Cost/Benefit Analysis of Aquaponic Systems Richad Chiang 1
PURPOSE pupose of this pape is to analyse the costs and benefits of aquaponic systems designed fo home use. Howeve, one can easily extapolate fom this pape the commecial benefits of aquaponic systems in compaison to othe ways of faming fish and vegetables. Futhemoe, with climate change (cabon emission), food shotages, wate shotages, depleting fish stocks and inceasing enegy cost becoming citical poblems and issues facing the wold, one can see that aquaponic systems ae one obvious solution to educing thei impacts. aquaponic systems used in this analysis ae based on: 1. Those available fom Aquaponics of Westen Austalia; 2. Cuent o most ecent cost and pice figues in Peth, Westen Austalia; and 3. Climatic conditions in and aound Peth. This pape does not intend to povide details on how to set up o use aquaponic systems. Inteested eades should efe to extensive liteatues on this subject available elsewhee. I like to thank M Joel Malcolm, Ms Faye Acao and M Cal Schmidt of Aquaponics, cone Jandakot Road and Beigan Dive, Jandakot, Westen Austalia 6164, fo the assistance endeed to me in pepaing this pape. Unless othewise stated, all figues used in this pape ae povided by them o extacted fom thei documents. This pape is dedicated to M John Bummell OAM, Coodinato Fusion Hoticultue, Canbea ACT. I hope this pape will be of some assistance to him in his wothwhile effot to populaise aquaponics in Austalia. In his lette to me, he stated I am moe than convinced that aquaponics is one way to go. combat climate change wate shotages.. food shotages... INTRODUCTION In an aquaponic system, nutient-ich waste wate fom fish tanks is used to povide plant food to vegetables and hebs gown hydoponically in gow beds. Beneficial bacteia in the gow beds convet ammonia to an available fom of nutients able to be taken up by the plants. emoval of nutients (fish waste, algae and fish feed leftoves) fom the wate allows the feshly cleaned wate to be eciculated back into the fish tank. A seies of pipes, iigation fittings, stands and wate pump enable this. 2
mateial inputs to the aquaponic system ae essentially fingelings (young fish), fish feed, seedlings and wate (to eplace loss in evapoation and tanspiation and to poduce fish, vegetables and hebs) while nothing is wasted. Othe cost input to the aquaponic system is powe supply which is equied to un the wate pump and ai pump. Afte installation of the aquaponic system, the majo effot involved is the initial establishment of the gow beds and the fish tank with vegetables and fish fingelings espectively in the fist yea. Once established, the aquaponic system vitually uns by itself and less than 30 minutes a day is equied to keep the system going. This mainly involves feeding the fish daily and occasionally havesting the fesh vegetables and fish when fully gown. I use the high ends of the cost figues and the low ends of evenue figues to aive at the financial benefits. Hence, the etun on investment may be consideed consevative. BACKYARD AQUAPONIC SYSTEMS main featues of the aquaponic systems used in this execise and deived powe consumption and cost figues ae summaised in Table 1 below: Table 1 Aquaponics System Entetaine No. of Gow Beds 1 2 3 4 6 Fish Tank Capacity (kl) 1 1 2 3 3 Fingelings Tank No No No Yes 500 Lites Wate Pump Capacity (kl/h) 3.0 3.0 4.5 8.0 8.0 Wate Pump Wattage 60 60 65 250 250 Estimated Wate Pump Powe Consumption pa 1 (KWH) 132 132 142 548 548 Ai Pump Capacity (lites pe minute) 8 8 8 8 8 Ai Pump Wattage 10 10 10 10 10 Estimated Ai Pump Powe Consumption pa (KWH) Total Estimated Powe Consumption pa (KWH) 88 88 88 88 88 220 220 230 636 636 Estimated Cost of Powe pa 2 $39 $39 $41 $112 $112 1 Assume wate pump uns fo 15 minutes in evey hou. 2 Base on the cost of powe in Peth, Westen Austalia, at 17.61 cents pe KWH on 1 st August 2009. 3
