- Analysis of risk-shifting in the market for farm-raised
catfish in Mississippi and Arkansas
Ivano Neira and Kwamena Quagranie
The class agency theory model was used to assess any risk-shifting
behavior in the catfish market between processors (principals) and
catfish farmers (agents). Results indicate that catfish processors
do not shift risk. Catfish processors do not transfer risk to
farmers, but bear market risks. Results also show that catfish
processors appear to maximize expected pay offs by paying low
prices to farmers and extract trade gains from bearing market
risks. The low price that catfish farmers received would mean that
farmers implicitly paid high premiums. Delivery rights offered by
catfish processors to catfish farmers in the early 2000 do not
appear to have affected risk shifting.
- Focus group study to evaluate preferences for added-value
products derived from wild caught and farm-raised fish with
emphasis on farm-raised hybrid striped bass
Ivano Neira and Carole Engle
Four focus group meetings (white American groups, one African
American, and one Hispanic) were conducted in Little Rock to
evaluate preferences for added-value products derived from wild
caught and farm-raised fish with emphasis on farm-raised hybrid
striped bass. Contamination, price, promotion, fish variety,
packing showing the product and labeling with recipes, nutritious
content, and USDA certification were critical factors mentioned to
be able to increase fish consumption. Individual fillets in a
resealable bag containing either fresh or frozen were preferred
and desired. All the participants have positive perceptions of
farm-raised fish but none of them were aware of farm-raised hybrid
striped bass.
- Supermarket Surveys
Sanatan Shreay and Kwamena Quagrainie
A national mail survey was conducted of supermarket managers. A
total of 197 completed surveys were used in the analysis. Of the
supermarkets that sold catfish, the top five most frequently sold
types of seafood were: shrimp, salmon, catfish, tilapia, and cod.
In supermarkets that did not sell catfish, shrimp, salmon, cod,
pollock, and tuna, all marine species, were the most frequently
sold types of seafood. Overall, freshness and off-flavor were the
two most important factors defining quality.
- Restaurant Surveys
Sanatan Shreay and Kwamena Quagrainie
A nationwide mail survey was conducted of restaurant managers. A
total of 98 completed surveys were used. In restaurants that sold
catfish, catfish was the top selling type of seafood, followed by
shrimp, tuna, flounder, and bass. Restaurants that did not sell
catfish sold primarily marine species that included shrimp,
salmon, tuna, crab and clams. The two most important factors
influencing purchases of fish were quality and a reliable supply
(in terms of quantity and quality). These were followed by price
and taste.
- Economic Impact of the Catfish Research Verification Trials
Aloyce R. Kaliba and Carole R. Engle
From 1993 to 1995 catfish verification trials were conducted to
provide production support to the catfish industry in Arkansas.
The results from these trials encouraged catfish farmers to reduce
stocking rates to 15,000/ha and increase aeration rates to 2.5
hp/ha. The adoption of these farming techniques resulted in a
reduction in the cost of production by 22%. From 1993 to 2002, the
total economic benefit from the trials was $67 million. The
average annual internal rate of return was 3.4%. Given these
results, the trial was economically profitable.
- Efficiency change and technological progress in the U.S.
catfish processing sector, 1986-2005
Aloyce R. Kaliba, Carole R. Engle and Larry Dorman
In this paper, we measured productivity growth of the catfish
processing sector in the U.S. over a period of 1986 through 2004
to find out how efficiently catfish processed goods are produced.
The results indicate that between 1986 and 2005 there was no
technical change or adoption of new processing techniques with
significant impact. Technical efficiency changes were variable and
varied with type of fish size processed. Between 1986 and 1995 the
trend on technical efficiency change was negative as the industry
struggled to establish the most efficient fish size to process. A
positive trend on technical efficiency change is observed between
1995 and 2005. This means that under current processing
technology, input resources are continuously allocated optimally.
The focus should be on developing and adopting new processing
innovations that will increase productive efficiency and long-term
competitiveness of the catfish-processing sector.
- Potential Economic Impacts of Adding Value to Catfish
Processing Wastes
Aloyce R. Kaliba and Carole R. Engle
Processing of channel catfish (Ictalurus punctatus) yields
substantial quantities of unutilized processing wastes (up to 47%
of the fish weight). A regional economic-multiplier model was
developed to assess the economic impacts of processing the wastes
into fishmeal and fish oil using a 2002 IMPLAN database. In 2002,
the four states delivered 271,734 metric tons to catfish
processing plants, generating 354 metric tons of waste per day
that can be processed into fishmeal and fish oil by two plants
with a processing capacity of 200 metric tons per 24 hours (3
shifts), and employing 20 individuals. A catfish processing plant
would add three employees for sorting and then sell the waste to
fishmeal and fish oil plants at $0.22/kg to generate about $28
million in annual sales. Catfish farmers will receive about $4
million, based on farm cost shares of about 15%. Results indicated
that these activities would generate $79 million in total economic
output through direct, indirect, and induced impacts. This
economic expansion would create 600 jobs and labor income
amounting to $13 million through direct ($4 million), indirect ($7
million), and induced ($2 million) impacts. In addition, about $10
million in federal and state tax would be generated. While the
investments created more jobs in the directly affected industries,
it created higher paying jobs in industries that are indirectly
linked.
- A Cross-National Analysis of the Potential Economic Impact
of Aquaculture in Africa
Aloyce Kaliba and Kwamena Quagrainie
This study used computable general equilibrium models for Ghana,
Kenya, and Tanzania to estimate the effects on poverty alleviation
from aquaculture production activity and productivity growth in
intermediate inputs and primary factors. Using the head count
ratio measure of poverty, it was determined that, in Ghana, about
17% of agricultural farmers lived below the poverty line, and
about 19% of public sector employees lived below the poverty line
of 665,300 GHC. In Kenya, more than 50% of the population lived
below the poverty line of 14,868 KES in 2001. The most affected
were female-headed households in rural areas. In Tanzania, 38% of
rural households, and 23% of urban households lived below the
poverty line. With aquaculture expansion, the results suggest
positive effects in per capita income for all households in Ghana
and Kenya. In Tanzania, some rich households will experience
income loss due to resource shift from fisheries and manufacturing
sectors to aquaculture. The measure of poverty gap decreased in
all household groups in all countries with aquaculture expansion.
- Economic Analysis of Nile Tilapia (Oreochromis niloticus)
Production in Tanzania
Aloyce R. Kaliba and Kwamena K. Quagrainie
In this paper, economic profitability of small-scale Nile tilapia
production in Tanzania is analyzed using a model that simulates
individual fish growth and take into account fish population
dynamics in the pond. The results suggest that the current
practice of mixed-sex tilapia culture without predation is not
economically sustainable. Extension efforts should be geared
towards developing a Nile tilapia production system that is based
on a hand-sexed all male tilapia. Meanwhile catfish can be
introduced in ponds to control overcrowding in mixed-sex tilapia
culture without predation. Pond studies to determine optimal size,
availability of feed and quality fingerling supply are also
fundamental for developing a sustainable Nile tilapia production
system in Tanzania. Under improved Nile tilapia production
systems, returns are high enough to justify investment through
borrowed capital from formal institutions.
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