Download - ASSESSING THE VIABILITY OF INLAND SALTWATER SHRIMP FARMING IN SOUTH CENTRAL ALABAMA

ASSESSING THE VIABILITY OF INLAND SALTWATER SHRIMP FARMING IN SOUTH CENTRAL ALABAMA

Anthoney S. Deanes, P. O. Box 2269, Mt Pleasant, TX 75456-2269, [email protected]: Dr. Ntam Baharanyi & Dr. Barrett T. Vaughan

TUSKEGEE UNIVERSITY, Tuskegee, ALGS04-036, GRADUATE STUDENT PROJECT

Objectives

1. Describe the production of farm-raised saltwater shrimp as an agricultural enterprise

2. Identify the constraints and risks associated with inland saltwater shrimp farm industry

3. Compare the cost efficiencies of farms via scales of production

Intended Outcomes

Case Study Profile on each farmer

Comparison of farm practices

Development of Enterprise Budget

Development of Break-even Analysis

Research Methods

Methods – Case Study Approach Data Collection

– Semi-standard Questionnaire– Interviews– Telephone Conversations– Farm Visits

Data Analysis– Qualitative Method– Descriptive Statistics

Other Significant Findings

Developed individual case profiles for each farm

Lack of knowledge and experience amongst some of farmers

Disparity in farm practices Lack of a well define marketing plan The enterprise is more cost-effective as a

sole enterprise on the 50 acre scale versus a 5 acre scale

Significant Findings – Table 3

MAJOR COSTS ASSOCIATED WITH INLAND SALTWATER SHRIMP FARMING

Case Major Costs

1 Feed PLs Electricity Processing Aeration



4 Feed PLs Electricity Labor Aeration

5 Feed PLs Electricity Aeration Tractors

6 Feed PLs Electricity Labor Aeration


MAJOR CONSTRAINTS ASSOCIATED WITH INLAND SALTWATER SHRIMP FARMING

Case Major Constraints

1 Marketing PL Availability

Local Infrastructure

2 Capital Knowledge


3 Marketing PL Availability Affordable Feed

4 Knowledge Marketing PL Availability

5 Marketing Labor


6 Weather Marketing Labor

FIVE-ACRE SALTWATER SHRIMP FARM ENTERPRISE BUDGET

Category Unit Unit Price, $ Quantity Total, $ 1. Income Shrimp Lb 7.00 13,100 91,700.00 2. Variable Costs PLs 1000 8.00 653.4 5,227.20 PL Delivery Freight 200.00 1 200.00 Feed Tons 900.00 24 21,600.00 Fuel gallons 2.25 720 1,620.00 Chemicals, Minerals, etc. Total 300.00 1 300.00 Production Labor Hr 7.00 100 700.00 Processing Lb 0.63 13,100 8,253.00 Harvesting Labor Hr 7.00 80 560.00 Transportation of Harvest Day 50.00 3 750.00 Electricity Total 1,600.00 1 1,600.00 Operating Capital Total 10,000.00 1 10,000.00 Interest on Operating Capital Total 0.10 10,000 1,000.00 Marketing Total 2,000.00 1 2,000.00 3. Total Variable Cost 53,810.20 4. Income Above Variable Cost 37,889.80 5. Fixed Costs Interest on Invest. Capital Year 0.10 200,000 20,000.00 Taxes and Insurance Year 2,500.00 1 2,500.00 Owner Labor Hr 10.00 900 9,000.00 Pickup Truck Mo 500.00 5 2,500.00 Monitoring Equipment Mo 100.00 4 400.00 Tractor & Equipment Mo 600.00 4 2,400.00 Emergency Aerator Mo 150.00 4 600.00 Emergency Generator Mo 200.00 4 800.00 Land Yr 15,000.00 1 15,000.00 Construction Yr 5,000.00 1 5,000.00 Acclimation Facilities Yr 500.00 1 500.00 Frozen Storage Yr 1,200.00 1 1,200.00 Harvesting Equip. & Suppl. Yr 500.00 1 500.00 6. Total Fixed Costs 60,400.00 7. Total Costs 114,210.20

