Technical Efficiency of Tilapia Production in Malawi And China: Application of Stochastic Frontier Production Approach

Abstract

In the present study, stochastic frontier production function was applied to estimate both the technical efficiency scores and determinants of inefficiency for 20 tilapia farms apiece in Malawi and China. The study used the Cobb- Douglas model in which efficiency estimates showed that tilapia farmers in Malawi were more technically inefficient than farmers in China, with mean efficiency scores of 47% and 91% respectively. With exception of aquaculture experience, all the inefficiency determinants were positive for Malawian farms even though none of the coefficients was significant. For Chinese tilapia farmers, age (significant), household size and education had negative signs except aquaculture experience. The Malawian tilapia industry need technology innovations in order to reduce the existing 53% yield gap, which can ideally be introduction or development of new strains of superior quality, enhanced use of all-male tilapia, improvement in both nursing and grow-out technologies as well as use of quality fish feed.