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.     

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 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 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 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.     

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.     

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.     

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 cage fish farming in Peninsular Malaysia: a stochastic frontier production approach

The study estimates technical efficiency and investigates the factors affecting the technical inefficiency of cage fish farming in Peninsular Malaysia. The study employs the stochastic frontier function to estimate a production frontier and technical inefficiency model. The data were collected using standard structured questionnaires completed by sample cage fish farmers in the study area. The result reveals an estimated mean technical efficiency score of 0.79, implying that the sample fish farmers are operating 21% below the production frontier and thus, there is room for improvement. The production function involves the use of one output and four inputs, which are stocking density, feed, labour and other relevant production costs. The coefficients of all the inputs have positive signs and statistically significant impacts on the output. The output elasticity associated with stocking density is the highest (0.634), followed by feed (0.317). The null hypotheses that the technical inefficiency effects are absent from the model and that the combined exogenous variables do not influence inefficiency are strongly rejected. The individual's null hypotheses of no age effect, no experience effect, no education effect, no species effect, no extension services effect, no workshop attended effect and no diseases effect on technical inefficiency are all rejected at different levels of statistical significance.     

Data envelopment analysis for production efficiency improvement: An empirical application on brine shrimp Artemia franciscana culture in the Mekong Delta,Vietnam

Artemia culture in the Mekong Delta, Vietnam, is becoming more and more important to satisfy the global demands of cyst production. Nevertheless, Artemia cyst productivity in the Mekong Delta has been fluctuating largely due to not only technical inefficiencies and external factors but also farms’ characteristics. This study employed a data envelopment analysis to evaluate the production efficiencies in correlation with biological and cost inputs of Artemia culture in Vinh Chau and Bac Lieu located in the Mekong Delta. The key factors affecting technical efficiency (TE) were determined using ordinary least squares regression model. The empirical results indicated that production efficiencies of farms in Vinh Chau and Bac Lieu were similar with metatechnology ratios of 0.97 and 0.96 respectively. About 62.8% of surveyed farms were operating in technically inefficient circumstances. Farmers’ experience, educational level and culture technique training participation had positive effects on TE, while climate effects and water problems have been proved to have negative effects on TE. To improve production efficiency, inefficient farms are suggested to have moderately increasing combinations of organic fertilizer, chemical and feed. The use of probiotics should be reduced as it increases production cost and affects TE. Notably, a collaboration of scientists and feed processing companies is recommended to produce a specific formulated feed for Artemia in commercial scales. This study also proposes adaptive policies for local governments and cooperatives to assist coastal famers in the Mekong Delta overcome technical inefficiencies, improve cyst productivity and obtain economic sustainability in Artemia culture.     

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.     

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.     

Effects of Culture Area,Stocking Density,and Shrimp and Fish Polyculture on the Cost Efficiency of Hard Clam,Meretrix meretrix,Culture: A Case Study of Hard Clam Farms in Yunlin,Taiwan

Using the hard clam farms in Yunlin, Taiwan as examples, this study analyzes the effects of culture area, stocking density, and shrimp and fish polyculture on the cost efficiency (CE) of hard clam farming. A data envelopment analysis (DEA) is used to estimate the farms' technical efficiency (TE), allocative efficiency (AE), and CE values. The findings show that the mean TE, AE, and CE values of hard clam farms are 0.74, 0.57, and 0.43, respectively. The TE value is higher than the AE value, which indicates that cost inefficiency is mainly attributable to poor AE. Tobit regression results suggest that there are positive relationships between CE and both culture area and operator experience. Hard clam stocking density and age of the operators have negative effects on CE. Hard clam culture areas larger than 2 ha and a stocking density of 1.1–1.2 million hard clams per hectare have higher CEs than smaller culture areas and smaller or larger stocking densities. The use of sand shrimp, white shrimp, kuruma shrimp, and grass shrimp for polyculture and the use of milkfish and silver sea bream for polyculture are both associated with high CEs.     

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.     

