ASSESSING HAWAII'S AQUACULTURE FARM AND INDUSTRY PERFORMANCE.

This investigation uses farm-level data from the U.S. Census of Agriculture to evaluate the economic performance of the aquaculture industry in Hawaii. We first examine the entire aquaculture industry by assessing its profitability, efficiency, and input cost structure over time and across economic farm sizes; we then proceed to analyze the farms at the individual subsector levels of crustacean, Chinese catfish, other foodfish, and ornamental farms. The results reveal a wide variation in performance across farms, even within the same subsectors. In 2007, 57.6% of the aquafarms generated a profit; however 39.4% of the farms were found unable to cover their variable cash expenses. The presence of significant economies of scales were detected in performance with full-time operations being found more profitable and efficient than part-time operations. Finally, Hawaii's labor cost share for aquaculture enterprises is about 3.5 times greater than that found on the continental United States. [ABSTRACT FROM PUBLISHER]