Profitability Analysis of Cold-Water Fish Farming in Northern Pakistan: A Case Study of Aziz Trout Farm District Chitral

Abstract

Analysis of economic profitability is essential for establishing the financial viability of any business enterprise. In the context of trout farming in the Pakistani district of Chitral, this study evaluates the financial implications of this profitable and sustainable technique. In July of 2020, a structured questionnaire was used to collect data on profitability indicators for the study. The investigation reveals that the overall cost of producing 398 kilograms of fish on the farm was 596,013 rupees. This cost analysis offers great insight into the economic ramifications of trout farming in the region. In addition, the study indicates a good Benefit-cost ratio of 1.67, demonstrating that the benefits of trout farming outweigh the associated expenses. Additionally, the Rate of Return on Investment (RRI) is an amazing 0.78, further demonstrating the enterprise's profitability. The Variable Cost (RVC), which has a large value of 0.60, is one of the main aspects that contribute to the profitability of trout farming. This illustrates the potential profitability and cost-effectiveness of trout farming in District Chitral. The study demonstrates that fish farming, specifically trout farming, offers individuals a lucrative option to support themselves. With its favorable financial indicators and potential for long-term profitability, trout farming is a viable source of income for residents in the region.