Economic feasibility of producing oysters using a small-scale Hawaiian fishpond model

Abstract

Traditional fishpond aquaculture in Hawai‘i has declined since global trade provided access to cheaper, imported food. Farming non-native species like the Pacific oyster may prove more profitable than traditional species, and may help maintain the practice of fishpond aquaculture. Little literature exists on the economics of Hawai‘i’s oyster culture or the unique practices involved in fishpond-based production. Based on information supplied by a currently operating farm, we developed an enterprise budget for a model farm in order to 1) assess profitability, 2) determine sensitive input parameters, and 3) use stochastic modeling to determine the likelihood of different economic outcomes. The budget returned a marginally negative profit, with the bulk of operating costs from labor. Decision reversal analysis showed the model farm can be profitable with an increase in market price from US $1.25 to US $1.35 per oyster or a decrease in mortality rate from 50% to 45.9% – both are within reasonable reach in the near future.