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.     

Technical Efficiency of Shrimp Farming in Bangladesh: An Application of the Stochastic Production Frontier Approach

This study estimates the levels and determinants of farm‐level technical efficiency of shrimp farmers, using the stochastic production frontier function involving a model for technical inefficiency effects. A sample of 90 brackish water shrimp farms were surveyed in the region of Shyamnagar Upazila of the Satkhira District, Bangladesh, to study their economic efficiencies. Data were collected, using a questionnaire survey from September to October 2011. The mean technical efficiency level of the shrimp farmers was estimated at 82%, and thus, farmers operate 18% below the production frontier. The results suggest that the inefficiency effect is significant, and that education, age, non‐farm income and distance of the farm are significant determinants of technical inefficiency. By operating at full technical efficiency levels, shrimp production can increase from the current yield of 225.56 to 265.28 kg/ha. Besides improving technical efficiency, technological progress and extension services (such as dissemination of proper information of the technological practices and further adoption of technological practices) can also contribute to increased shrimp production levels. Finally, quality feed and fingerling at affordable prices need to be ensured to further promote shrimp production.     

Technical efficiency of carp production in India: a stochastic frontier production function analysis

This paper aims to examine the levels and determinants of technical efficiency in carp pond culture in India. The stochastic production frontier technique involving the model for technical inefficiency effects is applied separately to samples of semi‐intensive/intensive and extensive carp producers interviewed during 1994–95. The results showed significant technical inefficiencies in carp production in India, especially among extensive farms. The mean technical efficiencies for semi‐intensive/intensive and extensive sample farms were estimated to be 0.805 and 0.658 respectively. By operating at full technical efficiency levels, the semi‐intensive/intensive farms could, on average, increase their production from about 3.4 Mt ha^?1 to 4.1 Mt ha^?1. Likewise, the extensive farms could increase their production from 1.3 Mt ha^?1 to 1.9 Mt ha^?1. Much of these efficiency gains would come from improvement in the adoption of recommended fish, water and feed management and monitoring practices. Besides expanding production area, the results indicated several other possibilities for increasing carp production in India by increasing yields per hectare, such as: (1) increased intensification of carp culture (i.e. moving from extensive to semi‐intensive or intensive systems); (2) improvement in technical efficiency at the farm level; and (3) technological progress. However, the realization of these potentials will depend on continuous efforts by the government in ensuring an adequate supply of inputs, technology transfer and development and adequate provision of research, extension and credit services in aquaculture.     

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.     

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.     

Establishing a benchmarking for fish farming – Profitability,productivity and energy efficiency of German,Danish and Turkish rainbow trout grow‐out systems

The promotion of Blue Growth in aquaculture requires an understanding of the economic drivers influencing the sector at farm level, but the collection of reliable and comparable data at this level is time‐consuming and expensive. This study suggests an alternative strategy for qualitative sampling of freshwater trout farms in Germany, Denmark and Turkey, using a combination of existing data, group discussions and interviews with trout farmers, consultants and researchers. Nine ‘typical’ trout farming models are described, focusing on profitability, productivity and energy efficiency and allowing in‐depth comparative economic analyses of different production systems at farm level, across regions. Our results show that the majority of the farms investigated have been profitable. Turkish farms benefit from competitive advantages due to low wages, low capital investment and favourable climate conditions. Large German farms profit from local market prices and advanced farm management. Danish farms using recirculating techniques remain competitive thanks to enhanced productivity and economy of scale. However, small traditional farms in Germany and Denmark may struggle to stay competitive in the long term. Organic farms in both countries face challenges of high feed costs and comparatively low productivity with mixed success. Using edible protein energy return on investment (epEROI) as an indicator of ecological sustainability, all surveyed farms compared very favourably with the terrestrial systems of animal meat production were investigated so far.     

