Understanding Market Channels and

Alternatives for Commercial Catfish

Farmers
 Aquaculture
Markets & Marketing
Dr. Terry Hanson
Department of Fisheries and 
Allied Aquacultures

Auburn University

Marketing Module Contents

• Supply and Demand

• Markets, Marketing and Market Channels
• Marketing by producers
• Marketing skill inventory
• Marketing opportunities
• Market Maker

1
 Market or Marketing?
What is a market?
- Supply and Demand for Seafood,
Catfish
Price
Supply

Demand

Quantity

World Fish Supply

90
80
Million Metric Tons

70
60
50
40
30
20
10
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Marine Catch Inland Aq Marine Aq Inland Catch

2
Per Capita Consumption of Seafood-
Fish in the US 1970-2009

3
 Imported Catfish, Monthly 
1990 ‐ 2010
160,000

140,000

120,000

100,000
Thousand Lbs. 

80,000

60,000

40,000

20,000

0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

U.S. Catfish Industry- Overview of

Catfish Supply and Distribution
Resource Markets

(Capital, Labor, etc.)

Fresh
Fillets
Retail U.S.
Outlets U.S. Live
U.S. Farm
Frozen Processors Fish
Wholesalers Fillets

Other
forms

Fingerlings
Catfish
Imports
Fish feed

Rest of World Farm Suppliers

4
U.S. Top Ten Seafoods, per-capita consumption
2000 2003 2006 2009
1. Tuna

2. Shrimp
(3.50)
3. Pollock
4. Salmon
5. Catfish
(0.996)
6. Cod
7. Clams
8. Crabs
9. Flatfish

10. Scallops

U.S. Top Ten Seafoods, per-capita consumption

2000 2003 2006 2009
1. Tuna Shrimp
(4.00)
2. Shrimp Tuna
(3.50)
3. Pollock Salmon
4. Salmon Pollock
5. Catfish Catfish
(0.996) (1.137)
6. Cod Cod
7. Clams Crabs
8. Crabs Clams
9. Flatfish Tilapia
(0.525)
10. Scallops Scallops

5
U.S. Top Ten Seafoods, per-capita consumption
2000 2003 2006 2009
1. Tuna Shrimp Shrimp
(4.00) (4.40)
2. Shrimp Tuna Tuna
(3.50) Salmon
3. Pollock Salmon Pollock
4. Salmon Pollock Tilapia
5. Catfish Catfish (0.996)
(0.996) (1.137) Catfish
6. Cod Cod (0.969)
7. Clams Crabs Crabs
8. Crabs Clams Cod
9. Flatfish Tilapia Clams
(0.525) Scallops
10. Scallops Scallops

U.S. Top Ten Seafoods, per-capita consumption

2000 2003 2006 2009
1. Tuna Shrimp Shrimp Shrimp
(4.00) (4.40) (4.10)
2. Shrimp Tuna Tuna Tuna
(3.50) Salmon Salmon
3. Pollock Salmon Pollock Pollock
4. Salmon Pollock Tilapia Tilapia
5. Catfish Catfish (0.996) (1.208)
(0.996) (1.137) Catfish Catfish
6. Cod Cod (0.969) (0.849)
7. Clams Crabs Crabs Crabs
8. Crabs Clams Cod Cod
9. Flatfish Tilapia Clams Clams
(0.525) Scallops Pangasius
10. Scallops Scallops (0.356)

6
 Catfish Production Acreage by
State, Jan. 1998 - Jan. 2009
120,000

100,000

80,000
Acreage

60,000

40,000

20,000

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Mississippi Alabama Louisiana Arkansas

Market Knowledge

Thus, we need to understand MARKETS

and MARKETING,…, for the survival of
the US farm-raised catfish industry!

7
 Marketing Economics
• Individual Firm Marketing
– Is there a market for the product?
– What is the market potential of the product?
– What are the factors affecting the demand and prices
of the product?
– What market segments can be penetrated?
– Can the product be distributed and sold efficiently?
– What are the institutional constraints?

A Market is:
• An arena for organizing and facilitating
business activities for answering the following
basic economic questions:
– What to produce
– How much to produce
– For whom to produce
– How to distribute production
– …and at what PRICE?

8
 Marketing of Aquacultural
Products
• Marketing of aquacultural products is:
– The performance of all business activities involved in
the flow of products and services from the point of
initial production until they are in the hands of
consumers
– Management process responsible for finding out what
customers need and supplying them as efficiently and
profitably as possible
– Marketing begins on the farm and ends with the
satisfied customer

Marketing Channel

9
 Marketing is Productive
• It creates UTILITY
1. Place – transfer of the fish from farm gate to
supermarket
2. Time – overwintering of live fish or storage of
processed fish products
3. Form – the transformation of fish into fillets
4. Possession – the consignment of fish from
wholesale to retailer

Marketing Functions
1. Exchange – transfer of title of fish
A. Buying (assembling) of fish or fish products
• Seeking sources of supply
B. Selling
• Merchandising – physical arrangements or display of goods
• Advertising and other promotional efforts
– To influence or create demand for fish
• Packaging

10
 Marketing Functions
2. Physical – solving the problems of when, what and
where
A. Storage of the fish product
• Making fish available at the desired time
• Either in the pond, holding tanks, refrigerators, or in
warehouses
B. Transportation
• Making fish available at the appropriate place
C. Handling and processing
• Freezing, drying, salting, smoking, canning, fish reduction

