Bioeconomic Analysis of Improved Diets for Lobster, Panulirus ornatus, Culture in Vietnam

Culture-based growout of tropical spiny lobster, Panulirus ornatus, is a nascent and unique industry that faces a number of challenges and opportunities. Of particular interest to this study is the imminent development of pelleted diets for lobster (probably within 3 yr) that will potentially reduce the industry's dependence on bycatch for feed (with benefits to wild stocks of fish and reduced downstream environmental impacts). The aim of this paper is to conduct a bioeconomic analysis of lobster growout farming in Vietnam and analyze the cost-effectiveness of potential manufactured feed diets for these farms. Growout lobster farming is found to be a high-cost and high-return industry, with a benefit cost ratio of approximately 1.44. Approximately 60% of the total costs are feed related, with the quantity of feed being the production parameter with the highest variability. Hence, reducing the cost and increasing the efficiency of feeding will have a significant impact on the level and variability of profit. It is expected that manufactured diets will improve the profitability by approximately 267 million VND/yr for an individual farmer (15,000 USD) and approximately 435 billion VND/yr for the industry (24 million USD). This is expected to double again if the diets have the added benefit of reducing mortality through the inclusion of vitamins and other additives.