Determinants of Production and Technical Efficiency of Tilapia Farming in the Philippines

Abstract

The Philippines' economy depends heavily on the profitability of the tilapia aquaculture industry. The country's tilapia aquaculture still has a significant amount of untapped biophysical growth potential; therefore, more rapid expansion is needed to keep up with the increasing demand for fish. The study examined the variables affecting the technical efficiency of tilapia production in the Philippines. The face-to-face interview method was used to survey randomly selected tilapia farms. The efficiency of the Philippines' tilapia aquaculture was estimated in this study. Overall, the findings of the technical efficiency analysis indicated that all fish producers within the examined regions were functioning below the production frontier. Therefore, to boost productivity and efficiency, it is necessary to thoroughly study the origins of inefficiencies in socioeconomic variables and farm features. The mean technical efficiency, as determined by the maximum likelihood estimation of the stochastic production frontier, is 0.44. The model's outcome showed that area and stocking rate significantly impact tilapia output in a few selected Philippine locales. It was discovered that factors such as the utilization of aeration, adoption of advanced culture method, and access to government support are significant predictors of technical efficiency in tilapia farming. The policy implication is that there are still more opportunities to raise the current level of technical efficiency of tilapia production in the Philippines.