Economics of catfish farming in central Thailand

Results showed that many catfish farmers have switched to the culture of other species or to crop cultivation, mainly because of high fish mortality and escalating feed (trashfish) prices. Yet some of the farms that continued made considerable profit, due to superior managerial ability of the owners, access to low-cost credit, and diversification of farming to spread risk; large-scale, experienced farmers often earned enormous profits while small-scale, inexperienced farmers incurred considerable losses. Application of a Cobb-Douglas production function showed that 80% of the variation in output could be explained by the following variables (inputs): stocking rate; feeding rates of trashfish and broken rice; fuel for pumping water; medication of fish; size of farm; and experience of the operator. Profits could be increased by reducing the average catfish stocking rates and quantity of trashfish used as feed and by increasing the use of broken rice and fuel for the purpose of changing pond water. Findings indicate the need to provide farmers with a spectrum of alternative input combinations (so that the mix can be altered as relative prices change), as well as appropriate short-term credit schemes, practical research, and effective extension on the problems of disease, feed-mix, and water management. (Author abstract, modified)