Aquacultural Engineering 2 (1983) 181-201

Economic Feasibility of P r a w n Macrobrachium Production in South Carolina, USA Larry L. Bauer

Department of Agricultural Economics, Clemson University, Clemson, South Carolina 29631, USA

and Paul A. Sandifer, Theodore I. J. Smith and Wallace E. Jenkins

Marine Resources Research Institute, PO Box 12559, Charleston,
South Carolina 29412, USA

ABSTRACT Costs and returns were estimated for freshwater prawn Macrobrachium rosenbergii farming as a supplemental enterprise in South Carolina in relation to the following factors: {1) existing versus new investment for ponds and water supply; (2) three stocking strategies (postlarvae alone, a 50:50 mixture o f postlarvae and nursed juveniles and nursed ]uveniles alone) at various densities {2.15-8.61 prawns m-2); {3) a range o f prices for seed stock ($0-50 per thousand); and {4) two marketing alternatives {sale o f product as shrimp tails only or with the large animals marketed heads-on and the rest as tails). Net revenue estimates indicate that prawn aquaculture has potential to become a source o f supplemental income to farmers in the coastal plain area o f South Carolina and throughout much o f the southeastern United States. This is especially likely if the enterprise can utilize existing pond facilities that are already discounted into the value o f the land or were constructed during a period o f lower investment costs. A prawn farm is unlikely to be profitable if postlarvae alone are stocked, even in existing facilities, but if a mixture o f postlarvae and fuveniles or iuveniles alone are stocked in existing facilities, profitability is likely at seed costs up to about $40 per thousand. 181 A quacultural Engineering 0144-8609/83/$03.00- Applied Science Publishers Ltd, England, 1983. Printed in Great Britain

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L. L. Bauer, P. A. Sandifer, T. L J. Smith, W. E. Jenkins

INTRODUCTION The feasibility of freshwater prawn Macrobrachium rosenbergii farming as a source of supplemental income for farmers in South Carolina has been under investigation for a number of years (Smith et al., 1976, 1978, 1981; Sandifer and Smith, 1979; Sandifer et al., 1982). In concept, this aquaculture activity would be incorporated into existing agricultural operations where certain types of facilities, equipment and labor would be available for seasonal use in prawn culture. An earlier economic analysis determined cost and revenue estimates for prawn farming in South Carolina based on data obtained from research ponds in 1976 and 1977. This study identified major cost centers (Roberts and Bauer, 1978). However, more recent research has resulted in increased production levels, reduced requirements for seed stock, improved feed utilization, reduced labor requirements and other findings of economic importance. These results, coupled with high inflation rates, indicate a need to re-examine the economic potential for prawn fanning in South Carolina. The scope and utility of this analysis was expanded by calculating returns to risk and management in relation to the following factors: (1) different stocking strategies (i.e. population densities and size at stocking); (2) two investment possibilities (use of existing facilities as against construction of new ones); (3) a range of prices for seed stock ($0-50 per thousand); and (4) two marketing alternatives (sale of product as shrimp tails only or with large animals sold as a heads-on gourmet product and the remainder of the crop as tails). This paper provides an updated analysis of the potential for prawn farming as an agricultural option in South Carolina. Such data also should be applicable to much of the southeastern United States and other areas with similar climates.

PROCEDURES The cost and return estimates are based on the results of replicated pond rearing trials conducted by staff of South Carolina's Marine Resources Research Institute (Smith et al., 1981). These trials, which ranged in duration from 144-168 days, determined yields associated with stocking densities of 2.15-8.61 prawns per square metre of pond

Economic feasibility o f prawn in Sou th Carolina

18 3

surface area (21 500-86 100 prawns ha -a) and differences in initial mean sizes o f the stocking populations. The ponds were stocked either with postlarvae (arbitrarily defined t o be ~ 0 . 1 g mean weight and ~< 18 mm (eye orbit to telson)iin length), nursery-reared juveniles ( > 0.1 ~< 0-4 g weight and > 18 ~< 28 mm in length), or 5 0 : 5 0 mixtures of postqarvae and juveniles. To simplify comparisons, the same range o f costs were used for all seed stock options, although it is obvious that larger animals would cost more than smaller ones. The economic estimates were generated for a hypothetical production unit (farm) consisting o f ten 0.4 ha ponds. Such an enterprise was considered strictly as a supplemental source of income to farmers in the coastal plane area of South Carolina, and we assumed that the land and necessary items o f farm equipment, such as tractors, trucks, etc., would be available. Fixed costs were estimated for two situations: (1) as a new investment where ponds have to be constructed and a water source provided, and (2) where pond facilities and a water source already exist, though some renovation work may be necessary.

