1
Date:
April
7,
2004
To:
Renee
Johnson
and
Chris
Miller,
EPA
From:
Ian
Cadillac
and
Maureen
Kaplan,
ERG
Subject:
Aquaculture
Detailed
Questionnaire­
Costs
and
Returns
for
Flow­
through
and
Recirculating
Facilities
Regional
and
State
Estimates
This
memorandum
is
an
extension
of
the
national
costs
and
returns
analysis
submitted
to
EPA
on
April
6,
2004.
Attachment
1
is
a
listing
of
the
variables
and
where
they
are
taken
from
in
the
detailed
questionnaire.
The
analysis
uses
the
2001
data
for
two
reasons:
(
1)
it
is
the
most
recent
year
for
which
data
were
collected
in
the
survey,
and
(
2)
it
is
the
year
closest
to
the
data
gathered
in
Engle,
et
al.
2004.

1.
NUMBER
OF
OBSERVATIONS
There
are
94
in­
scope
commercial
facilities
with
flow­
through
and
recirculating
production
systems
in
the
EPA
detailed
questionnaire
data
base.
Five
facilities
cannot
be
analyzed
for
costs
and
returns
because
the
unweighted
facility
changed
ownership
at
the
time
of
the
survey
and
did
not
supply
financial
data.
The
number
of
observations
for
the
national
analysis
is
89.

2.
REGIONS
In
order
to
protect
confidentiality,
ERG
developed
region/
size
categories
with
a
minimum
of
five
unweighted
observations
per
category.
In
addition,
only
the
weighted
averages
are
presented.
(
Unlike
the
national
values
reported
in
the
April
6
memo
minimum
and
maximum
values
has
been
omitted
from
this
memo
because
the
smaller
number
of
observations
in
each
region,
combined
with
the
fact
that
maximum
and
minimum
values
 
unlike
averages
 
are
actual
responses
might
cause
confidentiality
to
be
compromised.)

Four
categories
were
developed:

#
Mountain:
100k­
475k
lb/
yr;
Colorado
and
Idaho
(
16
weighted
facilities)

#
Southeast:
100k­
475k
lb/
yr;
Virginia,
North
Carolina,
South
Carolina,
Georgia,
and
Florida
(
24
weighted
facilities)

#
Northeast:
100k­
475k
lb/
yr;
Maine,
Massachusetts,
and
Pennsylvania
(
16
weighted
facilities)

#
West:
>
475k
lb/
yr;
California,
Colorado,
Hawaii,
and
Idaho
(
20
weighted
facilities)
2
The
four
categories
represent
76
facilities.
That
is,
three
observations
representing
13
facilities
could
not
be
fit
into
one
of
the
four
categories
due
to
location
and/
or
size.

Table
1
is
the
regional
summary
for
the
100,000
to
475,000
lb/
yr
production.
The
sales
data
for
the
Northeast
region
is
skewed
because
7.5
facilities
(
two
unweighted
facilities)
reported
$
0
sales.
That
is,
the
production
from
these
two
facilities
are
transported
to
other
facilities
under
the
same
ownership.
Note
the
high
labor
and
energy
costs
for
the
Northeast
region.

Table
1
Regional
Costs
and
Returns
100,000
lb/
yr
­
475,000
lb/
yr
Production
Average
Values
Northeast
West
Southeast
(
PA
MA,
ME)
(
CO,
ID)
(
VA,
NC,
SC,
GA,
FL)

Variable
16
facilities
16
facilities
24
facilities
Total
Sales
$
586,058
$
337,910
$
338,076
Total
Expenses
$
977,321
$
325,795
$
340,834
All
Variable
$
661,478
$
169,634
$
192,069
Depreciation
$
96,729
$
16,599
$
32,649
Feed
$
108,566
$
59,173
$
76,318
Chemicals
$
21,361
$
0
$
9,987
Non
Mortgage
Interest
$
5,134
$
9,120
$
3,042
Labor
$
202,141
$
49,930
$
20,316
Rent­
Vehicle
$
485
$
5,766
$
2,474
Rent­
Land
$
43,359
$
3,130
$
0
Repairs
$
33,246
$
16,920
$
13,580
Energy
$
141,589
$
8,997
$
18,285
COGS
$
8,867
$
92,645
$
54,078
All
Fixed
$
108,764
$
12,857
$
12,857
Taxes
$
50,913
$
6,477
$
6,477
Interest­
Mortgage
$
0
$
1,464
$
1,464
Insurance
$
57,851
$
4,915
$
4,915
3
Table
2
is
the
summary
for
the
facilities
that
produce
more
than
475,000
lb/
yr.
As
with
Table
1,
the
data
set
contains
facilities
that
fail
in
the
baseline.

