Economics of production of channel catfish, Ictalurus punctatus, female x blue catfish, I. furcatus, male hybrid eggs and fry

Enterprise budgets and sensitivity analyses were used to compare the profitability and risks of the production of channel‐blue hybrid catfish eggs to that of channel catfish. Partial budgeting technique was used to determine whether it would be feasible to change from egg to fry production. Average cost of production of hybrid eggs was $49.43/kg ($22.47/pound), compared to $23.34/kg ($10.61/pound) for channel catfish. The net returns to land and management from producing 256 kg (563 pounds) of hybrid eggs were $8,202.20 compared to $7,308.64 for 231 kg (508 pounds) of channel catfish eggs. Sensitivity analyses indicate, that the price and spawning rate, have large effects on hybrid egg profitability. A 30 per cent decrease in price of hybrid eggs reduced net returns of egg production by 74.6 per cent When spawning rate decreased by 40 per cent, net returns from hybrid egg production were reduced by 82.9 per cent. Risk analyses showed that hybrid egg production had a greater probability of negative returns than the channel catfish egg. Partial budgeting techniques showed a net income of $4,943.95 if a hybrid egg producer changed from producing 64kg of eggs to 774,000 fry.