RESULTS AND DISCUSSION Annual fixed costs Annual fixed costs are associated with items o f fixed investment, such as ponds, wells, equipment, etc., and are independent of the level of production. The total investment beyond what would normally exist on a coastal farm in South Carolina is estimated for the 10-pond unit, assuming the ponds and a well have to be constructed in one situation, and that the facilities already exist in the other case. This investment is then prorated over time and the resulting cost expressed on a per pond basis.
New investment P o n d s . The cost o f pond construction was based on discussions with

personnel of the Soil Conservation Service, US Department o f Agriculture. It is assumed that the ponds are to be constructed on reasonably level ground and that the levees are sloped at a rate of 2.5 : 1 with 0.3 1 m freeboard. It is also assumed that the ponds have an average depth o f 1.15 m and that the levee tops are 2.4 m or 3.7 m

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L. L. Bauer, P. A. Sandifer, T. I. J. Smith, W. E. Jenkins

wide, depending on whether that particular levee is used as a roadway. Using these specifications, it was estimated that approximately 20 000 m 3 would need to be moved at a cost of $1.30 m -3. The estimated cost of constructing the ten 0.4 ha ponds is $ 26 000 (Table 1). The construction of ponds is a capital improvement, and the US Internal Revenue Service will not allow its investment to be depreciated since the ponds add to the value of the property. With this consideration, the cost of the pond construction was amortized over 20 years at 12% interest. Since the capital is assumed to be recoverable, the annual charge is an average of the interest paid over the 20-year period or $218.09 pond -1 (Table 1). Harvest basin and drain: Climatic conditions in South Carolina are such that the prawns will have to be batch-harvested, i.e. the pond

TABLE 1

Estimated Initial Investment for all New Facilities for a Ten-pond Production Unit and Estimated Annual Fixed Costs per 0-4 ha Pond for Macrobrachium Production in South Carolina
Item Total initial Annual fixed investment ($) cost pond -1($)

Ponds Pond construction Harvest basin and drain Crushed limestone Vegetation cover Well and equipment Well Pump Pipe Seines Instruments Feeder Feed storage Aerators Land Total

26 000 3 550 780 300 25 000 5 000 1 840 396 500 1 300 1 900 2 800 $69 366

218.09 47.33 11.70 4.50 250.00 66.67 24.53 9.90 12.50 19.50 28.50 42.00 38.75 $773.97

Economic feasibility o f prawn in Sou th Carolina

185

completely drained and the animals taken from a harvest basin constructed outside the pond. To reduce initial investment costs, each harvest basin would be shared by two ponds. Each basin is assumed to be 2.4 3.0X 0.9 m deep with 0.1 m thick walls and receives a 0 . 2 m diameter pipe from each pond. The total estimated cost for these five basins is $3550 to serve the 10 ponds. The useful life is estimated to be 12 years, so straight line depreciation with no salvage value is used for that period. This amounts to $29.58 per pond per year. Since the capital is invested in a Macrobrachiurn enterprise, it is not available to earn a return in an alternative investment so an interest charge is also made. Assuming a 10% alternative return, and estimating average investment as one-half the initial investment, the interest charge is $17.75 per pond per year. The total of these two items is $47.33 and represents the annual fixed cost o f the harvest basin and drain. Levee stabilization. The levees need to be seeded and the roadways graveled. The total area to be seeded is 0.8 ha. The cost for seeding this area would be $300, based on Clemson University Extension Service's estimate o f $370 ha -1 to establish rescue pasture. When the $300 cost is prorated over 10 years and a 10% interest charge added, the annual charge per pond is $4.50. Approximately 118 tonnes of crusted limestone would be needed to gravel the roadways. A trucking firm in Charlston, South Carolina, indicated that the cost for limestone would be $6.61 tonne -1 delivered from 64 km away (it is assumed that the farm would be no further than 64 km from a source of road gravel). Total cost for limestone gravel would be $780. When this cost is prorated over an estimated life o f 10 years and a 10% interest charge on the average investment added, the annual charge is $11.70 per 0 . 4 ha pond. Well: A well capable of providing 2650 litres min -1 is considered to be necessary to service all the culture ponds. The cost of well drilling is very site specific so estimates were obtained from several commercial drillers. Based on these, a general estimate of $25 000 is determined. When this cost is depreciated over 20 years and a 10% interest charge added, the estimated annual cost is $250 pond -1 Pump. A 40 h.p. pump would be necessary to deliver the desired capacity of 2650 litres min -~ and would cost approximately $5000. This is depreciated over 12 years, with no salvage value, and a 10% interest charge added, yielding an estimated annual charge for the pump of $66.67 pond -1.

