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Technical Efficiency of the Hatchery Operators in Fish Seed Production Farms in Two Selected Areas of Bangladesh

Md. Akhtaruzzaman Khan
Lecturer, Department of Agricultural Finance, Bangladesh Agricultural University. Mymensingh-2202, Bangladesh.

Md. Ferdous Alam
Professor, Department of Agricultural Finance, Bangladesh Agricultural University. Mymensingh-2202, Bangladesh.

Abstract/ Executive Summary:

This study is concerned with the estimation of technical efficiency of the hatchery operators producing fish seeds. Using 50 samples comprising 25 each from Jessore and Mymensingh districts, the study has used the Frontier 4.1 package to estimate the technical efficiency of the hatchery operators. A Cobb-Douglas production function with six quantitative variables namely, water area, human labor, feed, fertilizer, number of brood fish and proportion of hormone dose given to female brood and a regional dummy for the stochastic frontier and a linear technical inefficiency function with 4 variables: education, experience, number of training received and salary of the operators were jointly estimated. Several hypotheses tests were performed using Log- Likelihood Ratio Test. Some policy suggestions were also provided. The mean technical efficiency of the hatchery operators was 61 percent. Technical efficiencies were not found to be skewed towards higher or lower scores, rather concentrated on the 20'h, 30`h, 80`h , and 90`h percentiles. Hypothesis of no existence of inefficiency effect was rejected establishing that significant inefficiency exists. More than one-third of the seed production potential remains unutilized. Utilizing the unexploited production potential of the fish seed producers rather than establishing new farms and hatcheries appears to be the pertinent policy. Training of the farm/hatchery operators can help achieve the unexploited potential.

Keywords: Techinical efficiency,Hatchery operators,Fish seed production,

Location: Jessore and Mymensingh

Start Date: 00-11-2002

End Date: 00-12-2002

Program Area: Animal Health and Management

Commodity: Fish

Objectives:

This study aims at investigating into the aspects of technical efficiency of the hatchery operators. of the FSMFs so that level of inefficiency, if any, exists can be identified along with its implications in the fish seed as well as table fish production in the country.

Methodology:

Data: A reasonable size of sample which can at least satisfy the objectives set for the study was taken into account. During the research period, a total of 150 private fish seed hatcheries were found in the selected study areas. Considering the limited time, efforts and fund, a sample of 50 hatcheries was taken into account for the present study. It is to be noted that the scope of this research was confined with farms keeping hatcheries with brood ponds. The 50 selected sample comprised 25 hatcheries from each of the Jessore and Mymensingh districts. Hatchery operation is such an enterprise where the owners have to be involved for a specific period of the year to produce spawn. Production season for fish seed starts from March-April and continues till August-October every year. However, the survey for collection of data was conducted during November-December, 2002. Keeping in view the objectives of the study, a preliminary survey schedule was designed for collecting data from the selected hatcheries. The questionnaire was made to accommodate information on inventory of brood fish of the farms, detailed information, such as age and average body weight of the brood fish and their productive life, quantities of inputs used and their costs, cost of tools and equipment, miscellaneous cost, production and return from spawn, and problems faced and suggestions made by the fish seed farmers. The first author himself conducted the whole survey. Data were collected from primary sources, and it was accomplished by direct interviews with the hatchery owners, mangers and technicians. Analytical Technique The measurement of the productive efficiency of a farm relative to other farm or to the best practice in an industry has long been of interest to agricultural economists. Efficiency measurement has received considerable attention from both theoretical and applied economist. From a theoretical point of view, there has been a spirited exchange about the relative importance of various components of firm efficiency (Leibenstein, 1966, 1977: Comanor and Leibenstein 1969; Stigler, 1976).

Source of Information: Bangladesh J. Agric. Econs XXVI, 1& 2(2003) 55-70

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

The mean technical efficiency of the hatchery operators was 61 percent. Technical efficiencies were not found to be skewed towards higher or lower scores, rather concentrated on the 20'h, 30`h, 80`h , and 90`h percentiles. Hypothesis of no existence of inefficiency effect was rejected establishing that significant inefficiency exists. More than one-third of the seed production potential remains unutilized. Utilizing the unexploited production potential of the fish seed producers rather than establishing new farms and hatcheries appears to be the pertinent policy. Training of the farm/hatchery operators can help achieve the unexploited potential.

Knowledge Management: Journal