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Annual Costs and Returns of Raising Bighead Carp in Commercial Catfish Ponds

Carole R. Engle, Ph.D.
Professor and Chairperson, Department of Aquaculture and Fisheries

Bighead carp (BHC) have been raised in catfish ponds in the United States for about 20 years and sold through the livehaul market as a live product. BHC grow rapidly in catfish ponds by feeding primarily on zooplankton and detritus which they filter out of the water. The feeding levels used to raise a catfish crop add sufficient nutrients to the pond to maintain a fertility level adequate for good growth of BHC. This Fact Sheet presents estimates of annual costs and returns to produce BHC in commercial-scale catfish ponds. The information is based on studies done at the University of Arkansas at Pine Bluff to evaluate stocking densities of BHC in catfish ponds. However, it should be noted that livehaulers are more willing to purchase a load of BHC if they can buy grass carp at the same time. Grass carp are typically stocked in catfish ponds at 10-30/acre.

A generalized 15-acre pond managed for commercial catfish production is used as the basis for estimating annual costs and returns. Catfish are stocked annually at 6,250/acre with 5 to 6 inch fingerlings and fed to near satiation. Annual costs and returns for catfish production are shown in Table 1.

Bighead carp fingerlings (50 lb/1000 BHC) are stocked at 300/ac, Table 2. Catfish farmers often stock BHC at lower rates of 125-150/ac, but if the available fingerlings are as small as 50 lb/1000, then it is necessary to stock at higher rates to allow for higher mortality. If large (50 lb/1000 or larger) fingerlings are available, the lower stocking rates should be used. BHC fingerlings cost approximately $0.15 each, for a total pond (15-acre) cost of $675. Since BHC consume primarily natural food, the only other additional cost of stocking BHC in a commercial catfish pond is the additional seining cost to harvest BHC separately from catfish. One additional seine haul costs $300 per pond; however, if BHC are seined on a different day from catfish, there would be a $500 minimum charge. The presence of BHC does not affect catfish yields or the amounts of feed, aeration, or other inputs into catfish production.

There are additional revenues obtained from sale of BHC. Fingerling BHC can grow to 5.3 lb in one growing season in commercial catfish ponds. Minimum market size of bighead carp varies from year to year and can be as low as 4 lb to as high as 6 lb. Yields of 660 lb/ac can be obtained that result in a pond (15-acre) yield of 9,900 lb. At the average market price of $0.40/lb, additional revenues of $3,960 per pond are generated.

Returns above variable cost were $15,734 for the 15-acre pond, or $2,912 more than for catfish production alone. When the fixed costs associated with the pond and equipment were taken into consideration, net returns for BHC with catfish were $536/acre, $194/acre more than for catfish production alone. If BHC are seined separately from catfish, the seining cost would be $500 to cover a custom harvester’s minimum fee. This additional seining cost would reduce net returns by $14/acre. However, net returns would still be $180/acre more than for catfish production alone.

Market prices for BHC fluctuate widely. Table 3 presents a sensitivity analysis of price fluctuations. Even at $0.25/lb, the lowest prices observed in the BHC live market, net returns of catfish-BHC production were greater than net returns of catfish production alone.

Profits will increase by stocking BHC in catfish ponds. However, farmers who harvest catfish several times a year may not wish to spend the extra time removing BHC before loading out catfish. Others may not wish to develop the livehauler contacts needed to sell BHC. The farmer must consider all these factors before making the decision to stock BHC in catfish ponds.

Table 1. Annual Cost and Returns for Catfish Production in a 15-acre Pond on a 320-acre
Commercial Catfish Farm^a.

