Economic implications of treating effluents from catfish production

Abstract An economic analysis of catfish production was conducted with and without treatment technologies for effluents. A linear programming model was developed to determine the profit-maximizing effluent management strategies for varying levels of allowable effluent discharge for catfish in the event that regulations would enforce either fixed levels or taxes on effluent discharges. Economic implications for varying policy alternatives are discussed. Catfish production costs would be increased by $0.00 to $0.11 per kg if mandatory effluent control measures were to be enforced. While the use of water for crop irrigation was shown to be the least expensive alternative to treat effluents, the model suggested that the technique used for effluent removal depends upon the type of regulation implemented and the effect of treatment technologies in catfish production. However, all policies analyzed reduced net farm revenues due to either treatment cost or to changes in optimal farm size or stocking rates that resulted in lower net farm revenues. This study also showed that imposing control options will create additional barriers to entry for new potential catfish farmers, particularly small-scale (less than 130 hectares) farms.