Economics of Semi-Intensive Aquaculture in Kafr El-Sheikh Governorate

Egypt is a leading aquaculture producer in Africa and among the top worldwide. Aquaculture contributes over 75% of the country’s fish production, reflecting a shift from capture fisheries to farming. This study analyzes the economic efficiency of semi-intensive fish farms in Kafr El-Sheikh Governorate, Egypt. Primary data were collected from 60 farms (30 <10 feddans and 30 ≥10 feddans) during 2023/2024, alongside secondary data (2013–2022) on national fish production and consumption. Descriptive and econometric methods (production and cost function estimation, efficiency indicators) were used to identify factors affecting productivity and profitability.Results show feed cost is the dominant expense (≈70% of total costs) in semi-intensive aquaculture. A double-log production function revealed feed quantity as the most influential factor on output (elasticity ~0.9), with nearly constant returns to scale. Quadratic cost functions indicated optimal outputs of ~13.5 tons (<10 feddans) and ~80.4 tons (≥10 feddans), beyond which unit costs rise. Profit-maximizing levels were ~35.7 and ~106.1 tons for small and large farms, respectively. Economic indicators were positive: benefit-cost ratios of 1.25 and 1.24, and returns on investment of 0.25 and 0.24 EGP per EGP cost. Smaller farms achieved similar per-feddan productivity (~4.5–4.6 tons) and slightly lower unit costs than larger farms.. Key recommendations include promoting local feed production, adopting renewable energy to cut costs, strengthening extension services, and facilitating better financing and marketing for fish farmers.