Economic evaluation of a small-scale recirculating system for ongrowing of captive wild black sea bass Centropristis striata in North Carolina

An economic analysis of a hypothetical small‐scale marine recirculating aquaculture system (RAS) is conducted for ongrowing small, wild black sea bass Centropristis striata at the University of North Carolina Wilmington, Center for Marine Science (UNCW‐CMS) aquaculture facility in Wrightsville Beach, North Carolina (NC). The analysis is based on production data from field trials and marketing data from the sale of tank‐grown product. The growout facility consists of four 16.7‐m3 (dia. x ht. = 5.58 × 1 m) fiberglass tanks supported by state‐of‐the‐art RAS components, including particle traps and swirl separators, drum screen filter, trickling biological filter, UV sterilizer, heat pump, protein skimmer, and oxygen cone. Wild‐caught, above minimum legal size black sea bass (24.2 cm TL, 350 g, 0.77 lb) were purchased from a commercial fisherman for $3.14/ kg ($1.4011b), stocked at a density of 21.1 kg/m3, and grown to a final weight of 1 kg (2.24 lb) in 200 d at 23 C resulting in 1.8 production cycles per year. Fish were fed a commercial pelleted diet ($0.94/kg; $0.42/Ib) with a feed conversion ratio of 1.5. Final harvest density was 60 kg/m3 (0.50 lb/gal), and total harvestable weight was 3,982 kg (8,919 Ibs) of fish per cycle, or 6,760 kg (15,022 lb) per year. The economic analysis assumes that the facility owner manages and operates the system on coastal property zoned commercial/industrial, where full strength seawater is available on demand from natural sources. Under the base case scenario, initial investment in construction and equipment is $84,506 (10‐yr life), fish are grown to a harvestable weight of lkg/fish (2.24 lb/fish), product price (farm gate basis) is $10.10/kg ($4.50/lb), and breakeven price is $7.02/kg ($3.13/lb). Depreciation, fingerlings, interest paid, electricity, and feed, account for 19.6%,17.4%, 16.9%, 16.6%, and 12.3%, respectively, of total annual costs. Measures of financial performance for the base case, 10‐yr scenario are: annual return to management, $18,819; net present value (5% discount rate), $145,313; internal rate of return on initial investment, 37%; and discounted payback period on initial investment, 3.2 yr. Sensitivity analysis showed that product price changes have the largest impact on annual returns, while changes in daily growth rate, initial weight, and survival have a strong impact on financial performance. Moderate effects are seen with changes in fingerling costs, feed costs, feed conversion ratio (FCR), fina