This paper presents the results of an economic analysis of the aquaculture of two species of grouper E. coloides (orange‐spotted grouper, green grouper, red‐spotted grouper) and E. malabaricus (malabar grouper, black‐spotted grouper) for small producers in the Philippines. The findings of the analysis indicate that, based on the assumptions, grouper culture is financially feasible. However, the capital requirements for the broodstock, hatchery/nursery, and integrated system may be beyond the financial means of many small producers. These stages of grouper culture may need to be developed as a larger project by private investors or government. The capital investment requirement for grow‐out (not including purchase of transport boxes) is within the financial means of small producers. Loans or other incentives will need to be made available for the small producer, but the cash flow indicates that these loans can be repaid in the first year of production.This study was funded by the David and Lucille Packard Foundation and the Fisheries Working Group of the Asia-Pacific Economic Cooperation (APEC). Acknowledgement to the Southeast Asian Fisheries Development Center-Aquaculture, Philippines
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