In this study, the authors analyze the economic viability of a small aquaculture business specializing in the farming of black-lipped pearl oysters. The goal is to propose a model that could serve as a complementary economic activity for communities in the outer islands of the Central Pacific.

A Quantified Scenario

The researchers developed detailed financial projections for a pearl farm cultivating 25,000 grafted oysters using the Tahitian method of tying oysters to longlines. The model includes estimates of initial investment, annual operating costs, cash flow, and the overall business budget.

The results indicate that an initial investment of USD 202,076 is required to start the activity.

Operating Costs and Expense Categories

At full capacity, annual operating costs reach USD 293,726. The main expense categories are:

• Grafting: 46% of the annual budget
• Labor (including the owner’s opportunity cost): 24%
• Depreciation: 9%

Long-Term Profitability

According to the proposed model, profitability is achieved after 20 years. Over this period, with an 8% discount rate, the net present value of operating net returns is estimated at USD 102,945.

A sensitivity analysis was conducted, taking into account market price variability, oyster survival rates, grafting costs, and other production factors. The results make it possible to assess the economic robustness of the project under different scenarios.