8. Estimated Returns (22,510.20) 9. Break-even price/ lbs produced

8.72


FIFTY-ACRE SALTWATER SHRIMP FARM ENTERPRISE BUDGET

Category Unit Unit Price, $ Quantity Total, $ 1. Income Shrimp Lb 7.00 131,000 917,000.00 2. Variable Costs PLs 1000 8.00 6,534 52,272.00 PL Delivery Freight 500.00 1 500.00 Feed Ton 900.00 231 207,900.00 Fuel Gal 2.25 960 2,160.00 Chemicals, Minerals, etc. Total 2,000.00 1 2,000.00 Production Labor Hr 7.00 300 2,100.00 Processing Lb 0.63 131,000 82,530.00 Harvesting Labor Hr 7.00 500 3,500.00 Transportation of Harvest Da 250.00 12 3,000.00 Electricity Mo 1,000.00 7 7,000.00 Operating Capital Total 50,000.00 1 50,000.00 Interest on Operating Capital 10% 0.10 50,000 5,000.00 Marketing Yr 10,000.00 1 10,000.00 3. Total Variable Cost 427,962.00 4. Income Above Variable Cost 489,038.00 5. Fixed Costs Depreciation Yr 24,900.00 1 24,900.00 Interest on Investment Capital dollars 0.10 875,000 87,500.00 Taxes and Insurance Yr 5,000.00 1 5,000.00 Owner Labor Hr 15.00 1200 18,000.00 Pickup Truck Yr 3,600.00 1 3,600.00 Computer Yr 500.00 1 500.00 Monitoring Equipment Yr 2,000.00 1 2,000.00 Tractor & Equipment Yr 10,000.00 1 10,000.00 Emergency Aerator Yr 500.00 1 500.00 Emergency Generator Yr 10,000.00 1 10,000.00 Pond Feeder Yr 2,000.00 1 2,000.00 Harvester Yr 10,000.00 1 10,000.00 Land Yr 75,000.00 1 75,000.00 Construction Yr 50,000.00 1 50,000.00 Trailer & Furniture Yr 2,500.00 1 2,500.00 Acclimation Facilities Yr 5,000.00 1 5,000.00 Harvesting Equipment & Supplies Yr 2,000.00 1 2,000.00 Frozen Storage Yr 10,000.00 1 10,000.00 6. Total Fixed Cost 318,500.00 7. Total Cost 746,462.00 8. Estimated Returns 170,538.00 9. Break-even price/ lbs produced 5.70


4,0442,0302,0135.552.782.76217,800.003,7631,7492,0136.453.003.45174,240.003,4811,4682,0137.963.364.60130,680.003,2001,1872,01310.974.076.9087,120.00

lbsdollars/lbPLs/acre

TCVCFCTCVCFCStocking

Rate

Break-even Production Levels to PayBreak-even Prices to Cover

Assumptions: 5 acres of production. Market Price is $6.

2,8661,7401,1264.592.781.80217,800.002,6251,4991,1265.253.002.25174,240.002,3841,2581,1266.363.363.00130,680.002,1431,0171,1268.574.074.5087,120.00



Rate



3,0331,5231,5105.552.782.76217,800.002,8221,3121,5106.453.003.45174,240.002,6111,1011,5107.963.364.60130,680.002,4008901,51010.974.076.9087,120.00



Rate



BREAK-EVEN ANALYSIS FOR FIVE-ACRES OF PRODUCTION


BREAK-EVEN ANALYSIS FOR FIFTY-ACRES OF PRODUCTION

2,7851,7571,0283.232.410.82217,800.002,5041,4761,0283.552.531.02174,240.002,2231,1951,0284.092.731.36130,680.001,9429131,0285.173.132.0587,120.00



Rate

Break-even Production Level to PayBreak-even Price to Cover


238715068813.232.410.82217,800.00214612658813.552.531.02174,240.00190510248814.092.731.36130,680.0016647838815.173.132.0587,120.00

lbsdollars/lbPLs/acreTCVCFCTCVCFC

Stocking Rate



2,0891,3187713.232.410.82217,800.001,8781,1077713.552.531.02174,240.001,6678967714.092.731.36130,680.001,4566857715.173.132.0587,120.00



Rate