养殖池塘增氧机制与装备性能比较研究

水产养殖过程中,池塘生态系统可分为自成熟期和人工维持期。在养殖容量提高的情况下,养殖生物呼吸需氧量在不断增加,缺氧条件下有机物分解成有害物质,影响养殖生产。维持池塘生态系统稳定的主要工程机制为:通过上下水层交换、平衡营养元素等方法,强化光合作用,提高营养物质转化规模,提升初级生产力;形成生态增氧为主、机械增氧为辅的高效增氧机制。以中国养殖池塘生态系统为研究对象,分析探讨养殖池塘生态机制、水体溶氧理论、增氧机作用机理、不同类型增氧机的机械性能等,提出了大宗淡水鱼混养池塘及几种典型单养池塘增氧机配置方式,从而为池塘养殖系统增氧机的配置提供技术参考。     

A comparison of traditional and modified inland artisanal aquaculture systems

Traditional artisanal aquaculture systems are commonly assumed to be mainly for subsistence, to use predominantly on-farm inputs, and to have been developed by farmers themselves. Such systems with a long history in South East Asia exist mainly in northern Lao PDR, northern Vietnam and in West Java. In most other areas the traditional fish supply, wild fish, has declined only relatively recently, providing a stimulus for growth of aquaculture over the past few decades. An overview of artisanal aquaculture so defined in the South East Asian region is presented from a systems context considering social and economic aspects (micro- and macro-level perspectives), production technology (rice fields, ponds, cages), and environmental aspects (fitting into the local resource base without adverse environmental impact). Most artisanal aquaculture systems are integrated with crops and livestock but generally resource-poor farms constrain production. Rising expectations mean that productivity must be enhanced by off-farm inputs for aquaculture to contribute significantly to the farm household livelihood system. It is proposed that the term ‘small-scale’ be used rather than ‘artisanal’ because of increasing farmer interest in income rather than subsistence, because of increasing use of off-farm inputs, and because of the increasingly important role of science in the promotion of such systems.     

Review of Aquaculture Research and Development of the Australian Freshwater Fish Silver Perch,Bidyanus bidyanus

Silver perch, Bidyanus bidyanus (Mitchell), is a freshwater fish that is endemic to the Murray‐Darling River System, Australia. Over recent decades, its distribution and abundance in the wild have declined, and it is now a threatened species with the conservation status of “vulnerable.” Silver perch is a schooling, omnivorous fish, with white flesh, few bones, and high levels of omega fatty acids, and its aquaculture potential has long been recognized. Hatchery techniques, based on hormone‐induced spawning of captive broodfish in tanks and rearing of larvae in fertilized earthen ponds, were developed in the early 1980s. Fingerlings are currently used for stock enhancement and conservation or sold for commercial grow‐out or stocking farm dams. Research into the grow‐out of silver perch commenced in 1990 and demonstrated that it is an excellent fish for culture in static aerated earthen ponds with high survival rates (>90%), fast growth rates (2–5 g/fish/d) at high stocking densities (20,000/ha) leading to high production rates (10 tonnes/ha/yr). Since 1996, there has been research into nutrition, diet development, feeding strategies, broodfish domestication and management, culture in tanks and tank‐based recirculating aquaculture systems, diseases, health management, genetic improvement, and cage culture. Silver perch is a hardy species that performs well under different culture conditions and on diets with no or low levels of fish meal. Technology has been transferred to industry through major conferences in 1994 and 2003 as well as workshops, field days, extension, seminars, and numerous scientific and technical publications. The high quality of silver perch and its excellent culture attributes suggest that the species has the potential to form a large industry based on high‐volume, low‐cost production. However, despite these features and a strong technical base provided by research and development, industry growth has been limited and a relatively small industry currently produces only around 500 tonnes annually. Development has been restricted by a number of factors: poor site selection and design of some farms; use of inappropriate husbandry and/or production strategies; difficulties with pond production, including significant losses to bird predation and diseases; high costs of feeds; limited marketing and promotion; no processing component; no large‐scale investment; and the failure of many farms that were too small to be economically viable. Recent research has found that silver perch performs well in cages (high survival [>90%], good growth [1.7–3.5 g/fish/d], and high production rates [50–90 kg/m³]), and cage culture has advantages such as ease of management and prevention of bird predation that may help overcome some of the problems associated with pond production. Improved health management, new production strategies, cage culture, use of interstrain hybrids and other genetically improved fish, and integration with cotton and other irrigation industries offer opportunities for increased production and efficiencies, and further development of the silver perch industry. The potential of silver perch for commercial aquaculture remains very high.     

