Measuring technical,allocative and cost efficiencies of seabass and seabream farms in Greece

Abstract

A stochastic Cobb‐Douglas production frontier is used to provide estimates of output‐oriented technical efficiency, input‐oriented technical efficiency, input allocative efficiency and cost efficiency for a sample of seabass and seabream farms in Greece. Mean output‐oriented technical efficiency is estimated at 78.5%, input‐oriented technical efficiency at 73.6%, input allocative efficiency at 79.2%, and cost efficiency at 58.2%. Considering the sources of efficiency differentials among fish farms, it is evidence from the empirical results that large farms tend to achieve higher (technical and allocative) efficiency scores; specialization in either seabass or seabream affects positively technical and cost, but not allocative, efficiency; and utilization of skilled labor seems to have a positive impact only on technical efficiency.     

The cost efficiency of trout farms in the Black Sea Region,Turkey

This research measured the cost efficiencies of trout farms and explored determinants of cost inefficiencies in the Black Sea Region, Turkey. Data Envelopment Analysis (DEA) was used to estimate efficiency measures of sample farms. The mean technical, allocative and cost efficiencies for trout farms were measured to be 0.82, 0.83 and 0.68, respectively. Efficiency analysis revealed that inefficient farms would have needed to lower feed and labour costs by 32% to perform as well as other similar, best practice farms in the sample. The decomposition of the technical efficiency measure showed that pure technical inefficiency was the primary cause of technical inefficiency. Research results also suggested that there were positive relationships between cost efficiency and pond tenure, farm ownership, experience of the operators, education level of the operators, contact with extension services, off-farm income and credit availability. Feeding intensity, pond size, and capital intensity had negative effects on cost efficiency. Supplying complete technical packages (feed, credit, etc.) for trout farms may stimulate the adoption of improved technologies. Focusing on trout diseases, water quality, feed production and marketing efficiency in farmers training and extension programs may also help to increase economic efficiency in the research area.     

Technical efficiency of carp production in Nepal: An application of stochastic frontier production function approach*

Abstract

Modern aquaculture is a relatively new activity among Nepalese farmers and a small contributor to the economy. Given the abundance of water resources and fish species, rising demand for fish, and its high profitability, aquaculture has potential for future expansion if it is given appropriate attention from the government. In Nepal, productivity in aquaculture is much lower compared to other countries in the region, which suggests that there is potential for increased fish production through technological progress and improvement in farm‐level technical efficiency. However, no formal analysis has yet been conducted to assess the productive performance of Nepalese aquaculture and its potential for future improvement. Against this background, this paper examines the technical efficiency and its determinants for a sample of fish pond farms from the Tarai region of the country using a stochastic production frontier involving a model for technical inefficiency effects. The estimated mean technical efficiency is 77%, with intensive farms being more efficient than extensive farms. The adoption of regular fish, water, and feed management activities has a strong positive effect on technical efficiency.     

Economic efficiency of small-scale tilapia farms in Guangxi,China

ABSTRACT

The economic efficiency of small-scale tilapia farms in Guangxi, China were analyzed by using Data Envelopment Analysis (DEA). The mean technical (under CRS and VRS), allocative, and economic efficiencies of small-scale tilapia farms were 0.89, 0.97, 0.71 and 0.68, respectively. Efficiency analysis revealed that inefficient farms would have needed to increase production output levels by 32% to perform as well as the best practice farms. The decomposition of the economic efficiency showed that allocative inefficiency was the primary cause of economic inefficiency. There were positive relationships between economic efficiency and age, culture mode and period through Tobit regression, while experience, family members, and technology support had negative effects on economic efficiency. Lower input levels of feed quantity may help to increase the tilapia farming economic efficiency.     

