Economic efficiency of small-scale tilapia farms in Guangxi, China

Zhang, Zongli; Zhang, Yanan; Li, Feifan; Yang, Hui; Yongming, Yuan; Yuan, Xinhua

doi:10.1080/13657305.2016.1180644

Cited by 32 publications

(16 citation statements)

References 18 publications

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“…As the chain grows longer, farm gate prices become low, so as to give players at each level a fair cost price in order to make considerable profits that do not have a huge economic bearing on the consumer. However, it has been a general observation that income was generated by farmers no matter how small or big the farm or ponds were which agrees with earlier observations by De Bezerra, Domingues, Maia Filho, Rombenso, Hamilton, et al, [35] and Zhang, Zhang, Li, Yang, Yuan, et al [47]. In general, the increase in tilapia production for China is being attributed to wider acceptance of the species at the international market [19], owing to the fact that, the local market is less rewarding and yet developing [48].…”

Section: Discussionsupporting

confidence: 86%

Economic Profitability of Tilapia Production in Malawi and China

Phiri¹,

Yuan²

2018

J Aquac Res Development

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This study was conducted to analyse the economic profitability of tilapia farming in Malawi and China, using data from 20 farmers both in Malawi and Guangxi Province, People's Republic of China. Application of enterprise budget for profitability analysis showed that profits for tilapia were significantly different (p ≤ 0.05) between the two countries with Malawi registering a bigger benefit-cost ratio of 1.61 than 1.20 for China. However, 3 farms in Malawi posted losses during the production cycle. Breakeven price was $2.00 for Malawi against $1.26 for China. Sensitivity analysis was conducted to evaluate the influence of changes in price, feed, labour and fixed cost on net profit. Holding all conditions constant, sensitive coefficient for price was relatively high for Malawian farms at 2.63 followed by feed, labour and fixed cost at-0.70,-0.36 and-0.32 respectively. Similarly for China, price showed the highest elasticity of 5.96 compared to-3.65,-0.67,-0.27 of feed, fixed cost and labour respectively. For the farms that did not make profits, application of the shutdown rule indicated that the farms were making surplus gross margins hence could continue operating (Price ≥ Average Variable Cost; and Revenue ≥ Total Variable Cost). The present study has demonstrated that differences in input intensification result in different gross revenues since yield is a function of stocking density, feed input, labour and other production inputs. Irrespective of the intensity of input use, farmers still make profits, thus tilapia production is a viable enterprise in both countries.

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Section: Discussionsupporting

confidence: 86%

Economic Profitability of Tilapia Production in Malawi and China

Phiri¹,

Yuan²

2018

J Aquac Res Development

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“…Just like Alam et al [25] observes, age of farmers was a significant determinant of technical inefficiency for Chinese farms. However, it had significant positive influence on technical efficiency as was in Dey et al study [22] and Zhang et al study [52], conversely it had insignificant negative influence for Malawian farms, which was similar to earlier findings by [35] in a study on prawn farming in Vietnam. Household size which is credited to contribute to availability of farm labour had a non-significant but negative influence on inefficiency for Chinese farms, hence it positively influenced efficiency.…”

Section: Discussionsupporting

confidence: 87%

“…The coefficient of aquaculture experience though insignificant, positively influenced technical efficiency in Malawian farms which was also reported in earlier studies by Den et al, Tung, Kaliba and Engle [35,51,54] but had negative influence on the technical efficiency of tilapia farms in China. With an average of 9.55 years of experience, any marginal year increase in experience could result in highly insignificant recession in efficiency for Chinese farmers, which was in agreement with [34,53,52]. For Malawi, pond size was found to have a positive but insignificant influence on technical efficiency.…”

Section: Discussionsupporting

confidence: 70%

Technical Efficiency of Tilapia Production in Malawi And China: Application of Stochastic Frontier Production Approach

Phiri¹,

Yuan²

2018

J Aquac Res Development

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“…Renting more land and implementing a large-scale operation is better for households to obtain a higher technical efficiency [32,33]. Increases in machinery input and effective labor input will reduce distortions, resulting in positive impacts on agricultural production [32,34], and meanwhile human capital plays a major impact on productivity growth [35]. Considering technical environment, the degree of production equipment perfection affects the development of family farm.…”

Section: Studies Of Family Farmsmentioning

confidence: 99%

A Management and Environmental Performance Evaluation of China’s Family Farms Using an Ultimate Comprehensive Cross-Efficiency Model (UCCE)

et al. 2018

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Family farm emerged as a new form of agricultural production organization in China in recent years. For the purpose of sustainable development, decision-makers, such as farm owners and policy makers, require the precise information of a family farm's state of operation to adopt measures for management improvement and agricultural contamination reduction. Considering this, we established two evaluation systems for the measurement of family farms' management and environmental performance. As demonstrated in several recent studies, data envelopment analysis (DEA) cross efficiency is a useful approach for evaluating and comparing the performance of decision-making units (DMUs). Regarding family farms' performance evaluation issues, we modified the traditional average cross-efficiency method to be the ultimate comprehensive cross-efficiency approach with the integration of two statistical quantities based on the full consideration of family farms' unique features, such as vulnerability and seasonality, resulting from the influence of natural and social factors. Our proposed approach presents more excellent characteristics compared with CCR efficiency and average cross efficiency. Several conclusions regarding the operation of China's family farms are drawn: (i) there is weak positive correlation between family farms' management and environmental performance; (ii) there is an increasing trend for both management and environmental efficiency, along with the augmentation of the utilized agricultural area of family farms, and management performance is therefore more significant; (iii) demand for timely technological instruction to improve family farms' management efficiency is expressed by farm owners who are willing to expand; (iv) to improve family farms' environmental performance, several measures-such as introducing biotechnology, providing subsidies, and environmental education for farmers-should be adopted.

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Economic efficiency of small-scale tilapia farms in Guangxi, China

Cited by 32 publications

References 18 publications

Economic Profitability of Tilapia Production in Malawi and China

Economic Profitability of Tilapia Production in Malawi and China

Technical Efficiency of Tilapia Production in Malawi And China: Application of Stochastic Frontier Production Approach

A Management and Environmental Performance Evaluation of China’s Family Farms Using an Ultimate Comprehensive Cross-Efficiency Model (UCCE)

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