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L. L. Bauer, P. A. Sandifer, T. L J. Smith, W. E. Jenkins

Pipe: Approximately 244 m of the 15 cm pipe would be needed for water distribution. At a price of $7.54 m -1 the estimated total cost is $1840. This is depreciated over 12 years and a 10% interest charge added to estimate the annual fixed cost o f $24.53 per pond. Seines: Two 30 X 2 m deep seines would be necessary, one of 0.64 and the other of 1.3 cm stretch mesh. Cost estimates of $220 and $176 are obtained for the smaller and larger seines, respectively, giving a total cost o f $396. The seines are depreciated over five years and a 10% interest charge is added, yielding an estimated annual cost of $9.90 pond -1. Instruments: The estimated total cost o f water quality instruments to m o n i t o r temperature, pH, dissolved oxygen, etc., is $500. This cost is depreciated over five years and a 10% interest charge on the average investment added to obtain an estimated annual cost o f $12.50 pond -1. Feeder: A PTO-driven feeder with 725 kg capacity will be used to feed the prawns. Its estimated cost of $1300 is depreciated over 10 years with a 1 0% interest charge added, resulting in an estimated annual cost o f $19.50 p o n d -1. Storage." Storage space for 9 tonnes of feed will be required at an estimated cost of $1900. The storage unit is elevated so the feeder can be loaded by gravity. The initial cost is depreciated over 10 years and 10% interest on average investment added to estimate the annual charge of $28.50 p o n d -1. Aerators: Low oxygen levels can be a serious problem in the pond culture of Macrobrachium. Thus, as a precaution, the cost for two paddle-wheel t y p e aerators is included. These operate o f f the PTO of a tractor and are very efficient in adding oxygen to water. The cost is $1400 unit -1, but they could be built on the farm at a much lower cost. A 5 5 - 6 0 h.p. tractor is necessary to run an aerator. Since the need for aeration is not expected to be continuous, the aerators are depreciated over 10 years. When a 10% interest charge on the average investment is added, the annual fixed charge is $42.00 pond -a. Land: It is assumed that the land is already owned, so the charge made is the o p p o r t u n i t y cost o f not renting the land. A representative rental rate for agricultural land in South Carolina in 1980 was $61.75 ha -1, including taxes and insurance. It is assumed a total land area of 6.3 ha is needed to construct the 10 ponds, access roads, levees, etc. Therefore, the total land charge is $387.50 or $38.75 per pond per year.

Economic feasibility of prawn in South Carolina

187

Other: Oth e r necessary items such as a t ract or and a truck are assumed to be available, since it is assumed that the M a c r o b r a c h i u m operation will be a s uppl e m ent ar y activity for people already engaged in fanning. Use costs for such items are charged under variable costs. Total. The total investment needed to construct new facilities was estimated to be $69 366 for a hypot het i cal 10-pond farm. This amounts to an average fixed cost o f $774 per pond per year (Table 1 ). Existing facilities The initial investment requirement m a y be substantially reduced in situations in which M a c r o b r a c h i u m are p r o d u c e d on farms where ponds and a source o f water already exist. Therefore, investment and annual fixed costs for such a situation are also estimated (Table 2). It is assumed the initial investment in the ponds has been paid and dis-