Benthic dynamics within a land-based semi-intensive aquaculture fish farm: the importance of settlement ponds

The present work aims to assess the importance of settlement ponds (SP) in semi-intensive fish farms by studying benthic dynamics in an aquaculture fish farm, more specifically in the water reservoir (WR) and SP and also in production (P) and nonproduction (C) ponds during a 16-month period. In Portugal, a SP is only mandatory for intensive fish farms, and another objective of the present study is to assess the importance of these areas in semi-intensive fish farms. The WR was the area with highest diversity and evenness, as well as the higher number of exclusive taxa and taxa sensitive to organic enrichment. P and SP samples showed signs of higher disturbance levels, emphasized namely by the association of the opportunistic annelids Capitella spp. and Tubificidae. However, the benthic data from SP points to lower disturbance levels than P both due to an increase in the percentage of sensitive taxa observed in June and October 2004 and by the association of this latter sample with water reservoir samples as evidenced by canonical correspondence analysis. Moreover, a higher and increasing number of taxa when compared with the P area were also observed. Therefore, in semi-intensive fish farms, where effluents from P ponds are directly discharged to the lagoon, the potential environmental impacts would be more severe. In conclusion, the imposition of SP in semi-intensive fish farms should be considered, especially because most fish farms are located within relevant wetland areas.     

The impacts of integrated homestead pond‐dike systems in relation to production,consumption and seasonality in central north Bangladesh

The roles of homestead ponds and surrounding dike production of vegetables on farms in peri‐urban and rural communities in central north Bangladesh were assessed. A baseline survey sought to characterize actively managed (“active”) pond‐dike systems, producing fish and vegetables, in terms of productivity and impact compared to less intensively integrated (“passive”) and control, no‐pond households. A longitudinal survey was carried out over 12 months to explore the relationship between seasonality and livelihood outcomes in relation to location and well‐being status. Active homestead pond operators tended to have greater access to information and credit compared to passive and non‐pond households; this was likely linked to their greater literacy and greater social connectedness. They enjoyed higher incomes through fish sales and consumed more fish than passive households, which was related to their higher production, in turn explained mainly by the use of more inputs. All active, 50% passive and 38% non‐pond households were involved in vegetable cultivation; however, significantly more vegetables were produced by active households than others. The impacts of pond‐dike production were more critical for food‐vulnerable, rural households than peri‐urban households prior to monsoon rice harvest; worse‐off households suffered more prior to the “irrigated rice” harvest. Fish and vegetables raised on farm were most important during lower income months. The study supports the view that small homestead ponds can contribute to the wider food supply, and that such “quasi‐peasant” forms of aquaculture contribute to reduced poverty and enhanced dietary diversity and food security in the broader population.     

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.     

A REVIEW OF PRODUCTION FRONTIER RESEARCH IN AQUACULTURE (2001–2011)

Most research works on the production frontier in aquaculture focus on efficiency measurement using either Stochastic Production Frontier (SPF) or Data Envelopment Analysis (DEA). The studies on productivity growth in aquaculture were limited, perhaps due to lack of time-series data. Nevertheless, total factor productivity analysis (TFP) in fish farms has started gaining popularity in recent years. In addition, the majority of the efficiency studies have centered on technical efficiency analysis but substantial increases in the output levels can be fully realized through improving overall economic efficiency. Therefore, this review suggests that future research should estimate all three efficiency indices (i.e., technical, allocative and economic efficiencies).     

An assessment of alternative strategies for the integration of pond aquaculture into the small‐scale farming system of North‐east Thailand

Abstract

This paper uses a linear programming model to examine the economic viability of four fish production strategies in the context of rainfed farming systems in the north‐eastern region of Thailand. The four systems are rice bran feeding system, pond fertilization using buffalo manure, fish production recommendations developed by the Asian Institute of Technology (AIT) Recommendations and an integrated duck/fish production system. These systems have been introduced into North‐eastern Thailand where the main obstacles to fish production are the lack of indigenous knowledge offish culture and a shortage of water. While technical feasibility studies are needed to evaluate the practical viability of aquaculture technologies, economic assessment is required to assess their commercial viability. The objective of this paper is to examine whether or not these fish production systems can contribute to, and integrate with, the prevailing farm system in the North‐east of Thailand. The linear programming model is used to determine the optimum on farm product mix that maximizes net returns under each of the four production systems. Among different resources, labour requirement in the fish‐stocking month appeared to be the first binding resource, while capital requirement was not a constraint for an average farming household of the region. A sensitivity analysis is presented to show how each of the fish production systems operates with different levels of pond size, labour and capital availability. The results of the study show that these aquaculture systems are economically attractive and can contribute significantly to the livelihood of the small‐scale farmers of North‐east Thailand.     