Economic and social dimensions of aquaculture management

Abstract

Aquaculture management patterns are greatly influenced by the economic or social purpose of the project. Though some types of farms may yield both economic and social benefits, they can generally be classified on the basis of their major objective. Economic benefits, in one form or the other, gets considered in the planning stage of all farming activities; but it is necessary to ensure social and environmental viability as well to achieve sustainability. Subsistence and family farming, crop/animal integrated farming and farming for recreational purposes, are largely orientated to social benefits; whereas small‐scale farming enterprises, cooperative and state farms, as well as vertically integrated large‐scale farms are run mainly for economic gains. Stock enhancement and creation of culture‐based fisheries represent a mix of all the three elements of sustainability, with a stronger base of environmental improvement. The complexity of management differs significantly between these types of enterprises. The systems of production adopted, such as extensive, semi‐intensive, intensive and super‐intensive, as well as farm location (land‐based or open waters) bring about their own special management problems, especially in relation to ecological integrity.     

Technical efficiency of carp pond culture in South Asia: An application of a stochastic meta‐production frontier model

Abstract

A stochastic meta‐production frontier model is estimated to examine the inter‐country differences in levels of technical efficiency of semi‐intensive/intensive and extensive carp pond culture systems among the major carp producing countries in South Asia, namely India, Bangladesh, Pakistan, and Nepal. The mean technical efficiencies for semi‐intensive/intensive farms vary from 0.68 for Nepal to 0.79 for India, with an overall average of 0.75 and those for extensive farms vary from 0.48 for Bangladesh to 0.62 for Pakistan, with an overall mean of 0.57. Differences in efficiency levels are explained in terms of various farm‐specific and country‐specific factors by estimating a model for technical inefficiency effects. The adoption of recommended fish, water, and feed management practices is found to be critical for improved performance of carp producers. For each country, the study also compares the efficiency scores based on its own production frontier with those obtained from the meta‐production frontier.     

A Scale Measure of State Regulatory Climate Toward Finfish Aquaculture

States are responsible for implementing many key environmental laws enacted during the last 30 years. State level variations in legal, regulatory, and development programs targeted toward the aquaculture industry can affect aquaculture firm decision making, including site location and species selection decisions. This research focused on development and testing of a summated scale measure of state regulatory climate toward finfish aquaculture. Data for the analysis were generated from a national survey of state level finfish aquaculture programs. The final aquaculture regulatory climate scale (ARCScale) ranges from 0–18, with the numerical value of the scale increasing with increases in regulatory stringency. Scale values were computed for each state plus Guam for five categories of finfish: baitfish, ornamentals, commercial foodfish, freshwater gamefish, and marine gamefish. The scale allows direct comparison between states, enabling aquaculture producers to make more informed location, species selection, and business decisions. The scale also provides a means for evaluating changes in state institutional characteristics and regulatory climate over time.     

Innovation in seafood value chains: the case of Norway

Abstract

This article provides econometric estimates of the determinants of collaboration in innovation processes and innovation outcomes in Norwegian aquaculture and other seafood sector firms, using linked innovation survey and register data on individual firms for the years 1990–2010. The seafood sector in Norway has an extensive innovation system and a high research and development (R&D) intensity, where public R&D institutions receive much of the funding. Our econometric estimates imply that firms with internal R&D resources collaborate more with external organizations in general, and research institutions in particular. Internal skills in the form of R&D employees and external collaboration with firms in the value chain have highly significant positive effects on innovation rates. Collaboration with R&D institutions has a smaller direct effect on innovation. Innovation is clustered at the beginning and end of the supply chain. Aquaculture input suppliers are highly innovative, while aquaculture farms mainly incorporate innovations from suppliers.     

Impact of Climate Change on the Technical Efficiency of Striped Catfish,Pangasianodon hypophthalmus,Farming in the Mekong Delta,Vietnam

The technical efficiency of randomly sampled pangasius farms in the Mekong Delta of Vietnam was estimated using data envelopment analysis, and factors affecting technical and scale efficiency were examined with bootstrap truncated regression. The mean technical efficiency score assuming variable returns to scale was 0.84. The technical efficiency of downstream farmers was higher due to lower energy costs and stocking once a year. Most of the up‐ and midstream farms needed to pump water and stocked at least three times in 2 yr. Regression analysis showed a positive effect on technical efficiency of the farmers' education level and having experienced climate change impact through flooding or salinity intrusion in the past. Farms affected by salinity intrusion had a lower scale efficiency as they reduce stocking frequency and rate. In general, reducing fish mortality and the cost of inputs, increasing scale of operation, and being trained, using appropriate methods, in management strategies may improve technical efficiency.     

