Aquaculture In North Carolina - North Carolina Department Of .
Aquaculture in North Carolina CatfishContents About This Publication . 2U.S. Aquaculture andCatfish Production . 2North Carolina Catfish . 3Inputs . 3water . 3land . 4fingerlings . 5feed . 6oxygen . 6medication & chemicals . 7electricity & fuel . 7labor . 8equipment use . 8Outputs . 8catfish . 8effluent . 9Economics . 9initial investment . 9operating costs and returns . 10Other Topics . 11financing . 11farm size . 12alternative uses . 12insurance . 12permits & licenses . 13markets . 13research . 13Catfish Budgets . 14Sources of More Information . 181
Aquaculture in North Carolina CatfishAbout this publication Catfish productionaccounts for 45% ofU.S. aquaculturesales. In 2000 farmerssold 593 million poundsof catfish with a farmgate value of 446million.The North Carolina Department of Agriculture, Division of Aquaculture and Natural Resources,created this publication to assist individuals interested in the business of catfish farming. Thepublication was also designed for bank lenders who may need more information on the industryto evaluate loan proposals. A description of the inputs and outputs of North Carolina catfishfarms, as well as an estimate of costs, returns, and resource requirements for an example farmare provided. For technical recommendations on building and operating a fish farm, individualsare encouraged to contact agents with the North Carolina Cooperative Extension Service. Forinformation on state regulations governing aquaculture, or for help in preparing an aquaculturebusiness plan, contact the North Carolina Department of Agriculture. See Sources of MoreInformation for individuals to contact.U.S. Aquaculture and catfishproduction Aquaculture is the fastest growingsegment of U.S. agriculture. The farm-gatevalue of the U.S. aquaculture industry isestimated to be nearly 1 billion. Catfishproduction accounts for approximately 45%of total U.S. aquaculture sales: in 2000, U.S.catfish farmers sold 593 million pounds ofcatfish with a farm-gate value of 446million.Commercial catfish production began inMississippi, Alabama, Arkansas andLouisiana in the late 1950 s. These statescontinue to dominate the industry, producingabout 96% of the annual U.S. catfishharvest. Farms average 300 acres in sizeand pond sizes typically range from 15 to 25acres. Catfish farming is a major agriculturalcomponent in each state; for example, salesof catfish are one of the top five sources ofincome for Mississippi farmers.Virtually all of U.S. farmed catfish areharvested by large processors whichprocess and sell the fish. The high cost ofequipment makes the economies of scalefavor a smaller number of large processors.The processing company may be ownedentirely by one farm, which processes itsNorth Carolina Catfish Farms, By County, 2000MountainPiedmontCoastal Plain2
Aquaculture in North Carolina Catfishown catfish and fish purchased from otherfarms, or it may be a cooperative effortowned by a number of farmers.Catfish production continues to expand,with most growth concentrated in theSoutheastern U.S. From 1995 to 2000,catfish acreage in the U.S. increased atabout 2% annually, reaching an estimated187,330 acres by 2000. The increase inproduction is also attributable to moreefficient use of existing farms, with somefarmers intensifying production to raisemore catfish on the same water acreage.Farmers may harvest anywhere from1,000 to 10,000 pounds of catfish per wateracre, depending upon a number of factorsincluding farm location and water source,stocking rate, and the amount and type offeed used. Most commercial farmers harvestbetween 4,000 and 6,000 pounds per acreannually.Competition from overseas has intensifieddue to imports from Asia. To date, however,imports have not significantly impactedNorth Carolina farmersNorth Carolina Catfish In 2000, 51 North Carolina (NC) farmersraised an estimated 4.6 million pounds ofcatfish on 1,653 acres. Farms range in sizefrom less than 10 to 270 water acres. Themedian farm size is 40 acres, and theaverage pond size is 10 acres. Nearly all NCcatfish farms are located on the coastalplain. Most catfish enterprises are owned byeither farmers who sought diversification, orindividuals who already owned land anddesired a supplemental source of income.Virtually all catfish raised in North Carolinaare sold to one of two processors.Inputs Following is a discussion of theproduction inputs used to raise catfish.These inputs fingerlings, feed, water,etc. determine yield and cost in both adirect and indirect way. When an input isused