ANS 18 ANS 18 - CATFISH vs BASA CATFISH vs BASA 1 Catfish Industry Catfish Industry The Delta
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 22
History and infrastructureHistory and infrastructure
••19501950’’s Homers Homer SwingleSwingle and students at Auburn University inand students at Auburn University inAlabama examined the potential of commercial cultureAlabama examined the potential of commercial culture
••Sport fishing hatcheriesSport fishing hatcheries
••19551955 –– 19701970 commercial culture centered in Arkansascommercial culture centered in Arkansas
••> 1970> 1970 MississippiMississippi
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 33
The Catfish InstituteThe Catfish Institute --http://http://www.catfishinstitute.comwww.catfishinstitute.com//
The Catfish Institute wasThe Catfish Institute wasfounded in 1986 by a group offounded in 1986 by a group ofcatfish farmers and feedcatfish farmers and feedmanufacturers to improvemanufacturers to improveconsumer acceptance of U.S.consumer acceptance of U.S.FarmFarm--Raised Catfish. Since itsRaised Catfish. Since itsformation, annual catfish salesformation, annual catfish sales(live weight) as well as the(live weight) as well as theindustry have steadily grown.industry have steadily grown.
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 44
Off flavorOff flavor ––the double edged swordthe double edged sword
•• Substances produced by pond algae causing offSubstances produced by pond algae causing off--flavors in catfish are not toxic, but make the fishflavors in catfish are not toxic, but make the fishunmarketable. These flavors do go away withunmarketable. These flavors do go away withtime, but increase the cost of production whiletime, but increase the cost of production whilethe fish are being held over while thethe fish are being held over while the compundscompundsclear from the fish flesh.clear from the fish flesh.
•• It has been estimated that the cost of offIt has been estimated that the cost of off--flavorflavorfor Mississippi farmers is estimated to be $16for Mississippi farmers is estimated to be $16million a yearmillion a year
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Off flavorOff flavor ––the double edged swordthe double edged sword
However, in cooperation with the CatfishHowever, in cooperation with the CatfishInstitute now all catfish are checked for offInstitute now all catfish are checked for offflavor twice before harvesting. This allowed theflavor twice before harvesting. This allowed theU.S. catfish industry to certify to buyers thatU.S. catfish industry to certify to buyers thattheir would be no problems at the retail endtheir would be no problems at the retail endwith customer satisfaction. This program largelywith customer satisfaction. This program largelyeliminated competition from both wild and pondeliminated competition from both wild and pond--reared catfish grown outside the U.S.reared catfish grown outside the U.S.
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Primary product (60%) = filletsPrimary product (60%) = fillets(~ 40% yield from a 1(~ 40% yield from a 1 –– 2 lb fish)2 lb fish)
•• catfish are kept alive up until the minute they'recatfish are kept alive up until the minute they'reprocessed. The entire processing process isprocessed. The entire processing process iscompleted in less than 30 minutes.completed in less than 30 minutes.
•• fish are cleaned, processed and placed on ice orfish are cleaned, processed and placed on ice orfrozen to temperatures offrozen to temperatures of -- 4040ooF below zero.F below zero.Frozen farmFrozen farm--raised catfish are individually quickraised catfish are individually quick--frozen (IQF), a method which preserves thefrozen (IQF), a method which preserves thetaste and quality of the fish.taste and quality of the fish.
•• Plants are inspected and certified by the U.S.Plants are inspected and certified by the U.S.Department of CommerceDepartment of Commerce
•• 20 certified processing plants have a combined20 certified processing plants have a combinedcapacity of more than 10 million pounds ofcapacity of more than 10 million pounds ofcatfish every week.catfish every week.
