Partial Budget Analysis of Nile Tilapia Oreochromis niloticus Cultured Within an Existing Agricultural Farm in Kuwait

Abstract

The purpose of this study is to determine the profitability of culturing tilapia at the Public Authority for Agriculture and Fisheries (PAAF) Experiment Station and in three theoretical scenarios using existing alfalfa farm conditions. The three theoretical scenarios were designed using existing farm resources and cheaper construction materials. Farm 1 and the PAAF Experimental Station had the same amounts of tilapia production. Tilapia production in Farm 2 is double the tilapia production in Farm 1, while Farm 3 had the same production as Farm 2 but it received 50% feed cost government subsidy. The results of this study show that profitability of culturing tilapia under existing alfalfa farm conditions is possible even at an annual production rate of 2,475 kg·farm. Higher profitability may be achieved by doubling the production of the farm to 4,950 kg·farm. With government subsidy on feed costs, additional income of about $7,574 per year per farm is possible if tilapia production is integrated into existing farms. Based on the results of this study, culturing tilapia could be a profitable means of increasing the productivity of an existing agricultural farm.