7. Technical and economic feasibility analysis

#### 7.1. Technical feasibility analysis

Technical feasibility is an assessment of supporting factors in cultivation. It is concern in natural, social and cultural factors for successful cultivation [50]. The technical feasibility of parameters using ZWD system consists of site selection in terms of topography and structure, quantity and quality of water sources, accessibility, available of production facilities such as electricity source, seed producers, and distance to government research facility.

Research in technical feasibility has been conducted in white shrimp culture using ZWD system at grow-out stage. Based on criteria, north coastal areas of East Java Province are suitable for white shrimp urban aquaculture using ZWD system, such as Tuban, Lamongan, Gresik, Sidoarjo, Pasuruan, Probolinggo, and Situbondo, etc. The sites were included in the following criteria:


#### 7.2. Economic feasibility analysis

cultivation remained within tolerance range of prawn (min. DO is 4 mg/L) [44]. DO level decreased with response to increasing prawn growth, and the lowest level was 3.7 mg/L in

pH 6.74–8.42 6.74–8.15 6.31–7.91 6.42–7.95 6.52–7.96 DO (mg/L) 5.6–8.3 5.15–8.3 5.2–8.4 4.3–8.5 3.7–8.4

<sup>4</sup> (mg/L) 0.044–0.089 0.045–0.101 0.044–0.116 0.042–0.123 0.044–0.092

<sup>2</sup> (mg/L) 0.015–0.066 0.017–0.064 0.021–0.066 0.027–0.066 0.032–0.065

<sup>3</sup> (mg/L) 23.5–56.3 22.9–54.0 30.6–63.0 36.6–71.0 25.8–56.6

)

From these parameters, it can be concluded that water quality during cultivation is suitable for

Based on microbiological parameters, there was a significant difference in microbial diversity between batch and ZWD system. In batch system, the water contained various species during cultivation period such as Xenorhabdus japonica, Bacillus megaterium, Micrococcus luteus, and Bacillus amyloliquefaciens, whereas in ZWD system, B. megaterium dominated from second week to the end of cultivation period. Batch system showed a fluctuation on bacterial dominance, which probably due to various abiotic and biotic factors, and therefore, tanks were prone to pathogen infection. In contrast with ZWD system, B. megaterium, which has been proven to benefits prawn growth, constantly dominated water during cultivation. Its dominance limited other bacteria domination, including pathogenic bacteria as well. Total pathogen bacteria

during cultivation in both systems. Based on the results, Vibrio spp. abundancy below

It was proven that the use of nitrifying bacteria can maintain good water quality, and textile vertical substrate can support a higher stocking density, better growth, larval survival rate, and

Technical feasibility is an assessment of supporting factors in cultivation. It is concern in natural, social and cultural factors for successful cultivation [50]. The technical feasibility of parameters using ZWD system consists of site selection in terms of topography and structure, quantity and quality of water sources, accessibility, available of production facilities such as

electricity source, seed producers, and distance to government research facility.

particularly Vibrio spp. was counted. Vibrio spp. in rearing tank reached 100

profit of prawn M. rosenbergii de Man during the grow-out phase.

7. Technical and economic feasibility analysis

. pH level was relatively the same among all treatments, ranged between 7.71–7.96.

30 40 50 60 70

–103 CFU/mL

70 ind/m<sup>2</sup>

NH<sup>þ</sup>

NO�

NO�

the grow-out phase of prawns.

Parameters Stocking densities (ind/m<sup>2</sup>

318 Biological Resources of Water

Table 11. Water quality parameters during 60-day cultivation period [11].

106 CFU/mL was safe for prawn [69].

7.1. Technical feasibility analysis

The economic feasibility was analyzed to calculate the overall cost and profitability from real implementation of ZWD system at industrial scale in Gresik (East Java, Indonesia) [50]. White shrimp juveniles were stocked on different stocking densities, providing that varying stocking densities can affect financial calculation, considering operational as well as investment expenses. Assumptions used were to produce 1000 kg shrimp/cycle during 10 years production period.

