1. Budget Comparison of In-pond
Raceways vs. Open-Pond
Jay Warecki, Ph.D.
© 2013 Superior Aquaculture,
LLC

2. What do you see ?

3. Do You See…?
•Increasing feed costs
•Increasing energy costs
•A depressed economy
•Unfair competition from imports
•Increasing environmental mandates
•Lower prices to growers

4. Is This You ?
(As we fish for complementary sciences.)
◊ LEFT: Depressed, shrunk, reduced phospholipids.
◊ RIGHT: Normal after 30-90 days of omega-3’s.
◊ CRITICAL for brain development and maintenance.
◊ Controlling every cell, enzyme, and sense, e.g. vision
◊ A game-changer for growers, fish, & consumers.

5. What I See
A massive, solar-powered, food machine
where harvesting yields new life.
Micro Algae: 80% of all settleable solids
 ---8 liters/min/raceway flowing in.
 ---Valuable lipids for feed, biodiesel, etc
 ---Excellent amino acid profiles
 ---The freshwater source of all omega-3

6. What Else I See
Zooplankton:
1.2 Billion live zooplankton, weighing
about 100 Lbs./hr./raceway.
 Bio-accumulated omega-3’s critical for
fingerlings, immune systems & marketing
 An on-farm, renewable source of high-
value nutrients.
 A perfect example of sustainable,
Integrated Multi-Trophic Aquaculture.
I see all this and more because in-pond
raceways enhance observation & control.

7. Farm Animal Production Trends
Turkeys
Chickens
Hogs
FISH
Movement toward highly controlled growing
conditions & thus higher intensities.

8. Recent In-Pond Raceway
History
Two basic types: Floating & Non-Floating
Work “Spearheaded” by Dr. Michael Masser
with floating raceways in the mid 1990’s +
Major contributions by Dr. Dave Brune of
Clemson with the (non-floating) PAS
Numerous other contributors, including those
working with “split ponds”.

9. (More) Recent History
 An aluminum, floating raceway developed
by Dr. Hansen and colleagues at Auburn,
about 2008.
 Construction costs “above our pay-grade”.

10. Current History
 Dr. Jessie Chappel, colleagues, & growers
from Auburn , about 2009, concrete.
 Their most recent work: a 2-cell, poly
(40-60 mil) lining over steel framed wall
sections, 2011.

11. More Current History
 The practical and affordable solution?
 Floating or Sit-0n-Bottom; 1/8 in. thick HDPE. ANY Size.
 Early 2000’s; Patented to Jay & Bonnie Warecki in 2006.
 Years of successful use studied by Dr. Hartleb and colleagues,
University of Wis. (2004-2007).
 World Aquaculture Conf., Aquaculture Magazine, Amer. Fish Soc.
 Listed in “Best Management Practices for Aquaculture…” 2006

12. Significant Variable Cost
Factors
(Approx. 95%)
(Production Levels) Fingerling Costs
Feed Costs Electricity
Feed Conversion Ratios Harvesting
Survivorship Meds. & Chem.

13. Production Level Assumptions
 3 raceways/6 acre pond.
 IPRS: 30,000 Lbs/acre 180,000 Lb/pond
 O-Pond: 8,000 ” ” 48,000 ” ”
 8,000Lbs/acre is Alabama average—catfish.
 5,200Lbs/acre is North Carolina ave.-catfish.
 8,000Lbs/acre (approx.) Texas ave.-catfish.

14. Harvest Densities, Catfish
 1.8Lbs/gal achieved, Auburn, IPRS, 2010 +
 Harvest densities > 1.8 achieved for many
species.
 Assuming 1.55Lbs/gal for “Tables 1&2”.
 A 40,000 gal (usable water) IPR can yield
62,500 Lbs.
 Thus, 3 IPR’s can yield 30,000Lbs/acre, or
180,000Lbs/6 acres/cycle, while only
carrying 15,000Lbs/acre at a time, which is
only ½ of the pond’s estimated
30,000Lb/acre carrying capacity.

15. Feed Conversion Ratios (FCR’s)
 Most Alabama catfish farmers: 2.8-3.0:1
 Texas channel catfish farmers: 2.4-2.9:1
 Texas HSB farmers, estimated: 2.6:1
 Raceway users elsewhere routinely
achieve 1.1-1:1.
 Auburn researchers/growers achieved:
1.2-1.5 in 2010
1.1-1.2 in 2012
We have assumed a 1.2 FCR for
“Tables 1 and 2”.

16. High-Tech Feeding Systems
Feed the fish, not the pond.
Critical for achieving optimal FCR’s.
Feeding many times daily and at night.
Feeding only when fish eagerly feed, using an
automated feed verification system.
Automated, computer assisted, labor-saving
systems with safe-guards work.

17. Feed Costs
 Assume feed costs will increase.
 At $500/ton (Aug. 2012), and a 2.8 FCR,
feed cost=$0.70/Lb. harvested.
 At $500/ton and a 2.8 FCR, every $100/ton
feed increase=$0.14/Lb. product increase.
HOWEVER
 At $500/ton and a 1.2 FCR, every $100/ton
feed increase=$0.06/Lb. product increase.
 This also holds for $600/ton and higher.
 Clearly, more expensive feed MANDATES
better feed management.

