Comparison of the closed intensive and the traditional Hungarian, semi-intensive aquaculture production systems in value production capacity

Abstract

In our study we compared the value productivity of intensive recirculating aquaculture systems (RAS) with traditional Hungarian half-intensive pond technology. In the present economical, political, and social environment, pond production has a smaller profitability rate year by year. We used capital budgeting principles and economical investment calculations. We had done the analysis both with the EFF (European Fisheries Found) subsidy and without it. In the results we successfully identified the economics of scale in both production technologies. At the RAS, at a given system size the bigger farm results in higher economical benefits, but with diminishing returns. Considering our outcome, we can suggest that, through the effect of subsidies, production can be viable at a smaller size, so that even on the level of family farms,
investments can be operable.