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The catfish industry is the largest U.S. aquaculture sector and a major contributor to the rural economies of the Southern states of Alabama, Arkansas, and Mississippi. Economic contributions of this industry to the tristate region were estimated using an input-output modeling approach with the IMPLAN database and software (Impact Analysis for Planning MIG, Inc.). An analysis-by-parts approach was employed as the IMPLAN database does not disaggregate the catfish sector from other livestock industries which have expenditure patterns that differ substantially from those of catfish. All major actors of the catfish industry, i.e. feed mills, hatcheries, foodfish farms, and processing plants, were surveyed to obtain their expenditure patterns and output in terms of sales. Data were obtained from 68 farms (hatcheries and foodfish combined), four feed mills, and eight processing plants in the tristate region. Sales and expenditure values were converted to coefficients employing standard enterprise budgeting techniques and imported to the IMPLAN model for estimating industry contributions during 2019. The direct output from the catfish industry ($1.10 billion) generated a total economic contribution of $1.91 billion. The industry directly employed 4,298 people and created an additional 4,868 jobs in the tristate economy for a total employment effect of 9,166 jobs. Catfish industry spending created an indirect economic effect of $552 million in other secondary sectors that supplied production inputs and services. The induced economic effect generated from household spending amounted to $254 million. Some of the key sectors influenced by the catfish industry were grain farming, banking and financial institutions, truck transportation services, electricity generation, equipment, and machinery manufacturing. The industry also generated $78 million in local, state, and federal taxes. This study provides critical insights for policymakers and others into the contribution of the U.S. farm-raised catfish industry to local and regional economies as well as its diverse-industry interconnections.

Economic contribution of the U.S. catfish industry