The economic feasibility of adoption of a new in-pond mechanical grader for food-sized channel catfish (Ictalurus punctatus)

An economic analysis of an in-pond horizontal floating bar grader for food-sized channel catfish was performed. Data from previously reported field trials were used to determine whether farmer adoption of this grader is economically feasible. Scenarios for four farm sizes (65, 130, 259, and 478 ha) were evaluated. Partial budget, payback period, net present value, internal rate of return, and Taguchi quality loss function analyses were used to quantify and compare economic losses due to deviation from the target fish size. Partial budget results indicated positive net revenue for all farm sizes. Net revenue increased with farm size, market price, and increased dockage penalties. Payback periods ranged from 0.1 to 2.0 years depending on the scenario. Net present values were positive and increased with increasing farm size. Estimated internal rates of return were higher than the current opportunity cost of capital and increased with increasing farm size. The value of the gain in quality from reducing size variation from use of the UAPB grader was estimated to range from $770 to $5575/year, depending on farm size. Producer adoption of the UAPB grader is economically feasible for the scenarios analyzed.