TABLE 2

Estimated Initial Investment with Existing Facilities for a Tenpond Production Unit and Estimated Annual Fixed Costs per 0.4 ha Pond for Macrobrachium production in South Carolina Item Total initial Annual fixed investment ($) cost pond -1 ($)

Ponds Crushed limestone Vegetation cover Water distribution equipment Pump Pipe Seines Instruments Feeder Feed storage Aerators Land Total

780 300 5 000 1 840 396 500 1 300 1 900 2 800 $14 816

11.70 4.50 66.67 24.53 9.90 12.50 19.50 28.50 42.00 38.75 $258.55

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L . L . Bauer, P. A. Sandifer, T. L J. Smith, W. E. Jenkins

counted into the value of the land, b u t a new p u m p and distribution pipe will be needed to update the facilities. The costs of levee stabilization are included since these will be recurring. Other costs are the same as described above. Variable costs Variable costs include those items which vary with the level of output, e.g. labor, fertilizer, etc. These are presented in Table 3 for all items except feed and seed stock, which are treated separately. Labor: Labor requirements were estimated from experience with experimental ponds. These estimates for a 165-day growing season are as follows:

T/me
Function
Stocking Water quality analysis Feeding Management and aeration Maintenance Harvesting Fertilizing and liming Heading and grading Total per p o n d per year

(manhours per pond)

2.0 13.0 24- 5 4.5 3.5 16.5 3-0 10.0 77.0

At a wage rate of $3.50 h -1, the estimated cost of labor is $269.50 pond -a. Fertilizer: Fertilizer is applied to induce a p h y t o p l a n k t o n bloom when the ponds are filled each spring. Usually a 20-20-5 fertilizer is applied at an average rate o f 4 5 . 4 kg per 0 . 4 ha pond. At a price of $0.143 kg -1, the total cost is $6.50 pond -1. Lime: Because soils in South Carolina are usually acid, it is often necessary to apply about 680 kg of lime per 0 . 4 ha pond just prior to filling. At a cost o f $ 0 . 0 4 4 kg -1 of lime, the annual cost is approximately $30 pond -1. Feed: A feed conversion rate of 1:1 ( f e e d : p r a w n biomass) is considered attainable based on research results (Smith et al., 1981 ; Sandifer et al., 1982). The estimated feed costs for the nine stocking strategies

Economic feasibility o f prawn in South Carolina

189

TABLE 3 Estimated Annual Variable Costs per 0.4 ha Pond for Macrobraehium Production in South Carolina
Item a $ pond- 1

Labor Fertilizer Lime Electricity Ice Tranportation Tractor Truck Repair and maintenance Miscellaneous Interest on operating capital Total

269.50 6.50 30.00 62.40 5.00 15.00 147.25 85.47 138.73 50.00 21.96 $831.81

a Seed stock and feed costs are not included but are treated separately.

considered are presented in Table 4. It is assumed that Ralston Purina Marine Ration 25, supplied at a cost of $0.48 kg -a, is used. E l e c t r i c i t y . It is assumed that water is supplied by a 40 h.p. electric pump and that the ponds must be filled at the beginning of the growing season. Hydrological records indicate that seasonal evaporation will exceed precipitation on average, so the evaporative loss, plus water lost by seepage, will have to be replaced. These two factors are estimated to account for a water loss of 26 cm from each pond over the growing season. In addition, an amount of water equal to 25% of the total volume replaced is assumed to be necessary for flushing the ponds to remove undesirable algae or to improve water quality. Using these estimates, 1300 kWh would be needed for filling each pond, replacing evaporative and seepage losses, and flushing. An electric company in the coastal area of the state has a farm rate of $0.048 kWh-a; therefore, the estimated cost of electricity to run the pump is $62.40 pond -a.