Marketing Functions
3. Facilitating – smooth performance of the exchange and
physical functions
A. Standardization
• Establishment and maintenance of uniform measurements and
grades
B. Financing
• Use of money to carry on the various aspects of marketing
C. Risk bearing
• Acceptance of the possibility of loss in the marketing of the fish
product
D. Market intelligence
• Collecting, interpreting, and disseminating the large variety of data
necessary for the smooth operation of the marketing process

11
 Marketing Channel
• Institutional structure needed for
movement and exchange to take place
–If product is marketed through a structured
channel, relatively good records are
maintained
–As product moves from producer to consumer
there is a flow of information generated
–This is essential to any marketing channel

Marketing Channel
• If there is mutual agreement over the
conditions of the sale, a physical
transaction flow involving the product and
payment will occur

• Examples of how Market Channels are

depicted

12
 Marketing Channel

Distribution Channels
for Fish
Fish Farmer Fish Farmer Fish Farmer Fish Farmer

Consumer Processor Processor Processor

Consumer Wholesaler Wholesaler

Consumer Retailers
Hotels
Restaurants
Distribution Channels for Fish do: Institutions

- Add costs at each additional level

- Add value at each level Consumer
- Add higher price at each level

13
 ‘Price Taker’ or ‘Price Maker’
• Large volume producers are typically
selling to processors set up to accept large
volumes of fish
–Producer is a “price taker”
• Smaller volume producers can sell their
products directly
–Can be “price makers” when not competing
with larger suppliers

Marketing

Inventory of
Resources and Talents

14
 Inventory of
Resources and Talents
Marketing Skills
Are your skills best suited to marketing traditional agricultural Yes No
commodities
Would you rather be in the field than negotiating with buyers?
Do you feel time on the phone is time wasted?

Do you negotiate input costs?

Do you lock in a profit when it is offered to you?

Inventory of
Resources and Talents
Marketing Skills
Do you have skills suited to marketing niche market, value added, Yes No
wholesale, or retail products
Do you know how to estimate the market for a product?
Are you good at closing a deal?

Do you develop positive relationships with buyers and sellers?

Do you have skills in advertising and promotion?

Are you good at making pricing decisions?

Do you know who your competitors are?

Do you target your products at a specific market?

15
 Inventory of
Resources and Talents
Evaluation of Marketing Skills
• Many agricultural producers have no experience in:
– Estimating market size
– Target marketing
– Advertising and promotion
– Pricing
• Options:
– Concentrate on improving production efficiencies in
commodity agriculture
– Take classes, attend seminars, and learn skills needed
for niche marketing, direct marketing, selling to
wholesalers or directly to retailers

Options to Improve
Profitability

Increase the Profit Margin

Successful managers continually try to pry the
profit margin apart by:
• Reducing the cost of production
• Increasing the market price received

16
 Options to Improve
Profitability

Increase the Market Price

• Marketing skills can make a big difference in
profitability.
• Some grains net only 20 to 30 cents per
bushel, a 10 cent price increase can
increase net income by 33-50 percent.

Options to Improve
Profitability

Expand the Business

• Expanding the business has allowed many to
generate sufficient income to continue to
support their family.
• As profit margins have tightened, sometimes
the size of the business just isn’t adequate to
support the families involved.

17
 Options to Improve
Profitability

Expand the Business

• When considering an expansion, care should
be taken when doing financial planning to
verify the expansion will improve your
financial situation.
• If the profit margin is in fact negative, or the
added volume will cause overhead costs to
increase, an expansion may just put your
business in a deeper financial hole

Options to Improve
Profitability

Creative Innovative Alternatives

• Many producers are looking for ways to
improve income, some have very
successfully developed innovative strategies
to increase profits.
• These may include new farm-based
businesses or investing in value-added
businesses.

18
 Options to Improve
Profitability
Producers have developed many strategies
including:
• Value-added products
• On-farm processing
• Direct marketing
• Niche products and markets
• Recreational & agri-tourism opportunities
• Contracts with businesses & municipalities

Marketing
Opportunities

19
 Marketing Alternatives
Key marketing concepts
Marketing margin
• Difference between farm price of a raw
commodity and retail price of a finished food
product
• Represents amount of money available to
pay for marketing services (e.g.,
transportation, storage, processing and
packaging)

Marketing Alternatives

• Many alternative marketing strategies

represent an effort by the producer to
capture more of the marketing margin
• For any alternative marketing strategy
– increase in returns must be enough to
compensate the producer for additional
marketing activities being performed

20
 Marketing Alternatives
It is important to understand consumer
preferences
• Capitalize on existing demand rather
than try to create demand
• Understand what consumers want in
terms of product form
– Fresh vs. frozen product
– Steaks vs. fillets
– 3-5 oz fillets (1.5 lb live fish)

Marketing Alternatives

Potential catfish marketing alternatives

• Sales to processors
• Direct sales
– To wholesalers, retailers, restaurants
– To final consumers
– Fee fishing
– Live haul sales

21
 Marketing Alternatives

Sales to processors
• Advantages
–Outlet for large volume of fish
–Available year-round
• Disadvantages
–Producer is a price taker (no negotiating
power)
–No guarantee that processor will buy your fish

Marketing Alternatives
Key information for comparing processors
• Historical prices paid for fish; dockage rates
• Required stock purchases or billbacks
• Transportation charges
• Payment frequency; typical time from delivery of fish to
receipt of payment
• Delivery volume requirements; delivery quotas; scheduling
patterns
• Fish size requirements; quality standards
• Availability of contracts; contract terms/conditions
• State bonding requirements

