Influence of socio‐economic factors and environmental hazards on technical efficiency of shrimp farms: A stochastic frontier production analysis

Abstract

Shrimp farming is a key component of Vietnamese aquaculture contributing ~5% to their gross domestic product annually. Environmental hazards and socio‐economic parameters among other factors influence shrimp productivity in Vietnam. The present study employed the stochastic frontier production approach to investigate how technical efficiency (TE) of semi‐intensive and intensive shrimp farms is influenced by socio‐economic factors and environmental hazards. A questionnaire was administered to ascertain farmers' cost of major inputs (labour, seed, feed and lime), socio‐economic factors, coupled with environmental hazards (flood, pollution and drought experience). Findings revealed a mean TE of approximately 65% and 76% for semi‐intensive and intensive farms respectively (though, non‐significant as p ≥ 0.05). The input variables, shrimp seeds, feed and lime were found to be important variables in the intensive systems, as they positively correlated with TE in intensive systems. In the inefficiency model, education positively correlated with the TE in both systems, indicating that educated farmers are more efficient. Pollution negatively correlated with TE in both systems. With <80% of the farmers extremely affected by floods and droughts, and about 95% affected by pollution, the present study concludes there is a thorough impact of the above environmental hazards on farmers' technical efficiency.

Determinants of inefficiency in shrimp aquaculture under environmental impacts: Comparing shrimp production systems in the Mekong, Vietnam

“…From a management perspective, it is also urgent to ensure and coordinate incentive mechanisms and timely regulations to ensure productivity and efficiency during disasters. Thus, the farmers' perceptions, their climate‐related coping mechanisms, and farming management practices in relation to efficiency have sparked increased research in recent years (Folorunso et al, 2021; Holsman et al, 2019; Kam, Badjeck, & Teh, 2012; Nagothu et al, 2012; Nguyen et al, 2018; Nguyen & Fisher, 2014; Nguyen, Nguyen, Jolly, & Nguelifack, 2020; Reid et al, 2019; RIA2, 2014; Tran et al, 2013; Van Quach et al, 2017).…”

“…Regarding farming efficiency measurement, stochastic frontier analysis (SFA) is a widely applied methodology in many aquaculture studies of developing countries in the last decade (Alam, Guttormsen, & Roll, 2019; Alam, Khan, & Anwaru Huq, 2012; Asamoah, Nunoo, Osei‐Asare, Addo, & Sumaila, 2012; Folorunso et al, 2021; Begum, Hossain, Tsiouni, & Papanagiotou, 2015; Begum, Hossain, & Papanagiotou, 2013; Bimbao, Paraguas, Dey, & Eknath, 2000; Bukenya, Hyuha, Molnar, & Twinamasiko, 2013; Dey, Paraguas, Bimbao, & Regaspi, 2000; Dey et al, 2005; Ghee‐Thean, Islam, & Ismail, 2016; Hukom, Nielsen, Asmild, & Nielsen, 2020; Irz & Victoria, 2003; Islam, Tai, & Kusairi, 2016; Kareem, Aromolaran, & Dipeolu, 2009; Kumar, Birthal, & Badruddin, 2004; Kumaran et al, 2017; Le, Le, & Nguyen, 2020; Nagothu et al, 2012; Ogundari, 2014; Ogundari & Aklnbogun, 2010; Radhakrishnan, Sivaraman, & Krishnan, 2021; Sadika, Siegfried, Madan, Nazmul, & Puran, 2012; Sharma & Leung, 2000a, 2000b; Singh, 2008; Singh, Dey, Rabbani, Sudhakaran, & Thapa, 2009; Yuan, Yuan, Dai, Zhang, & Gong, 2019). There are some efficiency studies of Vietnamese aquaculture, such as Dey et al (2000, 2005), Dey, Kamaruddin, Paraguas, and Bhatta (2006), Folorunso et al (2021), Long, Van Thap, Hoai, and Thuy (2020), Nguyen et al (2020), and Nguyen and Fisher (2014), but very few that include the impact of climate change (see however Folorunso et al (2021) and Nguyen et al (2018, 2020) for catfish and shrimp aquaculture). For example, Nguyen et al (2018) assessed the impacts of flood and saline water intrusion in the Vietnamese catfish industry, while Nguyen et al (2020) measure the impacts of natural disasters and disease on intensive shrimp farming in two provinces of Vietnam.…”

“…The recent research of Folorunso et al . (2021) estimated the impact of environmental hazards (e.g., experienced drought, flood, and pollution events) on shrimp production in Khanh Hoa province. These three studies assess the effects of environmental threats based on farmers' perception data, which is also applied here.…”

“…For example, Nguyen et al (2018) assessed the impacts of flood and saline water intrusion in the Vietnamese catfish industry, while Nguyen et al (2020) measure the impacts of natural disasters and disease on intensive shrimp farming in two provinces of Vietnam. The recent research of Folorunso et al . (2021) estimated the impact of environmental hazards (e.g., experienced drought, flood, and pollution events) on shrimp production in Khanh Hoa province.…”

“…Ghee-Thean, Islam, & Ismail, 2016;Hukom, Nielsen, Asmild, & Nielsen, 2020;Irz & Victoria, 2003;Islam, Tai, & Kusairi, 2016;Kareem, Aromolaran, & Dipeolu, 2009;Kumar, Birthal, & Badruddin, 2004;Kumaran et al, 2017;Le, Le, & Nguyen, 2020;Nagothu et al, 2012;Ogundari, 2014;Ogundari & Aklnbogun, 2010;Radhakrishnan, Sivaraman, & Krishnan, 2021;Sadika, Siegfried, Madan, Nazmul, & Puran, 2012;Sharma & Leung, 2000a, 2000bSingh, 2008;Singh, Dey, Rabbani, Sudhakaran, & Thapa, 2009;Yuan, Yuan, Dai, Zhang, & Gong, 2019). There are some efficiency studies of Vietnamese aquaculture, such as Dey et al (2000Dey et al ( , 2005, Dey, Kamaruddin, Paraguas, and Bhatta (2006), Folorunso et al (2021), Long, Van Thap, Hoai, and Thuy (2020), Nguyen et al (2020), and Nguyen and Fisher (2014), but very few that include the impact of climate change (see however Folorunso et al (2021) and Nguyen et al (2018Nguyen et al ( , 2020 for catfish and shrimp aquaculture). For example, Nguyen et al (2018) assessed the impacts of flood and saline water intrusion in the Vietnamese catfish industry, while Nguyen et al (2020) measure the impacts of natural disasters and disease on intensive shrimp farming in two provinces of Vietnam.…”