Because of the small size (5 to 20 acres) of many catfish farms, these businesses have high production costs compared to more efficient farms of 50 acres or greater located in the leading catfish producing states.
The large, efficient farms in Mississippi, Alabama, Arkansas, and Louisiana are a direct result of quality clay soils, flat land, lower construction costs, and lower feed costs. An added advantage in these states is the close proximity to processing plants that allows farmers to sell fish directly to a local processor.
This wholesale type marketing, however, is often not profitable for small farms. To maximize profit potential, retail marketing is suggested. Live sales, fee-fishing, and direct sales of processed fish to restaurants and grocery stores are common retail market opportunities.
Direct retail sales can be more profitable than selling to an established processor, but there are important considerations to evaluate prior to production (Tables 1 and 2). Retail markets often want diverse product forms including live and processed fish in varied sizes and consistent supply.
Small farm producers need to carefully consider the increased requirements, time, and cost of retailing their product before starting production. Providing good service and supplying timely and complete orders to retail customers are essential.
Another important consideration is that many retail markets buy large quantities of product from larger processors at lower prices, making it difficult for small processors to compete. If local niche markets that are not being supplied by larger processors can be identified, on-farm processing may be a marketing option for small farms.
Facility design and requirements:
The basic concept of on-farm processing is a low-cost, manual fish cutting operation using family or farm labor to process limited quantities of fish. To demonstrate the flexibility of facility design, a prototype was developed at the University of Florida. The on farm processing facility utilized a 15 feet x 15 feet area of an existing metal building. An example floor plan is shown in Figure 1.
The facility is designed to process 500 pounds catfish (live weight) per day, and the necessary infrastructure is relatively compact and simple, enabling development in an existing farm building (Table
3). Actual equipment requirements and costs will vary depending on desired processing capacity, fish species, product form, and local regulatory requirements. Facility processing capacity can be variable and should be based on the farms identified market opportunities.
The facility can be constructed in an existing building or use a new building. It is recommended that construction allow for insulation to maintain adequate heating and air conditioning requirements. Prices for construction, septic system, and processing equipment will vary with location and processing capacity.
Small machinery such as a tabletop catfish skinner could be incorporated increasing the cost approximately $4,000. Increasing the capacity of the facility to include use of traditional processing equipment, e.g., electric shocking system, band saw for deheading, and an eviscerating system, will significantly add to the investment cost and break-even price.
In addition, freezer/refrigeration space needs will be dependent on an individual farms market demand for fresh versus frozen products.
Author:
Andrew M. Lazur
