Research Projects
Marketing and Economic Analysis Research

Subcontract No. RD010A-18

Staff
Auburn University, Alabama

Cooperator
Auburn University, Alabama
Tom Popma

Background

Research under this subcontract will determine profitability and risk indicators for various aquaculture systems developed by the CRSP in Honduras, which will be used to make a rapid determination of whether a particular tilapia production strategy is likely to be profitable, easy to implement, and associated with acceptable levels of risk. In doing so, this study addresses several socioeconomic constraints to the development of more sustainable aquacultural systems identified in the Continuation Plan 1996, specifically, inadequate attention to economic analysis of production; poor understanding of investment, markets, and risk reduction; lack of attention to efficient resource utilization; and barriers to assimilation of technological innovations through extension and training.

Work Plan Research

The following Ninth Work Plan investigation continued into the current reporting period:

• Rapid economic evaluation tools/9MEAR5. The report submitted for this investigation was a final report.

Note: The schedule for 9MEAR5 was modified. The revised schedule appears in the Addendum to the Ninth Work Plan.

Networking

Hatch attended the course "El Cultivo Exitoso de la Tilapia" 2 to 6 October 2000 at the Escuela Agrícola Panamericana (Zamorano), Honduras. There he interacted with small producers, NGO representatives, and government officials in charge of abatement measures in electrical company dams. Two Peace Corps volunteers were also present. While there, Hatch established contacts with 13 Honduran people representing Zamorano, the Empresa Nacional de Energia Electrica, Grupo Granjas Marinas, Aquacorporacion, independent producers, and numerous nongovernmental organizations, including Honduras Outreach, Ayuda en Acción, Centro de Adiestamiento de la Agricultura Sostenible (CEASO), PRODEHCO, and Aldea Global.

Postdoctoral research associate José Falck-Zepeda joined the International Service for National Agricultural Research (ISNAR) in March 2001. This organization assists developing countries in improving the performance of their national agricultural research systems and organizations.

Educational Outreach

Hatch developed teaching materials based on the evaluation tool to be used by Tom Popma at a workshop held at Zamorano in March 2001.

Presentation

Hatch, U. Rapid economic evaluation tool. Presented to Aquaculture America 2001 at Orlando, Florida, 21–25 January 2001.

Conference

Aquaculture America 2001 at Orlando, Florida, 21–25 January 2001. (Hatch)

Rapid Economic Evaluation Tools

Ninth Work Plan, Marketing and Economic Analysis Research 5 (9MEAR5)
Final Report

Upton Hatch and Jose Falck
Department of Agricultural Economics and Rural Sociology
Auburn University, Alabama, USA

Tom Popma
Department of Fisheries and Allied Aquacultures
Auburn University, Alabama, USA

Abstract

The main objective of the project was to provide a user-friendly rapid economic evaluation tool which allows research and extension personnel to quantify possible outcomes of new tilapia production techniques and assess potential economic risk consequences of these techniques. We developed such a tool, having produced a first version for release. The quantitative tool allows the examination of not only mean response of tilapia production systems as reflected in economic budgets but also the risk associated with them. We present results from using the evaluation tool in the text. These results are based on available literature, a case study from an independent producer in Honduras, and results from the identification of three basic tilapia production technologies in Honduras. These results are not meant to be a diagnostic of the risk situation facing Honduras producers, rather to illustrate the potential uses of the evaluation tool by end users.