more intensively for example, whenmore fish are stocked per acre yield mayrise enough to offset the increase in cost,resulting in a more profitable farm. Asproduction intensity increases, however, thegreater use of an input, such as feed, canhave an indirect and negative effect on yieldvia changes in pond water quality. This canresult in a lower yield and higher cost perpound harvested, reducing profits to thefarm. The most successful farmers arethose who efficiently use production inputswhile maintaining a healthy waterenvironment. Farmers are encouraged towork with agents and specialists of the NCCooperative Extension service who canadvise them on best management practicesfor catfish farming.Farmers should firstmake certain thatland and waterresources are suitablefor catfish farming.WaterWater is the growing environment forfish, so a reliable source of good qualitywater is vital to fish farming. Farmerschoose between surface water (fromstreams, lakes, etc.) or well water. Nearlyall catfish farms utilize well water becauseboth the quality and quantity of surfacewater can be unpredictable. The majoradvantage of surface water is that it isusually much cheaper to obtain than waterpumped from a well.The cost of obtainingwater is site specificand varies widelyacross North Carolina.Water is used to fill ponds andcompensate for evaporation and seepage. Ifponds are constructed of high-clay soils,then seepage will be minimal. Catfishfarming requires less water than other typesof fish farming because ponds are not oftendrained; common practice is to drain pondsonce every five to eight years to makeneeded levee repairs.Catfish have a wide tolerance forenvironmental conditions and farmers canoften remedy problems associated with anexisting water source. For example, water3
Aquaculture in North Carolina Catfishwith an abnormally high or low pH valuecan be corrected with the addition of lime orgypsum. In rare cases, however, water maybe unsuitable for any type of aquaculture.Farmers determine the quality of water at apotential farm site by sending a watersample to the NC Cooperative ExtensionService. When well water is to be used,existing wells near to the proposed site canbe a source of water for testing.Earth moving forpond construction isthe major investment cost, andranges from 1,200to over 2,000 perpond acre dependingupon soil type, pondsize, topography,and other factors.Farmers purchasecatfish fingerlingsfrom hatcheries andgrow them to theminimum marketsize of about 1.5pounds in 12 to 18months.Farmers should also determine thequantity of water available. NC CooperativeExtension agents recommend that a farmwell supply a flow rate (the flow of water ismeasured in gallons per minute, or gpm )capable of filling ponds to a depth of four tofive feet within two weeks. Rapid filling ofponds prevents the establishment of pondbottom weeds which negatively effectproduction. For a 10-acre pond, a flow rateof 15 gpm per water acre is sufficient. Thecost to achieve this flow depends on thenumber of water acres in production andfarm location. The cost of obtaining water isextremely site specific and variestremendously across the state; it can makecertain areas unprofitable for fish farming.Well drillers that know the area around apotential site are a good source ofinformation concerning water availability.They can also estimate the costs ofobtaining suitable water.Catfish Budgets estimates the cost for awell located on a farm in one of the easterncounties on NC s coastal plain. Pump size isestimated using the factor of 15 gpm perwater acre, or a well capable of pumping750 gpm for the example 50-acre farm. Theestimated cost is 25,000 for the well andpump. Water is used to fill ponds, make-upfor evaporation, and drain and refill theponds every five years.4LandOptimal land for pond fish culture iscleared land that is flat or has a slightgradient, with a clay content of at least20%. Agents with the Natural ResourceConservation Service and North CarolinaDepartment of Agriculture can determine thesuitability of an area for fish farming.Agents can also test soil for pesticideresidues which may rule out use of the landfor any type of aquaculture.The cost of land suitable for fish farmingin rural NC typically ranges from 800 to 1200 per acre. About 80% of the total landarea is used for ponds, and the remaining20% for levees, roads, ditches, and supportfacilities.Catfish ponds are of two general types:levee ponds or hill ponds. Hill ponds makeuse of a hilly topography where water istrapped in small valleys, or can be trappedwith minimal