The partitioned aquaculture system: A comparative economic analysis with traditional catfish technology and risk analysis for investment and adoption of technology

The PAS system is an aquaculture technology configured using an algal oxidation channel, which has been used by environmental engineers for algal biomass production. This system combines high density raceway culture with a high rate algal growth basin for treatment of ammonia and organic wastes allowing for 100% reuse of culture water in a self-contained, self-oxygenating culture unit.; The aquaculture industry has grown extensively in the United States since the 1960's. However, growth in the world industry has raised environmental and economic concerns. These environmental and economic concerns framed the strategic objective for the development of the Clemson Partitioned Aquaculture System.; This study addresses the economics of the PAS. The research began with a static base model developed from best guesses and experiences of aquaculture production for the PAS. This model was used to compare static results with traditional catfish production technology. The comparisons were three traditional production technology farm sizes with three hypothetical PAS farm sizes.; The comparison between the two types of technology was possible by the development of a computer simulation model based upon an observed fish growth rate formula and used to generate a production cycle from introduction of fingerlings to harvest of food size fish. The simulation model determined unit costs based on harvest times using South Carolina climate conditions and corresponding fish growth. Although capital costs are higher for the PAS than traditional catfish production technology the PAS technology appears promising. As promising as the PAS may appear in the first part of the study risks of the production were evaluated as well.; The results of the risk analysis indicate that a larger farm and lower real discount rates have a higher probability of returning net present values greater than zero and profitability indices greater than one as opposed to smaller farm and higher real discount rates. Another result suggested that the PAS system profitability is highly susceptible to per acre yield reductions. The observed yields of 17,156 pounds per acre reduced the profitability of the system greatly as opposed to the higher yield of 22,715 pounds per acre with the similar assumptions.