Production economics of the emerging private fish farming industry in Bulgaria

The production economics of the emerging Bulgarian private carp and trout farming industry were assessed by surveying a representative sample of 20 private and state-controlled farms as well as visiting the National Fresh Water Fish Research Institute, the state-owned fish feed production plant and a fish processing plant.The major constraints for the development of profitable fish farming were found to be the lack of capital and the insecurity of tenure, which nonetheless, do not serve to discourage new entrants into the industry. The expected gross margin per tonne of carp produced in reservoirs or earth ponds is USD 487, while a tonne of trout farmed in concrete raceways shows a gross margin figure of USD 525. State-owned trout farms are only available for outright purchase at auctions, whereas carp farms may be rented, but only for a short term.Fish farmers could benefit from organizing themselves into producer groups in order to improve marketing and secure quality inputs. In particular, there is scope to source quality dry fish diets on both economic and environmental grounds.An extension advisory service is needed to support inexperienced new entrants and researchers should urgently evaluate what seem to be the most cost-effective methods of production.     

Technical inefficiency of Vietnamese pangasius farming: A data envelopment analysis

Vietnamese pangasius farming needs to produce efficiently to compete in world markets. This study investigates the input- and output-specific technical inefficiency of Vietnamese pangasius farmers. First, we used a Russell-type (input–output) directional distance function to estimate the input- and output-specific technical inefficiency. Second, we applied a bootstrap truncated regression to analyze the factors influencing these technical inefficiencies. Results show that the main challenges for enhancing the performance of Vietnamese pangasius production are inadequate use of capital assets (inefficiency of 42%) and improper methods to achieve higher fish yield (inefficiency of 30%). Input-specific technical inefficiency (pond area and feed) is negatively associated with the experience and education level of pangasius farmers. Location of the farm in a saltwater intrusion area is positively associated with the inefficiency of producing fish. Outcomes of this study are useful to identify successful strategies to minimize the use of inputs while simultaneously maximizing fish production.     

RESOURCE ALLOCATION EFFICIENCY OF THE PRAWN-CARP FARMERS OF BANGLADESH

This paper evaluates resource allocation efficiency of prawn-carp polyculture systems by making use of the data of 105 farmers of Bangladesh. Data Envelopment Analysis (DEA) was employed to estimate the efficiency. Mean technical efficiency (TE), allocative efficiency (AE) and cost efficiency (CE) were 85%, 58%, and 49%, respectively. Fifty percent of prawn-carp farmers displayed full TE whereas only 9% were cost efficient. Actual input application largely deviated from the technical and cost-efficient levels. TEs and AEs showed a positive and negative correlation with pond size, respectively. Labor, fingerlings and feed were overused while organic and inorganic fertilizers were underused in general. Adjustments in actual input allocations were necessary to make use consistent with TE and CE levels. The study concludes that mere achievement of technical efficiency in prawn-carp production may be a short-run concern; the farmers have to be economically efficient in the long-run.     

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.     

COMPARISON OF AQUACULTURE EXTENSION IMPACTS IN BANGLADESH

ABSTRACT

Production from small scale pond aquaculture in Bangladesh trebled in the decade to 1999 under the influence of extension projects of the Department of Fisheries. The impacts of completed aquaculture extension projects and practices of former participants have rarely been investigated so this was done for four past projects. The different extension approaches were: extension with credit and intensive or little supervision; demonstrations; group extension and informal extension by fry traders; and adaptive research-development. Generally extension recipients and non-participants had similar sized landholdings, but demonstration farmers had larger farms and ponds. Extension recipients mainly received information from project-related sources and rated its utility highly. Neighbours and control farmers mainly obtained information from mass media and other farmers, over 90% of these households also cultivated fish. Extension recipients generally followed better practices: for example stocking fewer fingerlings and achieving higher production than non-participants, but with wide variations. Training of fry traders appeared to reduce overstocking in general probably due to the advice of fry traders. Overall, 2–6 years after extension the recipients have continued to farm fish, have a fair understanding of good practice and achieve reasonable yields. Limited demonstration effects occurred. Extension through group approaches and informal agents seem to be cost effective for the many pond owners in Bangladesh.