16 



FISHERY BULLETIN OF THE FISH AND WILDLIFE SERVICE 



SUMMARY OF PRODUCTION COSTS 



The. niiijor elements in the cost of producing a 

 pound or a bucket of bait-size tilapia in each of 

 the two years of the operation are described in the 

 sections tliat follow and are summarized in table 

 17. 



Table 17.— Summary of production costs, 195S and 1959 



Item 



Capital improvements _--- 



AnD'ial cost, amortized on a 10-year basis.. 

 Interest on capital investments 



Operating expenses - 



Total cost. 



Number of fry produced 



Production of bait-size fish; 



Number of buckets. 



Number of pounds 



Cost per pound 



Cost per 7-pound bucket. 



1958 



$4, 353. 24 



436. 32 



261. 19 



1,814.82 



2,511.33 



1, 074, 076 



470 

 3,290 

 $0.76 

 $5.34 



1959 



$900.00 



525. 32 



315.19 



2, 607. 79 



3, 348 30 



1, 293, 734 



474 

 3,318 

 $1.01 

 $7.06 



1958 OPERATIONS 



An accounting of the major expenses incurred 

 in setting up and operating the plant at Paia dur- 

 ing the first year, not including the salary of a 

 biologist, follows. 



In addition to the operating expenses incurred 

 in 1958, it was necessary to supply feed and water 

 for approximately 2 months in 1959 to the young 

 fish that were held over from 1958. 



Capital improvements : ' 



Initial renovation of the plant $2,233.24 



Other construction and improvements 1, 500. 00 



Barbed-wire fencing !>0. 00 



Bait-hauling tank 100. 00 



Bait acclimatization facilities 380. 00 



Bait-barge acquisition and repair 50. 00 



Total 4, 353. 24 



Operating expenses : 

 1958 : 



Feed— for adult fish $191.96 



Feed — for young fish 



Water 



Hauling bait fish to docksite 



Maintenance and care of grounds- 

 Annual lease on plant area 



375. 69 

 557. 17 

 90.00 

 1.50. 00 

 240.00 



Subtotal 1, 604. 82 



19.59 : 



Feed— for young fish .fOO. 00 



Water— for fry tanks 50.00 



Hauling bait fish to docksite 100. 00 



Subtotal 210.00 



Total 1,814.82 



' Borne by Maui Fisheries and Marine Products, Ltd. 



It is customaiy to amortize the cost of capital 

 improvements over a reasonable period of time. 

 We suggest amortizing the costs over a 10-year 

 period in this instance, rather than charging the 

 full amount against the quantity of bait produced 

 the first year. Also, it is usual business procedure 

 to include in the cost analysis a figure representing 

 income that might be derived from a reasonable 

 interest rate on the capital cost of the original 

 construction; i.e., income which might have been 

 realized had the money been invested. A 6-per- 

 cent return on the amount of the capital improve- 

 ments ($4,353.26) would equal $261.19. 



Total costs : 



Capital improvements $435. 32 



Interest 261. 19 



Operating expen.ses : 



Jan.-Dec, 1958 1,601.82 



Jan.-Feb., 1959 210. 00 



Total 2.511.33 



The cost therefore, of producing bait in 1958 

 was $0.76 per pound when ba.sed on the total esti- 

 mated production of 470 buckets and an expense 

 of $2,511.33, or $5.34 per 7-pound bucket. 



As mentioned before, there is no allowance in 

 these figures for the salary of the biologist in 

 charge of the plant. If we assume that the plant 

 could be operated on a commercial basis with one 

 man working half time at a salary of approxi- 

 mately $2,000 per year, the total cost would be 

 $4,511.33 and the cost of producing bait would be 

 $9.59 per 7-pound bucket, or $1.37 per pound. 

 These costs are reasonable, but we must consider 

 the fact that most of the concrete structure of the 

 hatchery was already in and that building a new 

 hatchery would have increased the costs much 

 more. 



As mentioned before, the skipjack fishermen 

 expressed high approval of the effectiveness of 

 tilapia in catching the larger skipjack. In fishing 

 for these larger skipjack the fishermen preferred 

 using tilapia 5 to 6 cm. (2.0 to 2.4 in.) in length. 

 Young tilapia between 3.8 and 6.4 cm. (1.5 and 

 2.5 in.) are generally suitable, howeA'er, as skiji- 

 jack bait. A 3.8-cm. fish weighs 1.0 g., whereas 

 a 5.1-cm. (2 in.) fish weighs 2.5 g., and a 6.4-cni. 

 fish weighs 4.4 g. The bait fish delivered by the 

 Paia plant in 1958 averaged 1.59 g. in weight 

 and approximately 4.4 cm. (1.7 in.) in length. 

 Whether tilapia are harvested at 4.4 cm. with ap- 

 proximately 2,285 fish to the bucket, or at 5.1 cm. 