22
 Marketing Alternatives
Direct sales to wholesalers, grocers, restaurants
• Advantages
– Potentially high margin
• Disadvantages
– Difficult to establish relationships
– Retailers may have strict requirements for suppliers
• Quality and/or volume considerations
– Likely to require on-site processing
• HACCP plan
– Product liability

Marketing Alternatives

Direct sales to consumers

• Advantages
– Potentially high margin
• Disadvantages
– Typically low volume
– Can be very time consuming

23
 Marketing Alternatives
Direct sales to consumers vs. direct sales
to wholesale/retail outlets
• HACCP requirements and product liability
may be less of an issue than for sales to
retail outlets
– Depends on product form
• Need to conform to a particular retail
outlet’s product standards is eliminated

Marketing Alternatives
Fee fishing
• Advantages
– High margin outlet
– Does not require further processing
• Disadvantages
– High labor requirements
– Inconsistent and highly seasonal sales
– Relatively low volume

24
 Marketing Alternatives

Live haul sales

• Advantages
– Higher margin than sales to processors
• Disadvantages
– Typically low volume
– Inconsistent sales

Market Maker
A Market Planning
Tool for Direct
Marketers

25
 What’s it about?

Market Maker is a comprehensive state and

regional directory of food producers and
buyers

Includes:
All fresh and processed foods
All levels of production from farm to retail
Data accessible from a growing number of
partner states
- 16 states and Washington, D.C.
- Alabama is next to come on line!

Market Maker
Headed toward a regional/national
buying and supplying network

• Regional development
• New tools and capabilities expected to be
added
• Buyers increasingly drawn to “regional”
product searches
• Great opportunity for specialty products

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 Site Development
Partnership
• More Information Coming Soon
• Auburn University
• Alabama Cooperative Extension Service
• Alabama Department of Agriculture

34
 Marketing Alternatives
Key questions
• Will higher returns from alternative
marketing strategy cover additional
costs associated with the alternative?
• Is the alternative marketing strategy
compatible with available resources and
consistent with business and family
goals?

Conclusions
• The marketing concept begins by knowing what the
consumer wants and working back from the
consumer level through each market channel level to
assure each level provides the needed actions to
ensure proper value addition occurs

35
 Conclusions
• Market channels provide informational flow, product
flow, and information among the agents involved from
production through consumption

• Coordination is required for goods and services to be

moved in an orderly fashion from fish producers to
fish consumers

Conclusions
• Marketing functions include:
– Coordination – orderly flow of product, information,
financing from producer to final consumer
– Exchange – transfer of title of fish
– Physical – solving the problems of when, what and where
– Facilitation – smooth performance of the exchange and
physical functions

• An institutional structure is needed for movement and

exchange to take place

36
 Conclusions
• An inventory of marketing skills may indicate whether
non-traditional outlets for your product would be an
appropriate alternative

• It is important to understand consumer preferences

– Easier to tap into existing demand than to create new
demand

• Potential catfish marketing alternatives involves sales

to processors or direct sales, each having their
advantages and disadvantages

Conclusions
• Will higher returns from alternative
marketing strategies cover additional
costs associated with the alternative?

• Is the alternative marketing strategy

compatible with available resources and
consistent with business and family
goals?

37
The End

Questions

38
 Gregory N Whitis
Extension Aquaculturist
Alabama Cooperative Extension System

Current list of Approved Chemicals
Chemicals Used for Disease Control
Antibiotics used in feeds
Florfenicol (Aquaflor)
Oxytetracycline dehydrate (Terramycin) 
Sulfadimethoxine and ormetoprim (Romet)

Formalin products 
Parasite S, Parasite F and Formacide B
Hydrogen peroxide
MS 222 products Finquel and Tricaine
Diuron

1
Chemicals currently unapproved 
with low regulatory status
 Can be used in the following conditions
 Proper use is warranted for the conditions
 Use at recommended rates
 Follow good management practices
 Use an appropriate grade for foodfish
 Use in an environmentally safe manner

Low regulatory status 
 Acetic acid
 Calcium carbonate (agricultural lime)
 Calcium chloride
 Calcium oxide (quick lime)
 Calcium hydroxide (hydrated lime)
 Calcium Sulfate (gypsum)
 Carbon dioxide gas
 Magnesium sulfate
 Potassium chloride
 Povidone iodine
 Sodium bicarbonate (baking soda)
 Sodium chloride (salt)
 Sodium sulfite
 COPPER SULFATE
 POTASSIUM PERMANGANATE

2
Herbicides
 As of August 2010 there were no approved herbicides 
except for copper sulfate and hydrogen peroxide 
products allowed for use in foodfish ponds. 

 This includes endothal, 2,4 D, diquat, glyphosate, 
fluridone, imazapyr, triclopyr, and carfentrazone

Agricultural Lime
Calcium carbonate (CaCO3)
Uses
 Neutralize acidic soils – raise total alkalinity
 May aid in reducing muddiness of water 
 Raises total hardness too
 May act as a pH buffer in low alkalinity waters
Needs
Catfish ponds should have a minimum total alkalinity of 30 ppm. 
Most black belt ponds have a range of 50‐150 ppm. 
Rate of application
1‐4 tons per surface acre. 
Downside to using in a catfish pond unnecessarily
Promote the availability of free phosphorous in water column
As alkalinity increases, the rate of copper increases also

3
 Hydrated lime
Calcium hydroxide  Ca(OH)2

Uses
Immediate increase of  pond pH
Reduction of carbon dioxide

Sterilization of pond muds
Fish eradicant
Remove turbidity

Not Recommended
Remove off flavor
“There is no research to verify its 
effects on off flavor and no reason to 
suspect that it will.” CE Boyd

The Hydrated Lime Formula
 For prairie ponds
Hydrated lime (ppm)= 1.68  x ppm of CO2

For example, 10 acre pond, 5 feet average depth, 40 ppm CO2 . 
We want to remove 20 ppm ASAP ( fish are visibly stressed) 
Hydrated lime rate (ppm) = 1.68 x 20= 33.6
Acres x avg depth x 2.71 x hydrated lime rate= total pounds
10 x 5 x 2.71 x 33.6= 4553 pounds of hydrated lime
455 lbs per surface acre
Since we typically have aerators running also, biologists rec’d 
about half this amount. No aeration ( power problems) max 
rate.