EFFICIENCY ANALYSIS AND THE EFFECT OF POLLUTION ON SHRIMP FARMS IN THE MEKONG RIVER DELTA

This article investigates the efficiency of intensive, semi-intensive, and extensive shrimp farming practices as well as the difference between the upstream and downstream efficiency of shrimp farms in the Mekong River Delta (MRD), Vietnam. Our article is the first to compare the efficiency of the 3 shrimp practices and investigate the difference between the efficiency of downstream and upstream farms. The efficiency of shrimp farms is measured using group-frontier and meta-frontier analysis on a sample of 292 farms. The results show that, on average, shrimp farms are inefficient; extensive farms are more efficient than intensive and semi-intensive farms; and, controlling for key socio-economic factors, upstream farms are more efficient than downstream farms, suggesting that pollution from upstream farms may influence shrimp farm efficiency. The results give some direction for improvement and some evidence to shrimp farmers and policymakers in the MRD to take the pollution problem seriously and find solutions for more sustainable development.     

Technical efficiency of different farm sizes for tilapia farming in China

China is the world's largest tilapia producer. This study uses the stochastic frontier function in the Cobb–Douglas model to evaluate a production frontier for tilapia aquaculture and analyses the relationship between farm size and production efficiency in China. A random sample of 300 tilapia farmers was surveyed in the main tilapia‐producing areas to study their economic efficiencies. The percentage distribution of tilapia farm technical efficiency was determined, with an average efficiency of 79%, which showed that the sample tilapia farmers operate at 21% below the production frontier and hence that they still have a chance to achieve targeted yields. The technical efficiencies of two categories (≤1 ha and >1 ha) were 78.82% and 79.27% respectively. A second‐stage analysis investigated the relationship between farm size and technical efficiency and showed a positive relationship between farm size and production efficiency based on the ordinary least‐squares model. The optimal farm size was found to be 7.50 ha. This study proposes strategies such as enlarging the farming scale moderately, thereby achieving the advantage of economies of scale, and enhancing the competitiveness of the tilapia industry in China.     

PRODUCTIVE EFFICIENCY OF CATFISH FARMS IN CHICOT COUNTY,ARKANSAS

Technical, allocative, and cost efficiency measures of a sample of small-and medium-sized catfish farms in Chicot County, Arkansas were estimated using a weight-restricted data envelopment analysis technique. A measure of cost efficiency is used to determine operator characteristics, farm practices, and institutional support services that are likely to lead to higher levels of efficiency. Experience of the operators and extension contacts were important factors positively influencing farm level efficiency. Extension services in Chicot County generated about $5.2 million in cost savings among catfish farms or about $2,737 per contact. Importantly, higher cost efficiency of catfish farm efficiency in Chicot County, Arkansas, can be achieved by adjusting inputs used in production to optimal levels rather than by adjusting the scale of operation.     

A Technical Efficiency Analysis of Hawaii's Aquaculture Industry

This study examines the technical efficiency (TE) of aquaculture farms in Hawaii. Policy makers and industry participants interested in assessing the economic outlook of aquaculture production not only have to assess measures of profitability and financial health, but also measures of production efficiency. We estimate the TE of the state's aquafarms with a data envelopment analysis (DEA) model. Using data from the US Census of Agriculture, we examine TE measures of the population of Hawaii's aquafarms across different types of farms and over time. The results show that only 12% of the farms in 2007 may be classified as efficient, with a steady decline in efficiency over time. We find TE was related to the size of farm, full‐time farms were significantly more efficient than part‐time farms and that the average excess real inputs for land and labor have slightly fallen over time. The sub‐sector analysis revealed a strong variation of TE across different type of farms. With few farms operating on the frontier, the findings of this study suggest that the majority of the farms could improve their TE.     

