Production Economics and Profitability Analysis of Aquaculture in Southwest Bangladesh

Aquaculture provides suitable options for sustenance and income generation in Bangladesh. Southwest Bangladesh has a great potential for aquaculture development. Farmers in this region practice aquaculture in many patterns under three broad categories, such as commercial fish culture, commercial shrimp culture and homestead aquaculture. The study investigated the production economics and profitability of aquaculture practicing in southwest Bangladesh. The study shows aquaculture in southwest Bangladesh is feasible and profitable with a cost-benefit ratio of 1:1.71, 1:1.54, 1:1.30 for commercial fish culture, commercial shrimp culture and homestead aquaculture respectively. The per hectare total cost of production of commercial fish culture, commercial shrimp culture and homestead aquaculture are BDT 225615.46, 242860.17 and 185799.52 respectively and the corresponding total revenue are BDT 384767.00, 374662.62 and 242100.29. The per hectare net returns of commercial fish culture, commercial shrimp culture and homestead aquaculture are BDT 159151.54, 131802.45 and 56300.77 respectively. However, the farmers made the highest profit from commercial fish culture. The Cobb-Douglas production function analysis indicates that per hectare net returns are significantly influenced by input costs. These factors are directly or jointly responsible for influencing the per hectare net returns of all types of aquaculture. The sensitivity analysis shows that the variable costs including cost of fertilizers, fish feeds and fish seeds are the main factors affecting profitability