Impact of Low Catfish Prices on Economically Efficient Feeding and Optimal Stocking Densities of Channel Catfish, Ictalurus punctatus, in Multi-Batch Production in the U. S. South

ABSTRACT

Channel catfish, Ictalurus punctatus, prices fell to historically low levels in 2002 in the U.S., but little economic research has been done on optimal farm management during times of very low prices. A Just-Pope catfish production function was used to estimate minimum catfish prices and maximum feed prices at which various feeding rates would be economically efficient. Optimal stocking and feeding rates were estimated for very low catfish price levels. Low catfish prices require lower stocking and feeding rates to operate at profit-maximizing levels. However, results showed that the very low prices of 2001–2002 would require farmers to stock at densities less than 10,000/ha to be able to feed at 2% of the pond biomass. Even maintenance feeding (1% of pond biomass) is not economically efficient at prices below $1.43/kg. However, stocking rates below 10,000/ha will not generate adequate revenue to cover debt-servicing requirements for long-term capital investment loans. Thus, farmers must adopt management strategies that will satisfy the multiple business requirements of servicing debt and meeting fish-delivery schedules. The results of this analysis provide guidance on the relationships among prices of catfish and feed, with stocking and feeding rates, to provide a basis for these difficult decisions.

KEYWORDS:

• Catfish price
• production economics
• risk aversion
• Ictalurus punctatus