Analyzing the variations in cost-efficiency of marine cage lobster aquaculture in Vietnam: A two-stage bootstrap DEA approach

ABSTRACT

This study measures cost-efficiency and its determinants for 353 marine cage lobster farms in Vietnam using a two-stage bootstrap data envelopment analysis (DEA). In the first stage, the bootstrap DEA approach was used to obtain bias-corrected technical, allocative cost-efficiencies for the farms. Then, the bias-corrected cost-efficiency scores were regressed on a set of explanatory variables using a bootstrapped truncated regression. The results show that substantial cost-inefficiency occurs in lobster aquaculture due to the overuse of inputs, which, given the prevailing input prices, are also used in inappropriate ratios. Cost-efficiency is shown to be significantly impacted by the age of the farmer, total cage volume and by variables affecting the production environment such as the cage cleaning, distance to the nearest farms and the presence of other discharges into the marine environment.     

Profitability and technical efficiency of aquaculture systems in pampaanga,philippines

Abstract

We evaluate the profitability and technical efficiency of aquaculture in the Philippines. Farm‐level data are used to compare two production systems corresponding to the intensive monoculture of tilapia in freshwater ponds and the extensive polyculture of shrimps and fish in brackish water ponds. Both activities are very lucrative, with brackish water aquaculture achieving the higher level of profit per farm. Stochastic frontier production functions reveal that technical efficiency is low in brackish water aquaculture, with a mean of 53%, explained primarily by the operator's experience and by the frequency of his visits to the farm. In freshwater aquaculture, the farms achieve a mean efficiency level of 83%. The results suggest that the provision of extension services to brackish water fish farms might be a cost‐effective way of increasing production and productivity in that sector. By contrast, technological change will have to be the driving force of future productivity growth in freshwater aquaculture.     

Production risk,technical efficiency,and input use nexus: Lessons from Bangladesh aquaculture

The optimal use of resources in aquaculture is important, especially in developing countries, to obtain the highest possible outcome from the production process to support food security and poverty alleviation. Thus, within this study, the risk, efficiency, and input‐use variation in aquaculture farms in Bangladesh is investigated using a flexible stochastic frontier model with a risk and an inefficiency function. The results reveal that feed, labor, and capital have positive and significant impacts on production. In addition, an increased fingerling density and a larger farm increase the risk, whereas the use of feed and the capital invested have the opposite effect. Access to extension services has a positive effect and increases farm efficiency. An investigation of the farm size–productivity inverse relationship reveals that this phenomenon is not applicable to Bangladesh aquaculture. In general, efficient farmers are large‐scale farmers, who use a lower stocking density but a higher feeding intensity, resulting in a higher yield. On average, farmers use less labor and feed than what is optimal. To increase efficiency and reduce risk, it is recommended that more technical knowledge on optimal input use, extension service, and capital is made available to aquaculture farmers.     

Technical efficiency of carp production in Pakistan

Abstract

The main objective of this study is to examine technical efficiency and its determinants in carp pond culture in Pakistan. A stochastic production frontier involving the model for technical inefficiency effects is applied separately to the samples of semi‐intensive/intensive and extensive carp producers. The mean technical efficiencies for semi‐intensive/intensive and extensive farms were 0.673 and 0.561, respectively. By operating at full technical efficiency the semi‐intensive/intensive farms could, on average, increase their production from 3.0 to 4.5 Mt/ha and the extensive farms from 2.6 to 4.6 Mt/ha. Much of these efficiency gains would come from the improvement in fish, water and feed monitoring and management. Besides improving technical efficiency, potential also exists for raising carp productivity through increased intensification and technological progress. However, the realization of these potentials will depend on continuous government support for adequate provision of inputs, market and infrastructure, technology transfer and development and extension and credit services to carp farmers.     