construction. Levee ponds arebuilt by constructing dikes. Hill pondstypically use only rainfall and runoff water,while levee ponds use well or divertedsurface water. In North Carolina, nearly100% of commercial catfish ponds are leveeponds with an average depth of four feetand size of 8-12 acres.Catfish are also grown in cagessuspended in lakes or other water bodies.Cage culture is more often used for smallscale or family production. Virtually allcommercial-size operations (greater than10,000 pounds harvested per year) useearthen ponds.In eastern NC, several individuals haveexperience building aquaculture ponds, andcan give estimates of construction forpotential sites. The cost of pondconstruction depends upon a number offactors including soil type, topography,number and size of ponds, and whether ornot roads and ditches already exist on thesite. Cost can range from less than 1,200
Aquaculture in North Carolina Catfishper water acre to greater than 2,200 perwater acre. Catfish Budgets assumes pondsare built on cleared farm-land at a cost of 1,600 per water acre.FingerlingsThe catfish production cycle begins withbroodfish that spawn in ponds in the springand fall. Eggs are removed from hatchingcontainers in the ponds and held indoors incommercial hatcheries. After about twoweeks in the hatchery, catfish fry arestocked into ponds. There they are weanedfrom natural pond food algae andzooplankton to commercially producedcatfish feed pellets. After 100 to 150 days,catfish fry reach the fingerling size of fourto six inches, and are stocked into food fishponds. Food fish production grows catfishfrom fingerling size, at a weight of about 1/50th of a pound, to a harvest size of 1.50pounds, in 12 to 18 months.Most farmers, both in North Carolina andin the big three producing states ofMississippi, Alabama, and Arkansasspecialize in food fish production. Becauseof the level of expertise involved andeconomies of scale, it is more economicalfor most producers to purchase fingerlingsfrom other farms that specialize in thebroodfish-fry-fingerling portion of theproduction cycle. Farmers are encouragedto buy fingerlings that are six inches orlarger.In 2001, two hatcheries were producingfingerlings for outside sales. North Carolinacatfish producers can also purchasefingerlings from farms in other states. Thereare more than a dozen commercialhatcheries in the Southeast that sellfingerlings.The price of six-inch fingerlings hasremained stable over the past five years at1.5 cents per inch, 0.08 each. The cost offingerlings comprises about 15% of annualvariable costs of food fish production.The production parameter stockingdensity indicates the number of fishstocked per acre per production cycle.Generally, above stocking densities of about6,000 catfish stocked per acre/year, thegreater the density the less rapid the rate ofgrowth; higher densities create greatercompetition for food and crowding whichstress fish and inhibit growth. The greateramount of feed required for higher stockingdensities can also cause water quality todeteriorate.When catfish farming began in the1950 s, farmers stocked at rates of 2,000fingerlings or less per acre. More recently,farmers have experimented with stockingrates of as high as 10,000 fish per acre.While researchers and innovative farmerscontinue to test higher stocking densities,the recommended density in NC is 5,000 6,000 fish per acre to harvest 1.50 poundThe price of 32%averaged 240 perton over the pastfive years. Feedaccounts for about50% of the variableoperating cost forraising catfish.CatfishProduction CycleHatchery PhaseEggsDomesticatedBrood StockFryNurseryPhaseMarketHarvestFood FishFingerlingsGrowout PhaseCatfish fingerlings fish that areabout six inches in length, are purchasedfrom hatcheries and stocked into pondsin the spring or fall.5
Aquaculture in North Carolina Catfishcatfish in 12 to 18 months. Catfish Budgetsassume 6,000, six-inch fingerlings stockedper acre per year.FeedMany fish farmerssay that managingfish ponds is reallymanaging water:water quality mustremain high for fishto stay healthy andgrow at a rapid rate.Catfish fry feed upon the natural foodfound in ponds. Farmers promote thegrowth of phytoplankton for fry byfertilizing pond water. As the fry mature,they are fed commercially produced catfish crumble, and eventually a pelletted feed.Catfish feed is often described in terms ofits protein content. Feed for food fishproduction varies from 28% to 32%. InNorth Carolina, most producers use 32%protein feed made by one of two catfishfeed producers in North Carolina.Catfish feed derives