SOCIO‐ECONOMIC FEASIBILITY STUDIES OF (Macrohrachium rosenbergii) FARMING IN PALAU(A Preliminary Report)1

Abstract

ABSTRACTThe economy of Palau is characterized by a large trade deficit, a large government sector, consumption higher than income, and virtually no commercial agriculture. The new Indicative Five Year Plan put a high priority on development of marine resources and agriculture. Aquaculture can be considered as a combination of both.The Micronesian Mariculture Demonstration Center operates a freshwater prawn hatchery (Macrobrachium rosenbergii) with a production capacity of 3–6 million juveniles a year. This initial production level will he able to serve 16 to 36 ha of ponds. The first part of this paper determines a minimum price for juveniles in the culture systems being used, while the second part concerns the economic feasibility of prawn farming. This compares the minimum price per kilo of prawns using farming close to subsistence level (e.g. small farms, family labor and low productivity) with a medium scale commercial farm. The preference of one over the other is dependent on government policies, e.g. subsidies, land lease, and foreign investment.Ultimately, any final conclusion about the feasibility of prawn farming is subject to the prices in the markets. Since this is still under research, marketing does not form a part of this study.