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Net profit equals total harvest value minus all production inputs. Feed typically represents 40-60% of variable costs in intensive systems. Stocking density and FCR determine production per unit area.
Profit = (Harvest_kg × Market_Price) - Feed_Cost - Fingerling_Cost - Labor - Energy - OverheadFCR measures kg of feed required per kg of fish produced. Tilapia FCR: 1.4-1.8, salmon: 1.1-1.3, shrimp: 1.5-2.0. Each 0.1 improvement in FCR reduces feed cost by approximately 5-7% of total production cost.
Feed Cost = Target_Harvest(kg) × FCR × Feed_Price($/kg)Updated: July 2026
Semi-intensive tilapia pond producing 8,000 kg/ha/cycle with two cycles per year.
→ Revenue: $40,000; Feed: $20,480; Other: $10,000 → Profit: ~$9,500
Recirculating aquaculture system producing 50 tonnes Atlantic salmon smolts annually.
→ Revenue: $225,000; Costs: $160,000 → Profit: $65,000 (29% margin)
Stock 15-30% more fingerlings than target harvest to account for mortality. Mortality varies: 5-10% in ponds, 2-5% in RAS, 15-30% in shrimp. Under-stocking leads to underutilized infrastructure.
Actual farm FCR is typically 10-20% worse than research-station results due to feed waste, water quality fluctuations, and sub-optimal feeding schedules. Use conservative FCR values for financial planning.
Model the economics of aquaculture operations by calculating net profit from harvest revenue minus all production costs including feed, fingerlings, labor, energy, and infrastructure. Feed conversion ratio (FCR) is the primary driver of profitability in intensive aquaculture.