Technical Efficiency of White Leg Shrimp Production Using Data Envelopment Analysis (DEA), Case Study: Jiangsu Province, China

Abstract

Production of white leg shrimp (Penaeus vannamei) is a very important economic activity in the overall farming system in China. In spite of the present successes witnessed by white leg shrimp farming, there are many challenges (disease, overfeeding, effluent discharge, lack of technical knowledge, low educational level, inexperienced managers, the high cost of production among others) continuing to set back the growth of this sector in China. The study was conducted in Jiangsu province because is one of the leading producing provinces of White-leg shrimp (Penaeus vannamei) in China. The research examines the technical efficiency level of white leg shrimp production in Jiangsu Province, China. Three seasonal crops data in 2016 crop year were collected from 52 white leg shrimp farmers in the study area. All data were coded in Excel 2007 spreadsheet package and analysed with SPSS version 20 and DEAP version 2.1 software at 95% confidence level. Descriptive statistical, regression and Data Envelopment Analyses (DEA) were used to analyse the data. Results revealed an average technical efficiency score of 83.1%, under a constant return to scale. Majority of the farmers (62%) were technically inefficient in utilising input resources with technical efficiency score less than 1. Twenty farmers were technically efficient with technical efficiency (TE) score equal to 1. Feed, fingerlings and chemical showed significant negative influence on technical efficiency at 5% level of significance while labor, fixed cost and age exhibited strong negative impact at 1% level of significance.