World Aquaculture 69 Technical efficiency analysis The summary statistics of the point estimates of the technical efficiency scores for the farms are presented in the lower part of Table 2. The results show that an average farm in Ogun, Ondo, Ekiti and Osun obtained an average technical efficiency of 0.892, 0.816, 0.784 and 0.565, respectively. In terms of resource-use efficiency, the results of the technical efficiency shows that an average farm in Ogun, Ondo, Ekiti and Osun states could scale up their present level of output by approximately 11, 18, 22 and 44 percent, respectively, to reach the frontier level of most efficient farm across individual states. Comparatively, it implies that, less than 20 percent of the current output of the farms in Ogun and Ondo states is forgone as a result of inefficiency as compared to more than 20 percent in Ekiti and Osun states. Conclusions and Policy Implications The findings show that assessment of farm-level technical and input specific-allocative efficiencies provide the needed performance indicator of aquaculture farms in the country. While the results have implications to sustainable fish production in Nigeria, effort must be made to address inefficiencies inherent in aquaculture production in the country, as highlighted in the study. Therefore, any measure aimed at improving economic efficiency of cultured fish production in Nigeria should address allocative inefficiency as well as improve the current level of technical efficiency of the farms. Table 2. Allocative efficiencies of variable inputs by state. Inputs Feeds Labor Fingerlings Decisions Freq. % Freq. % Freq. % Ogun State MVPx > MFCx 36 90 3 7 28 70 MVPx < MFCx 4 10 37 93 12 30 Ondo State MVPx > MFCx 34 85 12 30 31 78 MVPx < MFCx 6 15 28 70 9 22 Ekiti State MVPx > MFCx 24 60 5 12 26 65 MVPx < MFCx 16 40 35 88 14 35 Osun State MVPx > MFCx 28 70 18 45 27 68 MVPx < MFCx 12 30 22 55 13 32 We suggest that policy options for improving the economic efficiency of the farms should follow closely the combination of the following approaches: 1. Expansion of the present fingerling production capacity across the states. A possible way to implement this suggestion is to embrace public-private partnerships that will lead to the establishment of more hatcheries across the states. Government should provide an enabling environment to encourage individuals and entrepreneurs to invest in fingerling production. This approach had been working well in other parts of the country. 2. Another option is to extend the provision of credit facility to the fish farmers as currently extended to the food crops farmers across the states. A credit delivery system without the bureaucratic bottlenecks will improve allocative, as well as technical efficiency of the farms. Finally, the role of effective extension activities in fish production, preservation and processing cannot be ruled out if expansions of fish production, as well as its sustainability are crucial in fulfillment of the millennium development goal (MDG) of food security in the country. Notes 1Department für Agrarökonomie und Rurale Entwicklung, Georg- August -Universität, Platz der Göttinger Sieben 5, D-37073 Göttingen, Germany. 2This assumption in economic theory holds in principle for functional forms other than Cobb-Douglas and Tans-log functional forms. While in case of Cobb- Douglas or Trans-Log, the slopes serve as a direct measure of elasticites. 3Cobb-Douglas functional form was chosen because it’s widely used in farm efficiency for developing agriculture. 4Here, MP = βj .AP, where AP = Y/X. (Continued from page 19) Farm-level Efficiency
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