Item	Description	Unit	Quantity	Price/unit ($)	Total cost ($)
Gross Returns
Catfish		lb	75,000	0.70	52,500
Variable costs
Catfish fingerlings	5 to 6 inch	each	93,750	0.07	6,562
Catfish feed	32% floating pellet	ton	82.5	225	18,562
Fuel					2,007
Chemicals					52
Telephone					132
Water testing					24
Labor					4,489
Management					1,849
Bird scaring					106
Accounting/legal					127
Harvesting/hauling					3,000
Interest on op. capital	10%, 9 months	dollars	27,682	0.10	2,768
Total variable costs	total	dollars			39,678
Returns above variable costs					12,822
Fixed costs^a
Depreciation		dollars			5,231
Interest on investment		dollars			2,248
Taxes and insurance		dollars			211
Total fixed costs		dollars			7,690
Total cost		dollars			47,368
Net returns		$/15-ac pond			5,132
		$/ac			342

^{a Based on Engle and Killian. 1997. Costs of producing catfish on commercial
farms in levee ponds

in Arkansas. ETB 252. Cooperative Extension Program, University of Arkansas at Pine Bluff.}

Table 2. Annual Cost and Returns^a for Catfish (5,000/ac) and Bighead Carp (300/ac) in a
15-acre Pond on a 320-acre Commercial Catfish Farm.

Item	Description	Unit	Quantity	Price/unit ($)	Total cost ($)
Gross Returns
Catfish		lb	75,000	0.70	52,500
Bighead carp	5.3 lb, 660 lb/ac	lb	9,900	0.40	3,960
Total Returns					56,460
Variable costs
Catfish fingerlings	5-6-inch	fingerling	93,750	0.07	6,562
Bighead fingerlings	50 lb/1000	fingerling	4,500	0.15	675
Catfish feed	32% floating pellet	ton	82.5	225	18,562
Fuel					2,007
Chemicals					52
Telephone					132
Water testing					24
Labor					4,489
Management					1,849
Bird scaring					106
Accounting/legal					127
Catfish harvesting/hauling					3,000
Bighead harvesting/hauling	1 seining event	seine pull	1	300	300
Interest on operating capital	10%, 9 months	dollars	28,414	0.10	2,841
Total variable costs	total	dollars			40,726
Returns above variable costs					15,734
Fixed costs^b
Depreciation					5,231
Interest on investment					2,248
Taxes and insurance		dollars			211
Total fixed costs		dollars			7,690
Total cost		dollars			48,416
Net returns		$/15-ac pond			8,044
		$/ac			536

^{aAdapted from Engle, C.R. and D.W. Brown. In Press. Growth, yield, dressout, and
net returns

of bighead carp (Hypophthalmichthys nobilis) stocked at three densities in catfish
(Ictalurus

punctatus) ponds. Journal of the World Aquaculture Society.

bBased on Engle and Killian. 1997. Costs of producing catfish on commercial farms
in levee ponds

in Arkansas. ETB 252. Cooperative Extension Program, University of Arkansas at Pine Bluff.}

Table 3. Sensitivity Analyses of Price of Bighead Carp.

Bighead Price	Gross Returns	Variable Costs	Total Costs	Returns Above
				Variable Cost	Total Cost
$/lb	$/15-ac pond	$/15-ac pond	$/15-ac pond	$/15-ac pond	$/15-ac pond	$/ac
0.25	54,975	40,726	48,416	14,249	6,559	437
0.30	55,470	40,726	48,416	14,744	7,054	470
0.35	55,965	40,726	48,416	15,239	7,549	503
0.40	56,460	40,726	48,416	15,734	8,044	536
0.45	56,955	40,726	48,416	16,229	8,539	569
0.50	57,450	40,726	48,416	16,724	9,034	602
0.55	57,945	40,726	48,416	17,219	9,529	635
0.60	58,440	40,726	48,416	17,714	10,024	668
0.65	58,935	40,726	48,416	18,209	10,519	701
0.70	59,430	40,726	48,416	18,704	11,014	734

Accredited By North Central Association of Colleges and Schools, Commission on Institutions of Higher Education, 30 N. LaSalle, Suite 2400, Chicago, Illinois 60602-2504, 1-800-621-7440. FAX: 312-263-7462.

Dr. Carole R. Engle is Professor and Chairperson, Department of Aquaculture and Fisheries, University of Arkansas at Pine Bluff.

FSA9078-3M-9-98N

Issued in furtherance of Extension work, Act of September 29, 1977, in cooperation with the U.S. Department of Agriculture, Dr. Jacquelyn W. McCray, Dean/Director of 1890 Research and Extension, Cooperative Extension Program, University of Arkansas at Pine Bluff. The Arkansas Cooperative Extension Program offers its programs to all eligible persons regardless of race, color, national origin, sex, or disability, and is an Equal Opportunity Employer.