Hapas vs. Ponds: A bioeconomic analysis for tilapia breeding

Tilapia (Oreochromis niloticus) has established itself as one of the most important species for global aquaculture and, particularly, for Brazilian production, accounting for over 65% of its total fish farming. The success of the entire grow-out cycle depends on a critical phase: reproduction and fingerling production. The quality and cost of fingerlings, or “seeds,” directly impact the profitability of the entire chain.

Faced with this scenario, producers face a crucial decision: what is the most suitable and profitable reproduction system for their fish farm? To answer this question, a group of researchers from the Federal University of Mato Grosso do Sul and the State University of Maringá developed a bioeconomic simulator—a tool designed to analyze and compare the economic, financial, and productive viability of different management strategies.

Key findings of the study

• The hapa-based reproduction system with egg collection proved to be significantly more profitable, generating a net income of US$19,582.81 compared to the US$6,205.92 from the pond-based system.
• Farming in hapas produced 35% more fingerlings per cycle (114,000 units versus 74,000), thanks to more controlled management and lower larval mortality rates.
• The investment in the hapa system is safer and more attractive, with an Internal Rate of Return (IRR) of 17.82% and an investment payback period of only 6 years.
• The bioeconomic simulator was validated as an effective tool for planning, analyzing, and optimizing the economic management of tilapia hatcheries, thereby minimizing risks.

How to make profitable decisions in tilapia fish farming

A fish farm is a business that seeks profit. Therefore, proper planning is essential to determine the safest and most efficient production system according to the conditions of each property. Any management failure during the early life stages of tilapia directly affects production, fingerling quality, and, consequently, operating costs.

Tools like bioeconomic simulators allow producers and managers to get a preview of a production system’s behavior before implementing it. This helps in making adjustments, minimizing risks, and choosing the most profitable method.

A simulator to evaluate tilapia farming

The study developed a simulator based on interlinked Microsoft Excel spreadsheets, where productive, zootechnical, and cost data are entered to generate key economic and financial indicators. To test its functionality, two intensive tilapia production scenarios common in Brazil were proposed.

Scenario 1: Reproduction in Hapas and egg collection

In this system, reproduction occurs in hapas (a type of net enclosure). Management involves the manual collection of eggs directly from the female’s buccal cavity, which are then incubated in a laboratory under controlled conditions.

Scenario 2: Reproduction in ponds and post-larvae collection

This more traditional method uses earthen ponds for reproduction. Instead of collecting the eggs, farmers wait for them to hatch and for the larvae to develop under the mother’s care, after which the schools or “clouds” of post-larvae are collected.

The Hapa system generates higher income

The analysis using the simulator showed clear economic differences. Scenario 1 (hapas) achieved a Total Gross Income of US$122,764.17, which was 54% more than the US$79,579.72 from Scenario 2. This difference was mainly due to a higher volume of fingerling sales.

Although the hapa system also had higher operating costs (US$103,181.35 vs. US$73,373.80), its productive efficiency allowed it to reach a final Net Income of US$19,582.81, more than triple that obtained in the pond system (US$6,205.92).

In both scenarios, the main production costs were:

• Nutritional Costs: This was the largest expense, accounting for 41.48% in the hapa system and 37.74% in ponds.
• Health Management Costs: Including vaccines and water quality control, this was the second largest expense, at 31% and 28.97%, respectively.
• Labor: This ranked third in the cost structure.

Productive indicators: The key is efficiency

The economic superiority of the hapa system is explained by its higher productive performance. The controlled management of this system allows for better spawning synchronization, increases reproductive frequency, and standardizes the size and age of the animals.

Let’s compare the key indicators:

• Fingerling Production per Cycle: 114,000 in hapas vs. 74,000 in ponds.
• Average Productivity per Area: 0.13 thousand/m² in hapas vs. 0.09 thousand/m² in ponds.
• Labor Cost per Thousand Fingerlings: US14.34 in hapas vs.US18.47 in ponds.

It is interesting to note that although the total labor cost is higher in the hapa system because it requires more handling, its high productivity makes the cost per thousand fingerlings lower. This demonstrates greater efficiency in the use of personnel. Furthermore, the hapa system recorded a lower larval mortality rate (15%) compared to the ponds (20%).

Financial analysis: Which investment is safer in the long term?

For an investor, not only does annual income matter, but also the security and return on investment over time. The simulator analyzed cash flows over a 10-year horizon, and the results again favored Scenario 1.

• Benefit/Cost Ratio (B/C): For every dollar invested, the hapa system returns US$1.11, while the pond system returns US$1.01.
• Internal Rate of Return (IRR): The hapa system offers an IRR of 17.82%, well above the project’s minimum attractive rate of return (8%) and the 8.95% of the pond system. This confirms its high economic viability.
• Payback Period: The initial investment in the hapa system is recovered in 6 years, whereas the pond system requires 10 years.

Conclusions and implications for the tilapia producer

The study, published in the REVISTA OBSERVATORIO DE LA ECONOMIA LATINOAMERICANA, concludes that the bioeconomic simulator is a suitable and adaptable tool for analyzing the complexity of tilapia reproduction systems. The results show that although the hapa-based reproduction system (Scenario 1) requires a greater investment and higher operating costs, its intensive and controlled management leads to significantly higher productive efficiency and economic and financial profitability than the traditional pond-based system.

For the producer, this means that investing in technology, infrastructure (like a laboratory), and skilled labor for an egg collection system translates into a more profitable, predictable business with a faster return on investment. The use of simulation tools like the one presented in this study is, therefore, a strategic step toward assertive planning and economic success in modern aquaculture.

Reference (open access)
Nass, R. A. R., Povh, J. A., Oliveira, C. A. L. de, Ribeiro, R. P., & Brumatti, R. C. (2025). Bioeconomic simulator for economic-financial management of tilapia reproduction fish farms. OBSERVATÓRIO DE LA ECONOMÍA LATINOAMERICANA, 23(8), e10925. https://doi.org/10.55905/oelv23n8-006

Milthon Lujan

Editor at the digital magazine AquaHoy. He holds a degree in Aquaculture Biology from the National University of Santa (UNS) and a Master’s degree in Science and Innovation Management from the Polytechnic University of Valencia, with postgraduate diplomas in Business Innovation and Innovation Management. He possesses extensive experience in the aquaculture and fisheries sector, having led the Fisheries Innovation Unit of the National Program for Innovation in Fisheries and Aquaculture (PNIPA). He has served as a senior consultant in technology watch, an innovation project formulator and advisor, and a lecturer at UNS. He is a member of the Peruvian College of Biologists and was recognized by the World Aquaculture Society (WAS) in 2016 for his contribution to aquaculture.