4
Removing Carbon Dioxide with 
hydrated lime
 Remember three things
1. Concentration of carbon dioxide goes down as pH 
goes up. At a pH of 8.3, there is  negligible carbon 
dioxide
2. As pH goes up, ammonia becomes more toxic
3. Hydrated lime raises the pH of the water

Treatment for carbon dioxide with hydrated lime is an 
immediate treatment. You cannot head off high 
carbon dioxide with a preemptive strike . 

Baking Soda

 Treatment de jour back in the late eighties
 Off‐flavor control ( baking soda in refrigerator?)
 Reduction of carbon dioxide ????

 The use of sodium bicarbonate as a treatment for high 
carbon dioxide is without basis. Craig Tucker
 Carp farmers in Asia use sodium bicarbonate to produce
carbon dioxide as carbon dioxide is a good anesthetic 
(2.4 grams per gallon)

5
Baking Soda
 The Merck Index‐ An Encyclopedia of Chemicals, 
Drugs and Biologicals

 Sodium bicarbonate
 “in an aqueous solution it breaks up into carbon dioxide 
and sodium carbonate”

One potential use for Baking Soda 
in Catfish Ponds
 Removal of excess copper sulfate in an overdose 
situation
 Possible scenario: Mistreatment of a pond by farm 
workers‐ treating a 10 acre pond with a 20 acre dose
 Sodium bicarbonate will raise total alkalinity 1 ppm 
with 3.7 pounds per acre foot
 Why baking soda? Dissolves very quickly  Much better 
than hydrated lime. Safer.

6
 Toxic Algae Bloom
Toxic algae blooms are 
caused  by various algaes that 
release toxins probably in an 
effort to reduce competition 
for resources ( light and 
nutrients). In catfish  ponds , 
toxin may reach levels high 
enough to kill fish .


Potassium Permanganate
KMnO4 
 Potassium (24.7%)
 Manganese (34.8%)
 Oxygen ( 40.5%)
 Powerful oxidizer
 Burns up organic matter 

 Multiple Uses
 Remove hydrogen 
sulfide and iron from 
water

 Detoxify rotenone

 Treat external parasites 
and columnaris

 Detoxify toxins from 
algae blooms

7
Potassium 
Permanganate 
Demand Test
Critical test for determining exact 
amount required

Test is based on the amount of 
organic matter in  pond water

Residual KMnO4 actually treats 
the surface and gills of the fish in a 
disease treatment

For toxic bloom treatments a full 
treatment may not be necessary

Using KMnO4 Wisely
 For disease treatments a demand test is necessary to 
determine exact dosage
 Not using enough is a complete waste of chemical
 For toxic bloom treatments, a demand test is preferred 
but in the interest of time may not be possible. Dosage 
should be at least half the demand. Giving a biologist a 
description of the bloom intensity may be good 
enough. 

8
SALT
 NaCl ( 39.3% sodium, 60.6% chloride)
 Used for nitrite protection and as a hauling aid
 Need 50 lbs for 10 ppm chloride per acre foot
 Need 10 ppm chloride for every ppm nitrite
 Sample calculation
 10 acre pond, five feet deep,  5 ppm Nitrite protection
 10 acres x 5 feet deep x 50 lbs/acre‐feet x 5= 12,500 lbs

How Much Salt Do I Need?
 Ammonia is the source for nitrites
 High feeding rates= high ammonias
 Conversion rate from ammonia to nitrite for all practical 
purposes is one to one
 Based on Fish Center records, ammonia rates on the 
average peak around 5 ppm in September
 Average nitrite levels are lower however‐ around 2 ppm
 Record nitrite level at Fish Center is 17 ppm Nitrite! 

9
How Much Salt Do I Need
 Most producers salt to a 50 ppm level
 Levee ponds will retain some salt from year to year
 Watershed ponds will typically flush and lose residual 
salt 
 Fish Center recommends 50 ppm chloride as a 
minimum. Add more for elevated ammonia/ nitrite 
levels on an as needed basis. 
 Monitor ammonia levels twice a month

Calculating Salt Amounts
 Surface acres x average depth x ( Desired Chloride 
concentration – Current Chloride concentration) x 
level of protection desired= total pounds for the pond

 10 acres x 5 x ( 50‐25) x 5 = 6250 lbs

Fish Center can run chloride checks for producers‐
Check levels twice a year ( April and September)

10
 Copper Sulfate 
Pentahydrate
CuSO4  5H20
Copper (25.4%)
Sulfur (12.8%)
Oxygen (25.6%)
Hydrogen (4%)
Oxygen (32%)

Uses  Herbicide
Algaecide
Parasiticide
Bactericide
Fungicide 

Other 
• Occurs in seawater at .02 ppm
• A trace element essential for animals               
and plants
• One ounce is human lethal dose
• 150 mg is the rec’d daily dose for 
humans

