Break-even Analysis and Profitability of Aquaculture Practices in India

Sathiadhas, R; Najmudeen, T M; Prathap, K.

doi:10.33997/j.afs.2009.22.2.028

Cited by 8 publications

(6 citation statements)

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“…However, the standard deviation for marginal profitability is lowest for the largest pond size, indicating more consistent profitability in larger ponds, likely due to economies of scale and efficient resource utilization. These findings align with the results of Krishnan and Birthal (2002) and Sathiadhas et al (2009) who similarly found that large‐scale fish farming exhibited more consistent profitability in India compared to small‐scale farms. These findings also suggest that while larger ponds offer greater revenue potential, they also come with higher production costs.…”

Section: Discussionsupporting

confidence: 91%

Aquaculture: A hidden goldmine for the rural poor—A cost–benefit analysis of fish farming for sustainable development and food security in Vihiga County, Kenya

Syanya,

Harikrishnan,

Simiyu

et al. 2024

Bus Strat Dev

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In Kenya, aquaculture plays a significant role in enhancing the livelihoods of rural communities by boosting the local economy and diversifying protein sources. Although Vihiga County in Western Kenya boasts considerable potential for aquaculture, it paradoxically experiences some of the highest levels of poverty and malnutrition in the country. The profitability of fish farming has also been affected by inefficiencies and poor resources, disproportionately affecting the income and nutritional value of rural poor who rely on Aquaculture as a source of cheap protein. The study was conducted in Vihiga County to assess the cost–benefit of aquaculture production, selecting 100 fish farmers through a stratified random sampling technique from five sub‐counties. A descriptive research design was employed, and data analysis was conducted using correlation and regression analysis with SPSS. Budgetary techniques were used for the cost–benefit analysis. Data presentation was by comparing the mean and standard deviation in US dollars of different pond size production. The research findings indicated that the size and type of pond do not have a significant correlation and differences in production (p‐value >.05). There is a strong positive correlation between the size of the pond and the stocking density. The variable cost (VC) has a positive correlation with pond productivity meaning that an increase in VC leads to an increase in production. And is not statistically significant (p‐value = .21827, p‐value >.05). Moreover, the total cost (TC) correlation is statistically significant (p‐value = .0351, p < .05). Larger ponds are more profitable but require higher costs production than smaller ponds. The study concludes that pond size significantly impacts productivity, advocating for smaller ponds to achieve higher net returns with lower production costs. Major challenges include high costs of feeds, inputs, fish diseases, and post‐harvest losses. Key policy variables influencing aquaculture in Vihiga County include infrastructure, fish feed production, capital, and fisheries extension services. Adequate financial support from both National and County governments is crucial for sustainable aquaculture in alignment with Kenya's Vision 2030 and Global Sustainable Development Goals. Policymakers are urged to assist small‐scale farmers with financing, training, and market information to optimize returns on investment.

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Section: Discussionsupporting

confidence: 91%

Aquaculture: A hidden goldmine for the rural poor—A cost–benefit analysis of fish farming for sustainable development and food security in Vihiga County, Kenya

Syanya,

Harikrishnan,

Simiyu

et al. 2024

Bus Strat Dev

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“…The white legged shrimp was more profitable than the black tiger shrimp. Finally, the study indicated that, while both shrimp farming methods were profitable, white legged shrimp farming was more profitable owing to its two culture crops each year and higher productivity than black tiger shrimp farming [2].…”

Section: Review Of Literaturementioning

confidence: 93%

“…Aquaculture has emerged as one of the fastest growing food-farming systems at global level with enormous potential for further development [1][2][3][4][5][6][7]. Worldwide, the aquaculture sector has grown at an average rate of 5.3 percent per year during 2001-2018 [8].…”

Section: Introductionmentioning

confidence: 99%

An Economic Analysis of Shrimp (Litopenaeus vannamei) in Nagapattinam District of Tamil Nadu

Narkis

Uma

Rohini

et al. 2021

AJAEES

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Shrimp has become a popular seafood delicacy across the world. Shrimp is one of the widely traded seafood items and shrimp farming has created huge employment opportunities and gives foreign exchange to developing Nations. Shrimp exports have grown substantially with the introduction of Litopenaeus vannamei in India. The study analyses the economics of shrimp production and the constraints faced by the shrimp farmers in Nagapattinam district of Tamil Nadu. The economic analysis indicated that shrimp farmers have realized average gross returns of Rs.24,48,000 per hectare and average net return of Rs.8,71,038.58 per hectare. Disease problem and high feed cost were the major constraints faced by the farmers in the shrimp production.The results would help the policy makers in formulating suitable programs and devising strategies for increasing production of shrimp in Tamil Nadu.

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“…188.745.587. Nilai BEP (Break Event Point) dapat diartikan sebagai titik equilibrium dimana suatu usaha tidak mengalami kerugian maupun tidak mendapatkan keuntungan (Sathiadhas et al, 2009). Berdasarkan analisis rentabilitas usaha didapatkan nilai sebesar 35% yang artinya usaha ini layak untuk dijalankan, karena nilai rentabilitas usaha yang didapatkan lebih besar dari rata-rata tingkat suku bunga bank di negara berkembang yaitu 10% (Triyanti & Hikmah, 2015).…”

Section: Status Baku Mutu Kualitas Air Budidaya Intensif Udang Vannamei Salinitas Rendahunclassified

Financial Feasibility Analysis of Shrimp Vannamei (Litopenaeus vannamei) Culture in Intensive Aquaculture System with Low Salinity

Ariadi

Fadjar

Mahmudi

2019

ECSOFiM

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The prevalence of disease spread caused by improper cultivation systems causes a decrease in the productivity level of vannamei shrimp ponds. A low salinity cultivation system is one of the cultivation innovations that can be developed to reduce the spread of disease. The purpose of this study was to describe water quality status on aquatic shrimp culture and business financial feasibility in the intensive vannamei shrimp (Litopenaeus vannamei) culture with low salinity levels. The research method used was quantitative descriptive with a purposive sampling technique of data collection. The result of the research is the Water Quality Index analysis value of 110 which means it is very suitable to be used as a cultivation medium. Profitability analysis produces a profit value of Rp. 244,456,603, R/C Ratio 1.35, BEP Unit 3,797, BEP Sales Rp. 188,745,587, and Profitability 35%. Meanwhile, the financial analysis of the business found that the NPV value was Rp. 19,627,985,863, the Profitability Index was 25.43%, the IRR was 27.55%, and the Payback Period was 5 years, which meant that this business was very feasible to be developed based on its financial feasibility status criteria. So that the overall, low salinity shrimp culture is very feasible to be applied when viewed from the ecological or economic advantage, and can be used as an alternative for vannamei shrimp aquaculture in areas that have the location of a pond far from the source of marine water.

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Break-even Analysis and Profitability of Aquaculture Practices in India

Cited by 8 publications

References 0 publications

Aquaculture: A hidden goldmine for the rural poor—A cost–benefit analysis of fish farming for sustainable development and food security in Vihiga County, Kenya

Aquaculture: A hidden goldmine for the rural poor—A cost–benefit analysis of fish farming for sustainable development and food security in Vihiga County, Kenya

An Economic Analysis of Shrimp (Litopenaeus vannamei) in Nagapattinam District of Tamil Nadu

Financial Feasibility Analysis of Shrimp Vannamei (Litopenaeus vannamei) Culture in Intensive Aquaculture System with Low Salinity

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