The results showed that the best biological feasibility was in stocking density at 400 ind/m3 . The lowest operational and investment cost was stocking density at 400 ind/m3 , because it needed the least area to produce 1000 kg/cycle. So, this economic feasibility takes the best performance in 400 ind/m3 . Based on calculation, operational cost consisted of shrimp seeds, feed, labor, electricity, seawater, algae and probiotics, chemical and disinfectants, harvesting, packaging and delivery, and depreciation costs that has the proportion as seen in Figure 8. The operation cost at 400 ind/m3 reached Rp 44,227,125, while the highest component contributions to the investment costs were production ponds cost (36–42%) and land purchasing (21–24%) and total cost reached Rp 318,230,000.

Financial projections were calculated to predict the break event point. Profit could be calculated by subtracting the total revenue with production cost. Assumed that there were four production cycles per year, in which 1000 kg shrimps were produced per cycle with duration of 3 months, in 1 year, the farm would produce 4000 kg of fresh shrimp with total revenue Rp 240,000,000. The production cost in 400 ind/m3 stocking density was achieved Rp 40,227,125 per cycle or Rp 160,908,500 per year and has the highest profit Rp 79,091,500 among all stocking density treatment. A total of 400 ind/m3 stocking densities treatment will achieve a payback period after 4 years of operation.

To assess the economic feasibility of ZWD system, financial ratios were calculated. Financial ratio analyzed consisted of NPV, IRR, B/C ratio, and Pay Back Period (PBP). Based on financial

Acknowledgements

using low salinity [50].

data and image editor.

Teknologi Bandung, Indonesia

Author details

We would like to thank to those who have involved in research of ZWD system for shrimp and prawn cultivation. For research funding, we thank to the Ministry of Maritime Affairs and Fisheries and Ministry of Research, Technology, and Higher Education, Indonesia. For research partners, we thank to UD. Popular, Pamarican Giant Freshwater Prawn Farmer Group, and PT. Gapura Aqua Kultiva that provided facility and research location for field implementation. For aquaculture research team members, we thank to Agus Mawardi Hendrawan, Rifki Rizky Arif, Malendra Rusni, Retna Kurniati (r.i.p), Agung Kusumanto, Nina Rachminiwati, Osman Rama Turedro S S, Fahri Azhari Hasby, Satya Reza Faturakhmat, Abdul Khakim, Cahya Nurhuda, Yovita Astuti Djohan, Irwan Prawira Santoso, Lazuard Fachri, Jonathan Berlian, and Reskha Handayani who supported in collecting, analyzing research

Table 12. Financial ratio calculation of ZWD system at 400 ind/m3 stocking density to produce 1000 kg shrimp/cycle

Parameter SD (400 ind/m<sup>3</sup>

Closed Aquaculture System: Zero Water Discharge for Shrimp and Prawn Farming in Indonesia

Investment cost Rp 318,230,000 Revenue Rp 60,000,000 Production cost/cycle Rp 44,227,125 Profit/cycle Rp 15,722,875 Profit/kg shrimp Rp 15,773 BEP (kg) 2804 Net present value (NPV) 69,439,955 B/C ratio 1.22 Pay back period (year) 4.02 Internal rate of return (IRR) (%) 15.49

)

321

http://dx.doi.org/10.5772/intechopen.70944

Gede Suantika\*, Magdalena Lenny Situmorang, Pingkan Aditiawati, Dea Indriani Astuti,

Microbial Biotechnology Research Group, School of Life Sciences and Technology, Institut

Fahma Fiqhiyyah Nur Azizah and Harish Muhammad \*Address all correspondence to: gsuantika@sith.itb.ac.id

Figure 8. (above) Diagram of operational cost and (below) diagram of investment cost components (in percentages) at 400 ind/m<sup>3</sup> [50].

analysis, the project was financially feasible if the NPV is positive, IRR value is higher than discount factor, and B/C ratio value is higher than one [75]. The financial ratio calculations were presented in Table 12. It can be clearly seen that 400 ind/m3 stocking density was financially feasible, because it has positive NPV (Rp 69,439,955), IRR value that was higher than discount factor (15.49%), and B/C ratio that was higher than 1 (1.22).


Table 12. Financial ratio calculation of ZWD system at 400 ind/m3 stocking density to produce 1000 kg shrimp/cycle using low salinity [50].
