A risk programming model for farm-raised catfish

Abstract A mixed integer target MOTAD model was developed to assess risk-income trade offs for alternative activities of producers of farm-raised catfish in the Southeastern United States. The target was meeting variable cost and alternatives were fish growth stages—egg, fry, fingerling and food fish. The results indicate that fingerling production is the most profitable on average but also has the greatest potential for losses (risk). Food fish production was intermediate in both average profitability and risk. Egg production had both lowest profitability and risk. Expected net returns and potential for losses (or risk) are both important factors shown to affect production planning.