This study has dealt with the profitability of hatchery operations in Bangladesh. Cross section data exclusively generated from fish hatchery farms under four districts namely Jessore, Chandpur, Bogra and Mymensingh were analysed to achieve the objectives of the study. The sample of the study consisted of fifty six fish hatchery farms comprising 15 from Jessore, 10 from Chandpur, 16 from Bogra, and 15 from Mymensingh districts. Three major discounting measures (BCR, NPV and IRR) were employed in analyzing the data. The results indicated that investment in fish seed hatchery farms was highly profitable from the view points of individual producers. The results of sensitivity analysis suggested that a fishery enterprise would also be profitable with 20 percent increase in operation and maintenance costs as well as production costs considering the present condition of farms under ceteris paribus assumption. Lack of quality brood fish, high price of various inputs, infestation of virus, problem of selling spawn/seed and problem of getting pond for culture were identified as the major constraints to conducting fish seed hatchery operation. For overcoming the problem of inbreeding, the hatchery owners could exchange brood fish among their hatcheries. To arrest the problem of inbreeding, it may be advisable to set up Brood Bank for successful hatchery operations. Credit for hatcheries as reported by small holders was not adequately available. For the development of fisheries sector, measures should be taken for provision of adequate credit from institutional sources, particularly for the small producers.


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