Franklin A. Pursason. CATFISH FARMING IN NORTH CAROLINA. (Under the direction o-f Dr. Philip Shea) Department of Geography and Planning, April 19S5. Since the 1950s, commercial cattish -farming has grown into an industry worth in excess o+ 100 million dollars annually. The industry is established in -fifteen states, principally in the south. The general purpose of this thesis was to trace the growth of the North Carolina catfish industry and to examine some of the factors that have influenced it. The specific purpose of the study was to compare the relatively small North Carolina industry to that of Mississippi, in order to determine some of the reasons for the differences between the two. Research methodology included a review of the existing literature and on-site interviews in North Carolina and Mississippi. The study areas were selected because Mississippi is the largest cat- fish producing state while North Carolina is one of the smallest producers. The results of the research indicate that the southern portion of North Carolina’s Coastal Plain is physically suitable for the production of catfish. It was noted that the North Carolina industry was not successfully established until 1980. This was probably due to a lack of a local market and a failure to adequately plan and finance early efforts. The North Carolina industry is quite different from the Mississippi industry: the North Carolina operations are geared to supply a small local market while Mississippi supplies a large national market. This difference in markets dictates that techniques and equipment differ greatly between the two state industries. The study concludes that North Carolina has potential as a commercial catfish producer, but that it probably will not become a significant producer on a national scale. CATFISH FARMING IN NORTH CAROLINA A Thesis Presented to the Faculty o+ the Department of Geography and Planning East Carolina University In Partial Fulfillment of the Requirements for the Degree Master o-f Arts in Geography by Franklin A. Purgason April 1985 peu library CATFISH FARMING IN NORTH CAROLINA by Franklin A. Purgason APPROVED by: ACKNOWLEDGEMENT This thesis, like so many others, would not have been completed without the support of a number of persons. Recognition is given to Dr. Ennis Chestang, Dr. Paul Tschetter, and Dr. Charles Ziehr, thesis committee members who were remarkably patient and offered many helpful suggestions. Dr. Phillip Shea, thesis director and graduate advisor, earned and deserves special thanks for his encouragement and guidance. I am grateful to the many persons in North Carolina and Mississippi that provided me with material, information, and their time. A very special thank you is extended to my wife, Marjorie, who offered encouragement and support, and learned more than she wanted to know about catfish. TABLE OF CONTENTS LIST OF ILLUSTRATIONS vi LIST OF TABLES viii Chapter I. INTRODUCTION 1 Statement of Problem. 4 Methodology. . 5 Review of Literature. 5 Historical Development of the Catfish farming Industry. 9 II. THE UNITED STATES CATFISH INDUSTRY 13 Fingerling Production.......... 16 Fee Fishing..... 20 Food Fish Production Methods. 23 Cages. 23 Raceways 25 Ponds 25 Problems in Production. 32 Harvesting. 37 Processing. 39 Quality Control......... 42 Environmental Factors. . 42 Markets 43 Capital Investments. 45 Government Pol icy. 4ó III. CATFISH FARMING IN NORTH CAROLINA AND MISSISSIPPI.. 47 The Catfish Industry of North Carolina 47 Environmental Considerations 47 History of North Carolina Catfish Farming..... 47 Current Status 53 Fingerling Production 53 Fee Fishing. . 54 Food Fish Production. 57 Capital Investment 63 Markets. 63 Summary of the North Carolina Industry. 64 The Mississippi Catfish Industry 65 Environmental Considerations. 65 History of Mississippi Catfish Farming... 67 Current Status. 70 Fingerling Production 70 Fee Fishing.. 73 Food Fish Production 73 Capital Investment 76 Markets 77 Summary q+ the Mississippi Industry........... 