L.T.N., Schneider, O., Blancheton, J.P., Rogue d’Orbcastel E., and Verreth J.A.J. (2010): New developments in recirculating aquaculture systems in Europe: A perspective on environmental sustainability. Aquacultural Engineering, November 2010, Volume 43, Issue 3.
Piedrahita, R.H. (2003). Reducing the Potential Environmental Impact of Tank Aquaculture Effluents through Intensification and Recirculation. Aquaculture. 226, pp 35-44. In In Martins, C.I.M., Eding, E.H., Verdegem, M.C.J., Heinsbroek, L.T.N., Schneider, O., Blancheton, J.P., Rogue d’Orbcastel E., and Verreth J.A.J. (2010): New developments in recirculating aquaculture systems in Europe: A perspective on environmental sustainability. Aquacultural Engineering, November 2010, Volume 43, Issue 3.
Rawlinson, P. and Forster, A. (2000). The Economics of Recirculation Aquaculture. Fisheries Victoria. Department of Natural Resources and Environment. Australia. URL: http://oregonstate.edu/dept /IIFET/2000/papers/rawlinson.pdf.
Rawlinson, P. (2002). The economic efficiencies of partial and intensive recirculation aquaculture systems for Murray cod. In: Ingram, B.A. (Ed.), Murray Cod Aquaculture: Now and Into the Future. Victorian Institute of Animal Science, Attwood, Victoria, Australia, page 17–18.
Schneider, O., Blancheton, J. P., Varadi, L., Eding, E. H., and Verreth, J. A. J. (2006). Cost price and Production Strategies in European Recirculation Systems. Linking Tradition & Technology Highest Quality for the Consumer, Firenze, Italy. World Aquaculture Society Conference proceedings.
Schneider, O., Schram, E., Poelman, M., Rothuis, A., van Duijn, A., van der Mheen, H.(2010). Practices in managing finfish aquaculture using ras technologies, the dutch example. OECD workshop on Advancing the Aquaculture Agenda, Paris, France, OECD. In Martins, C.I.M., Eding, E.H., Verdegem, M.C.J., Heinsbroek, L.T.N., Schneider, O., Blancheton, J.P., Rogue d’Orbcastel E., and Verreth J.A.J. (2010): New developments in recirculating aquaculture systems in Europe: A perspective on environmental sustainability. Aquacultural Engineering, November 2010, Volume 43, Issue 3.
Smith, S.A. (1996). HACCP Program for Disease and Therapeutics for Intensive Culture of Food Fish. In. Libey, G.S. and Timmons, M.B., eds. Successes and Failures in Commercial Recirculating Aquaculture. In: Proceedings of an International Workshop, Roanoke, Virginia, July 19–21, 1996 pp. 344–345.
Summerfelt, S.T., Sharrer, M.J., Tsukuda, S.M., Gearheart, M. (2009). Process Requirements for Achieving full-flow Disinfection of Recirculating water using ozonation and UV irradiation Aquaculture. Eng. 40, 17-27. In Martins, C.I.M., Eding, E.H., Verdegem, M.C.J., Heinsbroek, L.T.N., Schneider, O., Blancheton, J.P., Rogue d’Orbcastel E., and Verreth J.A.J. (2010): New Developments in Recirculating Aquaculture Systems in Europe: A Perspective on Environmental Sustainability. Aquacultural Engineering, November 2010, Volume 43, Issue 3.
Timmons, M.B, Ebeling, J.M., Wheaton, F.W, Summerfelt, S.T., Vinci, B.J. (2001). Recirculating Aquaculture Systems. NRAC Publication no. 01-002, Cayuga Aqua Ventures, Ithaca, NY, Page-650.
Verdegem, M. C. J., Bosma, R. H., Verreth, J. A. J. (2006). Reducing water use for animal production through aquaculture. International journal on Water Resource Development. 22, 101-113. In Martins, C.I.M., Eding, E.H., Verdegem, M.C.J., Heinsbroek, L.T.N., Schneider, O., Blancheton, J.P., Rogue d’Orbcastel E., and Verreth J.A.J. (2010): New developments in recirculating aquaculture systems in Europe: A perspective on environmental sustainability. Aquacultural Engineering, November 2010, Volume 43, Issue 3, Pages 83-93.
Zohar, Y., Tal, Y., Schreier, H. J., Steven, C., Stubblefield, J. and Place, A. (2005). Commercially feasible urban recirculate aquaculture: Addressing the marine sector. In Martins, C.I.M., Eding, E.H., Verdegem, M.C.J., Heinsbroek, L.T.N., Schneider, O., Blancheton, J.P., Rogue d’Orbcastel E., and Verreth J.A.J. (2010): New developments in recirculating aquaculture systems in Europe: A perspective on environmental sustainability. Aquacultural Engineering, November 2010, Volume 43, Issue 3, Pages 83-93.