Table
2
Regional
Costs
and
Returns
Greater
than
475,000
lb/
yr
Production
Average
Values
West
(
CA,
CO,
HI,
ID)

Variable
20
Facilities
Total
Sales
$
1,720,153
Total
Expenses
$
1,989,592
All
Variable
$
1,150,909
Depreciation
$
128,576
Feed
$
204,871
Chemicals
$
4,953
Non
Mortgage
Interest
$
93,812
Labor
$
290,918
Rent­
Vehicle
$
4,954
Rent­
Land
$
33,364
Repairs
$
51,373
Energy
$
132,781
COGS
$
823,721
All
Fixed
$
54,958
Taxes
$
30,434
Interest­
Mortgage
$
4,138
Insurance
$
20,386
4
3.
STATES
The
cost
data
for
the
states
is
presented
on
a
percentage
of
total
costs
basis
in
order
to
protect
confidentiality.
The
ratios
are
calculated
on
a
facility­
by­
facility
basis
and
then
the
state
average
ratios
are
calculated
on
a
weighted
basis.
The
sum
of
the
"
Total
Variable"
and
"
Total
Fixed"
costs
will
not
necessarily
equal
100
percent
because
the
denominator
for
the
ratio
is
Total
Expenses
as
reported
in
Question
C6
in
the
survey,
not
the
sum
of
the
individual
components
reported
in
the
rest
of
Question
C6.
Table
3
contains
the
cost
breakdown
by
state.
5
Table
3
Cost
Categories
as
a
Percentage
of
Total
Costs
By
State
Percent
of
Total
Costs
State
All
Variable
Costs
Depreciation
Feed
Chemical
s
Non
Mortgage
Interest
Labor
Rent­
Vehicle
Rent­

Land
Repairs
Energy
COGS
All
Fixed
Costs
Taxes
Interest­
Mortgage
Insurance
CO
61%
8%
16%
0%
6%
17%
1%
1%
4%
8%
0%
4%
2%
0%
2%

FL
73%
7%
19%
0%
0%
25%
1%
0%
3%
13%
5%
12%
2%
1%
9%

GA
20%
11%
0%
0%
0%
1%
1%
0%
4%
2%
53%
3%
3%
0%
0%

ID
65%
4%
30%
0%
3%
19%
1%
2%
4%
3%
17%
4%
2%
1%
1%

MA
79%
0%
13%
9%
0%
32%
0%
3%
5%
17%
0%
4%
1%
0%
3%

ME
67%
12%
10%
0%
0%
21%
0%
5%
3%
17%
0%
13%
5%
0%
7%

NC
82%
7%
46%
7%
1%
8%
0%
3%
3%
4%
4%
4%
1%
2%
1%

PA
58%
6%
14%
4%
3%
14%
0%
4%
5%
5%
5%
15%
10%
0%
5%

SC
38%
12%
10%
1%
1%
0%
0%
0%
3%
12%
0%
7%
4%
0%
3%

TX
70%
11%
16%
4%
0%
21%
0%
0%
7%
10%
0%
6%
4%
0%
3%

VA
80%
7%
0%
0%
4%
22%
0%
0%
12%
0%
35%
3%
3%
0%
0%

CA
60%
7%
13%
1%
2%
19%
0%
4%
4%
11%
49%
2%
1%
0%
1%

CO
61%
8%
16%
0%
6%
17%
1%
1%
4%
8%
0%
4%
2%
0%
2%

HI
86%
12%
0%
0%
13%
0%
0%
0%
0%
0%
61%
0%
0%
0%
0%

ID
65%
4%
30%
0%
3%
19%
1%
2%
4%
3%
17%
4%
2%
1%
1%

MO
96%
3%
13%
29%
0%
16%
0%
21%
1%
14%
0%
4%
2%
1%
1%

NC
82%
7%
46%
7%
1%
8%
0%
3%
3%
4%
4%
4%
1%
2%
1%
6
7
Attachment
1
Parameters
and
Questionnaire
Variables
Parameter
Questionnaire
Source
Revenue:
C6:
total
sales
Total
Costs
C6:
total
expenses
[
can
be
more
than
sum
of
individual
components]

Variable
Costs
Labor:
C6i:
hired
labor
Feed:
C6c:
feed
purchased
Chemicals:
C6a:
chemicals
and
C6d:
fertilizers
and
lime
Energy:
C6n:
utilities
plus
C6e:
gasoline,
fuel,
and
oil
Depreciation:
C6b:
depreciation
Interest:
C6h:
interest
other
than
mortgage
Repairs/
main:
C6l:
repairs/
maintenance
Cost
of
aquatic
animals:
C6o:
only
if
the
respondent
used
accrual
accounting
Rent
or
lease:
C6j:
vehicles,
machinery,
or
equipment
Rent
or
lease:
C6k:
land,
animals,
or
other
Fixed
Costs
Insurance:
C6f:
insurance,
other
than
health
Interest:
C6g:
mortgage
interest
Taxes:
C6m:
taxes