77 IV. SUMMARY AND CONCLUSIONS 80 ummary 80 oanclusions 85 BIBLIOGRAPHY 87 LIST OF ILLUSTRATIONS 1. Catfish Producing States by Production The Catfish Farmers of America also publishes market 7 research and technical papers, as do various state level grower and processor associations. These publications tend to be concerned with the technical aspects o-f cat-fish +arming, processing, and marketing. Mack (1971) and Lee (1973) deal with the basics o-f starting and operating cat-fish -farms. Both authors have produced a basic, how-to manual that is aimed at the experienced conventional -farmer. These books provide much general in-formation about catfish cultivation. Shang (1981), Brown (1977), Giachelli (1983), and Giachelli and Waldrop (1983) are major sources for the economic aspects of the industry. Shang provides management models for determining profit levels, as well as determining the economic feasibility of proposed or actual aquaculture operations. Giachelli and Waldrop provide extensive cash flow information concerning Mississippi catfish farms. Their joint publication. Cash Fl.aws Associated with Farm Raided Cat£i.sh Production9 is a description of various economic aspects of large catfish operations (1983). Historical information is available from a variety of popular and technical publications. These articles are often oriented towards the general public, and thus are more ’popular’ than ’scientific’. However, they do provide information concerning events, dates, and places. Madewell (1971) and Madewell and Bellew (1972) are the only sources that are concerned specifically with the historical 8 development of the national catfish industry. These two sources are not very detailed, and the latter appears to be a revision of the former. The New Alchemy Institute and others have been pub- lishing data on "backyard fish farming" or "fish-gardening", and on aquaculture as an "alternative agriculture" for the United States and other countries. Essentially, these publications concern small scale, management-intensive aqua- culture operations rather than the large scale, labor-, energy-, and management-intensive operations typical of the current United States catfish industry. The literature,on the catfish industry of North Carolina is recent but less wel1-documented. The only state documents available concerning the catfish industry of North Carolina are lists of propagation permits issued by the North Carolina Wildlife Commission. The only other sources concerned directly with the North Carolina catfish industry are an unpublished list of catfish landings (Easley 1984) and the grant proposal for the newly-established Waccamaw-Siouan aquaculture project (Carden 1983). Trade and general publications concerning North Carolina catfish production have been searched,revea1ing no positive results. Several articles about the local industry, however, have been published in North Carolina newspapers (News 8i Observer 1984, News Reporter 1984a 1984b). A computer search using the DIALOG facility of Joyner Library and a search of geographic theses and dissertation titles revealed no other sources 9 concerning the North Carolina catfish industry. historical development of the catfish EARMING INDUSTRY Catfish culture attracted the attention of the American scientific community in the early 1920’s, and led to the establishment of research programs at numerous universities and colleges, notably in Kansas and Oklahoma (Madewell 1971, Madewell Bel lew 1972). This research was directed towards methods of breeding catfish in captivity, as it was believed that a commercial catfish operation could not be successful if it depended on fry harvested in the wild, as the size of the catch could not be predicted, the quality of fish grown from wild stock was variable, and wild fry would tend to bring disease into the cultivation areas with them. In 1947, Ewell Nixon of Lonoke, Arkansas, began flooding his rice fields after the seasonal harvest and stocking them with channel catfish finger lings < PeE.!Aiâil 1960). He then harvested the fish before preparing his fields for the next planting. The fish were sold to local markets. During the 1950’s and early 19ó0’s, commercial catfish farming developed in Arkansas and spread to Texas, Louisiana, Alabama, and Georgia. In 1965, the first pond built specifically for raising channel catfish for the food market was built in Sharkey County, Mississippi. One year later, three 10 acre ponds were built in Humphreys county (Wellborn 1984). For the next few years, ponds were ’clean cropped’, 10 that is, all -fish were removed +rom the pond and sold. Most o-f the production was sold to live-haulers, who carried the live -fish in large, aerated tank trucks to processing plants or markets. By the late 1960’s, the industry had major problems. The industry practice o-f clean-cropping production ponds at the end o-f a production cycle appeared to be the root cause of many o-f these problems. Since most -farmers tended to stock production ponds like they planted their -fields (i.e. in the spring) this resulted in a huge number o-f -fish reaching market size in a small time frame. Catfish cannot be held in ponds after reaching market size for two reasons: (1) when fed a normal diet, they will continue to grow and exceed the optimum