THE ECONOMICS OF SMALL-SCALE SOFT SHELL CRAYFISH PRODUCTION

Abstract

A soft shell crayfish operation consists of an indoor molting system for immature crayfish. The molted crayfish could be sold as food or bait. Such systems have been operated on a small-scale in Kentucky and neighboring states, although traditionally the industry has been centered in Louisiana. This article investigated profit-maximizing management conditions and economic feasibility of a small-scale soft shell crayfish operation. Results showed that a minimum facility size of 25–30 culture trays was essential for realizing a profit by selling product to bait shops. This facility size was also amenable to be operated by two full-time workers, making family-run enterprises a strong possibility. Other results showed that larger facilities, with more than 50 culture trays, were necessary to reduce the minimum equity in fixed investment to be less than 70%. Direct marketing at retail prices is often the only profitable option for small-scale aquaculture; this article gives an example of a small-scale aquaculture operation that can simultaneously supply different markets at a profit.