Technical efficiency in tilapia farming of Bangladesh: a stochastic frontier production approach

Genetically improved farmed tilapia is increasingly getting popular in Bangladesh. It has high production potential. Its dominant production technology ranges from extensive to improved extensive particularly in the rural areas. This study estimates levels and determinants of farm-level technical efficiency of tilapia farmers of Bangladesh using stochastic frontier production function involving a model for technical inefficiency effects. Data from fifty tilapia farmers of Jessore district are used in the analysis. The mean technical efficiency level of the tilapia farmers is 78%, and thus, the farmers operate 22% below the frontier production. Inefficiency effect is significant, and age, education, income, culture length, pond age, pond depth, water colour and pond tenure, as a group, are significant determinants of technical inefficiency. By operating at full technical efficiency levels, tilapia yield can be improved from the current level of 7.36–8.96 tons per hectare. The decision to add or not to add inputs is sometimes taken arbitrarily and not based on technology requirement. There is a lack of understanding of the technology practices. Fisheries extension efforts are required for proper understanding of the technology practices, further adoption and spread. For promotion of tilapia production, quality feed and seed at affordable price needs to be ensured.