market size, bringing lower prices, and <2) when fed a maintenance diet (one that should not allow them to lose or gain weight) they will grow long and skinny, with out-sized heads and relatively little flesh on their bodies (Steed 1934, Meyer 1934). The large amount of fish harvested swamped the available processing facilities, while the cyclic availability of fish alternately starved and flooded the markets. In response to the problems facing the industry, cooperative associations of processors and growers were formed. These cooperatives led the way in obtaining state assistance in the development of new techniques for growing and processing catfish, development of new catfish products. and in setting industry standards tor quality and quality control procedures. At the same time, massive vertical integration occurred in the Mississippi catfish industry. Farmers, through cooperatives and individually, acquired shares in processing plants, processors built production ponds, and feed mill owners also constructed production ponds and purchased interests in processing plants. This vertical integration is a major reason for Mississippi’s dominant position in the United States catfish industry (Meyer, 1984, Turner 1984, Steed 1984). There are several state catfish associations and a national association. The purpose of these organizations is to promote market research and development, product research and development, and to provide information to members. The Catfish Farmers of America, the national organization, has been aggressive in expanding existing markets and in seeking out new markets for catfish products. The various state organizations work mainly within their respective states. Many universities have research programs that involve catfish to some extent, Auburn University and Mississippi State University are the two primary research centers for the catfish industry in the United States. Auburn University was for many years the leading research institution, but Mississippi State has overtaken and passed it in terms of financial and personnel support. Mississippi has approved and will soon begin construction of a genetics research facility specifically for catfish. This facility will be under the operational and administrative control of Mississippi State University, and is to be located at the agricultural research station at Stoneville, Mississippi. CHAPTER 2 THE UNITED STATES CATFISH INDUSTRY Since they are 80% lean, cat+ish are advertised by the cat+ish industry to be nutritionally superior to bee+, pork, and chicken. They are more e++icient at converting +eed to flesh (Table 3) and can be raised in great density in ponds, raceways, or cages. With yields reaching 3,000 pounds per surface acre in ponds on average commercial farms, and higher in raceway and cage operations, channel catfish are far more economical to grow than field animals (Mack 1971, Lee 1973, Shang 1981). TABLE 3. DRESSING PERCENTAGE(a) AND FEED/FLESH CONVERSION RATIOS FOR BEEF, PORK, CHICKEN, AND CHANNEL CATFISH(b) FLESH DRESSING FEED/FLESH PERCENTAGE CONVERSION RATIO (Ib.s feed: Ib.s flesh) BEEF 58 8.0 PORK 05 Ó. 0 CHICKEN 72 2. 1 (broi1er) CHANNEL Ó0 1.4 CATFISH source: Lovell 1979, Sokolov 1982 a. marketable percentage of the carcass after dressing b. conversion ratios of 1.17:1 have been attained under laboratory conditions (USDC 1979) commercial catfish farms average ratios of 1.7-1.8:i (Steed 1984) 14 The channel cat-fish ( letal urus Punctatus ) is the first choice of the industry for commercial production. It is hardy, with good growth characteristics and marketability both as a food and sport fish. To a lesser extent, the blue catfish (I.J. Furcatus) and the white catfish (¿j. Catus) are grown commercially, and other species of catfish, such as the brown Nebu 1 osus ) . the yellow Natal is), and the flathead FIGURE 17. The Mississippi Catfish Industry Ó7 makes the soil very suitable for pond construction. Pond production is the prevalent method in Mississippi, although there is some cage production in the Northeast region (Steed 1984). In addition to suitable soil, the Delta has +lat land, a -factor that lends itself to pond construction. Ground water is available in shallow and medium depth aquifers in the Delta, and in medium to deep aquifers in the Northeast and South. The shallow aquifers are an advantage for the Delta, since it is less expensive to drill for than the deeper water supplies. HISTORY OF MISSISSIPPI CATFISH FARMING Mississippi catfish farming began in 1965 with the construction of a forty acre production pond in Sharkey County. The following year, three 10 acre ponds were built in Humphreys