Economic feasibility of offshore cobia farming in Pernambuco, Northeastern Brazil

Abstract

The farming of cobia (Rachycentron canadum) in offshore floating cages has been a subject of recent research efforts and commercial ventures in Brazil. This study presents an economic feasibility analysis of an experimental farm off the coast of Pernambuco, northeastern Brazil. Different levels of productivity (5, 10 and 15 kg m^-3), sale prices (R$ 7.00, R$ 11.00 and R$ 15.00 kg^-1) and farm size (6, 12 and 24 cages of 1,600 m³) were considered. Given these scenarios, the offshore farming of cobia will only be profitable if the sale price is R$ 15.00 kg^-1 and the productivity is equal or higher than 10 kg m^-3. If the sale price is R$ 11.00 kg^-1, cobia farming would only be feasible if 15 kg m^-3 are produced in 12 or more cages. Feed ranged from 39.8 to 76.4% of operating expenses according to the productivity level. Offshore farming of cobia in northeastern Brazil may be economically feasible, but it becomes more attractive with an increased number of production units. The needs for capital may be beyond the financial means of small/medium-sized producers.