ECONOMIC-IMPLICATIONS OF TREATING EFFLUENTS FROM CATFISH PRODUCTION

An economic analysis of catfish production was conducted with and with out treatment technologies for effluents. A linear programming model w as developed to determine the profit-maximizing effluent management st rategies for varying levels of allowable effluent discharge for catfis h in the event that regulations would enforce either fixed levels or t axes on effluent discharges. Economic implications for varying policy alternatives are discussed. Catfish production costs would be increase d by $0.00 to $0.11 per kg if mandatory effluent control measures were to be enforced. While the use of water for crop irrigation was shown to be the least expensive alternative to treat effluents, the model su ggested that the technique used for effluent removal depends upon the type of regulation implemented and the effect of treatment technologie s in catfish production. However, all policies analyzed reduced net fa rm revenues due to either treatment cost or to changes in optimal farm size or stocking rates that resulted in lower net farm revenues. This study also showed that imposing control options will create additiona l barriers to entry for new potential catfish farmers, particularly sm all-scale (less than 130 hectares) farms.