AN EMPIRICAL TYPOLOGY OF BRACKISH-WATER POND AQUACULTURE SYSTEMS IN THE PHILIPPINES: A TOOL TO AID COMPARATIVE STUDY IN THE SECTOR

Aquaculture in the Philippines is long-established but has witnessed rapid technical change in the last 20 years with the introduction of hatchery technology and commercial feed mills changing the production possibilities for a fishpond operator. To understand the sector, a typology of brackish-water pond farming systems is constructed using multivariate methods (principal components analysis, cluster analysis). Eight input variables across all major factors of production are used in the analysis, gathered from a net sample of 136 farms in two regions in 2003. Three latent variables are described, accounting for 58% of variance in the original data: specialization; land vs. labor intensity; and feeding intensity. Five clusters (farm types) are subsequently described: extensive polyculture (40% of sample); semi-intensive prawn-oriented polyculture (11%); low-input labor-intensive farms (27%); very large, extensive milkfish-oriented farms (8%); and semi-intensive milkfish monoculture farms (14%). Implications for technical efficiency estimation and comparative study of economic indicators are discussed.     

Principal economic effects of cormorant predation on catfish farms

Substantial economic losses of farmed catfish to fish‐eating birds such as the double‐crested cormorant, Phalacrocorax auritus, continue to be reported on U.S. catfish farms. An economic analysis was conducted of the on‐farm effects of both the increased expenditures to scare fish‐eating birds from catfish farms and of the value of the catfish that were consumed by cormorants. A survey was conducted of U.S. catfish farmers in the Delta region of Mississippi and Arkansas, to obtain farm‐level data on expenditures to scare birds. Estimations of the lost revenue from catfish consumed by cormorants were developed from a concurrent study on cormorant distribution, abundance, and diet in the region. The economic effects of bird predation in terms of both fish consumption and management costs were evaluated across three farm sizes and nine catfish production practices. Catfish farmers spent on average $704/ha ± $394/ha to scare birds, making bird‐scaring costs one of the top five costs of raising catfish. The greatest cost components of scaring birds were manpower (39% of all bird‐scaring costs) and the variable and fixed costs of trucks used to scare birds (34% of all bird‐scaring costs). Losses were greater on hybrid than channel catfish fingerling ponds. Industry‐wide, the value of catfish losses averaged $47.2 million (range of $25.8–$65.4 million). Total direct economic effects (including both the increased costs to scare birds and the revenue lost from fish consumed by cormorants despite bird‐scaring attempts) averaged $64.7 million (ranging from $33.5 to $92.6 million). Profitability improved by 4% to 23% across the farm size/production strategies analyzed upon removal of the economic effects from bird predation, with greater effects occurring on smaller‐scale farms. One‐third of the farm size and production scenarios analyzed changed from being unprofitable to showing a profit in the absence of such negative economic effects associated with bird depredation. Overall, the combined effects of increased farm expenditures to scare birds from farms and the value of the catfish lost to predation by cormorants caused substantial negative economic effects on catfish farms.     

Dietary supplementation with the microalgae Parietochloris incisa increases survival and stress resistance in guppy (Poecilia reticulata) fry

Dietary enrichments with the arachidonic acid (ARA)‐rich microalga, Parietochloris incisa, on the survival of guppy (Poecilia reticulata) fry were examined. Diets were applied via Artemia enrichment to fish from two commercial farms for 34 and 36 days of experimental period (trials 1 and 2, respectively). In trial 1, Artemia nauplii were enriched with dry biomass of whole algal cells at 0 (control), 0.1, 0.2 and 0.4 mg mL^?1. Fry fed with Artemia enriched with 0.4 mg mL^?1 demonstrated the lowest mortality rates (24% and 1% in farms 1 and 2, respectively) compared with controls (36% and 13% in farms 1 and 2, respectively). In trial 2, fry were fed with Artemia, enriched with whole algal cells (0.4 mg ml^?1), algal hexane extract (HE; containing primarily ARA‐rich triacylglycerols and β‐carotene; 0.19 mg ml^?1) or the extraction residue (0.28 mg ml^?1). Acute stress (5 min air exposure) was applied after 18 days. The lowest mortality was recorded in the whole alga‐fed group (av. 26% and 2.6% in farms 1 and 2, respectively), with a slightly, but not significantly higher mortality in the HE‐fed group (av. 29% and 6.2% in farms 1 and 2, respectively). Elevated lysozyme was associated with the reduced mortality. Overall, the use of P. incisa as a dietary supplement for guppy fry during their first month of life enhanced their survival and stress resistance.