Technical efficiency of carp polyculture production in Jiangsu,China: a ray stochastic frontier production approach

This study aims to examine the technical efficiency of crucian carp polyculture systems in Jiangsu province, China, applying stochastic frontier analysis. Prior aquaculture polyculture studies using this method neglected the multi‐output nature of polyculture and aggregated all of the outputs into a single index. In this paper, we use a ray production function and adopt it in the stochastic front‐ier framework. Production functions defined as Cobb–Douglas and Translog specifications are both employed to compare cross‐sectional data collected for 144 farmers in 2012. The results reveal that the Translog specification captures the production behaviour and that there is an evident technical inefficiency in the polyculture setting. The mean technical efficiency is 79%. The farms that applied the new polyculture system demonstrate significantly greater efficiency on average than farms that applied the traditional polycult‐ure system. The output elasticity with respect to the polar coordinate angle θ₁ is calculated to be 0.17. This represents a 0.17% increase in the output norm with a 1% increase in the output mix with fixed proportions between crucian carp and filter‐feeding fish. The output elasticity with respect to the polar coordinate angle θ₂ is ?0.26. This represents a 0.26% decrease in the output norm due to a 1% increase in the output mix with the level of grass carp held constant. Hence, decision makers should be informed that the adopting of new species to the traditio‐nal system may be an effective way to unlock the productive potential of pond aquaculture in Jiangsu province.     

A Survey of Water Quality Characteristics of Effluent from Hawaiian Aquaculture Facilities

Ten water quality parameters were measured in influent and effluent water at 11 aquaculture facilities in Hawaii. The data were grouped into four categories based on the types of organisms cultured: freshwater fish, freshwater prawn, marine fish, and marine shrimp. Within each category, concentrations of most parameters were lognormally distributed and spanned one to two orders of magnitude. Geometric mean concentrations of suspended materials, total nitrogen, total phosphorus, and pigments were highest in effluent from freshwater prawn ponds and lowest in marine fish pond effluent. Nitrate/Nitrite and total ammonia concentrations were higher in fish pond effluent than in crustacean pond effluent. Parameter concentrations were generally higher in effluent than in influent water, with freshwater fish and prawn ponds exhibiting the greatest increases in suspended materials and pigments. In contrast, nitrate/nitrite concentrations were lower in effluent than in influent waters. These data provide a basis for analyzing the environmental impacts of warm-water aquaculture effluent discharges.     

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.     

The evolution of farm management,production efficiencies,and current challenges to catfish production in the United States

Abstract

The catfish industry is the most successful aquaculture business in the US. The development and growth of the catfish industry has resulted in complex fish farm businesses that require intensive management. Technological innovations have resulted in increased yields (land use efficiency). However, in more recent years, productivity gains have not kept pace with the rate of increase in input costs. Increasing intensification of catfish production over time has been accompanied by increased use of debt capital that results in higher levels of financial risk. While still a profitable activity, real profit margins have declined as financial risk has increased. New technologies will likely continue to increase productivity over time. Market‐oriented agribusiness approaches to catfish marketing are likely to become the norm. The challenge for the catfish industry is to coordinate adoption of new higher‐cost technologies with demand increasing market development to sustain farm price levels.     

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.     

Restructuring European freshwater aquaculture from family‐owned to large‐scale firms – lessons from Danish aquaculture

Aquaculture is the world's fastest growing animal food producing sector. Although its overall performance is very good, it is unevenly spread geographically. In particular, the growth in most EU countries has been stagnating over the past 20 years despite repeated policy initiatives to launch new growth in the industry. The lack of production growth in EU aquaculture is often explained by strict environmental regulation and bureaucracy. In this article, we argue that an additional important element is an industry structure that limits the innovation and use of new technologies. Historically, farms have been small and often co‐managed with larger agriculture production. However, to succeed in a market with global competition, technological innovation and sector‐wide specialization, it is necessary to continuously increase productivity and induce investments in larger production facilities to take advantage of economies of scale. In Denmark, a structural change was ‘kicked off’ in 2005. In just 6 years, 30% of Danish production in freshwater has been reallocated to larger and more technologically advanced recirculation farms. Labour productivity has increased and the environmental impact per kilo of fish produced has been reduced, improving future prospects for aquaculture in Denmark and Europe.