•Solubility in water is  1.73 lbs per gallon at 
68  F

Copper Sulfate is a very effective 
and efficient off flavor tool 
 Tucker and Hanson   Results
Study  Copper ponds had 
 Economical to use  higher annual net 
crystals returns
 Suspended bagged   Conclusions
copper near aerators  Inability to harvest fish 
 Used 5 lbs per acre per  in a timely fashion 
week when water above  exposed fish to greater 
70 F  disease losses
 Harvested in August

11
Current Recommendations for 
Using Copper Sulfate for Off Flavor
 Use copper on a regular   Use enough copper for 
basis if you plan to  an effective dosage‐
harvest fish before fall “vitamin” dosages are a 
 Use copper only for off  waste of time and money
flavors caused by algaes
 If fish are off‐flavor and 
there are no off flavor 
algaes present, 
treatments will not be 
effective 

Algaes Differ in Copper Toxicity
 Least Resistant
 Most problematic blue greens‐ Anabaena, 
Aphanizomenon, Oscillatoria, and Microcystis
 Doses in the ¼ to 1 ppm range effective
 Most resistant
 Greens and filamentous algaes‐ Chlorella, pithophora, 
and chara
 Doses in 1 ppm to 2 ppm range may be needed 

12
Liquid Copper
 Three forms
 Copper and water mixtures
 Solubility of copper is 1.73 lbs per gallon at 68 F
 Chelated copper mixes
 Chelate is typically an organic compound such as citric acid 
that binds to copper and makes it more residual
 “ Non chelated” but “better” than copper and just water. 
The compound that makes it “better” is often deemed 
proprietary

The Advantage of Chelated Copper
 The components that make up the total alkalinity of 
the water tie up or bound the copper rendering it non 
toxic
 Biologists attempt to overcome this chemistry by 
adjusting treatment rates based on total alkalinity 
 Chelated products supposedly are more residual and 
work ( kill algaes) longer before they eventually are 
also bound up 

13
Now the bad news
 In experiments conducted at UAPB, the toxicity of un 
chelated liquid coppers , was the same as plain copper 
sulfate at low, medium and high alkalinity when  
properly dissolved
 THERE IS NO EVIDENCE  THAT UN CHELATED 
LIQUID PRODUCTS ARE IN ANY WAY BETTER 
THAN COPPER SULFATE ALONE PROVIDED THAT 
PLAIN OLE COPPER SULFATE IS DISSOLVED IN 
THE POND
• Andy Goodwin, 
UAPB Fish Health Specialist

Is Agritech an economical and 
efficient product?

14
 Liquid Copper 
(AgriTec)
Copper Sulfate Pentahydrate 19.8%
Metallic Copper  5%
Inert Ingredients   80.2%

AgriTec weighs 9.9 lbs per gallon

Five gallons of AgriTec weighs 49.5 lbs

Copper Sulfate Pentahydrate 9.8 lbs
Metallic Copper  2.48 lbs
Inerts (pc and water) 39.7  lbs

Current Cost of AgriTec is  $120.50 for 
five  gallons 
$120.50 / 9.8 lbs of copper sulfate
$12.30 per lb
Sack of copper  $78  or $1.56 per lb
$12.30/$1.56  or 8 times as expensive

Is AgriTec Worth the Expense?
 If you think AgriTec is 8 times more effective than 
plain old copper sulfate, go ahead and use it

 UAPB
 There is no scientific evidence that chelated copper 
products or un chelated copper products are even two 
times as effective as plain copper sulfate

15
Making Your Own Liquid Copper

 Use a 200 gallon plastic tank ( watering trough)
 Add two pounds of copper sulfate per gallon of water
 Mix with an airstone or mechanically
 To treat a pond, every gallon has 2 lbs of copper sulfate 

Making Your Own Chelated Copper
 Add citric acid at a 1 to 10 ratio to copper sulfate
 For example : 200 gallon tank
 Need 400 lbs copper @ 77 F
 Need 40 lbs citric acid ($90 / #50)
 Mix to dissolve
 10 acre pond, 5 feet deep, 100 TA
 10 x 5 x 2.71 x 100/100 = 135.5 lbs max dose
 Use 67.75 gallons of mix 
 Cost of above mix ( copper $211.38, CA $72)
 Total $283.38 for 135.5 lbs of homemade chelated copper sulfate
 Agritec equilivalent (135.5 / 1.96 lbs per gallon) = 69.1 gallons
 69.1 gallons @ $24.1 per gallon = $1665.31

16
 Efficient and 
Economical Use of 
Chemicals 
Summary
1. Use hydrated lime as needed for 
immediate carbon dioxide 
control
2. Don’t use baking soda for carbon 
dioxide problems
3. For disease control with 
potassium permanganate, do a 
demand test and use the 
recommended rate
4. Maintain at least 50 ppm
chlorides  in heavily fed catfish 
ponds. Add more salt as 
ammonia levels become 
elevated. 
5. Use copper sulfate on a regular 
basis for off flavor control for fall 
harvest fish. 
6. If fish go off flavor, use copper 
sulfate for off flavor problems 
only if off flavor algaes are 
present
7. Copper must be dissolved to be 
effective in pond water.
8. Don’t use expensive liquid 
copper products unless you know 
for a fact that they are worth it. 

Questions and 
Comments
Gregory N. Whitis
Extension Aquaculturist
Alabama Cooperative Extension System

Alabama Fish Farming Center
334‐624‐4016

17
 In‐pond raceway systems developed 
in West Alabama

Travis W. Brown, Jesse A. Chappell, Terry R.

