February 15-18, 2009 Washington State Convention Center Seattle ...

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ECONOMIC CONSTRAINTS AND OPPORTUNITIES FOR MARINE BAITFISH
PRODUCTION IN LOW SALINITY WATERS OF THE ALABAMA BLACK BELT
Robert G. Nelson* and Ronald P. Phelps
Department of Agricultural Economics & Rural Sociology
Auburn University
Auburn, AL 36849 USA
nelsorg@auburn.edu
By taking advantage of saline groundwater and lower land prices, inland culture of marine baitfish is technically feasible in
many rural areas in the US, including the west Alabama Black Belt. However, a number of economic constraints have been
identified in the production and distribution of inland-cultured marine baitfish.
The principal baitfish species of interest currently are bullminnows (Fundulus grandis) and spot (Leiostomus xanthurus). Culture
of bullminnows appears to be financially attractive, and there is a well-established market along the Gulf Coast. Current
demand is thought to exceed two million bullminnows per year in Mississippi and Alabama alone, with shortages reported
regularly in the late summer. Total costs of production and transportation are estimated to be about $0.11/fish, and wholesale
market prices from auction sales have averaged $0.15/fish. Assuming average yields of about 173,000 fish/ha/yr, net revenues
of $6,920/ha are possible.
Bull minnows have been transported at densities of 120g/L for 5 h with over 95% survival from the inland production site to
the wholesale outlet at the coast. Bullminnows reproduced naturally over vegetation at 5 ppt in Black Belt ponds, but with this
extensive production system, stock management became an issue. All age groups were present in the pond and, with aquatic
vegetation serving as spawning material, harvesting by seining was unproductive. Trapping is currently our preferred method
of harvest, but many questions await experimentation in terms of trap design, placement, timing, bait, effort, efficiency, variability,
cost effectiveness, etc. Daily harvest by trapping has been widely variable, ranging from 2.5 to 41 kg/day. Also, the
uncertainty in estimating inventory in continuously-recruiting, partially-harvested ponds adds considerable complexity to the
optimization of yield. An alternative, but perhaps more labor intensive, system is mat-spawning in a brood pond, with removal
of mats to nursery/growout ponds, followed by seining at harvest. This system still needs to be field-tested.
Other candidate species of baitfish (spot, croaker, pinfish, and mullet) have to be induced-spawned. Culture systems for
these species usually involve recirculating water in indoor tanks, with separate broodstock, hatchery, nursery and growout
components. Fixed and variable costs are consequently much higher than pond-only systems, and enterprise feasibility has
so far proved to be unpromising. Nor do scale economies offer a simple solution to these constraints, since the pilot systems
demonstrated so far have generally proposed modular expansions. Possible alternatives include hybrid systems with indoor
broodstock and hatching, semi-intensive nurseries (with live feed harvested from ponds), and pond growout. Spot have proven
to be adaptable to the low-salinity conditions of west Alabama, but production costs associated with induced spawning make
their profit potential uncertain at this point.
Other constraints and opportunities involve holding and distribution systems. Complete pond harvests may yield more fish
than can be marketed at one time, thus requiring a holding facility. Likewise, if a bait species cannot survive in outdoor ponds
during the winter, or cannot be harvested from ponds in certain months, then a facility will be needed to hold large quantities
of fish indoors at high densities. These stocks could then be distributed from this facility to keep the market supplied continuously.
The design and cost of such a facility have yet to be determined.