Feed Efficiency, Cost Implications, and Supply Chain Characteristics in Small-Scale Pangasius Aquaculture: A Case Study from Kampar Regency, Indonesia

Abstract

Aquaculture sustainability and profitability in small-scale Pangasius farming are strongly influenced by feed efficiency, cost structure, and supply chain dynamics, particularly through the utilisation of locally formulated feeds. This study evaluated the effects of feed efficiency, production costs, and supply chain characteristics on the economic performance of small-scale Pangasius aquaculture in Kampar Regency, Indonesia. Primary data were collected from fifteen fish farmers through field surveys and interviews, complemented by secondary data and time-series projections using linear regression analysis. A scenario-based approach was employed to compare two feed conversion ratio (FCR) conditions, namely 1.5 (efficient production scenario) and 1.9 (actual field condition), together with an assessment using a Supply Chain Efficiency Index (SCEI). The findings revealed that increasing production levels were associated with higher feed demand and rising production costs over time. An increase in FCR from 1.5 to 1.9 resulted in an estimated rise in production costs of approximately 26–27%, leading to a marked reduction in profitability. Although on-farm formulated feed was relatively cheaper than commercial alternatives, its economic advantage diminished under inefficient feed utilisation conditions. In contrast, locally sourced feed systems contributed positively to supply chain performance by reducing dependence on external feed inputs and improving local resource utilisation. The study demonstrates that enhancing feed efficiency is more critical for improving farm profitability than merely lowering feed prices. Furthermore, the integration of technical efficiency, economic evaluation, and supply chain analysis provides a comprehensive framework for supporting sustainable and resilient small-scale aquaculture development. The findings may assist policymakers, extension agencies, and farmers in designing strategies to improve production efficiency and strengthen local aquaculture supply systems.