The U.S. catfish industry is a big fish in U.S. aquaculture, comprising 75 percent of finfish aquaculture volume. Found throughout rural Alabama, Arkansas, and Mississippi—regions with historically high levels of poverty, unemployment, and food insecurity—the catfish industry makes a resounding economic contribution to the region. Despite this, the contribution has never been successfully quantified until now.

Dr. Ganesh Karunakaran, associate wildlife, fisheries and aquaculture research professor and Mississippi Agricultural and Forestry Experiment Station (MAFES) scientist in Mississippi State University's (MSU) Thad Cochran National Warmwater Aquaculture Center, has created a comprehensive economic model revealing the industry's profound contribution to the tri-state area: $1.91 billion and over 9,100 jobs in 2019.

"We give this information to policymakers and industry leaders," Karunakaran said. "This study shows the significant economic contribution of the U.S. catfish industry, and more significantly for Mississippi, which harbors more than half of the country's catfish production area."

This tri-state area makes up 95 percent of U.S. catfish production, feed production, and catfish processing. The study has shown that the catfish industry connects with almost every other industry in the region. The industry has the most impact on grain farming, banking, transportation, electricity, and farm machinery sectors, contributing $166 million, $90 million, $81 million, $62 million, and $45 million respectively.

"The revenue generated from catfish farms, feed mills, or processing plants creates jobs in other economic sectors such as gas stations, retail stores, etc.," Karunakaran said. "We found that 97 percent of the economic sectors existing in the tri-state region were positively impacted by the catfish industry."

The team's model has revealed that every dollar spent within the industry generated another $0.73 in the tri-state economy. The findings suggested the generation of 1.13 additional jobs in the tri-state economy for every direct job created in the catfish industry and an additional $1.16 generated for every dollar of labor wage paid in the industry.

Karunakaran pointed out that jobs in rural areas are especially important.

"The catfish industry generates about 10,000 jobs in the rural region. It's not just the number of jobs, it's a job in one of the poorest regions," Karunakaran said.

"Rural jobs are important because they are more interconnected with other industries compared to jobs in an urban area."

Dr. Suja Aarattuthodi, an assistant wildlife, fisheries and aquaculture research professor and MAFES scientist at the Thad Cochran National Warmwater Aquaculture Center, participated in the research's data analysis. She said the findings could have powerful implications for the sustainable existence of the catfish industry, which faces stiff competition from imports as well as strict regulatory burdens.

"This study demonstrates the impact of an industry that significantly supports the rural economy. The study also paves the way for assessing the total economic impact of production problems faced by the catfish industry, such as diseases, off-flavor, or bird predation," she said.

MSU researchers visited 68 farms, surveying 65 percent of the total land area of the catfish industry in 2019 and 2020. Three separate questionnaires were prepared for in-person interviews on catfish farms, feed mills, and processing plants to collect expenditure patterns.

"The industry is about 60 years old and was started by local farmers. These are second or third generation, family-owned farms. They know how to raise the fish, and they are very wise business people. They understand the macroeconomy and the economic effects of international trade," Karunakaran said. "The catfish industry is nuanced with multiple variables, and the business goals of every farm is different. It was important for us to take the time to assess each farmer's operation as an individual entity, listen to their needs, and be receptive."

In addition to the economic data collection, researchers conducted concurrent research to investigate how advancements in technology have impacted cost efficiencies in the catfish industry—data significant to creating an accurate economic model.

"The industry's structure over the last 10 years has changed a lot. Many of the smaller-scale farmers have left, and the people who are staying are better equipped and more intensive," Karunakaran said.

"So, from a smaller given area, they're producing more fish per unit area. That means farms are getting more productive and more technologically advanced."

Researchers used an economic framework called IMPLAN—that explicitly measures the interdependencies of various industries through the flows of goods and services throughout the local, state, and regional economies. By gathering sufficiently relevant variables such as industry sales and spending patterns, this economic framework will allow for the quantification of economic contribution in later years.

The success of this work allowed MAFES scientists to secure a $1 million grant to study the economic contribution of U.S. aquaculture. In 2021, MSU partnered with seven other universities to gear up for this study.

"This includes catfish, trout, salmon, shrimp, crayfish, ornamental sport fish, and many others," Karunakaran said. "We are very close to finalizing these research results."

Karunakaran said that preliminary data suggests trends in the catfish industry are mirrored in U.S. aquaculture production.

As Karunakaran and his team assess U.S. aquaculture as a whole, MAFES researchers are doing their part to shore up an industry that stretches from the ponds of the Mississippi Delta to the Atlantic and Pacific coasts and all the aquaculture waterways and enterprises in between.

Mississippi State University former doctoral student, Dr. Shraddha Hegde, was instrumental in this research. This research is funded by the Mississippi Agricultural and Forestry Experiment Station (MAFES) and the USDA National Institute of Food and Agriculture (NIFA).