Battling high feed costs, low prices and foreign competition, US's catfish industry is seeing many acres come out of production as producers fight to remain profitable.

 

Last year, 15,000 acres of ponds in Mississippi went out of catfish production, and more are expected to leave production this year. Mississippi continues to lead the nation in catfish production and acreage, but the state's current 65,000 acres is 43% short of its peak of 113,000 acres in 2002.

 

Jimmy Avery, aquaculture leader with the Mississippi State University Extension Service, said shrinking profit margins have decreased the value of catfish ponds.

 

"If a catfish farmer can increase the overall value of his land holdings by diversifying their use, perhaps that farmer can continue to raise catfish on at least some portion of his land," Avery said. "For the last six years, this industry has fought to keep ponds in production. Creating income from a source other than fish sales allows us to continue to farm."

 

Jim Steeby, Extension aquaculture specialist located in Humphreys County, Miss., said current catfish prices are about the same as they were 20 years ago. Prices averaged 77 cents a pound for the last three years, but rose to 80 cents a pound by mid-May. Profits are marginal, at best, in this range.

 

"We're getting the same price for the product as we were 20 years ago, but all the inputs have gone up," Steeby said. "In addition to that, imported fish, such as tilapia and other catfish, are coming in at prices below what we're getting."

 

He added that feed costs made up 60-65% of the cost of production in recent years. About 10 years ago, feed costs were less than 50% of total production costs. Along with high feed prices are higher fuel and electricity costs.

 

In response, most national and state catfish producers have reduced their pond acreage.

 

Producers are waiting on the resolution of some trade issues that could provide a boost for the US farm-raised catfish industry. Catfish and seafood are inspected by the USFDA and the National Marine Fisheries Service, but producers want inspection to move to the USDA. All red meats are USDA inspected, but fish are not.

 

"We would like the definition of catfish to be fairly broad so all imported catfish will be covered under the USDA inspection process and would have to meet the same standards as our US product," Steeby said.