190

L. L. Bauer, P. A. Sandifer, T. L J. Smith, W. E. Jenkins TABLE 4 Estimated feed costs ($0.48 kg -1) for Nine Prawn Stocking Strategies Stocldng strategy Feed (kg pond -1) Cost ($ pond-l)

Postlarvae (no. m -2) 2.15 4.31 6.46 Po~larvae andjuvenfles(no.m -2) 2.15 4.31 6-46 Juveniles (no. rn -2) 4.31 6.46 8.61

135 236 344 163 276 494 408 495 539

64.80 113.28 165.12 78.24 132.48 237.12 195.84 237.60 258.72

Ice: Approximately 135 kg of ice will be needed per pond for onfarm processing. The estimated cost for ice, including truck transportation over a distance o f 5 0 - 6 0 km, is $5.00 p o n d -1. Transportation: The cost of transporting the prawn crop will depend on each farm situation. A cost of $15 pond -1 is included here as a rough estimate, based on a transportation distance o f 50 km. Tractors." It is assumed that a 55 h.p. tractor will be used for a total o f 25 h pond -1 for feeding, powering aerators, and other miscellaneous activities. Extension economists at Clemson University have estimated the cost of tractor use, including b o t h fixed and variable costs, to be $5.89 h -1. The total annual cost is therefore estimated to be $147.25 p o n d -~. Truck. It is assumed that a -ton pick-up truck is used 1 h day -1 during the 165-day growing season in connection with the Macrobrachium enterprise. The estimated ownership cost is $5.18 h -1. Therefore, the estimated annual cost is $85.47 pond -1. Maintenance and repair: A c o m m o n l y used estimate of the cost of repairs and maintenance is 2% of investment. Given the estimated

Economic feasibility of prawn in South Carolina

TABLE 5

191

Prices for Prawns Used in Calculating Estimated Revenues

Market category

Size class (no. kg -1)

Pricea ($ kg -1)

Average price ($ kg -1)

Whole prawns Small Medium Large Tails only Petite

23-33 18-22 < 18

>197

7.71 8.82 9.92

3.00

7.71 8.82 9.92

177-197 155-176 Small 133-154 122-132

111-121

3.00] 3.61 J 4.28 I 4.96] 5.42J 6.02 I 6.19] 6.81! 7.87~ '8.58/ 9.32 I 10.14] 10.97J

3.20

4.89

Medium

100-110 89-99 78-88 67-77 56-66 45-55 34-44 24-33

6.35

Large Jumbo

8.22 10.14

a Prices for whole prawns are based on prices reportedly received by farms marketing in Florida, Hawaii and Puerto Rico. Prices for tails are average ex-vessel prices received in South Carolina during 1978-80 at time of pond harvest (October).

i n v e s t m e n t o f $69 366 (Table 1) for new facilities, the estimated annual cost is $138.73 p o n d -1. This estimate is used here for b o t h investment situations. Miscellaneous." A miscellaneous charge of $50 p o n d -1 is included to a c c o u n t for small miscellaneous items (e.g. buckets, hoses, etc.). Interest on operating capital: The total o f the variable cost items discussed t h u s far a m o u n t to $809.85. Since the entire a m o u n t is not

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L. L. Bauer, P. A. Sandifer, T. I. J. Smith, W. E. Jenkins

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Economic feasibility o/prawn in South Carolina

193

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194

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invested at the beginning of the season, this sum is divided b y two to approximate the average investment during the season. At an annual interest rate of 12% for 165 days, the total charge for interest on operating capital is $21.96 pond -1. Total: The estimated total of all annual variable costs, excluding the cost of seed stock and feed, is $831.81 pond -1. Estimated

revenue

Gross r e v e n u e

Estimated gross revenue is calculated assuming two different marketing strategies: 1. All prawns beheaded and the tails sold at local ex-vessel prices for marine shrimp. Work by Liao and Smith (1980) indicates that prawns should receive prices comparable to those received for Penaeid shrimp. 2. Larger ( ~ 30 g) prawns sold whole, and smaller prawns beheaded and sold as tails as above. The prices used for calculating revenue are presented in Table 5, and the production data for the nine stocking strategies are given in Table 6.
Net revenue

The estimated net revenue per pond for b o t h marketing strategies and the nine stocking strategies were calculated for the two investment alternatives. Those for the situation where investment is required for new ponds and a well are presented in Tables 7-9. The estimates for the situation where facilities are already available are presented in Tables 10-12. Because an o p p o r t u n i t y cost on all factors is included, a net revenue of zero would represent a true breakdown point since all inputs would be receiving a return. The estimates of net revenue indicate that prawn farming is less likely to be economically feasible if new ponds have to be constructed and no water supply is available. However, when seed stock is available at low cost ( ~ $10 per thousand) and post-larvae and juveniles or juveniles alone are stocked, there is a projected profit at certain densities if the large prawns are marketed whole and the smaller ones as tails (Tables 7-9). The potential for profit is greater if existing facilities

