The cost efficiency of trout farms in the Black Sea Region, Turkey

Abstract

This research measured the cost efficiencies of trout farms and explored determinants of cost inefficiencies in the Black Sea Region, Turkey. Data Envelopment Analysis (DEA) was used to estimate efficiency measures of sample farms. The mean technical, allocative and cost efficiencies for trout farms were measured to be 0.82, 0.83 and 0.68, respectively. Efficiency analysis revealed that inefficient farms would have needed to lower feed and labour costs by 32% to perform as well as other similar, best practice farms in the sample. The decomposition of the technical efficiency measure showed that pure technical inefficiency was the primary cause of technical inefficiency. Research results also suggested that there were positive relationships between cost efficiency and pond tenure, farm ownership, experience of the operators, education level of the operators, contact with extension services, off-farm income and credit availability. Feeding intensity, pond size, and capital intensity had negative effects on cost efficiency. Supplying complete technical packages (feed, credit, etc.) for trout farms may stimulate the adoption of improved technologies. Focusing on trout diseases, water quality, feed production and marketing efficiency in farmers training and extension programs may also help to increase economic efficiency in the research area. (c) 2005 Elsevier B.V. All rights reserved.