Economic feasibility of tilapia culture in southern Brazil: A small-scale farm model

Brazil is following the growing trend of world aquaculture production. Among the cultured fish species, Tilapia (Oreochromis niloticus) presents itself as a potential commodity in the "aquabusiness" sector owing to its versatility. This study was conducted to evaluate the economic-financial viability of tilapiculture in southern Brazil. Therefore, small-scale production was evaluated over several floodplain configurations in different scenarios (feed conversion, stocking density and marketing price) in relation to two segments of activity in the region: trade for slaughter (700 g fish(-1) of final live average weight - Condition A) and "Fish and pay farm" (1100 g fish(-1) of final live average weight - Condition B). The methodology recommended by the Institute of Applied Economics of the State of Sao Paulo (IAE-SP) was applied to evaluate the production and profitability of tilapiculture in Santa Catarina. The activity is profitable in several scenarios with average variations from $3,285.09 to $11,288.36 of net revenue per hectare, Annualized Net Present Value up to $10,837.85 and Modified Internal Rate of Return of 23.75%. These values support the economic feasibility of tilapiculture on a small-scale farm basis and an important economic supplement to the family economic base. Among the possible profitable scenarios, we point to some of the options best suited to conditions encountered by micro and small producers.