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ARS Home » Southeast Area » Stoneville, Mississippi » Warmwater Aquaculture Research Unit » Research » Publications at this Location » Publication #406832
Research Project: Improving Efficiency in Catfish Aquaculture

Location: Warmwater Aquaculture Research Unit

Title: Economic history of U.S. catfish farming: Lessons for growth and development of aquaculture

Author
item ENGLE, CAROLE - Virginia Tech
item HANSON, TERRY - Auburn University
item KUMAR, GANESH - Mississippi State University

Submitted to: Aquaculture Economics & Management
Publication Type: Review Article
Publication Acceptance Date: 7/21/2021
Publication Date: 1/1/2022
Citation: Engle, C., Hanson, T., Kumar, G. 2022. Economic history of U.S. catfish farming: Lessons for growth and development of aquaculture. Aquaculture Economics & Management. 26(1):1-35. https://doi.org/10.1080/13657305.2021.1896606.
DOI: https://doi.org/10.1080/13657305.2021.1896606

Interpretive Summary: This review paper comprehensively evaluates the economic history of the largest domestic aquaculture segment - US catfish industry. It elucidates the resilient steps taken by catfish farmers and industry to remain competitive in the most competitive US seafood market.

Technical Abstract: Catfish farming continues to be the largest segment of U.S. aquaculture, and U.S. catfish farmers have demonstrated resilience and resourcefulness in adapting to changing economic conditions. Commercial production began in the 1950s–1960s, with growth leading to processing and marketing challenges in the 1970s. By the early 1980s, the key production, processing, and marketing pieces were in place to transform catfish farming into a major enterprise. Keys included development of efficient aerators, nutritionally complete feeds, multiple-batch production providing year-round supply of fish, processing innovations, and creation of The Catfish Institute (TCI) for marketing and public relations. The successful expansion into nontraditional catfish markets attracted competition of pangasius catfish imported from Vietnam by U.S. seafood importers, free riding on successful marketing programs. The 2003–2013 contraction of the U.S. industry was the combined effect of four external economic shocks; trough of price cycle; 2001 recession; September 11 terrorist attacks; and Vietnamese pangasius imports. Prices fell to historical lows and remained below production cost for 3 years. Adoption of intensive systems (split ponds, intensive aeration) that reduced costs led to steady growth from 2014 to 2019. Lessons for U.S. aquaculture include the importance of fingerling/seed technologies, farmer associations, research, Extension, marketing, and state/federal support.