Hanson
Department of Fisheries &Allied Aquacultures
Auburn University

Concept:
• Develop a more competitive
production model
• Combine the advantages of
recirculating aquaculture
with the lower cost of pond
aquaculture.

1
 Objective - Improve production efficiency
that emphasize our competitive advantages
• Improve fish survival to > 90%
• Improve FCR to better than 1.7 : 1
• Reduce cost per unit gain
• Gain greater control over inventory
• Reduce energy usage per unit produced
• Reduce labor costs per unit
• Utilize other production by-products and
resources

First Design & Layout

• System Footprint = 100’ x 45’ or 0.10
acres located in a 6-acre earthen pond
• Six raceway cells (37’ x 16’ x 4’)
• Fish culture area (25.3’ x 16’ x 4’ or
1619 cubic feet or ~45 tons)
• Water Mover = 1.2 rpm paddle wheel
powered by a ½ hp VFD motor;
• Water exchange about every 5-6 minutes
• Supplemental aeration = 1.5 hp
regenerative blower w/ diffuser grid
• Waste collection trough located at the
tail end of each raceway

2
 Note: Not to Scale
Design and Layout:

Feeding Approach
• Catfish were offered feed multiple times per day
during warmer months to achieve best survival and
high feed efficiency.
– Feed allowance was based on total fish biomass in
raceways, average size of fish, and water temperature.

3
 Fish Sampling
• Fish sampled every
30 days.
– Average weight
– Length-weight
measurements
• Emphasized
inventory knowledge
and control.

Stocking

4
 IPRS Fish Production Over a 220
Day Growing Season
Total
Total weight
weight Production Production
Species harvested
stocked (lbs) (lbs/acre)
(lbs)
(lbs)

Channel & Hybrid catfish 40,713 109,808 69,095 11,516

Tilapia 29.80 8,710 8,680 1,447
Paddlefish 504.50 5,293 4,789 798
Subtotal (co-cultured fish) 534.30 14,003 13,469 2,245
Grand Total (all fish) 41,247 123,811 13,761

IPRS Fish Production

Mean
Mean
Species Survival
FCR
(%)

Channel & Hybrid catfish 83.7 1.50

Tilapia 100.0 -
Paddlefish 85.9 -

5
 Water Quality
Parameter IPRS

Dissolved oxygen (mg/l) 6.38 ± 3.62

Temperature (Co) 25.15 ± 5.12

pH 7.74 ± 0.48

TAN (mg/l) 1.45 ± 1.15

Nitrite-N (mg/l) 0.17 ± 0.19

Total alkalinity (mg/l) 164.6 ± 16.4

Chloride (mg/l) 705.3 ± 75.6

Simulated Models - Production

Total
Total weight
weight Production Survival
Projected models stocked FCR
harvested (lbs/acre) (%)
(lbs)
(lbs)

All Channel catfish w/

co-culture fish 14,698 94,255 13,260 78.0 1.74

All Hybrid catfish w/

co-culture fish 22,345 153,367 21,837 89.1 1.36

6
Initial summary and outlook:
• Design modifications needed on waste
removal system.
• Produce advanced fingerlings/stockers onsite
in floating raceways for immediate availability.
• Next step: run the system with stockers (100-
130 gram) over a longer period for more in-
depth economic evidence.

FLOATING SYSTEMS

7
8
 The current model that has evolved:
• For a 2.5 ha pond, 1.2 meter average depth
• Production system has a footprint of  
approximately 10mx25m
• 2 production cells; each 5mx22m
• Floor of 10 cm thick concrete, fiberglass 
reinforced, with preformed post holes
• Posts with key‐holes hold side panels 
• Fish contained by plastic wall panels 40‐60 mil 
HDPE and PCV‐coated steel upstream and 
downstream gates.

9
10
11
12
13
 Current model, continued
• Water movers: either large paddles or preferably air lifts 
using low‐pressure air blowers to provide sufficient water 
flow to exchange water every 5 to 6 minutes.
• A zone for solid settling at the end to allow for collection of 
fish feces and removal.
• Walkways can be installed. 
• Bird nets can be added. 
• Fish can be easily crowded and removed. 
• Can use automated feeding but not required.
• Can have emergency oxygen supply.
• Should have some fish in the open pond: some filter 
feeders like silver carp and a few bottom feeders like black 
carp.
• Total production capacity is about 63 tons in the 2.5 ha 
pond.

Costs
• Concrete slab, about 25 cubic meters fiberglass‐
reinforced concrete (10m x 25m x 10cm)
• Wall panels, 15 units, HDPE on galvanized frame with 
hanging hardware
• Posts: 12 units, each piece about 2.5 meters
• Water movers (2): airlift apparatus with blower
• Confining gates (4)
• Walkways (2)
Total cost is about $24,000
Add in emergency generator, bird exclusion gear, and 
supplemental oxygen system at $8,000 additional

14
 Advantages
• Improved survival
• Improved FCR= reduced cost of feeding
• Eliminate predation by birds or other fish
• Reduced energy costs
• Better inventory control
• Allows for staggered stocking/harvesting to provide better 
cash flow
• Easier fish health management; less costly to treat diseases
• Easier to grade the fish
• Less area to manage
• Capture of nutrients for removal and use in gardens, worm 
production, or methane production

Disadvantages
• High initial cost of installation
• Different management compared to 
traditional; must have good quality feed
• Need to master different technical skills such 
as maintaining the water movers, removing 
wastes.
• Requires constant electricity supply

15
 Summary
• China has, in the past, led in aquaculture 
innovations such as the manure‐based carp 
polyculture systems.
• However, China and many other countries will be 
facing severe shortages of clean freshwater in the 
near future.
• There will also be increasing population pressure 
on the land.
• We cannot continue throwing wastes into water 
to generate fish feed. 
• And we need to be able to more effectively 
remove fish wastes and use them to produce 
more food.

