Economic analysis of a water recirculation system catfish farm

The operational costs and revenue generation of a catfish farm operating water recirculation system was analyzed from May 2007 to April 2008. The farm operated the Dutch Model system with annual capacity of 30 tons of African catfish for grow-out facility. It had a small hatchery using water flow-through system. Total operational cost for 12 months period was Nl, 058,288.00 ranging 48,400 to Nll6, 850.00 monthly. Similarly total revenue generated was Nl, 166,220.00 with a monthly range of N33.670.00 to N68.890.00. The gross profit for the period of study was N107, 932.00 which was very minimal. The highest expenditure item was salaries, accounting for 34% followed by fish feed which accounted for 32% of the total costs. The catfish farm was not operating at full at the time of this study. However the analysis has highlighted that payment of salaries and feed procurement were major items that will determine the profitability of this investment. Consequently, reduction in salaries and feed costs will reduce the operational costs and thus make the project more viable