Now showing items 1-2 of 2

    • Article

      Economic analysis of prawn (Penaeus monodon) culture in the Philippines, I. Hatchery operations 

      R Agbayani, U Hatch & E Belleza - Asian Fisheries Science, 1995 - Asian Fisheries Society
      High prices of prawn (Penaeus monodon) fry, profitability of hatchery operations, and a low cost hatchery design introduced by the Southeast Asian Fisheries Development Center attracted millions of dollars of investments in the mid-1980s. When export prices for prawn fell dramatically in 1989, demand for fry dropped as most prawn growers stopped operations or reduced stocking densities. Natural calamities – typhoons, earthquakes and volcanic eruptions – further depressed conditions in the hatchery sector.

      This paper presents an economic analysis of hatchery operations in the Philippines using data gathered through interviews and structured questionnaires in 1992. Economic indicators estimated include: investment requirements, unit cost, benefit over cost ratios, and internal rates of return. Breakeven and sensitivity analyses of operating hatcheries were employed to determine the degree of risk and changes in profitability levels associated with different scales of operation given changes in output price, input price and production level.

      Results indicate that net income per production run was positive for all scales of hatchery operation in spite of the current adverse market conditions. New hatchery investments, however, should be made in medium- and small-scale facilities because these have a better chance to survive worsening market conditions and periodic spawner shortages. Medium-size operations provide the best returns, and large-scale operations showed negative returns. Large-scale hatcheries are operating below capacity due to scarcity of spawners and low market demand.
    • Article

      Economic analysis of prawn (Penaeus monodon) culture in the Philippines, II: Grow-out operations 

      U Hatch, R Agbayani & E Belleza - Asian Fisheries Science, 1996 - Asian Fisheries Society
      The dramatic fall in prawn (Penaeus monodon) prices coupled with environmental concerns has resulted in a relative stagnation of prawn grow-out operations in the Philippines. Leaders of the Philippine aquaculture sector are concerned that their cost of production is higher than that of their close competitors in Indonesia and Thailand. Also, the environmental and production crash experienced in Taiwan has led to a general perception that intensive culture cannot be sustained. The sector recently experienced a lack of direction and growth, combined with crowded water sheds, excessive use of water bodies, overuse of groundwater and continued destruction of mangrove.

      A field survey of prawn growers was conducted in August-October 1992 using a standardized economic questionnaire that included costs, returns and growers perceptions of constraints. Economic estimates were developed for representative production systems; intensive, semi-intensive, extensive and prawn-milkfish rotation.

      The incentive to expand the prawn pond area is not strong. Existing intensive facilities can be operated efficiently and profitably, but new intensive operations will most likely need to include water treatment capabilities for water entering and exiting grow-out ponds. Canals, reservoirs or ponds used for water quality improvement may be able to concurrently produce a profitable crop, such as milkfish-prawn rotation. Internal rate of return for semi-intensive ponds using earthen ponds was higher than for other culture systems. If, over time, water quality and conservation constraints are sufficiently addressed, stocking densities might be increased. Research and extension programs targeting equity should focus on integrated systems.