County. From this beginning, Mississippi farmers have built the core of the United States catfish industry. Within sixty-five miles of Belzoni, the Humphreys County seat, are 90% of Mississippi’s production ponds and approximately 65% of the total catfish production acreage in the United States (Turner 1984, Steed 1984). Early catfish operations were part of larger more diverse conventional farms. Ponds were stocked and harvested every two years. The results were cyclic gluts of the market, and production soon exceeded processing capacity and market demand. Research efforts developed methods of production that ended the cyclic supply problems, and Ó3 cooperatives torinecl and built processing plants that keep their collective capacity slightly larger than the predicted production. Pond sizes and shapes varied considerably in the early years. Experience and research led to the development o-f the four pond production unit. (Figure 8). The industry has grown at a rate that has exceeded 150% annually in the past (Steed 1934). (Table 6) The state government took an early and aggressive interest in catfish farming. Mississippi State University has been funded for catfish research, and has several persons, notably Dr. Thomas Wellborn, actively working on improving the industry. A genetics research facility for catfish studies is to be built at the Stoneville, MS, agricultural research station. This station already has experimental catfish ponds on site. State supported research has assisted Mississippi to construct a large service industry (Figure 13). The catfish industry is so successful and valuable in Mississippi that large agri-business firms, such as Conagra and Ra1ston-Purina, are moving into the area and becoming involved in all phases of catfish production. These large corporate operations dovetail neatly with the tightly vertical integrated operations. Characterized by cooperatives, the Mississippi catfish industry boasts twelve of the nation’s sixteen major processing plants, each having the capacity to process several hundred thousand pounds of 69 FIGURE 13. This -facility is located in Belzoni, Mississippi. It is used exclusively by the cat-fish -farmers o-f the area, and is a good example o-f the sophisticated support services available to Mississippi cat-fish -farmers. 70 cat-fish per week. CURRENT STATUS The Mississippi catfish industry concentrates on the production and processing of food fish. It is the leading catfish producing state for food fish and fingerlings, and markets its products nationwide. It is growing steadily (Table 6, Figure 19 ic 20). TABLE 6. MISSISSIPPI PRODUCTION POND ACREAGE BY YEAR ACRES IN PRODUCTION MONIHZÏIAR food EISH fingerlings IQTAL %increase ( from previous year ) Dec. 1982 56,191 6,098 62,289 11.4 Dec. 1981 50,688 5,249 55,937 38.6 Dec. 1980 36,437 3,932 40,369 63.4 Mar. 1979 22,541 2, 171 24, 12 44. 1 May 1977 15,182 1,969 17,151 - source: Wellborn 1983 FINGERLING PRODUCTION There are approximately 230 fingerling operations in the state, most of which are associated with a food fish operation. There are, however, several hatcheries that specialize in producing high quality fingerlings for sale to any type operation that needs them. The Delta region has 71 FIGURE 19. This aerial photograph oT part o-f Humphreys County, MS, was taken in 1976. Compare it to Figure 20. 72 FIGURE 20. This aerial photograph is of the same area and approximate scale as Figure 19. It was made in 1932. Note the production ponds that have been constructed. This is an example of how rapidly Mississippi catfish growers have expanded their operations. 73 5,391 acres of fingeríing production ponds, the Northeast 564 acres, and the South 140 acres. This distribution is due to the physical characteristics of the various regions and the distribution o+ +ood +ish acreage. The Delta region is highly suited to food fish production and contains most of the food fish production acreage. It also has the largest concentration of fingerling ponds. The South and the Northeast regions are rolling hill country that is not very suitable for the construction of large food fish production ponds, and they have about the same food fish acreage. The Northeast has four times the fingerling acreage of the South. This is due to the proximity of the main food fish production areas of the Delta. FEE FISHING Fee fishing for catfish is common throughout Mississippi (Steed 1984, Turner 1984). The value of fee fishing operations is minor in comparison to food fish production, / and most fee fishing operators are not dependent on the operation (Turner 1934). FOOD FISH PRODUCTION Approximately 62,000 acres