FISH Fish species that ae consideed suitable fo aquaponic systems in Westen Austalia, deived fish costs and maket pices of live fish in Peth ae summaised in Table 2 below: Table 2 Fish Species Silve Pech Baamundi Rainbow Tout Black Beam Goldfish Wate Fesh Salt o fesh Fesh Salt o fesh Fesh Gowth Time of Yea All yea ound Oct Ma Ap Sep All yea ound All yea ound Nomal Gowth Peiod (months) Nomal Havesting Gowth Size (gms) 10 12 6 8 6 8 24-500 450 500 450 500 500 - Tempeatue Range 2 0 C 35 0 C 15 0 C 39 0 C 0 0 C 23 0 C 8 0 C 33 0 C Optimum Tempeatue Range Type of Pelletised Feeds Appoximate Feed Convesion Ratio (Feed : Fish) Othe Feeds Cost of Each Fingeling Appoximate Cost of 1 kg of Fish Feed Appoximate Cost of Feed to Poduce 1 Fish 3 (500 gms) Total Cost of Feed fo 1 Fish (500 gms) plus 1 Fingeling Retail Pice 4 of 1 Live Fish (500 gms) in Peth (Low End) 20 0 C 30 0 C 27 0 C 18 0 C 22 0 C 24 0 C 16 0 C 22 0 C Floating o Sinking Floating o Sinking Floating o Sinking Sinking Floating 2.00 : 1.00 1.70 : 1.00 1.25 : 1.00 (Not available) - Omnivoous/ plant mateials as adults $2.00 (8 cm/50gms) $1.00-$1.50 (3-4 cm) Canivoous Canivoous Canivoous Algae $4.50 (300 gms) $1.30 (10 cm/50 gms) $4.00 - $5.00 (300 gms) $3.00 $5.00 $4.00 $ $ $2.70 $1.70 $2.25 $ $ $4.70 $6.20 $3.55 $ $ $ $12.00 $9.00 $ $ $1.30 It is clea fom the above figues that Rainbow Tout and Baamundi ae ideally suited fo aquaponics in Peth fom thei excellent feed convesion atios, shot gowth 3 Lage fingelings of the espective fish available ae used and the diffeence in weight between the fingeling and the fish is used to deive the fish feed equied and hence the cost of fish feed. 4 se ae the lowe end of cuent etail pices of espective live fish in Peth fom a phone suvey. 4
peiods and complementay gowing time in the yea. Hence, I pepae this pape based on these two species of fish only. COSTS Capital Costs initial one time capital cost fo each of the Aquaponic System is summaised in Table 3 below: Table 3 Aquaponics System Entetaine Pice $1,845 $3,100 $4,995 $7,525 $9,975 Delivey & Installation $425 $675 $975 $1,300 $1,500 Total Cost $2,270 $3,775 $5,970 $8,825 $11,475 Othe Costs Cost of Fish In costing the fish, it is assumed that the Baamundi will be kept in the wame months of the yea (Novembe May/June) and Rainbow Tout will be kept in the colde months (Apil Octobe). Table 4 Aquaponics System No. of Baamundi 5 pa 20 25 22 No. of Rainbow Tout pa 20 25 22 Cost of Baamundi at $6.20 each fom Table 2 based on Aveage (High End) Cost of Rainbow Tout at $3.55 each fom Table 2 based on Aveage (High End) Total Cost of Fish (Baamundi + Rainbow Tout) pa (High End) Entetaine 40 50 45 40 50 45 60 75 67 60 75 67 80 100 90 80 100 90 120 150 135 120 150 135 $140 $280 $420 $560 $840 $80 $160 $240 $320 $480 $220 $440 $660 $880 $1320 5 Assume fish ae aised unde favouable conditions, 40-50 fishes (Baamundi and Rainbow Tout, half each) pa pe gow bed and each fish weighs 450-500 gms at havesting. 5
Cost of Seedlings fo Vegetables and Hebs Table 5 Aquaponics System Cost Estimates of Seedlings pa (High End) Entetaine $60 $120 $180 $240 $360 Cost of Wate Table 6 Aquaponics System Estimated Evapoation and Tanspiation Wate Loss pa 6 (kl) Estimated Wate Consumed by fishes, Vegetables and Hebs pa 7 (kl) (High End) Total Estimated Wate Consumption pa (kl) (High End) Estimated Cost of Wate 8 (High End) Entetaine 0.55 0.55 1.10 1.65 1.65 0.55 1.10 1.65 2.20 3.30 1.10 1.65 2.75 3.85 5.95 $0.70 $1.10 $1.80 $2.50 $3.60 statement fom Geoff Wilson at Footnote 7 means that about one kilo of fish and seven kilos of vegetables and/o hebs can be gown fo evey 22 lites of wate which cost less than one cent in Peth. One can theefoe see how small is the quantity and cost of wate used in an aquaponic system! Summay of Othe Costs 6 This is based on statements Tempeate climate evapo-tanspiation wate loss in aquaponics has been cut to aound 0.15% a day. This means that top up of wate each yea is about 55% of the total wate volume in the system fom Geoff Wilson, Conveno, Aquaponics Netwok Austalia, 17 th Febuay 2006. 7 This is based on the statement About one tonne of fish and seven tonnes of vegetables o hebs can be gown fo evey 22 cubic metes (22,000 lites) of wate fom Geoff Wilson, Conveno, Aquaponics Netwok Austalia, 17 th Febuay 2006. Hence 50 fishes (Baamundi o Rainbow Tout) which weigh aound 25 kgs use 550 lites of wate. 8 This is based on cost of wate at 0.643 pe kl in Peth, Westen Austalia, on 1 st August 2009. 6
