Economics of milkfish (Chanos chanos) production in Hawaii*

Abstract

Economic evaluations of commercial milkfish (Chanos chanos) growout systems were made based on current Hawaiian fishpond, pond and tank culture techniques in Hawaii. Based on the observed practices of milkfish culture as a secondary or tertiary crop, capital costs and several operating costs were pro‐rated to accurately depict current farm practices. For a target harvest weight of 0.80 lb, the study estimates the total production cost for milkfish production at $3.31/lb for the pond system, $3.81/lb for the tank system and $1.84/lb for the Hawaiian fishpond system. At a sale price of $3.00/lb and seed cost of $0.25/fingerling, only the Hawaiian fishpond system is profitable under a 20‐year project life. When considering variable costs alone, the production cost is $1.78/lb for the pond system, $2.33/lb for the tank system and $1.53 for the Hawaiian fishpond system, yielding returns on variable costs of 67%, 30% and 59% respectively. Analyses of profit sensitivity to sale price, production yield, labor, feed and stocking indicate that sale price, as expected, has the largest impact on profitability, followed by feed. The results of this study are consistent with the Hawaii farmers’ view of milkfish as a secondary specie to core production based upon current market conditions and input requirements.