Economics of Fish Farms

Aquaculture production is growing worldwide. But, the growth of aquaculture is dispersed very differently around the globe. Which production systems have the capacity to compete internationally? Which type of aquaculture will become an important market player in future? The posed questions are widely unanswered yet.

Fish farmers combine their production factors quite differently and aim at diverse distribution channels. Both input and output strategies directly influence the profitability of a production system. In industrial nations for instance, small-scaled traditional fish farms are less profitable than larger farms, which are highly automated. Main cost drivers of every fish grow-out are feed, fingerlings, energy consumption and wages. Also, there are some indirect factors which influence the economics of fish farming: In some regions of the earth, the climate conditions for fish production are better than in others. Farms, which are located in such regions, might be able to grow-out fish faster. In addition, if the water supply is naturally high and high water withdrawal rates are approved by local governments, the concerned farms have production advantages. Low wages, high market prices and friendly economic- policies in general lead to cost advantages for fish farms, too.