most of its proteincontent from soybean meal. Variation in theprice of soybeans and corn, another keyingredient, over the past five years createsvariability in the price of catfish feed, butgenerally lower prices for these inputs hasmeant a lower average price, at 225/ton.Farmers also pay a delivery charge of 10 20 per ton. Catfish Budgets use an averagefeed price of 240 per ton.The feed conversion ratio, or FCR, is acritical parameter in fish production. FCRdescribes the number of pounds of feed fedper pound of fish harvested. Catfish Budgetsassume an FCR of 2.0. Feed cost accountsfor 50% to 60% of total variable cost.Best management practices developed byfin fish researchers recommend feeding to satiation, but no greater. Satiation refers tothe point when fish stop actively feeding. Ifmore feed is applied to the pond, the resultis an increase in FCR, greater cost perpound of fish produced, and deterioration ofpond water quality. Farmers determine thepoint of satiation by watching the fish feedjust under the water surface.Catfish grow faster and feed more duringwarmer months of the year. Feeding slowsboth in the winter and in mid-summer when6water temperatures rise to the upper 80s.During months of heavy feeding, feed ratescan reach 100 pounds of feed per acre perday. At this time, farmers are increasinglyattentive to the effect of feed on the qualityof the water environment.Because fish are cold-blooded, theirmetabolic rate varies with the temperature oftheir surroundings. In cooler months, fishfeed sparingly and larger fish can survivewithout feed for several months. In warmermonths, catfish feed more heavily and maysurvive for only two to four weeks withoutfeed, although this depends on theavailability of natural food in the pond.Smaller fish are not able to survive withoutfeed for as long a period as larger fish.OxygenLike any other animal, fish require oxygento live. Oxygen in natural waters comesfrom two sources: oxygen produced byalgae, and oxygen transferred from the airinto the water by wind action. In fish ponds,the churning action of diesel or electricallypowered aerators speeds the transfer ofoxygen into the water.While a portion of the oxygen in thewater is used by fish, algae both produceand use greater than 80% of the oxygen inthe pond. Algae produce oxygen during theday and consume it at night. Algal growth islimited by the amount of nutrients in thepond. In commercial fish ponds,supplemental nutrients in the form of feedcan result in an overabundance ofphytoplankton. As algae use oxygen at night,oxygen can reach critically low levels. It isat this time that supplemental aeration isrequired.An electrical aerator supplying onehorsepower per acre of water is a standardfeature in commercial catfish ponds.Timers, some costing less than 100 each,can be installed to automatically turnaerators on and off at specified times. Inaddition to electrical aeration, one portable
Aquaculture in North Carolina Catfishemergency aerator powered by a tractor ison hand for every two or three ponds.In months of heavy feeding, farmers takeoxygen readings at sunset, near midnight,and near sunrise. By tracking the change inoxygen, the farmer can make thedetermination if mechanical aeration isrequired. Dissolved oxygen is a manageablephenomena, and losses due to oxygendeficiency in a pond are generally the resultof inexperienced management or lack ofsufficient aeration equipment.Research in recent years indicates thatmechanical aeration of catfish ponds on aregular basis, not just in response to lowoxygen levels, can improve feed conversionrates, production, and profit. Some catfishfarmers in NC now use aerators for aboutsix hours per night during the warmermonths, and the additional yield of catfishmore than offsets the increase in electricalcost. Catfish Budgets assume nightlyaeration during the summer months.Medication and ChemicalsLike any crop or livestock, catfish aresusceptible to disease. The most commondiseases of food fish-size catfish are ESC(enteric septicemia of catfish) andcolumnaris. Both are bacterial infections andmost often occur during the seasonalchange of spring and fall. Ponds must beclosely monitored during these times for theappearance of sick fish. A decrease infeeding activity is one of the first signs of adisease problem. Farmers can take sick fishto one of the seven NC Department ofAgriculture s veterinary diagnostic labs foranalysis.ESC, columnaris, and other bacterialinfections can be treated with feed thatcontains antibiotics. The Food and DrugAdministration has approved two antibioticsfor