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Catfish production costsCatfish production costs
•• Feed cost has been highly variable but longFeed cost has been highly variable but long--termtermtrend for average feed cost is relatively flattrend for average feed cost is relatively flat
•• Production costsProduction costs -- increase of ~ 1%/yr. whenincrease of ~ 1%/yr. whenfeed prices are held steadyfeed prices are held steady
•• Total annual costs in 1996 estimated to be:Total annual costs in 1996 estimated to be:
–– $ 0.734 for 160 acre farm$ 0.734 for 160 acre farm
–– $ 0.722 for 320 acre farm$ 0.722 for 320 acre farm
–– $ 0.692 for 640 acre farm$ 0.692 for 640 acre farm
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Catfish prices (farm gate)Catfish prices (farm gate)
•• SwingleSwingle -- late 1950'slate 1950's $ 0.50/lb$ 0.50/lb(catfish culture profitable)(catfish culture profitable)
•• 1987 (Stickney 1991)1987 (Stickney 1991) $ 0.75/lb$ 0.75/lb
•• 1990 (Stickney 1991)1990 (Stickney 1991) $ 0.80/lb$ 0.80/lb
•• 1994 (Aquaculture Outlook, March 15, 1995)1994 (Aquaculture Outlook, March 15, 1995) $ 0.78/lb$ 0.78/lb
•• 1999 (The Catfish Journal, September)1999 (The Catfish Journal, September) $ 0.77/lb$ 0.77/lb
•• 2000 (The Catfish Journal, September)2000 (The Catfish Journal, September) $ 0.76/lb$ 0.76/lb
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Industry stabilityIndustry stability --
•• Increase in productionIncrease in production
–– 19501950’’s = ~ 1,000 lbs/acres = ~ 1,000 lbs/acre
–– Today some farmers harvest 7,000 lbs/acreToday some farmers harvest 7,000 lbs/acre
•• Increase in farm sizeIncrease in farm size
•• Expansion of markets from regional to nationalExpansion of markets from regional to national ––catfish # 5 most popular seafoodcatfish # 5 most popular seafood
•• C.I.C.I. –– off flavoroff flavor
•• Year round availabilityYear round availability
•• Value added productsValue added products
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 1010
“David” =Vietnamese cageculture of catfish
“Goliath” =U.S. pondculture of
catfish
Industry survivalIndustry survival threatenedthreatened
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 1111
Basa (Basa (PangasiusPangasius bocourtibocourti))catfishcatfish –– cage rearingcage rearing
AsAs basabasa is grown inis grown inmoving water theremoving water thereis no off flavoris no off flavorproblemproblem
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 1212
Basa catfishBasa catfish
•• Asian catfish sold asAsian catfish sold as ““Delta (Mekong)Delta (Mekong)CatfishCatfish””
•• 2002 (USDA) price drops2002 (USDA) price drops $ 0.58/lb$ 0.58/lb
•• U.S. Congress legislates that only catfishU.S. Congress legislates that only catfishgrown in the U.S.A. can be labeled suchgrown in the U.S.A. can be labeled such
•• Basa fillets capture 12% of U.S. $ 590Basa fillets capture 12% of U.S. $ 590million marketmillion market
•• U.S. catfish growers call for antiU.S. catfish growers call for anti--dumpingdumpingdutiesduties
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Catfish prices (farm gate)Catfish prices (farm gate)
•• SwingleSwingle -- late 1950'slate 1950's $ 0.50/lb$ 0.50/lb(catfish culture profitable)(catfish culture profitable)
•• 1987 (Stickney 1991)1987 (Stickney 1991) $ 0.75/lb$ 0.75/lb
•• 1990 (Stickney 1991)1990 (Stickney 1991) $ 0.80/lb$ 0.80/lb
•• 1994 (Aquaculture Outlook, March 15, 1995)1994 (Aquaculture Outlook, March 15, 1995) $ 0.78/lb$ 0.78/lb
•• 1999 (The Catfish Journal, September)1999 (The Catfish Journal, September) $ 0.77/lb$ 0.77/lb
•• 2000 (The Catfish Journal, September)2000 (The Catfish Journal, September) $ 0.76/lb$ 0.76/lb
•• 2002 (USDA)2002 (USDA) $ 0.58/lb$ 0.58/lb
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 1414
The Catfish Ad WarsThe Catfish Ad WarsAgifishAgifish –– biggestbiggest
importer ofimporter of basabasa usedusedall the publicity as aall the publicity as abasis for the followingbasis for the followingad:ad:
““What do you knowWhat do you knowabout the tradeabout the tradedispute between thedispute between theAmerican Catfish andAmerican Catfish andthe Vietnamesethe VietnameseBasa?Basa?””
““Just tryJust try AgifishAgifish’’ss BasaBasaproducts, youproducts, you’’ll knowll know””
“U.S. Farm-Raised Catfish …turn your taste buds red,white and blue”
“imported fish … nibbling onwho knows what”
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 1515
As result of industry efforts pricesAs result of industry efforts prices
stabilized temporarilystabilized temporarily
See Aquaculture Outlook - http://usda.mannlib.cornell.edu/
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Impact ofImpact of ““basabasa”” ononU.S. catfish industryU.S. catfish industry
Continued pressure for:Continued pressure for:
•• Further trade conflicts with VietnamFurther trade conflicts with Vietnam
•• Improved efficienciesImproved efficiencies
–– Better and cheaper feedsBetter and cheaper feeds
–– Genetic improvement for faster growthGenetic improvement for faster growth
•• Consolidation of the industryConsolidation of the industry
–– Bigger is better than littleBigger is better than little
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Economic analysis of 2 hypotheticalEconomic analysis of 2 hypotheticalfarmsfarms –– ““Why bigger is better!Why bigger is better!””
