Production efficiency of aquaculture farm Vannamei white shrimp in Chachoengsao province, Thailand: a stochastic frontier analysis

Abstract

Although shrimp farmers have expanded their operation and market through government support, their technical efficiency remains in question as they compete with other shrimp farmers in the area. This study investigates the technical efficiency of Vannamei white shrimp farmers and explores the factors affecting their inefficiency using the stochastic production frontier approach. Data were collected from 450 shrimp farmers in Chachoengsao, Thailand. Data were analysed using the stochastic frontier production function. Results showed that technical efficiency level was approximately 87%, implying a potential 13% growth in output if inefficiencies are addressed. Furthermore, farmers who receive training on shrimp farming are more efficient than farmers who do not. Farmers with higher educational attainment are more likely to be efficient implying the importance of providing information access and developing farmers' technical knowledge on shrimp production. Thus, increased technical knowledge could enable farmers make better decisions and attain higher levels of technical efficiency.