Abstract
An economic-engineering approach is used to evaluate the economic viability and health regulatory effects on a trout egg production hatchery located in the northeastern region of the United States. The hatchery has an output sufficient to supply the production requirements for the eastern US trout fishery. Analysis was made using AQUASIM, a dynamic, stochastic, capital budgeting simulation model for aquaculture production. The results show that the trout hatchery would be affected by a modest price competition from hatcheries located in the western region. The results also show that it is better to shut down and correct a serious disease problem than try to continue to operate and experience loss of production due to a violation of a regulatory policy.
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