FarmFarm
II IIII
Land acresLand acres 163163 643643
Water acresWater acres 140140 569569
Acres per pondAcres per pond 17.517.5 17.817.8
Number ofNumber ofpondsponds
88 3232
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 1818
Capital CostsCapital Costs -- ““Why bigger isWhy bigger isbetter!better!”” (cont.)(cont.)
FarmFarm
II IIII
LandLand $ 130,000$ 130,000 $ 514,000$ 514,000
Pond constructionPond construction $ 118,000$ 118,000 $ 383,000$ 383,000
Wells & EquipmentWells & Equipment $ 188,000$ 188,000 $ 459,000$ 459,000
Total investmentTotal investment $ 436,000$ 436,000 $ 1,354,000$ 1,354,000
Cost/water acreCost/water acre $ 3,100$ 3,100 $ 2,400$ 2,400
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 1919
Fixed CostsFixed Costs -- ““Why bigger isWhy bigger isbetter!better!”” (cont.)(cont.)
FarmFarm
II IIII
DepreciationDepreciationEquipmentEquipment
$ 12,000$ 12,000 $ 45,000$ 45,000
Interest onInterest onInvestmentInvestment
$ 25,000$ 25,000 $ 100,000$ 100,000
Taxes andTaxes andInsuranceInsurance
$ 3,000$ 3,000 $ 11,000$ 11,000
Cost/water acreCost/water acre $ 2,900$ 2,900 $ 2,700$ 2,700
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 2020
Variable CostsVariable Costs -- ““Why bigger isWhy bigger isbetter!better!”” (cont.)(cont.)
FarmFarm
II IIII
Feed (32%Feed (32% protprot.).) $ 155,000$ 155,000 $ 627,000$ 627,000
FingerlingsFingerlings $ 41,000$ 41,000 $ 165,000$ 165,000
LaborLabor $ 38,000$ 38,000 $ 142,000$ 142,000
OtherOther $ 122,000$ 122,000 $ 362,000$ 362,000
Cost/water acreCost/water acre $ 2,500$ 2,500 $ 2,300$ 2,300
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 2121
ProfitsProfits -- ““Why bigger is better!Why bigger is better!””(cont.)(cont.)
FarmFarm
II IIII
Total costsTotal costs $ ~ 0.73/lb$ ~ 0.73/lb $ ~ 0.70/lb$ ~ 0.70/lb
Total productionTotal production(5,000 lbs/acre)(5,000 lbs/acre)
700,000 lbs700,000 lbs 2,850,000 lbs2,850,000 lbs
Profit @ sellingProfit @ sellingprice of 0.75/lbprice of 0.75/lb
$ 14,000$ 14,000 $ 142,500$ 142,500
Profit/water acreProfit/water acre $ 100$ 100 $ 250$ 250
BasaBasa –– PangasiusPangasius bocourtibocourti
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Problem for U.S. catfishproducers
2005 taste test studyby Mississippi State
University researchers
Basa preferred 3:1 overchannel catfish
Global ProductionGlobal Production –– Catfish vs. BasaCatfish vs. Basa(1,000(1,000 mtmt))
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0
200
400
600
800
1000
1200
1400
1960 70 80 90
2000
2004
2008
Catfish - US
Basa - VietNam
BasaBasa –– PangasiusPangasius bocourtibocourti
ANS 18ANS 18 -- CATFISH vs BASACATFISH vs BASA 2424
U.S. Top Ten 2009
shrimp 4.1 lbs/per
canned tuna 2.5 lbs/per
salmon 2.0 lbs/per
pollock 1.5 lbs/per
tilapia 1.2 lbs/per
catfish (U.S.) 0.8 lbs/per
crabs 0.6 lbs/per
cod 0.4 lbs/per
clams 0.4 lbs/per
Pangasius (basa) 0.4 lbs/per
2008 Global Production
US Catfish = 234,000 mt
Viet Nam Basa = 1,250,000 mt