Analysis of profitability of <i>Heterobranchus longifilis</i> Valenciennes, 1840 production in a water recirculation system

Abstract

This paper examines the costs and returns of Heterobranchus longifilis production within a water recirculation system. H. longifilis broodstock were artificially spawned using the synthetic hormone ovaprim at 0.5ml/kg. The costs of raising the hatchlings to table-size were analysed using the budgeting technique and benefit-cost ratio. Econometrics indicated that the variable cost constitutes 96.73% of the total cost of production. The cost of catfish feeds (68.77%) and electric power supply (14.21%) were the major variable costs incurred in fish production. The cost of production per 1,000 fish was N 219,886.5 with a total revenue of N 497,750 realized, making a net income of N 277,863. The rate of return per capital invested and the rate of return on investment of 79% and 0.53 respectively showed that the production was profitable. The benefit cost ratio of 1.26 recorded indicates that the project is viable. It is recommended that the production of artificially spawned H. longifilis within a water recirculation system should be encouraged. Efforts should be geared towards reducing the cost of feeds in order to increase profitability of the enterprise.