are devoted to food fish production. Ninety-five percent of the acreage is in the Delta region, and the Northeast and Southern regions each have approximately 2.5 percent. This distribution is directly related to the physical characteristics of the Delta 74 region: soil highly suited for pond construction, excellent water supplies, and flatland. Pond production is the principal method used. The ponds are harvested in the manner described in chapter 2. Catfish harvest operations begin about three weeks before the fish are removed from the pond. A sample of fish is netted when a pond is due for harvest. They are killed, cleaned on the pond bank, and cooked in microwave ovens. The fish are then taste tested by a group of three tasters. If any one of the three feel that the fish have an off-flavor, the pond will not be harvested on schedule. Instead, the farmer and the processing plant try to identify the source of the off- flavor. In the case of sediment or algae contamination, the pond is cleaned, and the fish are allowed to remain in the pond for several weeks. At the end of this time, the fish are re-sampled. If they fail the taste test a second time, they may be rested longer, or the entire pond is condemned as unfit for human consumption. In that event, the fish can be sold to fee fishing operations, or in extreme cases they are simply killed and dumped. If the pond passes the first taste test, the harvest is scheduled. Just before the harvest starts, the pond is sampled again. If the fish pass, the pond is harvested. If they do not pass, the harvest is postponed, the fish rested and retested at a later date. Once harvested and loaded into the live-haul trucks (Figure 21), the fish are transported to a processing plant. At the processing plant, the fish are taste tested once more 75 FIGURE 21. This live haul truck is equipped with large aerated water tanks. It is used to haul cat+ish +roin ponds to processing plants in Mississippi. 7ó before unloading. If they fail the test they are returned to the pond, rested, and then the test sequence begins again. If they pass, the fish are dumped into holding tanks and processed. Most of Mississippi’s processing plants are automated to some extent. The major plants employ up to 530 persons, and can move a catfish through the processing line in four minutes or less. COST OF ESTABLISHING A COMMERCIAL CATFISH FARM A cost of production estimate for the Delta region of Mississippi was produced by Mississippi State University in 1982. This publication assumed three hypothetical farm situations: 163 land acres, 323 land acres, and 643 land acres. In each case three acres were used for buildings, operations, parking, etc. The authors determined that these situations are representative of the Mississippi Delta catfish industry. It was assumed that catfish enterprises were separate from all other economic activity. Investment requirements for each farm situation is segmented into six classes: land, pond construction, water supply, feed, disease, parasite, and weed control, harvesting, and miscellaneous equipment. Land was the largest single factor in the costs. Land was valued at approximately ^1,500. per acre at the time the production estimate was researched. Cas of mid-July, 1984, land values were approximately *1,500. per acre (Turner 1934)] 77 Feed costs were made up o-f feeder and bulk storage costs. The proximity of several large catfish feed mills affects the feed costs (Figure 22). Water requirements were set at one 3000 gallon per minute well per four 20 acre ponds (Table 7). MARKETS The Mississippi industry serves the United States national market through truck and rail networks. The market is composed of bulk purchasers such as the United States armed forces, institutions, and restaurant and grocery store chains. It is working steadily to expand that market and is seeking new ones. Recently, the Catfish Farmers of America sent representatives to Europe to promote catfish products. They met with notable success and exports to western Europe have begun on a small scale (Steed 1984). The United States market growth is expected to exceed production growth over the next few years (Meyer 1934). SUMMARY The Mississippi industry is characterized by large scale, highly intensive operations. It is vertically integrated and becoming more mechanized (Figure 22). It is steadily increasing production acreage and expanding its markets. Already marketing on a national scale, the industry is beginning to expand into the European market. The industry expects to grow at an annual rate of about 15% per 73 year for the next +ew years and may triple in size by the year 2000