You will note that I have not included the cost on labou povided by the owne of the aquaponic system. As stated ealie, less than 30 minutes pe day will be equied to keep the system going. This mainly involves feeding the fish. Table 7 Aquaponics System Entetaine Estimated Cost of Powe (Table 1) $39.00 $39.00 $41.00 $112.00 $112.00 Estimated Cost Fish + Fingelings (Table 4) Estimated Cost of Seedlings (Table 5) $220.00 $440.00 $660.00 $880.00 $1,320.00 $60.00 $120.00 $180.00 $240.00 $360.00 Estimated Cost of Wate (Table 6) $0.70 $1.10 $1.80 $2.50 $3.60 Total Othe Costs $320.00 $600.00 $883.00 $1,234.00 $1,796.00 RETURN ON INVESTMENT Table 8 Aquaponics System Retail Value of Live Baamundi pa at $12.00 each Retail Value of Live Rainbow Tout pa at $9.00 each Retail Value of Vegetables and Hebs pa Entetaine $264 $540 $804 $1,080 $1,620 $198 $405 $603 $810 $1,215 $800 $1,600 $2,400 $3,200 $4,800 Total Potential Retail Revenue $1,262 $2,545 $3,807 $5,090 $7,035 Total Potential Net Revenue $900 $1,900 $2,900 $3,800 $5,200 Pay Back Peiod (yeas) 2.5 2.0 2.1 2.3 2.2 COST/BENEFIT ANALYSIS 7
financial analysis shows that the Pay Back Peiod is appoximately the same fo the Aquaponic Systems and is just moe than 2 yeas, especially fo those who value fesh vegetables and live fish and ae pepaed to pay the maket pices fo them. In addition, the aquaponic systems have the following benefits: 1. Aquaponic systems use vey little wate. Hence, they could be used to: a. Poduce fesh food using vey little wate; and b. Poduce fesh food in places which ae shot of wate. 2. owne can achieve tuly sustainable faming in his own backyad. 3. owne can have eady and immediate access to fesh vegetables and live fish at his backyad when equied, i.e. he doesn t have to dive to the shop to buy them. 4. Once established, it equies vey little effot and time to un the system only effot equied is to feed the fish daily. 5. aquaponic system can be set up on a small aea aound the house and at the backyad, even on places that ae deemed too small fo home gadens. 6. Just about evey household in Austalia can have an aquaponic system installed in thei house. 7. owne can be sue of the health quality and feshness of the fish and vegetables that ae chemical and pesticide fee. 8. Comfotable woking height suits disabled as well as eldely people. 9. No chemical fetilise is used fo gowing vegetables and/o hebs. 10. No nutient is wasted in aquaponics. 11. Educational benefits include teaching childen how to gow food as well as cae fo living things. 12. No ongoing soil impovements equied, saving time enegy and money 13. Raised beds keep plants fee fom gound dwelling pests. 14. It povides a topic fo convesation and entetaining guests at the backyad. 15. owne contibutes to: a. consevation of the scace wate esouces only use 10% of wate equied to gow vegetables on the gound; b. envionmentally fiendly way of gowing food; c. cost-effective poduction of food locally; d. cost-effective use of enegy; e. cost-effective use of idle places aound the house; and f. climate change management. aquaponic system will be moe cost-effective if fish feed can be cost-effectively poduced locally though the use of wom fams and the like. 8
