An economic feasibility analysis of food fish aquaculture in Minnesota

Abstract

This thesis examines the economic feasibility of using recirculating aquaculture systems (RAS) for year-round food-fish production in Minnesota. RAS are indoor fish-rearing systems that recycle water through mechanical and biological processes. Minnesota's aquaculture industry has historically focused on raising fish for bait and stocking. However, interest is growing in farming native species, like walleye and yellow perch, for human consumption. Enterprise budgets were developed for walleye, yellow perch, and pacific white shrimp at two different production scales, incorporating feedback from regional producers. Breakeven costs and net present value (NPV) estimates were calculated for each enterprise and subjected to sensitivity analysis. Results showed smaller-scale operations were not commercially viable, while larger-scale enterprises could be profitable with adjustments to parameters. Key variables driving positive NPV include higher sale prices, greater production volumes, and reduced capital investment, feed, and labor costs. The findings help establish realistic expectations for commercial-scale aquaculture in Minnesota.