18. Survivorship
 Fingerling costs are about 20% of all
variable costs.
 Survivorship in open-ponds: about 55%.
 Survivorship in IPRS: about 90%.

19. Fingerling Stocking Costs
 45% fewer fingerlings needed in IPRS.
 45% reduced feed costs from Day 1.
 Reduced fingerling costs (alone) can
equal savings of $0.05/Lb harvested,
assuming a $0.13/fingerling cost.
 Growth assessment and survivorship
easily observed in raceways.

20. Electrical Costs
 Oxygenate the fish, not the whole pond.
 Modern, diffuser grid airlifts much more
efficient than paddle wheels.
 At first glance, 24/7 raceway aeration
costs similar to short-term, intermittent
whole pond aeration.
 Long-term objective and savings:
Significant reduction in acuity of D.O.
swings.

21. Harvesting Costs
 Fish pumps and/or raceway seining are
much easier, thorough, and fish-friendly
than pond seining.
 Net savings in harvesting costs estimated
@ about $0.02/Lb.

22. Medicine and Chemical Costs
 Water treatment and chemical costs can
approximate 2.5% of variable costs.
 Early observable problems in raceways can
often be effectively mitigated and
controlled at a fraction of the cost of open-
pond treatments.
 The above can include the reduction of off-
flavor issues.

23. Table 1
Most Significant Variable Expenses
Pounds/ Pounds/ Pounds/ Cost/ Cost/ Cost/ $/Harvest Lb $/Harvest Lb
Acre Pond Lb. Fish Lb. Acre Pond @ $500/t Feed___@$400/t
Feed
(Note: Bold, straight print below is for in-pond raceway method. Italics print is for open-pond method.)
Number of Raceways 0.5 3 --- --- --- --- --- ---
Number of Raceways -0- --- --- --- --- --- --- ---
Production level (Lbs) 30,000 180,000 --- --- --- --- --- ---
Production level (Lbs) 8,000 48,000 --- --- --- --- --- ---
Feed (@$500/ton) 36,000 216,000 1.2 (FCR) $0.25 $9,000 $54,000 $0.30 ---
Feed (@$500/ton) 22,400 134,400 2.8 (FCR) $0.25 $5,600 $33,600 $0.70 ---
Feed ($400/ton) 36,000 216,000 1.2 (FCR) $0.20 $7,200 $43,200 --- $0.24
Feed ($400/ton) 22,400 134,400 2.8 (FCR) $0.20 $4,480 $26,880 --- $0.56
Fingerlings (pieces) 4,900 29,400 --- --- $3,822 $22,932 $0.08 $0.08
Fingerlings (pieces) 8,000 48,000 --- --- $1,040 $6,240 $0.13 $0.13
Harvesting and hauling 36,000 216,000 --- --- $1,080 $6,480 $0.03 $0.03
Harvesting and hauling 8,000 48,000 --- --- $400 $2,400 $0.05 $0.05
Electricity (Kwh) --- --- --- $0.09 $295 $3,540 $0.019 $0.019
Electricity (Kwh) --- --- --- $0.09 $161 $960 $0.020 $0.020
In-Pond Raceways TOTAL: $0.43 $0.37
Open Pond TOTAL: $0.90 $0.76
$/Harvested Pound Difference:
@ $500/ton, $0.47/Lb which represents a 52% variable cost savings.
@ $400/ton, $0.39/Lb which represents a 51% variable cost savings.

24. Table 2
Return on Investment & Viability
Total
Feed Cost Selling Est. Fixed* $/Harvest Lb Viability** ROI**
$/ton Price____Cost @ $0.17/Lb_(Bottom Table 1)__________________
(Note: Bold print below is for in-pond raceway method. Italics print is for open-pond
method.)
Raceways 500 0.80 0.17 0.43 Yes <1 yr.
Open-pond 500 0.80 0.17 0.90 No ------
Raceways 500 0.90 0.17 0.43 Yes <1 yr.
Open-pond 500 0.90 0.17 0.90 No ------
Raceways 400 0.80 0.17 0.37 Yes <1 yr.
Open-pond 400 0.80 0.17 0.76 No ------
Raceways 400 0.90 0.17 0.37 Yes <1 yr.
Open-pond 400 0.90 0.17 0.76 Marginal ------
**Does NOT reflect approx. $6,300/acre income from pond fish (e.g. tilapia, paddlefish, etc.) in IPRS.
*Examination of Dr. Carole Engle’s “Breakeven Costs of Catfish Production”, Univ. of Arkansas, P.B. supports this.

25. IPRS Projected Capital Expenses
(Assumptions Used for ROI Estimates)
A set of (3) 48,000 gal floating or sit-on-
bottom, HDPE, approx 1/8” $25,500
(Volume pricing available.)
Lumber for walkways, est. $2,700
(3) 3-Grid Airlifts w/frames, est. $3,000
(3) 1.5 hp. Blowers est.@ $800 = $2,400
(Estimated) TOTAL For 3: $33,600
(Est.) “Bonus Fish” Income/Pond $37,800