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Comparative analysis of the economic feasibility of Tiger puffer (Takifugu rubripes) aquaculture in China

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Abstract

Tiger puffer (Takifugu rubripes) is one of the most expensive farmed marine fish species in China. The high profitability of farmed tiger puffer is used to attract many new investors. However, some investments failed due to a lack of information about the tiger puffer fish farm business, poor farm and facility design, and flawed investment plans. To improve the investment efficiency and profitability of this industry, this analysis evaluated the economic performance of tiger puffer from eggs to harvest size using two different open-indoor combination aquaculture systems: a combination of recirculating aquaculture system and open net pen (RAS+ONP) and a combination of flow-through system and earth pond (FTS + EP). This analysis evaluated the financial performance of both systems using profit margin, net present value (NPV), internal rate of return (IRR), and payback period. At the same time, a sensitivity analysis was employed to measure economic risk. The results revealed that despite the RAS+ONP system being more economically profitable than the FTS + EP system, the financial indicators of the FTS + EP system granted a better economic performance in terms of NPV and IRR due to lower initial investment and operating costs. Meanwhile, the sensitivity analysis revealed that the economic performance of both systems was vulnerable to the fluctuations in fish prices and feed prices. The potential risk of earning profit was higher for the RAS+ONP if the feed price fluctuated compared to the FTS + EP system, while the risk was higher for the FTS + EP if the fish price fluctuated. Hence, the FTS + EP system could represent an opportunity for new entrants to obtain a more profitable production.

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Acknowledgements

The authors gratefully acknowledge the respondents in China who have extended their cooperation and support in providing their responses during the personal interview. The guidance of the Editor(s) and anonymous Reviewer(s) is gratefully acknowledged.

Funding

This study has been carried out with the financial support of the Sasakawa Scientific Research Grant from The Japan Science Society (Grant number: 2021-1028) and The Support Project for Emergent Ocean Research and Industrial Human Resource Development from the Japan Science and Technology Agency (Grant number: FY2022_JST).

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Authors and Affiliations

  1. Tokyo University of Marine Science and Technology, Tokyo, Japan

    Kai Liao & Xiaobo Lou

  2. College of Economics and Management, Shanghai Ocean University, Shanghai, 201306, China

    Zhengyong Yang & Di Zhang

  3. Dalian Fugu Food Co., Ltd., Zhuanghe Economic Development Zone, Dalian, 116400, China

    Peng Su

Authors
  1. Kai Liao
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  2. Xiaobo Lou
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  3. Zhengyong Yang
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  4. Di Zhang
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  5. Peng Su
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Contributions

The first, second, and third authors contributed to the study in conceptualizing and designing it. The data collection was undertaken by the fourth and fifth author. The data analyses and interpretation were guided by the first author. The revision was undertaken by the first, second and third authors. All authors reviewed the results and approved the final version of the manuscript.

Corresponding author

Correspondence to Kai Liao.

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Liao, K., Lou, X., Yang, Z. et al. Comparative analysis of the economic feasibility of Tiger puffer (Takifugu rubripes) aquaculture in China. Aquacult Int 32, 939–961 (2024). https://doi.org/10.1007/s10499-023-01194-5

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  • DOI: https://doi.org/10.1007/s10499-023-01194-5

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