catfish. The typical treatment is to feedinfected ponds with medicated feed forseven to ten days. The cost of medicatedfeed is approximately 70% greater than nonmedicated. As an alternative to medicatedfeed, some farmers have been able to headoff a burgeoning disease problem by notfeeding for several days.Copper sulfate is a chemical approved forcontrol of algal growth in food fish ponds.It is used on a very limited basis, and isapplied directly to pond water.Lime and gypsum are used to improve thepH of pond water, just as they are used forsoils. Both are applied infrequently, onceevery several years as needed. Salt is alsoused to mitigate nitrate toxicity (nitrate is anaturally occurring by-product of feed).The costs of all medication and chemicalsconstitute about 3% of the total costs ofgrowing catfish. Catfish Budgets assume aper acre annual cost of 80.Electrical and dieselpowered aerationequipment supplysupplemental oxygento pond water asneeded.Electricity & FuelThe cost of installing electrical lines issite specific, ranging from zero to tens ofthousands of dollars depending on thedistance to existing electrical lines. Farmersshould contact their local electrical utilityoffice for help in determining the cost.Electricity and diesel fuel are used foraeration, water supply, feeding, and mowingof levees. Costs of electricity and fuelmake-up about 4% of total variable costs.About 50% of the electrical and fuel costsfor the year are expended during the threewarmest months of the year, July September, when aerators are often runnightly.Loss of electrical power is rare in mostareas. While a back-up generator could beused if power were lost, the tractor-drivenemergency aerators which can be movedfrom pond to pond as needed are a cheaperoption.To reduce electrical costs, fish farmers inmany areas can take advantage of off-peakdemand programs offered by the electrical7
Aquaculture in North Carolina Catfishauthority. The programs can reduceelectrical costs by as much as 50%, andwork well for fish farms since most poweris used to run aerators between off-peakhours of 10 p.m. to dawn.LaborCatfish are harvestedyear-round usingseine nets that arepulled the length ofthe pond.Catfish farming is not labor intensive, butthe timing of labor use is critical. Summermonths are the busiest, with more timespent feeding and evaluating water quality.During summer months, D-O s, dissolved oxygen readings are taken threeor more times per day. These readings helpdetermine if electrical aeration is required.Labor requirements during the coldestmonths are minimal, and many farmers usethe extra time for routine repair andmaintenance of equipment.Labor is used in the following dailyactivities and varies by season: feeding(during warmer months one to two timesper day, but may be once or twice weeklyor less during cooler months), oxygenmeasurement (one to three times per dayduring warmer months and once or twiceweekly in cooler months), water qualitytesting (two to three times per week andless frequently in cooler months), andmaintenance of equipment and levees asrequired. If ponds are custom-harvested bya processor, little or no farm labor is neededfor harvest. The total labor requirement fortasks other than harvest is estimated toaverage two to three hours per day per four,10-acre catfish ponds. Catfish Budgets donot include any cost for the owner s labor,which is estimated at 20 hours or less formost weeks of the year.Equipment UseGreater than 80% of the equipment valueused on the farm is specialized aquacultureequipment. A feed blower and aerators arecollectively the most costly specializedequipment needed. Some equipment, suchas tractors needed for feeding and to8operate emergency aerators, is the same asthat used for other farm enterprises. InCatfish Budgets, the 50-acre enterprise is anaddition to an existing farm, and land andsome equipment a tractor, pickup truck,mower, and repair equipment is alreadyowned.Outputs CatfishAt one time, catfish producers in the U.S.stocked in the fall and harvested the entirepond before restocking the following fall.Today, most catfish producers follow aharvest practice of multiple-cropping, inwhich a seine with a certain size mesh ispulled the length of the pond to extract fishof a target size.The primary advantage of multiplecropping is that it provides harvest-size fishyear-round. This steady supply has helpedto establish markets for catfish. Multiplecropping also uses less water than singlebatch harvest, since ponds are infrequentlydrained.A disadvantage of multiple cropping isthat an inventory of fish is maintained, andsome of these fish are large and poorconverters of feed. Also, after one or twoseasons it is very difficult to determine thepopulation of fish in the pond. Survival onaverage is also lower in multiple cropping,perhaps because of cannibalism of newfingerlings by larger fish.Catfish production in NC varies widely,ranging from less than 3,000 to over 6,000pounds harvested per acre per year.Producers who stock consistently everyyear, and manage ponds actively shouldexpect harvests of 5,000 pounds/acre/year.In Catfish Budgets, fish are stocked eachOctober at a density of 6,000 fish/acre, andharvested when they reach 1.50 pounds.The estimated survival rate is 50%, with
Aquaculture in North Carolina Catfishmortality attributed to bird predation,cannibalism of smaller fish by larger fish,and loss of weaker fish to disease. The farmharvests 247,500 pounds (4,950 lbs/acre)during the first 15-18 months of operationand the same amount annually thereafter.Larger farms can reasonably expectfrequent harvests, and a steady cash flow.Smaller farms will have less frequentharvests because the number of food-size,harvestable fish must be great enough tojustify the time and labor involved inharvesting. From the farmer s standpoint itis desirable to harvest fish of 1.00 to 1.5pounds, because larger fish are poorerconverters of feed and costlier to grow.While a few NC fish farms process andsell their own fish, or sell fish through afee-fishing operation (where individuals paya flat fee to fish ponds and/or a fee perpound of fish caught), most NC catfish aresold to one of two independent processors.The processor brings harvest equipment tothe farm, harvests market size fish, andhauls them back live to the processing plant.Catfish Budgets assume the farm sells allfish to a processor, and the farm pays a feeof 0.05 for harvest and delivery to theprocessing plant.EffluentCatfish ponds release water in periods ofheavy rainfall or when ponds are drained.Research on catfish ponds has revealed thatthe natural biological activity in the pondacts to breakdown much of the organicmatter in feed and fish wastes. The pondacts as a digester of organic matter.Although ponds can act as their owntreatment units for excess feed and fishwaste, pond water normally contains morealgae than natural water bodies such asnearby streams and estuaries. Duringmonths of heavy feeding, draining is bestavoided; during these months pond waterhas the most potential to differ in qualityfrom surface water. Discharge of excessivelevels of ammonia (a by-product of thebreakdown of organic matter in the pond)and algae can normally be avoided bydraining ponds during winter months.In North Carolina, effluent fromaquaculture operations is monitored if thefarm discharges greater than 30 days peryear and has annual production of greaterthan 100,000 pounds.Economics Catfish Budgets estimate initialinvestment, operating costs, and annualreturns for a 50-acre catfish enterprise. Theenterprise consists of five, 10-acre ponds,and is an addition to an existing farm. Thebudgets assume that land and someequipment (a tractor, pickup, mower, andrepair equipment) are already owned, andthat the farm has another source of incometo pay for debt service associated with year 1.North Carolinacatfish processorsprovide allequipment and laborneeded for harvest.Stocking density (6,000 fish/acre) andproduction/year (4,950 lbs/acre) areaverages for experienced North Carolinacommercial catfish farmers following bestmanagement practices. Catfish are customharvested by a processor.Initial InvestmentThe 50-acre farm requires an initialinvestment of 200,197 for pondconstruction, the well, and new equipment.In addition, the owner supplies the land(valued at 75,000) and some equipment(valued at 24,500) that is already owned.The budget assumes that the farmerpurchases 35,
Aquaculture in North Carolina Catfish North Carolina Catfish Farms, By County, 2000 Mountain Piedmont Coastal Plain ˇˆ ˆ . Aquaculture in North Carolina Catfish By Year 2, net returns before tax to the farmer's labor, land, and capital is 42,520, or 850 per water acre.
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5. World aquaculture production of food fish and aquatic plants, 1990–2016 17 6. Average annual growth rate of aquaculture production by volume (excluding aquatic plants) 18 7. Aquaculture contribution to total fish production (excluding aquatic plants) 19 8. Fed and non-fed food fish aquaculture production, 2001–2016 22 9. Aquaculture .
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