Economic feasibility of prawn in South Carolina

TABLE 7 Estimated Net Revenue for Postlarval Prawns Stocked in a New Facility as a Function of Stocking Density, Seed Cost, and Marketing Strategy

195

Seed stock price ($ per thousand)

Stocking rate (no. m-2)

Marketing strategy Tails {$ pond -1) Whole and tails ($ pond -1)
--951.41 --1003.00 --499.61 --1037.41 --1175.40 -758.01 --1123.41 --1347.80 --1016.41 --1209.41 --1520.20 --1274.81 --1295.41 --1692.60 --1533.21 --1381.41 --1865.00 --1791.61

2.15 4.31 6.46 2.15 4.31 6.46 2.15 4.31 6.46 2.15 4.31 6-46 2.15 4.31 6.46 2.15 4-31 6.46

--1202.67 --1088.74 --767.87 --1288.67 --1261.14 --1026.27 --1374.67 --1433.54 --1284.67 --1460.67 --1605.94 --1543.07 --1546.67 --1778.34 --1801.47 --1632.67 --1950.74 --2059.87

10

20

30

40

50

(i.e. ponds, water supply, etc.) are utilized for prawn farming. Nevertheless, it still would be important that the cost o f seed stock be relatively low (~< $30 per thousand) and that postlarvae and juveniles or juveniles alone be stocked (Tables 10-12). As indicated by previous studies, stocking newly metamorphosed post-larvae alone is unlikely to produce a profitable crop in South Carolina (Sandifer and Smith, 1979; Sandifer et al., 1982). The cost o f seed stock is one o f the major controlling factors affecting economic feasibility. If seed costs could be reduced, either through

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L. L. Bauer, P. A. Sandifer, T. L J. Smith, W. E. Jenkins

TABLE 8 Estimated Net Revenue for a Mixture of Postlarval and Juvenile Prawns Stocked in a New Facility as a Function of Stocking Density, Seed Cost and Marketing Strategy

Seed stock price ($ per thousand)

Stocking rate (no. m -2)

Marketing stretegy Tails ($ pond -1) Whole and tails ($ pond -1)
--824.08 --608.47 606.60 --910.08 --780.87 348.20 --996.08 --953.27 89.80 --1082.08 --1125.67 -- 168.60 --1168.08 --1298.07 --427.00 --1254.08 --1470.47 --685.40

2.15 4-31 6-46 2.15 4.31 6.46 2.15 4.31 6.46 2.15 4.31 6.46 2.15 4-31 6.46 2-15 4-31 6.46

--1111.95 --853.96 -- 190.88 --1197.95 -- 1026.36 --449.28 -- 1283.95 -- 1198.76 --707.68 --1369.95 --1371.16 --966.08 --1455.95 --1543.56 -- 1244.48 --1541.95 --1715.96 --1482.88

10

20

30

40

50

p r o d u c t i o n i m p r o v e m e n t s , c o m p e t i t i o n or g o v e r n m e n t subsidy, t h e r e w o u l d b e m o r e rapid d e v e l o p m e n t o f p r a w n f a r m s in the US. During the p a s t several years, t h e r e have b e e n significant r e d u c t i o n s in the cost o f seed, and a d d i t i o n a l r e d u c t i o n s are possible. F u r t h e r , g o v e r n m e n t subsidies in a g r i c u l t u r e are q u i t e c o m m o n , a n d in a f e w i n s t a n c e s such subsidies h a v e b e e n applied to a q u a c u l t u r e . F o r e x a m p l e , in Hawaii t h e p r o v i s i o n o f p o s t - l a r v a e to p r i v a t e f a r m e r s b y the s t a t e h a t c h e r y ,

Economic feasibility of prawn in South Carolina

TABLE 9 Estimated Net Revenue for Juvenile Prawns Stocked in a New Facility as a Function of Stocking Density, Seed Cost and Marketing Strategy

197

Seed stock price ($ per thousand)

Stocking rate (no. m -2)

