ECONOMIC VIABILITY AND ANIMAL HEALTH REGULATION EFFECTS ON A LARGE-SCALE TROUT HATCHERY

An economic-engineering approach is used to evaluate the economic viab ility and health regulatory effects on a trout egg production hatchery located in the northeastern region of the United States. The hatchery has an output sufficient to supply the production requirements for th e eastern US trout fishery. Analysis was made using AQUASIM, a dynamic , stochastic, capital budgeting simulation model for aquaculture produ ction. The results show that the trout hatchery would be affected by a modest price competition from hatcheries located in the western regio n. The results also show that it is better to shut down and correct a serious disease problem than try to continue to operate and experience loss of production due to a violation of a regulatory policy.