Comparative Analysis of the Economic Viability between Integrated and Conventional Production in Semi-Intensive Shrimp Farming of Litopenaeus vannamei in Brazil

Authors: Cozer N*, Dal Pont G, Guimarães VDA, Stica PV, Horodesky A, Biernaski V and Ostrensky A

DOI: 10.23880/ijoac-16000287

Volume 7, Issue 4

Abstract

We performed simulations to analyse the economic viability between conventional production (CP) and integrated production (IP) regimes of marine shrimp in ponds under semi-intensive culture in Brazil. The structural and operational characteristics of CP and the zootechnical parameters associated with shrimp production, were defined based on a systematic literature review through the application of the PRISMA method. The structural and operational characteristics, management strategies and zootechnical parameters of integrated production were estimated based on the principles and practices determined by Brazilian legislation and IP international concepts applied for shrimp farming presented in the technical and scientific literature. Comparisons between economic and financial viability of CP and IP were performed through the diagnosis (inventory) of the activities, processes, equipment and inputs that compose the operation of a hypothetical semi-intensive shrimp pond farm. In addition to the cash flows prepared for the two scenarios, the net present value (NPV), gross revenue (GR), operational profit (OP), payback (PB), benefit/cost (B/C) and internal rate of return (IRR) of the CP and IP were estimated. Implementation of specific technical standards (STS) represented the highest costs. The NPV of the CP was USD 758,147.70 and of the IP was USD 97,452.54. The GR was USD 545,2565.00 for CP and USD 364,422.24 for PI. The PF estimated for the CP was USD 217,300.56, whereas that for IP was USD 68,416.72. The PB was estimated for one year for both scenarios. The B/C ratio was 1.66 for CP and 1.23 for IP. The IRR values for CP and IP were 35% and 7%, respectively. IP presented lower economic and financial indicators than those of CP. The results obtained here may be useful as a starting point for the reduction of economic differences between conventional and integrated ventures and for the feasibility of integrated production in shrimp farming.

Keywords: PRISMA; Shrimp Farming; Financial Feasibility Analysis; Production Regimes; Investment Analysis

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