• By investing in infrastructure and by using high 
quality feed, energy use per kg fish produced 
can be reduced, water quality can be 
sustained, AND production per unit area can 
be increased.
• The examples shown here are only the first 
steps towards better water use and better 
energy efficiency. 
• How will freshwater fish farming look in China 
25 years from now? 50 years from now?

16
 IPRS Economics

Butch Wilson IPRS

IPRS Fish Production

Mean
Mean
Species Survival
FCR
(%)

Channel & Hybrid catfish 83.7 1.50

Tilapia 100.0 -
Paddlefish 85.9 -

17
 Simulated Models - Production

Total
Total weight
weight Production Survival
Projected models stocked FCR
harvested (lbs/acre) (%)
(lbs)
(lbs)

All Channel catfish w/

co-culture fish 14,698 94,255 13,260 78.0 1.74

All Hybrid catfish w/

co-culture fish 22,345 153,367 21,837 89.1 1.36

IPRS Catfish Production

120,000

100,000
Total Biomass (lbs)

80,000

60,000

40,000

20,000

0
0 100 200 300 400 500 600 700

Days

18
 Economics after 220 days
Estimated
Receipts COP
Species Net Returns
($/lb) ($/lb)
($/lb)

Channel & Hybrid catfish $ 0.74 $ 0.71 $ 0.03

Tilapia $ 3.00 $ 0.05 $ 2.95

Paddlefish $ 2.50 $ 0.20 $ 2.30

Grand Total (all fish) $ 0.98 $ 0.63 $ 0.35

Simulated Models - Economics

Estimated
Receipts COP
Projected models Net Returns
($/lb) ($/lb)
($/lb)

All Channel catfish w/ co-

culture fish $ 1.07 $ 0.66 $ 0.41

All Hybrid catfish w/ co-

culture fish $ 0.96 $ 0.53 $ 0.43

19
IPRS Economics

2 cell Floating IPRS

20
21
22
 Characteristics of Consistently
Successful Farms

Jamie Yeager
Extension Economist‐
Farm Business Management
Alabama Fish Farming Center

What Does a Successful 
Farm Look Like?
• A Mansion on the hill with a neatly manicured 
farmstead with all new farm equipment, and is always 
driving a new truck.

• A rundown house with a farmstead that is grown up in 
the bushes with 30+ year old farm equipment and an 
old truck that barely runs.

Both or Neither

You Can’t Judge a Book by it’s Cover

1
 What Does a Successful 
Farm Look Like?

• The one common characteristic that I have 
found between all types of successful farms is:

• Longevity

What makes a Successful 
Farm Successful
• We have analyzed different types of farms from all over the 
state to determine what they are doing that other farms are 
not that makes them successful and we have found that what 
sets them apart is:
• A combination of a lot of small things that add up over 
time.
• It is not 1 specific thing that they are doing that makes 
them successful.

• The devil is in the details

2
 Characteristics
Diversification
• Spread your risk
• Enterprises that complement each other with 
use of existing resources (Labor, Mg’t, Land 
etc)
• With broilers and cattle the broiler litter is used as 
fertilizer for hay and pasture land.
• Work load does not divide, it multiplies.

Characteristics
Good Record Keepers

• Most successful farmers tend to be good Record 
Keepers, and use this information to manage 
their business.
• Update their books and reconcile their bank 
statements regularly.
• They have a year long business relationship with 
their accountant or tax preparer rather than a 
once a year  visit during the peak of tax season.

3
 Characteristics
Good Businessmen
• Everyday when they get up they  Tend to Business, they are 
thinking about and looking for ways to improve their 
operations everyday.

• Business skills are essential on today’s farming operations, 
because not only do you have to know how to grow your 
product profitably, but you have to know how to market 
your product for a profit.

• Most of these business skills are common sense, but most 
farmers are so busy taking care of daily activities on the 
farm that the business end tends to have a lower priority.

Critical Control Points

4
 Fish Sales
• Sell fish on a schedule(X lbs/week, month, qtr)
» Provides regular cash flow
» Decreases the amount of borrowed capital necessary, 
• Also decreases the interest expense
» Addresses big fish problem
» Allows for opportunity to receive higher prices
• Holding fish hoping for better price is risky
– This will hurt you in the long run
– Odds are you will not hit the high
– Increased chance of getting docked for big fish 
– Bigger fish are eating feed that the understocking needs, which will delay 
the harvest of understocking.
– Harvest delays such as off‐flavor could delay restocking
– If not sold timely could cause you to max out your line of credit during 
the height of feeding season.

Feed Cost
• Feed makes up 50%+ of the cost to grow 
catfish, so any improvement here could 
translate into big savings down the road.

• The person driving the feed truck should also 
be the person paying the feed bills.
– This usually eliminates wasted feed.

5
 Feed Cost
• Understand how the movement of the grain 
markets affect the price of feed and monitor 
these markets on a regular basis.
• Understanding what causes the grain markets 
to move will help you be better prepared to 
make a decision on pricing your feed.

August 2011 Soybean Meal

6
 Booking Feed
• Booking feed has resulted in large savings for 
some farms in the past few years.
• Start watching the feed prices for next year early 
in the year (June‐July).

• If you can get a favorable price that you can make 
a profit at go ahead and lock in 1/4 to 1/3 of your 
needs, then continue to watch the markets and 
book more as the market presents opportunities.