Marketing strategy Tails ($ pond -l) Who le and tails ($ pond -1)
182.58 446.68 104.99 10.18 188.28 -239.41 -162.22 -70.12 -583.81 -334.62 -328.52 -928.21 -507.02 -586.92 -1272.61 -679.42 -845.32 -1617.01

4.31 6.46 8.61 4.31 6.46 8.61 4.31 6.46 8.61 4-31 6.46 8.61 4.31 6.46 8.61 4.31 6.46 8.61

-427.02 -203.47 -221.89 -559.42 -461.87 -566.29 -771.82 -720.27 -910.69 -944.22 -978.67 -1255.09 -1116.62 -1237.07 -1599.49 -1289.02 -1495.47 -1943.89

10

20

30

40

50

free or at low cost ( < $ 1 0 per thousand), was largely responsible for the establishment of a prawn aquaculture industry there. In South Carolina the provision o f pine seedlings to industry by the state Forestry Commission is analogous to the state support for prawn farming in Hawaii. The development o f markets for this farm-reared product is critical, and the economic impact of just two marketing strategies was shown in

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L. L. Bauer, P. A. Sandifer, T. L J. Smith, W. E. Jenkins

TABLE 10 Estimated Net Revenue for Postlarval Prawns when Stocked in an Existing Facility as a Function of Stocking Density, Seed Cost and Marketing Strategy

Seed stock price ($ per thousand)

Stock rate (no. m -2]

Marketing strategy
Tai~

($pond -1)
0 2.15 4.31 6.46 2.15 4.31 6.46 2.15 4.31 6.46 2.15 4.31 6.46 2.15 4.31 6-46 2,15 4.31 6.46 --687.25 --573.32 --252.42 --773.25 --745.72 --510.85 --859.25 --918.12 --769.25 --945.25 --1090.52 --1027.65 --1031.25 --1262.92 --1286.05 --1117.25 --1435.32 --1544.45

Who~and~i~ ($pond -1)

--435.99 --487.58 15.81 --521.99 --659.98 --242.59 --607.99 --832.38 --500.99 --693.99 --1004.78 --759.39 --779.99 --1177.18 --1017.79 --865.99 --1349.58 --1276.19

10

20

30

40

50

our e c o n o m i c analysis. Some encouraging preliminary marketing results were obtained by Liao and Smith (1980, 1 9 8 2 ) a n d Liao et al. (1981). F u r t h e r examination o f existing markets and expansion into new markets requires additional analysis, especially for a heads-on product . Besides improvements in revenue via market d e v e l o p m e n t efforts, reductions in p r o d u c t i o n costs are also possible. F o r example, the

Economic feasibility of prawn in South Carolina

TABLE 11 Estimated Net Revenue for a Mixture of Postlarval and Juvenile Prawns Stocked in an Existing Facility as a Function of Stocking Density, Seed Cost and Marketing Strategy

199

Seed stock price ($ per thousand)

Stocking rate

Marketing strategy Tails ($ pond-l) Whole and tails ($ pond-l)

--308.66 --93.05 1122.02 --394.66 --265.45 863.62 --480.66 --437.85 605.22 --566.66 --610.25 346.82 --652.66 -782.65 88.42 --738.66 --955.05 -- 169.98

(no. m-5

2-15 4.31 6-46 2.15 4-31 6.46 2.15 4.31 6.46 2.15 4-31 6.46 2.15 4-31 6.46 2.15 4.31 6.46

--596.33 --338.54 324.54 --682.33 --510.94 66.14 --768.33 --683.34 -- 192.26 --854.33 --855.74 --450.66 --940.33 --1028.14 --709.06 -- 1026.33 -- 1200.54 --967.46

10

20

30

40

50

c o n s t r u c t i o n o f p a d d l e - w h e e l aerators on site and the use o f lower cost feeds c o u l d e f f e c t significant cost savings. In c o n c l u s i o n , p r a w n farming appears c o m p e t i t i v e with current alternative c r o p s o n S o u t h Carolina farms and thus offers p o t e n t i a l for s u p p l e m e n t a l i n c o m e for farmers here and elsewhere in the southeastern U n i t e d States.

