A bioeconomic evaluation of a commercial scale recirculating finfish growout system - an Australian perspective

De Ionno, Paul, Wines, Graeme, Jones, Paul and Collins, Robert O 2006, A bioeconomic evaluation of a commercial scale recirculating finfish growout system - an Australian perspective, Aquaculture, vol. 259, no. 1-4, pp. 315-327.

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Title A bioeconomic evaluation of a commercial scale recirculating finfish growout system - an Australian perspective
Author(s) De Ionno, Paul
Wines, Graeme
Jones, Paul
Collins, Robert O
Journal name Aquaculture
Volume number 259
Issue number 1-4
Start page 315
End page 327
Publisher Elsevier BV
Place of publication Amsterdam, Nertherlands
Publication date 2006-09-08
ISSN 0044-8486
1873-5622
Keyword(s) recirculating aquaculture systems
economics
Murray cod
production
profitability
Summary This study, based on 3 years of commercial data, presents the results of an economic analysis of a 20-tonne per annum (TPA) commercial recirculating aquaculture system (RAS) facility located in Warrnambool, Victoria, Australia. Based on the assumptions of the analysis, results highlight the non-viability of the facility, with a 10-year projected negative cumulative cash flow of − $648,038, and negative net present value (NPV) of − $707,546. Economies of scale were assessed by the development of economic models for hypothetical 50-TPA and 100-TPA facilities, based on the actual figures obtained from the 20-TPA case study. These analyses highlighted marginal viability for the 50-TPA facility (with a ten-year projected cumulative cash flow of $1,030,300; negative NPV of − $167,651 and internal rate of return (IRR) of 11.75%), and an economically viable 100-TPA facility (with a ten-year projected cumulative cash flow of $3,176,750; NPV of $522,200 and IRR of 21.03%). Sensitivity analysis highlighted that the greatest gains to be realised in improving profitability were those associated with increasing the productive capacity of the facility, increasing the sale price of the product, and decreasing the capital costs of RAS facilities. Contradictions between the results from the present study to similar studies clearly highlight a need for further economic analyses of commercial RAS facilities, using commercial data sets and standard economic analysis procedures.
Language eng
Field of Research 070401 Aquaculture
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2006, Elsevier
Persistent URL http://hdl.handle.net/10536/DRO/DU:30003525

Document type: Journal Article
Collection: School of Accounting, Economics and Finance
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