Booking Feed Example
• A Farm buys 1,000 tons of feed a year and is 
considering booking feed for next year.  For 
example lets say he books the following:
• 250 ton @ $315/ton  
• 250 ton @ $345/ton
• 250 ton @ $370/ton
• 250 ton @ $390/ton  (Spot price)
– His average price for the year is $355/ton
– The average spot price was $375/ton
– He saved $20,000

7
 Booking Feed Example
• A Farm buys 1,000 tons of feed a year and is 
considering booking feed for next year.  For 
example lets say he books the following:
• 250 ton @ $315/ton  
• 250 ton @ $285/ton
• 250 ton @ $260/ton
• 250 ton @ $240/ton  (Spot price)
– His Average price was $275/ton
– The Average spot price was $265/ton
– His feed cost was $10,000 more than spot

Hired Labor
• Labor is expensive.

• Labor can cost you more than the wages they 
are paid.

• A good employee is worth many times what 
he is paid in most cases, but a bad employee 
can cost you more in 15 minutes than he will 
earn in a year.

8
 Hired Labor
• When you hire someone and agree on a wage 
don’t forget that you have to match their FICA 
and Medicare taxes, and you may also be 
subject to unemployment taxes on their 
wages.
• You hire an employee for $10/hour it will actually cost 
you $10.77/hour plus whatever unemployment rate 
you may have  ( unemployment tax rates have been 
going up the last couple years due to the high number 
of unemployment claims)

Hired Labor
• Many farm employers provide employees with 
non cash benefits such as:
• Gas
• Housing (utilities)
• Truck
• Meals
– Note: employee does not have to pay taxes on these benefits.

9
 True Cost of Hired Labor
• For example lets say you have an an employee 
that you pay $350 per week.  You also provide 
him with housing ($350/month, 1 tank of gas 
per week ($60/week), and you pay him 
mileage to pick up things in town from time to 
time ($2,000/year)

• What does this employee make annually?

True Cost of Hired Labor
Salary      $18,200
Housing  $4,200
Gas         $3,120
Mileage   $2,000
FICA match $1,392
Total Cost $28,912
Note:  The employee received $9,320 tax free.

• This employee cost the farmer $10,712 more than his wages.

10
 Hired Labor
• Keep a close watch on your Labor cost so it 
does not get out of control.

• Be mindful of employee theft.
» Employees may abuse benefits resulting in theft.

• Monitor employee loans.  In most cases you 
will never be completely repaid.

Hired Labor

• In most cases hired labor is more of a 
headache than it is worth.

• Manage your labor don’t let your labor 
manage you.

11
 Utilities
• Monitoring systems are the best way to 
control electricity costs.

• Watch cell phone, telephone, and internet 
bills.  These have been steadily climbing over 
the past few years.

Repairs
• Try to do as many repairs yourself as you can.  
This translates into large savings at the end of 
the year.

• Spend the winter on maintenance so you 
won’t have down time in the summer and you 
won’t spend your busiest time of year working 
on equipment.

12
 Interest
• Over the last few years we have seen the 
interest expense steadily decrease for catfish 
farms mainly due to decreasing interest rates 
for short term loans, but also due to farms 
paying off long term debt that was financed at 
higher rates.

• If you have variable rate loans you should 
probably look into locking in a low rate.

Fuel
• Fuel cost on farms has been steadily climbing for 
the last few years.
• One way to combat this is to invest in cheap 
electric aeration rather than diesel.  Farmer’s that 
have increased their electric aeration capacity 
have reported sharp decreases in their diesel 
usage.
• Not only is electric cheaper to run, but it turns 
itself on and off, and you don’t have to worry 
about diesel spills.

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 Fuel
• Over the last few years the amount of gas and 
fuel used by trucks and other vehicles on 
farms has contributed as much to the fuel bill 
as the diesel aeration in many cases.

• The only sure fire way to cut this expense is to 
cut the number of vehicles owned. 
• (sell some trucks)

Family Living Expenses

• What Does It Cost You to Live?

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 Family Living Expenses
• Family living expenses range from $15,000 to 
$70,000+ per year.

• Many farmers are borrowing money to pay 
living expenses, which cannot be sustained for 
long periods of time.

Family Living Expenses
• A W2 wage earner knows how much money he 
has to live on each month, but a farmer is 
different.
• Farmer’s usually have access to a line of credit 
that they draw from to pay bills (both farm 
expenses & family living expenses) and pay back 
when they receive income.
• With easy access to money it is hard for someone 
to stay on a budget, so increases in living 
expenses may go unnoticed until it is too late.

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 Family Living Expenses
• On multi‐batch catfish farms it is even more 
difficult to control living expenses, because 
the production cycle never ends.

• There is no natural stopping point like there is 
with beef cattle or row crops.

• Lines of credit are generally renewed for 
another year without being paid off.

Family Living Expenses
• Controlling living expenses
• Put yourself on a budget
• Determine how much it should cost you to live 
for a year, and put that amount of money in 
an account and draw from it to pay living 
expenses for that year.  
• When you see the balance decreasing faster 
than it should, it will force you to examine 
your living expenses for areas to cut.

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 Family Living Expenses
• Controlling living expenses
• Determine how much it costs you to live per 
month and draw that amount out of the farm 
each month, but once it is spent you can’t draw 
more.

– When a W2 wage earner’s pay check runs out he can’t 
go to his boss and ask for more, he has to wait until 
his next pay check, or draw it from savings.

Conclusion

Tend to your Business or 
Someone Else Will !

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