Economic analysis of tiger grouper (Epinephelus fuscoguttatus) cage farming in Aceh, Indonesia.

Abstract

This study presents an economic analysis of tiger grouper cage farming at different locations and production scales in Aceh, Indonesia on the input intensity and the varied profitability for the year 2013. Thirty groupers cage farms were selected from two different districts (Lhokseumawe and Siemeulu Island) that represent to the total grouper cage fanning production in Aceh. The sample sizes then were categorized into two scales (small and large) based on their production cost. Two sets of variables were carefully determined. The first set was the biological type which consisted of stocking density and survival rate whereas the second set was the economic type which consisted of input intensity and varied profitability. Multivariate statistical concepts were applied which included multivariate analysis (MANOVA) and principle component analysis. The Cobb-Douglas production function was further used to study the current status of tiger grouper production system. As a result, three major input costs (fingerlings, feed and labor) were considered in the analysis as they represented more than 80% of the total production cost in the system. Statistically speaking, both location and production scale had significant effect on the input intensities but neither their interaction. In regard to the varied profitability, the individual main effects of location and production scale were not only significant but their interaction was also significant. Finally, the Cobb-Douglas production function analysis showed an increasing return economy of scale which means that doubling of all inputs will more than double output. The availability of high quality fingerling has shown a contribution to affect the net return in tiger grouper cage farming.