Analyzing the economic performance of the red sea bream Pagrus major offshore aquaculture production system in Korea

This study aimed to analyze the economic effect of the red sea bream Pagrus major offshore aquaculture production system in Korea. Based on the data collected, revenue and expenses throughout the culture period were calculated, and the net present value and internal rate of return of the ten-year cash flow and cash outflow were estimated in order to determine the economic validity of red sea bream offshore aquaculture production. Results showed that the red sea bream offshore aquaculture production system had high profitability based on the current production and market conditions. This is because of its relatively high survival rate, relatively low feed conversion ratio, and good market price level. However, sensitivity analyses of the main variables indicated that the profitability of red sea bream offshore aquaculture is highly vulnerable to production conditions and market condition changes.