The economic feasibility of introducing aquaculture into traditional farming systems in Arizona

Abstract

The primary objective of this study was to evaluate the economic feasibility of introducing fish culture into irrigated cotton production on farms in central Arizona. The representative farm adopted in this study is a cotton farm described in Arizona Field Crop Budgets, 1994-95. The only adjustment necessary for the farmer to make is to keep water in the ditches at all times. Water as a production variable for fish production was thus calculated only for the additional quantity required. Analysis of these production systems was accomplished by budgeting procedures as well as statistical analysis. The economic-engineering (synthetic firm technique) was employed to develop the input-output coefficients necessary for analysis. Five fish densities and eight ditch capacities were tested. The production function was estimated using input and yield data. Three functional forms (linear, quadratic and Cobb-Douglas) were examined to determine how well they estimated the production system. Using budget analysis, a fish stocking density of six fish per cubic meter and a ditch capacity of 2,925 m3 appear to provide the optimal production scenario, if the percentage of fish reaching harvestable size is improved from 66 percent to at least 80 percent. This density has been proven to require minimum production costs and to provide the most efficient use of resources. However, production functions estimated in this study indicate that profits can be increased through additional use of feed. At any ditch capacity, a density of six fish per cubic meter, provides the optimal economic results, MVP = PX2 Finally, the implication of the findings of this study are that raising tilapia in irrigation ditch systems on cotton farms in central Arizona is feasible at a stocking density of six fish per cubic meter. Studies to improve the percentage of fish reaching marketable size at this density is very critical. Increasing the initial size of the fingerlings could be a consideration in improving the percentage of fish reaching marketable size and eventually increasing optimum economic returns.