Abstract
Information on the economic viability of aquaculture is crucial for investors when assessing the feasibility of an aquaculture project. As such information has been scarce in Sri Lanka, present study evaluates the production cost and profitability of two small scale aquaculture practices in Sri Lanka. These are 1) Asian sea bass (Lates calcarifer) cultured in net cages at Nadathivu canal in Kinniya in 2009 2) Monoculture of Genetically Improved Farmed Tilapia (GIFT) produced under intensively in net cages in Maduganga estuary in 2009. In this study, data on yield, costs and returns of farming were collected to quantify production costs and to assess the profitability. Economic analysis of the production systems revealed that the cost of tilapia and sea bass production per kg were Rs. 142.19 and 268.62 respectively. The yield of tilapia/m3 was measured to be 22.5 kg and the yield of sea bass/m3 was 22.1 kg. Tilapia cage culture had the highest return on investment (40.65%) and required 353.1 kg of the total production to reach the break-even point compared to sea bass. Feed was the main cost factor which was 66.21% for sea bass production while that of tilapia production was 60%. The ratio of the variable cost in total costs of tilapia production was 74% while that of sea bass production was 82%. The benefit cost ratio in tilapia production (1.40) was higher comparing to sea bass production (1.12). Culture of tilapia showed the highest viability and profitability of the two evaluated culture practices. DOI: http://dx.doi.org/10.4038/sljas.v17i0.6855 Sri Lanka Journal of Aquatic Sciences Vol.17: 47-57
Highlights
Aquaculture production has increased steadily in recent years; it is the fastest growing food production sector and has become a valuable component of national development and poverty reduction plans in many areas (FAO 2006)
The benefit cost ratio in tilapia production (1.40) was higher comparing to sea bass production (1.12)
Based on the economic indicators of the present study, it was clearly shown that tilapia culture was more profitable than sea bass farming
Summary
Aquaculture production has increased steadily in recent years; it is the fastest growing food production sector and has become a valuable component of national development and poverty reduction plans in many areas (FAO 2006). To meet future demands for food fish supplies in rural areas in Sri Lanka, resources have been put in place to promote aquaculture development through various extensive, semi intensive and intensive aquaculture systems in marine, brackish and inland waters over the past few decades (http://www.fisheries.gov.lk). Efficiency is measured in economic terms; that is, the amount of money spent on a farming activity (including costs of inputs, labor, management, opportunity cost for land and capital, etc.) is compared to the amount earned through the sale of produce (Brummett 2007). Reduction in production costs and increase in average farm revenue are major measures to increase net return
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