Catfish Industry The Delta ANS 18 - CATFISH vs BASA 1
History and infrastructure 1950 ss Homer Swingle and students at Auburn University in Alabama examined the potential of commercial culture Sport fishing hatcheries 1955 1970 commercial culture centered in Arkansas > > 1970 Mississippi ANS 18 - CATFISH vs BASA 2
The Catfish Institute - http://www.catfishinstitute.com www.catfishinstitute.com/ The Catfish Institute was founded in 1986 by a group of catfish farmers and feed manufacturers to improve consumer acceptance of U.S. Farm-Raised Catfish. Since its formation, annual catfish sales (live weight) as well as the industry have steadily grown. ANS 18 - CATFISH vs BASA 3
Off flavor the double edged sword Substances produced by pond algae causing off- flavors in catfish are not toxic, but make the fish unmarketable. These flavors do go away with time, but increase the cost of production while the fish are being held over while the compunds clear from the fish flesh. It has been estimated that the cost of off-flavor flavor for Mississippi farmers is estimated to be $16 million a year ANS 18 - CATFISH vs BASA 4
Off flavor the double edged sword However, in cooperation with the Catfish Institute now all catfish are checked for off flavor twice before harvesting. This allowed the U.S. catfish industry to certify to buyers that their would be no problems at the retail end with customer satisfaction. This program largely eliminated competition from both wild and pond- reared catfish grown outside the U.S. ANS 18 - CATFISH vs BASA 5
Primary product (60%) = fillets (~ 40% yield from a 1 2 lb fish) catfish are kept alive up until the minute they're processed. The entire processing process is completed in less than 30 minutes. fish are cleaned, processed and placed on ice or frozen to temperatures of - 40 o F below zero. Frozen farm-raised raised catfish are individually quick- frozen (IQF), a method which preserves the taste and quality of the fish. Plants are inspected and certified by the U.S. Department of Commerce 20 certified processing plants have a combined capacity of more than 10 million pounds of catfish every week. ANS 18 - CATFISH vs BASA 6
Catfish production costs Feed cost has been highly variable but long-term trend for average feed cost is relatively flat Production costs - increase of ~ 1%/yr. when feed prices are held steady Total annual costs in 1996 estimated to be: $ 0.734 for 160 acre farm $ 0.722 for 320 acre farm $ 0.692 for 640 acre farm ANS 18 - CATFISH vs BASA 7
Catfish prices (farm gate) Swingle - late 1950's $ 0.50/lb (catfish culture profitable) 1987 (Stickney 1991) $ 0.75/lb 1990 (Stickney 1991) $ 0.80/lb 1994 (Aquaculture Outlook, March 15, 1995) $ 0.78/lb 1999 (The Catfish Journal, September) $ 0.77/lb 2000 (The Catfish Journal, September) $ 0.76/lb ANS 18 - CATFISH vs BASA 8
Industry stability - Increase in production 1950 s s = ~ 1,000 lbs/acre Today some farmers harvest 7,000 lbs/acre Increase in farm size Expansion of markets from regional to national catfish # 5 most popular seafood C.I. off flavor Year round availability Value added products ANS 18 - CATFISH vs BASA 9
Industry survival threatened David = Vietnamese cage culture of catfish Goliath = U.S. pond culture of catfish ANS 18 - CATFISH vs BASA 10
Basa (Pangasius( bocourti) catfish cage rearing As basa is grown in moving water there is no off flavor problem ANS 18 - CATFISH vs BASA 11
