The economics of sutchi catfish (Pangasianodon hypophthalmus) aquaculture under three different farming systems in rural Bangladesh

This paper examines production costs and returns of sutchi catfish (Pangasianodon hypophthalmus) aquaculture under three different farming systems in Bangladesh. Based on the production technology, sutchi catfish farming is classified as extensive, semi‐intensive and intensive. Results showed that sutchi catfish farming is profitable irrespective of the level of intensification and in all three instances the cost of feed dominated the variable costs of production. The average annual production costs were estimated at US$5217 ha−1 in intensive farming, while US$2694 ha−1 in semi‐intensive and US$981 ha−1 in extensive farming. Despite the higher production costs per hectare, the average annual net return was higher in intensive farming (US$3364), compared with semi‐intensive (US$2048) and extensive (US$1099) farming. The average annual production per hectare under intensive farming conditions (13 945 kg) was higher than semi‐intensive (7705 kg) and extensive (3380 kg) farming mainly due to higher levels of inputs, including seed, feed, fertilizer and labour. However, the Cobb–Douglas production function model suggests that inputs are inefficiently used in the intensive farming system. Conversely, there is enough scope to increase the production and income from the semi‐intensive and extensive farming systems by using more inputs.