Costs and Returns of Open versus Closed Systems for Producing Soft-Shell Crawfish in Mississippi

Abstract

Technical and economic data on soft-shell crawfish, Procambarus clakii, production were gathered through interviews with operators of family-run soft-shell crawfish enterprises in Mississippi. Estimates of costs and returns were compared between open (flow-through) and closed (recirculating) systems. Open systems in Mississippi had relatively lower initial investment costs and higher net returns than did enterprises operating closed systems. The average producer using an open culture system operated for a shorter culture period and earned greater net returns to land, labor, management, and risk. On the average, producers using closed systmes incurred higher production costs and received lower net returns due to low molting rates. The net returns to capital for both systems, however, would be negligible or negative if owners' labor and management are values, at least, at hired labor's wage rate. Current market conditions for soft-shell crawfish do not allow for profitable operation of existing facilities. Sensitiveity analysis, however, showed that "improved" management of existing production systems, including higher molting rates, better use of inputs, and operating for a minimum number of months per season, might enhance the financial feasibility of soft-shell crawfish production in Mississippi.