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 in tilapia farming of Bangladesh: a stochastic frontier production approach

Genetically improved farmed tilapia is increasingly getting popular in Bangladesh. It has high production potential. Its dominant production technology ranges from extensive to improved extensive particularly in the rural areas. This study estimates levels and determinants of farm-level technical efficiency of tilapia farmers of Bangladesh using stochastic frontier production function involving a model for technical inefficiency effects. Data from fifty tilapia farmers of Jessore district are used in the analysis. The mean technical efficiency level of the tilapia farmers is 78%, and thus, the farmers operate 22% below the frontier production. Inefficiency effect is significant, and age, education, income, culture length, pond age, pond depth, water colour and pond tenure, as a group, are significant determinants of technical inefficiency. By operating at full technical efficiency levels, tilapia yield can be improved from the current level of 7.36–8.96?tons per hectare. The decision to add or not to add inputs is sometimes taken arbitrarily and not based on technology requirement. There is a lack of understanding of the technology practices. Fisheries extension efforts are required for proper understanding of the technology practices, further adoption and spread. For promotion of tilapia production, quality feed and seed at affordable price needs to be ensured.     

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.     

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 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.     

Agglomeration externalities and technical efficiency: An empirical application to the pond aquaculture of Pangas and Tilapia in Bangladesh

This article analyzes the effects of agglomeration externalities on productivity and efficiency by applying a stochastic production frontier model with a technical inefficiency model to the aquaculture industry. Agglomeration externalities refer to the costs and benefits to firms from clustering. Agglomeration studies within aquaculture have focused on the intensive salmon industry, whereas this study focuses on low-technology, extensive pond aquaculture, representing most farmers in the developing world and using Bangladesh as an empirical case. The results show that there is a positive externality effect of regional industry size on the production possibility frontier and a negative effect on technical efficiency. Farm density enhances efficiency and the farm proximity to output markets decreases efficiency. Thus, policies aimed at increasing aquaculture pond production in developing countries should consider farm locations and their access to input and output markets, all of which affect farm productivity and efficiency.     

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.     

A farmer-oriented Nile tilapia, Oreochromis niloticus L., breed improvement in the Philippines

Opportunities for developing small‐scale tilapia industry in the Philippines is hampered by the shortage of good‐quality seeds and broodstock. Most small‐scale farmers are dependent on distribution centres for improved tilapia seeds that are expensive and not sufficient to meet market demands. An option would be for farmers to develop their own tilapia breeds using simple procedures within their technical and financial resources. This option will also help sustain the diversity of locally adapted domestic stocks of tilapia. The Philippine tilapia production of ～122 316 MT can be increased by ensuring a stable supply of quality seeds and transferring suitable technology to fish farmers. The study was carried out in a tilapia hatchery/nursery pond in the Philippines to explore the potential for a farmer‐based research on tilapia breed improvement using relatively simple artificial selection procedures. One generation of size‐specific mass selection based on the early culling of large fry (collimation procedure) was applied on a Nile tilapia strain, Oreochromis niloticus L., in net cages set in a small earthen pond. Two episodes of directional selection were performed after initial removal of large fry at 21 days. Selection of parents and progeny testing were conducted in hapa and B‐net cages set in earthen ponds. The selection resulted in a significant response of 8% for standard length and 29% for weight relative to the control. The crude estimates of realized heritability is ～16% for standard length and ～26% for weight comparable with similar studies conducted by other workers.     

Measuring technical,allocative and cost efficiency of pangas (Pangasius hypophthalmus: Sauvage 1878) fish farmers of Bangladesh

The present study is conducted to measure the technical (TE), allocative (AE) and cost efficiency (CE) of pangas fish‐producing farmers of Bangladesh. Data envelopment analysis is used to measure the efficiency while Tobit regression is applied to identify the factors affecting efficiencies. The estimated mean TE, AE and CEs are 86%, 62% and 54% respectively. Pangas production is characterized by considerable technical inefficiencies and substantial allocative and cost inefficiencies. Pond size, fingerling size, culture length and use of pelleted feed are important determinants of efficiencies. It is nevertheless profitable in terms of benefit–cost ratio, break‐even yield and price criteria. Production of pangas can be made further profitable by eliminating inefficiencies. Proper mixing of inputs given their prices could make pangas producers profit maximizers. Efficiency improvement is expected to help to increase production and provide scopes for exporting the surplus production. More fisheries extension is suggested to expand pangas culture and improve efficiency.     

Technical efficiency analysis of milkfish (Chanos chanos) production in Taiwan—an application of the stochastic frontier production function

Milkfish has been farmed in Taiwan for over 300 years. Faced with limited land resources, a labor shortage, decreasing demand, and growth of imported fisheries products, the industry is looking at the problem of how to maintain a sustainable and efficient production. This study specifies a stochastic production frontier function to estimate potential milkfish farm output and efficiency by using 1997–1999 data from a survey of 433 aquaculture milkfish farms. Both Translog and Cobb–Douglas frontier production models are estimated using the maximum likelihood estimation method. Empirical results show that the Translog stochastic production function model fits the data better and that milkfish farming in Taiwan exhibits diminishing returns to scale. We also compare estimated maximum potential milkfish production per hectare under various pond conditions to provide managers with information about how to boost efficiency. In addition, this study estimates substitution elasticities and complementarity of input factors for milkfish farms to provide helpful information for milkfish farmers on how to reallocate input resources and help raise milkfish productivity through improvements in technical efficiency.     