Basa catfish Asian catfish sold as Delta (Mekong) Catfish 2002 (USDA) price drops $ 0.58/lb U.S. Congress legislates that only catfish grown in the U.S.A. can be labeled such Basa fillets capture 12% of U.S. $ 590 million market U.S. catfish growers call for anti-dumping duties ANS 18 - CATFISH vs BASA 12
Catfish prices (farm gate) Swingle - late 1950's $ 0.50/lb (catfish culture profitable) 1987 (Stickney 1991) $ 0.75/lb 1990 (Stickney 1991) $ 0.80/lb 1994 (Aquaculture Outlook, March 15, 1995) $ 0.78/lb 1999 (The Catfish Journal, September) $ 0.77/lb 2000 (The Catfish Journal, September) $ 0.76/lb 2002 (USDA) $ 0.58/lb ANS 18 - CATFISH vs BASA 13
The Catfish Ad Wars U.S. Farm-Raised Catfish turn your taste buds red, white and blue imported fish nibbling on who knows what Agifish biggest importer of basa used all the publicity as a basis for the following ad: What do you know about the trade dispute between the American Catfish and the Vietnamese Basa? Just try Agifish s Basa products, you ll know ANS 18 - CATFISH vs BASA 14
As result of industry efforts prices stabilized temporarily See Aquaculture Outlook - http://usda.mannlib.cornell.edu/ ANS 18 - CATFISH vs BASA 15
Impact of basa on U.S. catfish industry Continued pressure for: Further trade conflicts with Vietnam Improved efficiencies Better and cheaper feeds Genetic improvement for faster growth Consolidation of the industry Bigger is better than little ANS 18 - CATFISH vs BASA 16
Economic analysis of 2 hypothetical farms Why bigger is better! I Farm Land acres 163 643 Water acres 140 569 Acres per pond 17.5 17.8 Number of ponds 8 32 II ANS 18 - CATFISH vs BASA 17
Capital Costs - Why bigger is better! (cont.) Farm Land $ 130,000 $ 514,000 Pond construction $ 118,000 $ 383,000 Wells & Equipment $ 188,000 $ 459,000 Total investment $ 436,000 $ 1,354,000 Cost/water acre $ 3,100 $ 2,400 I II ANS 18 - CATFISH vs BASA 18
Fixed Costs - Why bigger is better! (cont.) Depreciation Equipment Interest on Investment Taxes and Insurance I Farm II $ 12,000 $ 45,000 $ 25,000 $ 100,000 $ 3,000 $ 11,000 Cost/water acre $ 2,900 $ 2,700 ANS 18 - CATFISH vs BASA 19
Variable Costs - Why bigger is better! (cont.) I Farm Feed (32% prot.) $ 155,000 $ 627,000 Fingerlings $ 41,000 $ 165,000 Labor $ 38,000 $ 142,000 Other $ 122,000 $ 362,000 Cost/water acre $ 2,500 $ 2,300 II ANS 18 - CATFISH vs BASA 20
Profits - Why bigger is better! (cont.) Total costs Total production (5,000 lbs/acre) Profit @ selling price of 0.75/lb I Farm II $ ~ 0.73/lb $ ~ 0.70/lb 700,000 lbs 2,850,000 lbs $ 14,000 $ 142,500 Profit/water acre $ 100 $ 250 ANS 18 - CATFISH vs BASA 21
Basa Pangasius bocourti Problem for U.S. catfish producers 2005 taste test study by Mississippi State University researchers Basa preferred 3:1 over channel catfish ANS 18 - CATFISH vs BASA 22
Global Production Catfish vs. Basa (1,000 mt) 1400 1200 1000 800 600 400 200 0 1960 70 Catfish - US Basa - Viet Nam 80 90 2000 2004 2008 ANS 18 - CATFISH vs BASA 23
Basa Pangasius bocourti 2008 Global Production US Catfish = 234,000 mt Viet Nam Basa = 1,250,000 mt U.S. Top Ten 2009 shrimp 4.1 lbs/per canned tuna 2.5 lbs/per salmon 2.0 lbs/per pollock 1.5 lbs/per tilapia 1.2 lbs/per catfish (U.S.) 0.8 lbs/per crabs 0.6 lbs/per cod 0.4 lbs/per clams 0.4 lbs/per Pangasius (basa) 0.4 lbs/per ANS 18 - CATFISH vs BASA 24