120 variables, most of which are assumptions that can be changed. 



Itemized costs are shown for the three design concepts for both 



24 and 30 month growth periods. 



Subject descriptors: 



Lobsters; systems analysis; engineering design; costs. 



137 



Shang, Yung Cheng. 



1972. 



Some economic aspects of fresn water prawn farming in Hawaii. 



Proc, Kauai Aguaculture Conference, Lihue, Kauai, June 25, 1972. 



Hawaii Dep. Plan. Econ. Dev., ana Kauai County Off. Icon. Lev., 



pp. 14-16. 



Some information is given. (For a more complete presentation see 



Yung Cheng Shang, Economic Feasibility of Fresh Water Prawn 



Farming in Hawaii.) 



Subject descriptors: 



Prawns; revenue; costs; returns; investment model; economies of 



scale; markets; sensitivity analysis; general description. 



138 



Shang, Yung Cheng. 

 1972. 



Economic feasibility of fresh water prawn farming in Hawaii. 

 Univ. Hawaii, Econ. Res. Cent., 49 pp. 



The investment criteria of positive net present value (NPV) and 

 break-even price in excess of expected price are explained and 

 used. Cost estimates are based on actual hatchery data and 

 preliminary prawn farm data. Sensitivity analysis is employed to 

 show the effect of changes in several variables: (1) for the 

 hatchery, three output levels, five discount rates, and two water 

 costs (associated with the use of domestic water and well water) ; 

 and (2) for the prawn farm, two yield levels, four farm sizes, 

 five discount rates, and three prices. Economies of scale occur 

 in the hatchery with respect to laoor and other input costs and 

 in prawn farming with respect to management, labor, feed, and 

 other input costs. That is, according to the estimated cost 

 data, the costs of various factors of production change in 

 different percentages as output increases. Available information 

 suggests that the market would be local (Hawaiian) , although the 

 potential on the U.S. mainland and Japan are discussed. While 

 the product can be taste-test distinguished, it would likely 

 compete with 10- to 15-count shrimp (count referring to the 

 number of heads-off shrimp per pound), and it would £e a luxury 

 item purchased mainly by hotels and restaurants. 

 Subject descriptors: 



Prawns; revenue; costs; returns; investment model; economies of 

 scale; markets; sensitivity analysis; general description. 



63 



