Economic feasibility of Pabda and stinging catfish culture in recirculating aquaculture systems (RAS) in Bangladesh
Recirculating aquaculture system (RAS) is a unique approach that offers total control to culture a wide variety of aquatic species. As capital investment is higher for setting up RAS, it is necessary to conduct an economic feasibility analysis based on real data. A structured questionnaire was used...
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Published in | Aquaculture international Vol. 30; no. 1; pp. 445 - 465 |
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Main Authors | , , , , |
Format | Journal Article |
Language | English |
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Springer International Publishing
01.02.2022
Springer Nature B.V |
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Abstract | Recirculating aquaculture system (RAS) is a unique approach that offers total control to culture a wide variety of aquatic species. As capital investment is higher for setting up RAS, it is necessary to conduct an economic feasibility analysis based on real data. A structured questionnaire was used to collect all economic and technical data on two catfish species, viz., Pabda (
Ompok pabda
) and Shing (
Heteropneustes fossilis
), cultured in an RAS farm. The ultimate objective was to estimate net cash flow, net present value (NPV), profitability index (PI), payback period, discounted payback period, internal rate of return (IRR), and sensitivity analysis to find out the best profitability indicators. The analysis revealed that the IRR were 4% and 16% for Pabda and Shing production, respectively. However, for Pabda and Shing productions, the payback periods were 15 years and 4 months and 6 years and 2 months, respectively. The NPV value was positive for Shing production and negative for Pabda. On the other hand, the PI was lower than one for Pabda production and higher than one for Shing production. Therefore, the results showed that the Shing production in the RAS facility could be economically feasible; however, Pabda production may not be viable in RAS due to lower production and longer culture period. This study may suggest that by increasing the production capacity of the farm and market price of the product through the proper supply chain and by decreasing the initial investment, cost of fingerlings and feed, profitability can be achieved in RAS in Bangladesh. |
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AbstractList | Recirculating aquaculture system (RAS) is a unique approach that offers total control to culture a wide variety of aquatic species. As capital investment is higher for setting up RAS, it is necessary to conduct an economic feasibility analysis based on real data. A structured questionnaire was used to collect all economic and technical data on two catfish species, viz., Pabda (Ompok pabda) and Shing (Heteropneustes fossilis), cultured in an RAS farm. The ultimate objective was to estimate net cash flow, net present value (NPV), profitability index (PI), payback period, discounted payback period, internal rate of return (IRR), and sensitivity analysis to find out the best profitability indicators. The analysis revealed that the IRR were 4% and 16% for Pabda and Shing production, respectively. However, for Pabda and Shing productions, the payback periods were 15 years and 4 months and 6 years and 2 months, respectively. The NPV value was positive for Shing production and negative for Pabda. On the other hand, the PI was lower than one for Pabda production and higher than one for Shing production. Therefore, the results showed that the Shing production in the RAS facility could be economically feasible; however, Pabda production may not be viable in RAS due to lower production and longer culture period. This study may suggest that by increasing the production capacity of the farm and market price of the product through the proper supply chain and by decreasing the initial investment, cost of fingerlings and feed, profitability can be achieved in RAS in Bangladesh. Recirculating aquaculture system (RAS) is a unique approach that offers total control to culture a wide variety of aquatic species. As capital investment is higher for setting up RAS, it is necessary to conduct an economic feasibility analysis based on real data. A structured questionnaire was used to collect all economic and technical data on two catfish species, viz., Pabda ( Ompok pabda ) and Shing ( Heteropneustes fossilis ), cultured in an RAS farm. The ultimate objective was to estimate net cash flow, net present value (NPV), profitability index (PI), payback period, discounted payback period, internal rate of return (IRR), and sensitivity analysis to find out the best profitability indicators. The analysis revealed that the IRR were 4% and 16% for Pabda and Shing production, respectively. However, for Pabda and Shing productions, the payback periods were 15 years and 4 months and 6 years and 2 months, respectively. The NPV value was positive for Shing production and negative for Pabda. On the other hand, the PI was lower than one for Pabda production and higher than one for Shing production. Therefore, the results showed that the Shing production in the RAS facility could be economically feasible; however, Pabda production may not be viable in RAS due to lower production and longer culture period. This study may suggest that by increasing the production capacity of the farm and market price of the product through the proper supply chain and by decreasing the initial investment, cost of fingerlings and feed, profitability can be achieved in RAS in Bangladesh. |
Author | Arifa Alam, ABM Shamsul Begum, Mst Khadiza Rahman, Mohammad Shamsur Lalon, Raad Mozib |
Author_xml | – sequence: 1 surname: Arifa fullname: Arifa organization: Aquatic Animal Health Group, Department of Fisheries, Faculty of Biological Sciences, University of Dhaka – sequence: 2 givenname: Mst Khadiza surname: Begum fullname: Begum, Mst Khadiza organization: Aquatic Animal Health Group, Department of Fisheries, Faculty of Biological Sciences, University of Dhaka – sequence: 3 givenname: Raad Mozib surname: Lalon fullname: Lalon, Raad Mozib organization: Department of Banking and Insurance, Faculty of Business Studies, University of Dhaka – sequence: 4 givenname: ABM Shamsul surname: Alam fullname: Alam, ABM Shamsul organization: Agro3 Fish Hatchery & Culture Farm – sequence: 5 givenname: Mohammad Shamsur orcidid: 0000-0001-8447-3275 surname: Rahman fullname: Rahman, Mohammad Shamsur email: shamsur@du.ac.bd organization: Aquatic Animal Health Group, Department of Fisheries, Faculty of Biological Sciences, University of Dhaka |
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CitedBy_id | crossref_primary_10_1016_j_heliyon_2024_e28422 crossref_primary_10_1016_j_aqrep_2023_101511 crossref_primary_10_1016_j_aqrep_2023_101727 crossref_primary_10_3390_life13010176 crossref_primary_10_1016_j_spc_2023_08_013 crossref_primary_10_1007_s10499_023_01194_5 crossref_primary_10_3390_en16062565 crossref_primary_10_1007_s10499_022_00918_3 crossref_primary_10_1051_alr_2023028 crossref_primary_10_1007_s11356_023_25601_9 |
Cites_doi | 10.1007/s10499-016-9992-1 10.3329/jles.v6i0.9724 10.1111/j.1749-7345.1994.tb00181.x 10.1016/j.aquaculture.2006.05.047 10.1111/jwas.12706 10.1300/J028v05n02_01 10.1126/science.1185383 10.1080/13657305.2016.1156190 10.1111/are.13750 10.4060/ca9229en 10.21608/mjae.2012.101383 10.1046/j.1365-2095.1997.00084.x 10.1086/mre.10.2.42629110 10.1016/j.aquaeng.2010.09.002 10.1080/13657305.2019.1641574 10.18356/8d6ea4b6-en |
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Snippet | Recirculating aquaculture system (RAS) is a unique approach that offers total control to culture a wide variety of aquatic species. As capital investment is... |
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SubjectTerms | Analysis Aquaculture Aquaculture techniques Biomedical and Life Sciences Catfish Catfish culture Economic feasibility Feasibility studies Fingerlings Freshwater & Marine Ecology Freshwater fishes Heteropneustes fossilis Life Sciences Net present value Payback periods Recirculating aquaculture systems Sensitivity analysis Zoology |
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Title | Economic feasibility of Pabda and stinging catfish culture in recirculating aquaculture systems (RAS) in Bangladesh |
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