Economic analysis of family trout farming in Southern Brazil

Abstract

This study aimed to evaluate the economic feasibility of family trout farming in the Serra Catarinense, a temperate region in South Brazil. Two properties characterized as small (production = 10.8 t/yr) and medium (production = 32.4 t/yr) scale, respectively, were evaluated. The investment costs were US$ 20,780.53 for the small-scale farm and US$ 92,677.03 for the medium-scale farm. Operating expenses were US$ 17,920.40/yr for the small-scale and US$ 45,876.24/yr for the medium-scale farms. Feed was the main cost. In the small-scale farm, both fixed and variable costs were higher. While feed costs per kg of fish produced were similar between the two production scales, for the medium-scale farm, the larger production scale decreases the significance of the remaining costs, resulting in higher profitability. Still, the economic analysis showed that the two scales of farming are economically feasible with IRR values ​​of 18 and 19% for the small and medium scales, respectively, and the payback period is less than 6 years for both scales of farming. The medium-scale producer had higher income and higher net present value, but the results of the other economic indicators were similar to the small-scale producer. We conclude that the family farming of trout in small and medium scales is economically feasible. The small-scale production requires complete dedication from the owner. For the medium-scale farm, it is feasible to hire a technician without compromising economic outcomes. Finally, based on the sensitivity analyses, it was shown that improper feed management can render the activity economically unfeasible.