e is also no doubt that lage scale poduction of fish and vegetables by aquaponic means will esult in bette etun on investment. This can be done locally at a village, town, city o egional level to educe tanspot time and cost. RISK MANAGEMENT Powe Cuts Fish has a high equiement fo clean wate and dissolved oxygen. i suvival time is detemined by the size of the fish, the tempeatue of the wate, time of day, ammonia and oxygen levels. Hence, it is necessay to have a back up system to the powe supply. This may be in the fom of a geneato, battey back up, sola o wind powe. It is advisable fo the owne to have such a backup powe supply system in case of a polonged powe cut. All aquaponic systems supplied by Aquaponics comes with a battey back up to thei ai pump so that it can continue to un duing powe cuts of few hous duation each. Wate Cuts fish tank of an aquaponic system has to be topped up once a week in Summe. wate souces may be fom the boe, scheme o ain. Wate stoage may be equied fo an isolated location, collected in Winte and used in Summe. Wate can also be tucked in if equied. e ae vey few such poblems in the Peth Metopolitan aea. Pest It s best to use Integated Pest Management whee pedatos and paasites ae encouaged to visit an aquaponic system and help to keep a natual balance. If teatments ae equied, they must be fish fiendly. As the beds ae aised thee is less chance of gound dwelling pests. Hygiene is also impotant and good management pactices minimise the spead of pests and diseases. This includes picking off the catepillas and feeding them to the fish. washing off the soil fom plant seedling oots befoe adding to the system also eliminates most soil bone diseases. Teatments that may be used include the followings: Fungicide and bloom stimulant - Eco-ose $20.00 Catepilla teatment - Dipel $18.50 Taps fo aphids and whitefly - $10.00 to $20.00 9
Beat-A-Bug Chili and galic spay - $13.50 Seasol - Seaweed concentate - $8.20 Fish Sicknesses and Diseases Monitoing fish behaviou could be done while feeding fish daily and one can get to know whethe the fish ae behaving nomally o not. Signs of flashing, not eating and/o gulping at the suface ae indications that something may not be ight. Management may include simple salt teatments. If only one fish is affected, it should be emoved fom the system. Fish intoduced in stages could be quaantined fist. Salt teatments fo a family system ae less than $10. Beakdowns It is advisable to have a spae pump on hand. Maintenance should include peiod checks to ensue back up system is woking. Establishment Once an aquaponic system has been set up and the fish tank filled with wate, it is advisable that seedlings ae planted into the gow beds peceding the addition of fish. Rates fo fish stocking densities ae 20-25 fish pe gow bed and it is best they ae advanced fingelings (aound 100mm). system will go though a natual cycle called nitification and can be monitoed and documented to tack whethe the system has become cycled. This pocess can take as little as shot 4 weeks dependant on conditions and tempeatues. To avoid establishment poblem, these advices should be followed as fa as possible. Othe Risks 1. Contamination fom neighbouing spays may be avoided by enclosing in a geenhouse to avoid and potect wate quality. 2. Vandalism isk can be minimised by constuction of fences to keep unwanted visitos away. 3. Bids going fo the fish. Potective netting may be set up ove the fish tank as well as placing a floating aft at the fish tank to allow fish a place to hide. CONCLUSION It is clea that aquaponics is vey cost-effective fo gowing vegetables and aising fish at homes with numeous benefits. Moeove, aquaponics also allow families to individually contibute to ovecoming wosening wate and food shotages and climate change poblems facing Austalia and the wold. Futhemoe, lage aquaponic systems could be established fo villages, towns, egions, etc, to moe cost-effectively seve local food needs. 10
Govenments, businesses and individuals alike should theefoe suppot and encouage the use of aquaponics at all levels. Richad Chiang 9 Bachelo of Suveying (Honous), Univesity of Queensland Postgaduate Diploma in Compute Science, Univesity of Queensland Postgaduate Diploma in Applied Finance & Investment, Secuities Institute of Austalia Cetificate in Financials Advising Essentials, Secuities Institute of Austalia 16 th Novembe 2009 9 Richad is a etied public sevant afte woking fo moe than 30 yeas fo the Govenments of Malaysia and Westen Austalia. 11