A PRELIMINARY ECONOMIC FEASIBILITY ANALYSIS OF A PROPOSED COMMERCIAL PENAEID SHRIMP CULTURE OPERATION1

ABSTRACT This analysis utilized the production data obtained in 1982 from ponds at the Cedar Bayou Texas A&M Mariculture Facility, east of Baytown, Texas. The Aquaculture Budget Simulation System developed at Texas A&M University was applied to create budgetary information including the net return, economic profit, break‐even quantities and prices, and net present values over a 10‐year horizon. This information was used to evaluate the economic feasibility of different stocking strategies at a proposed 76‐ha commercial penaeid shrimp culture operation. The stocking strategies consist of monoculture of Penaeus stylirostris at 10 and 20/m 2 respectively and polyculture of P. stylirostris with P. vannamei at two ratios (3:1 and 1:3) with a total density of 20/m 2 . The results indicated that only the polyculture of 75% P. vannamei with 25% P. stylirostris is economically profitable. This stocking strategy yields an economic profit of $54,589 for the first year of operation. The break‐even production of 1,526 kg/ha is less than the expected annual production of 1,919 kg/ha. The break‐even price of $6.11/kg is less than the market price of $8.23/kg. The net present value is $839,424 over 10 years considering the beginning $20,000 cash and 20% of the total investment as owner's investment. The payback occurred following the second year's harvest.