The Economics of Intensifying Catfish Production: A Production Function Analysis

Yields of channel catfish in the United States have increased as a result of higher levels of stocking, feeding and aeration. A Cobb-Douglas production function was estimated using survey data from 66 catfish ponds in West-Central Alabama to determine if further intensification of catfish production in West-Central Alabama would be profitable. Feed, capital, stocking rate, length of production period explained most of the variation in yield. Values of the marginal products for feed, stocking rate and capital were consistently higher than input costs during the study period. Profit-maximizing levels of input use were higher than the levels of input used in West-Central Alabama during the study period. Results indicated that more intensive use of production inputs would increase yield and profits. However, careful interpretation of these results requires consideration of non-profit factors such as cash flow and risk as well as the specific nature of the data used to develop the production relationship. The method utilized in this study can generally be applied to any aquaculture production system, but the recommendation for more intensive input use is specific to the pond data collected for this study.