Data envelopment analysis for production efficiency improvement: An empirical application on brine shrimp Artemia franciscana culture in the Mekong Delta, Vietnam

Abstract

Artemia culture in the Mekong Delta, Vietnam, is becoming more and more important to satisfy the global demands of cyst production. Nevertheless, Artemia cyst productivity in the Mekong Delta has been fluctuating largely due to not only technical inefficiencies and external factors but also farms' characteristics. This study employed a data envelopment analysis to evaluate the production efficiencies in correlation with biological and cost inputs of Artemia culture in Vinh Chau and Bac Lieu located in the Mekong Delta. The key factors affecting technical efficiency (TE) were determined using ordinary least squares regression model. The empirical results indicated that production efficiencies of farms in Vinh Chau and Bac Lieu were similar with metatechnology ratios of 0.97 and 0.96 respectively. About 62.8% of surveyed farms were operating in technically inefficient circumstances. Farmers' experience, educational level and culture technique training participation had positive effects on TE, while climate effects and water problems have been proved to have negative effects on TE. To improve production efficiency, inefficient farms are suggested to have moderately increasing combinations of organic fertilizer, chemical and feed. The use of probiotics should be reduced as it increases production cost and affects TE. Notably, a collaboration of scientists and feed processing companies is recommended to produce a specific formulated feed for Artemia in commercial scales. This study also proposes adaptive policies for local governments and cooperatives to assist coastal famers in the Mekong Delta overcome technical inefficiencies, improve cyst productivity and obtain economic sustainability in Artemia culture.