影响中国农产品总产量的主要因素分析——基于农户经营方式的视角

从农户经营方式的角度看,弱质劳动力务农、劳动力兼业经营和农业规模经营是影响中国农产品总产量的三个主要因素。采用国内外的相关数据分析这三个因素对农产品总产量的影响,结果表明,不同质劳动力利用和农业劳动力兼业不一定会影响农产品总产量,农户的粮食规模种植模式也不是必然提高国家的粮食总产量。由此得出,中国农产品总产量水平主要是由当前技术水平所决定的;农业规模经营方式中,如果农户收入最大化通过总的规模收益实现,不利于国家主要农产品安全目标的实现;家庭农场的建立应趋利避免害,避免复种制度改变对农产品总产量的影响。     

Multi-criteria evaluation approach to GIS-based land-suitability classification for tilapia farming in Bangladesh

Site selection is a key factor in any aquaculture operation, because it affects both success and sustainability. It can, moreover, solve conflicts between different activities, making rational use of the land. This study was conducted to identify suitable sites for development of Nile tilapia (Oreochromis niloticus) farming in Sitakunda Upazila (sub-district), Bangladesh, using GIS-based multi-criteria evaluation of water and soil quality, topography, infrastructure and socio-economic factors. ASTER image and eighteen thematic layers were analyzed using ENVI and ArcView software to identify the suitable areas for tilapia farm development. A constraint layer was used to exclude areas from suitability maps that cannot be allowed to implement tilapia farming. A series of GIS models were developed to identify and prioritize the most suitable areas for tilapia farming. The output of the model clearly indicates the location and extent of tilapia farming areas on different suitability scales, i.e. most suitable (7,744 ha), moderately suitable (2,479 ha), and not suitable (838 ha). Model outputs were assessed against field verification data, and were consistent. Because existing aquaculture covers only 1,540 ha of land in the study area, the potential for expanding tilapia farms should take into consideration socio-political and environmental issues. The results are encouraging in terms of tilapia culture development and suggest that grassland–agriculture areas could be used for sustainable development of tilapia farming to diversify the economic activities of rural communities.     

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.     

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.     

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.     

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.     

Fish polyculture system integrated with vegetable farming improves yield and economic benefits of small‐scale farmers

This study explored the yield and economic benefits of African sharptooth catfish, Clarias gariepinus, and Nile tilapia, Oreochromis niloticus polyculture, reared in earthen ponds for 270 days integrated with Chinese cabbage, Brassica rapa chinensis, farmed for 45 days to small‐scale farmers in Tanzania. An integrated aquaculture–agriculture (IAA) system involving fishes and vegetables resulted in three and 2.5 times higher net yield than the culture of fishes alone and farming of non‐integrated vegetables respectively. Vegetables irrigated with pond water resulted in 1.8 times higher net and annual yields than those irrigated with stream water. The practice of fish–vegetable integration and growing of vegetables irrigated with pond water produced 14 and 13 times higher net annual yield, respectively, than the culture of fishes alone. The integrated system produced 20 and 150 times more net returns compared with vegetables irrigated with pond and stream water respectively. Integrating fishes with vegetables resulted in significantly higher annual net cash flow than the farming of fishes and vegetables separately. The study revealed that integrating fishes with B. rapa chinensis increases yields, income and food production to small‐scale farmers. Thus, small‐scale farmers can adopt IAA technology to meet the increasing demand of fish and vegetables, stabilize their incomes and diversify food production, consequently improving food security. These benefits will be realized by providing proper training in IAA technology and management skills to small‐scale farmers.     

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.     

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.     

A MIXED-INTEGER TRANSSHIPMENT MODEL FOR TILAPIA (OREOCHROMIS SP.) MARKETING IN HONDURAS

Tilapia production in Honduras has increased in recent years. However, lack of thorough understanding of domestic markets and coordinated production efforts have hampered the development of a domestic market. This study quantified marketing costs for tilapia marketed in Honduras and developed a mixed-integer transshipment mathematical programming model to identify the most profitable marketing alternatives for small- and medium-scale farmers. Of the total marketing costs ($0.07–$0.41/kg), 40–73% were for transportation and 13–30% for packaging costs. This depended upon farm size, location, and the specific market targeted. Model results suggested restaurants as primary targets with supplemental production delivered to supermarkets in relative proximity to the selected restaurants. The model selected cities with sufficient restaurant demand to absorb the farm's total production. Farms with high production levels can take advantage of the reduced transport cost of larger trucks and sell excess product to alternative outlets whereas small-scale farm volumes were too low to supply markets on a weekly basis. Farms located in the East and South regions had a marketing advantage over farms in other regions due to proximity to the most profitable Distrito Central outlets. To successfully compete for Honduran markets other than the low-priced local open-air markets will require farm sizes greater than 6 ha to supply a minimum weekly production of 900 kg.