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L. L. Bauer, P. A. Sandifer, T. L J. Smith, W. E. Jenkins

TABLE 12 Estimated Net Revenue for Juvenile Prawns Stocked in an Existing Facility as a Function of Stocking Density, Seed Cost and Marketing Strategy

Seed stock price ($ per thousand)

Stocking rate (no. m -2)

Marketing strategy Tails ($ pond -x) Whole and tails ($ pond -x)
698.00 962.16 620.41 525.60 703.70 276.01 353.20 445.30 --68.39 180.80 186.90 --412.79 8.40 --71.50 --757.19 -- 164.00 --329.90 --1101.59

4.31 6.46 8.61 4.31 6-46 8.61 4.31 6.46 8-61 4.31 6.46 8.61 4.31 6-46 8.61 4.31 6.46 8.61

88.40 311.95 293.53 --84.00 53.55 --50.87 --256.40 --204.85 --395.27 --428.80 --463.25 --739.67 --601.20 --721.65 --1084.07 --773.60 --980.05 --1428.47

10

20

30

40

50

ACKNOWLEDGMENTS We th an k the mariculture staff at the Marine Resources Research Institute, especially Alvin Stokes and William Eisle who manage the research ponds. This paper is the result o f research sponsored by the National Sea Grant College Program, D e p a r t m e n t o f Commerce, under Grant Nos NA79AA-D-00132 and 04-8-M01-173, and the state of

Economic feasibility of prawn in Sou th Carolina

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S o u t h Carolina. Reference to trade names in this paper does n o t imply e n d o r s e m e n t by the Sea Grant Program or the state o f S o u t h Carolina. C o n t r i b u t i o n No. 164 from the S o u t h Carolina Marine Resources Center.

REFERENCES Liao, D. S. & Smith, T. I. J. (1980). The marketing opportunity for freshwater shrimp in South Carolina: a preliminary survey. Proceedings 5th Tropical and Subtropical Fisheries Technology Conference of the Americas, Texas A & M University, pp. 67-69. Liao, D. S. & Smith, T. I. J. (1982). Marketing of cultured prawns, Macrobrachium rosenbergii, in South Carolina. Journal Worm Mariculture Society, 13, in press. Liao, D. S., Smith, T. I. J. & Taylor, F. S. (1981). The marketability of prawns Macrobrachium rosenbergii in restaurants in South Carolina: a preliminary analysis. Proceedings 6th Tropical and Subtropical Fisheries Technology Conference of the Americas, Texas A & M University, pp. 38-41. Roberts, K. J. & Bauer, L. L. (1978). Costs and returns for Macrobrachium growout in South Carolina, USA. Aquaculture, 15,383-90. Sandifer, P. A. & Smith, T. I. J. (1979). Experimental aquaculture of the Malaysian prawn Macrobrachium rosenbergii (de Man) in South Carolina, USA. In: Advances in Aquaculture, eds. T. V. R. Pillay and W. A. Dill, Fishing News Books Ltd, Farnham, England, pp. 306-11. Sandifer, P. A., Smith, T. I. J. & Bauer, L. L. (1982). Economic comparisons of stocking and marketing strategies for aquaculture of prawns Macrobrachium rosenbergii (de Man) in South Carolina, USA. Proceedings of the Symposium on Coastal Aquaculture, Cochin, India, 1980, 1, pp. 88-97. Smith, T. I. J., Sandifer, P. A. & Trimble, W. C. (1976). Pond culture of the Malaysian prawn Macrobrachium rosenbergii (de Man) in South Carolina, 19741975. Proceedings 7th Annual Workshop Worm Mariculture Society, San Diego, California, pp. 625-45. Smith, T. I. J., Sandifer, P. A. & Smith, M. H. (1978). Population structure of Malaysian prawns, Macrobrachium rosenbergii (de Man), reared in earthen ponds ill South Carolina, 1974-1976. Proceedings 9th Annual Workshop Worm Mariculture Society, Atlanta, Georgia, pp. 21-38. Smith, T. I. J., Sandifer, P. A., Jenkins, W. E. & Stokes, A. D. (1981). Effect of population structure and density at stocking on production and commercial feasibility of prawn Macrobrachium rosenbergii farming in temperature climates. Journal WorldMariculture Society, 12 (1), 233-50.