A Comparison of the Economic Performance of Offshore and Inshore Aquaculture Production Systems in Korea

Kim, Do-Hoon; Lipton, Douglas W.

doi:10.1080/13657305.2010.549165

Cited by 18 publications

(9 citation statements)

References 11 publications

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“…As regards the offshore farm, economic analysis showed financial indicators higher than inshore one (Kim and Lipton, 2011). In particular, NPV was equal to 94,368 €/1000 m 3 , while IRR denoted a value of 18.50% (Table 2).…”

Section: Resultsmentioning

confidence: 98%

Economic comparison between offshore and inshore aquaculture production systems of European sea bass in Italy

et al. 2014

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Section: Resultsmentioning

confidence: 98%

Economic comparison between offshore and inshore aquaculture production systems of European sea bass in Italy

et al. 2014

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“…It is noteworthy that, had the comparison between the two investments been based solely on the, conveniently comparable, average returns, the offshore investment would have resulted the more profitable as well as in other studies (Kim and Lipton, 2011), despite the higher investment costs and production costs of offshore farm (Drach et al, 2013;Kaiser et al, 2010). In fact, the NPV of the offshore investment amounted to € 1,713.59 against the € 1,464.75 of the inshore investment.…”

Section: Ajasmentioning

confidence: 99%

Economic Evaluation of Aquaculture Investments Under Conditions of Risk and Uncertainty in the Mediterranean Sea

Sgroi¹,

Tudisca²,

Trapani³

et al. 2014

American Journal of Applied Sciences

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This study aims to analyze, from a technical and economic point of view, the choice between alternative investments in aquaculture under conditions of risk and uncertainty. In particular, a comparative analysis has been conducted between an inshore and an offshore farm producing European sea bass in the Mediterranean Sea. The applied model refers to the theory of subjective probability, assigning a different probability to expected incomes during the investment period. Results show an economic convenience of inshore with respect to offshore farming.

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“…and to financial debt (bank debt, structured finance, syndicated loans, etc. ), as shown by several studies (Grablowsky, 1976;Dunn and Cheatham, 1993;Peel and Wilson, 1996;Molina and Preeve, 2009;Woods et al, 2014) highlighting the need for analysis of economic feasibility and financial projects even in the case of aquaculture (Molinos-Senante et al, 2010;Kaiser et al, 2010;Naziri, 2011;Kim and Lipton, 2011;Shamshak, 2011;Hadelan et al, 2012;Kim et al, 2012;Vilela et al, 2013;Emdad Haque et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

Profitability and Financial Sustainability Analysis in Italian Aquaculture Firms by Application of Economic and Financial Margins

Iotti¹,

Bonazzi²

2015

American Journal of Agricultural and Biological Sciences

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Agricultural Firms operating in the aquaculture sector in Italy are often characterized by high investment and high capital intensity. In fact, these companies need to develop structures and breeding systems to generate adequate cash flow to repay their investment in fixed assets. In addition, the biological cycle of breeding further extends the need for capital, in this case to finance working capital. There is therefore often a mismatch between the economic and financial cycles, wherein profit margins may differ from financial margins. In this way, such companies have an economic advantage but no sustainable financial cycle. In these cases, several crisis may force companies to default, especially when firns are unable to cover debt repayment. This difficulty is particularly present in Italy, where aquaculture firms are often Small and Medium Enterprises (SMEs) and therefore have greater difficulty than large companies accessing the capital market. Our research evaluates the cost effectiveness and financial sustainability of a sample of forty firms operating in the aquaculture sector in Italy, within a timespan of five years, through comparative analysis of the economic and financial margins. The analysis shows that such firms are capital intensive (TA/VP of median value is 1.16%). Financial debt emerges as the first source of capital then increasing companies' financial dependence through credit systems and borrowing costs. Firms have a particular absorption in the NWC cycle, with I_DAYS being 143.29 days, AR_DAYS being 72.75 and 145.51 AP_DAYS expressing financial operating cycle (I_DAYS + AR_DAYS -AP_DAYS) with a length of 70.53 days. Profit margins, even if they are correlated with financial margins, are lower on average. The research highlights that economic model worst explains FCFE (F = 0.011 and adjusted R 2 = 0.803), while the financial model best explains FCFE (F = 0.000 and adjusted R 2 = 0.922). Our research will be further developed through analyzing cooperatives, unincorporated partnerships and sole proprietorships. It may also be useful to undertake a comparative analysis of aquaculture firms operating in other countries of the Mediterranean basin.

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A Comparison of the Economic Performance of Offshore and Inshore Aquaculture Production Systems in Korea

Cited by 18 publications

References 11 publications

Economic comparison between offshore and inshore aquaculture production systems of European sea bass in Italy

Economic comparison between offshore and inshore aquaculture production systems of European sea bass in Italy

Economic Evaluation of Aquaculture Investments Under Conditions of Risk and Uncertainty in the Mediterranean Sea

Profitability and Financial Sustainability Analysis in Italian Aquaculture Firms by Application of Economic and Financial Margins

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