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A bait shrimp marketing study will be conducted to determine customer and retailer demand for live bait shrimp. A mail survey will be sent to marine recreational bait shop owners in the Gulf of Mexico and South Carolina asking questions about sales of bait shrimp and other baits. Within the instrument, there will be questions about selling prices for bait shrimp and other baits as well as questions about the size of their business. Information gleaned from this survey will be used in determining demand for bait shrimp and selling prices that producers of bait shrimp may expect to receive. Bait shrimp selling prices will be used in the bait shrimp enterprise budgets to calculate net receipts. In addition to bait shrimp selling prices, the survey will provide much information on the status of the recreational bait fish/shrimp industry in the Gulf of Mexico and South Carolina.
Bait shrimp cost of production data will be gathered from participating bait shrimp researchers and participating producers to develop live bait shrimp enterprise budgets. Budgets will include production system assumptions, gross receipts, operating costs and fixed costs. Fixed costs will be derived from information provided by participants that include construction and other capital costs as well as machinery and equipment used in this enterprise. Net returns will be estimated that will give a measure of profitability. Sensitivity analyses will be run on important input price items and selling prices. Cash flow analyses will be run over an extended time period to enable internal rates of return to be estimated. From this economic analysis, profitability of producing live bait shrimp for recreational outlets will be determined.
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