Much like their friends in the livestock industry, American catfish farmers are currently struggling to maintain the operations in the face of a rough economic climate. Among their biggest challenges are the high price of food and foreign competition.In Alabama, the struggles have reached the point where the federal government had to offer some assistance. As Dana Beyerle writes for the Gadsden Times, the challenges facing Alabama fish farmers led to 141 aquaculture farmers in Hale County receiving $9 billion to purchase feed from the United States Department of Agriculture (USDA) as part of the larger stimulus effort.
According to State Agriculture Commissioner Ron Sparks, aquaculture producers weathered through “financial hardships” in 2008 that were the result of the higher costs for feed. One of the farmers receiving the funds, Bill Kyser, told the Gadsden Times that he got $100,000 to help offset last year’s $2 million feed bill—a feed bill that has been increasing in recent months. According to Kyser, ‘“Feed is close to 50 percent of our costs[.]”’ The main ingredients in fish food are soybean and corn, and these commodities are in high demand on the world market.
Foreign competition has also made life difficult for aquaculture producers. In 2000, catfish sales reached $5 billion nationally, according to the USDA. “Dumping” of cheaper, foreign fish on the domestic market is sharing part of the blame for why domestic sales were $4.1 billion last year. Asian fish farmers do not have to follow the same raising standards as domestic farmers, which helps explain the lower price of the foreign imports.
The reality of the present situation has caused concern for domestic aquaculture producers. There is no clear light at the end of the tunnel where situations will arise to allow domestic producers to maintain viability on a global market.
To read the Beyerle story click here.
Posted: 08/26/09
