PRODUCTION OPTIMIZATION AND ECONOMIC ANALYSIS OF AN OYSTER (Crassostrea virginica) HATCHERY ON THE CHESAPEAKE BAY, MARYLAND, USA

Publisher Website
Google Scholar
Abstract
Production dynamics and economics of a large‐scale oyster (Crassostrea virginica) hatchery operated by the University of Maryland were investigated using a series of Linear Programming models. Development of models was based on a year of detailed operational data and biological phenomena peculiar to the low‐salinity (12–15 ppt) hatchery site.The model successfully identified production bottlenecks. When both the model and hatchery operations were altered to alleviate a given resource constraint, the model predicted subsequent problem areas. Revisions of hatchery equipment‐mix and production methods were easily incorporated into the Linear Programming framework and the resultant effects evaluated.Economic feasibility of the oyster hatchery as a commercial venture was estimated using actual building costs at a 12% interest rate, straight‐line depreciation, and optimized production estimates. Analyses were conducted for both the current hatchery and a hatchery with a modified equipment‐mix within the same building. When both hatcheries were coupled to a harvesting operation, they were capable of a sustained gross profit after the initial start‐up, but were only marginally successful in recovering from a crop failure or any level of revenue loss. The modified equipment‐mix design demonstrated potential for marked production increases by further refinement in arrangement and use of hatchery equipment.When the model simulated the hatcheries operating solely as seed oyster facilities rather than as a component of a harvesting operation, both the current hatchery design and the redesigned hatchery demonstrated an ability to generate profit. However, this potential relies heavily on good growth conditions in the hatchery; salinity fluctuations or equipment failure could drastically reduce the hatchery output.

This publication has 3 references indexed in Scilit: