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Production Risk, Inefficiency, and Sustainability of Pangas Fish Farming: Lessons from the Bangladesh Aquaculture Sector Pubblico Deposited

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  • Pangas is a relatively new and fast growing fish species, which has shown great potential in the Bangladesh aquaculture sector. However, large output variability is observed from farm to farm and from different locations, which may indicate that production risk and inefficiency is a problem in pangas farming. This study investigates production risk and inefficiency of pangas fish farming in Bangladesh. A total of 239 farms are surveyed from three pangas producing areas of Bangladesh using a random sampling technique. Risk and inefficiency are estimated using the model presented by Kumbhakar (2002) while simple profitability estimates is used to calculate profitability. Translog form of mean production function, Cobb-Douglas form of risk function and linear inefficiency function are found to suitable for this data set. Result reveals that pangas is profitable business in all selected areas. However, only industrial feed cost constitutes about 67 percent of total production cost. Test result shows that significant production risk and inefficiency exist in Bangladesh pangas farming. Increased usage of fingerling and farm size increases the production risk, whereas, available credit support from different financial institution and increasing investment in equipment/production assets can reduce the production risk. Access to credit, training and extension service are found to decrease inefficiency of pangas fish farming. Price of feed need to be controlled and the government should establish a system to make credit available for farmers and arrange for adequate training programs to reduce production risk and inefficiency of pangas farming.
  • Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, held July 11-15, 2016 at Aberdeen Exhibition and Conference Center (AECC), Aberdeen, Scotland, UK.
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  • Challenging New Frontiers in the Global Seafood Sector: Proceedings of the Eighteenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 11-15, 2016. Compiled by Stefani J. Evers and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2016.
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  • 0976343290

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