Profitability and Economic Viability of Upscaled Mussel Hatchery Operations

抄録

Mussels are bivalve species with established ecological and economic importance. They are known to provide essential supporting services such as nutrient recycling and storage, structural habitat, substrate, and food web modification, and are also used as environmental monitors; regulating services such as water purification (biofiltration); and provisioning and cultural services, including their use as a food source, for making tools and jewelry, and for spiritual enhancement. Mussel hatcheries are crucial for ensuring a stable supply of mussel seeds, supporting the growing global demand, and contributing to sustainable aquaculture practices. This study evaluated the profitability and economic viability of an upscaled mussel hatchery in Miagao, Iloilo, Philippines. Primary and secondary data were used to analyze the project profitability and financial viability. Six business revenue models were considered in the study: (1) invest in housing and produce 1-mm spats, (2) invest in housing and produce 1-cm spats, (3) invest in housing and grow 1 mm-spats until 1 cm, (4) no investment in housing - produce until 1-mm, (5) no investment in housing - produce until 1 cm, and (6) no housing-produce 1 cm-spats from the until 1mm. The indicators used include total revenue, net profit, gross profit margin, net profit margin, return on investment, net present value, internal rate of return, breakeven volume and price, and payback period. The results showed that the upgraded mussel hatchery requires an investment of approximately PhP. 3 million. The most profitable business model involves producing mussel spats of up to 1 mm. Investment in mussel hatchery is capital intensive. In the short run, existing or unused hatcheries owned by State Universities and Colleges (SUCs) and government institutions can be rehabilitated to increase production. Meanwhile, to increase profitability, existing R&D efforts can be extended to improve survival rates, particularly at the pediveliger to early spats and 1-mm to 1-cm stages.