A Breakeven Price Analysis of Four Hypothetical Freshwater Prawn, Macrobrachium rosenbergii, Farms Using Data from Kentucky

ABSTRACT

Freshwater prawn, Macrobrachium rosenbergii, are a relatively recent aquaculture crop in Kentucky and neighboring states. Kentucky State University's Aquaculture Research Center (ARC) has been involved in prawn production research in ponds since 1991. Technologies prior to 1996 involved stocking juveniles at relatively low densities (20,000-40,000/ha) and feeding a 32% protein diet, resulting in an average yield of approximately 1,000 kg/ha. From 1996 onwards, artificial substrate has been installed in ponds, which offer greater habitable area, and have increased average yields to more than 1,500 kg/ha (in 1998). Although stocking and feeding rates increased with substrate use, the average feed conversion ratio decreased, indicating more efficient feed usage. From 1998 onwards, a phase feeding practice, with higher feeding rates, was introduced. This involved feeding prawn distiller's grains, 32% protein feed, and 40% protein feed at different stages of the growout period. These feeding practices, in conjunction with a higher stocking density, substrate use, etc., have produced average yields in excess of 2,500 kg/ha (in 1999 and 2000).

While the technological evolution has steadily increased average yields, production costs have also increased. However, breakeven price of production (in year 2000 dollars/kg) decreased from $18.37/kg (1991) to $9.93/kg (2000). Breakeven price analyses, taking output, input quantity, and price risk into consideration, indicate that the technology developed in 2000, using intensive stocking, phase feeding and artificial substrate, is the most competitive.

Key Words:

• Prawn
• economics
• breakeven price
• risk