Assessing efficiency of private shrimp seed producers in selected hatcheries of Peninsular Malaysia
This study aims at estimating technical, allocative and cost efficiency of shrimp/prawn seed producers of Malaysia and determining costs and return in shrimp/prawn seed production. Data collected from 19 hatcheries (comprising 10 brackishwater shrimp hatcheries and 9 freshwater prawn hatcher...
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Main Author: | |
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Format: | Thesis |
Language: | English |
Published: |
2013
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Online Access: | http://psasir.upm.edu.my/id/eprint/67302/1/IKDPM%202013%201%20IR.pdf http://psasir.upm.edu.my/id/eprint/67302/ |
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Summary: | This study aims at estimating technical, allocative and cost efficiency of
shrimp/prawn seed producers of Malaysia and determining costs and return
in shrimp/prawn seed production. Data collected from 19 hatcheries
(comprising 10 brackishwater shrimp hatcheries and 9 freshwater prawn
hatcheries) from the states of Penang, Perak, Terengganu and Selangor were
used in the study. Data Envelopment Analysis was applied to estimate
efficiency scores of the hatcheries. Besides, cost, return and profitability of
hatcheries was examined using farm management procedure.
The TECRS (overall technical efficiency) was found to be 0.582 for
brackishwater shrimp hatcheries and 0.692 for freshwater prawn hatcheries.
Inefficiency associated with the overall technical efficiency was 42 percent for
brackishwater shrimp hatchery and 31 percent for freshwater prawn
hatcheries. Pure technical efficiency (TEVRS) averaged 0.907 for shrimp hatcheries and 0.918 for prawn hatcheries indicating that inefficiencies to the
level of 9-10 percent do exist. The scale efficiency was even lower than pure
technical efficiency. Thus, the overall level of inefficiencies could be reduced
by operating at optimal scales and by eliminating pure technical
inefficiencies via the adoption of the best practices of efficient hatcheries.
Scale inefficiencies for the shrimp and prawn hatcheries make a greater
contribution to overall inefficiency. Allocative efficiency (AE) and cost
efficiencies (CE)were 0.78 and 0.70 for brackishwater shrimp hatchery and
0.79 and 0.73for freshwater prawn hatcheries suggesting that the realized
level of spawn/fry could be produced by the hatcheries by spending 21.5
percent less on inputs.
Ratios of technically efficient input quantity to cost efficient quantities were
more than 1.00 for brood feed, spawn feed and labour for the two shrimp
and prawn hatcheries. However, it was lower than 1.00 for electricity cost.
Thus both types of hatcheries overused brood feed, spawn feed and labour
while the electricity appeared to have been underused. Overshooting and
undershooting of inputs was traced. Gross and net margins were positive.
Benefit cost ratios of the shrimp and prawn hatcheries were more than 1.00
indicating that spawn/fry production was profitable in the short and long run. |
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