An Economic Analysis of Marine Cage Culture in Peninsular Malaysia
Marine fish cage culture is a new emerging aquaculture enterprise in Malaysia. Recently, it has been selected as one of the culture methods to be promoted in the Malaysian Aqua cultural Development Programme. However, the present productivity of this culture system seems low compared to its poten...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
1988
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8014/1/FEP_1988_5_.pdf |
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| Summary: | Marine fish cage culture is a new emerging aquaculture
enterprise in Malaysia. Recently, it has been selected as one of the culture methods to be promoted in the Malaysian Aqua cultural
Development Programme. However, the present productivity of this
culture system seems low compared to its potential. Therefore.the objective of this studs to find ways to increase.
productivity of marine cage culture which could reduce per unit
cost of production, leading to improved profit.
This study explores the issue of relative economic
efficiency (which includes technical and price efficiency )
between the family unit and commercial farms, and the issue of
farmers' production behavior. The profit function approach is
used to achieve the objectives. The normalized restricted translog profit function is specified as a function of three
normalized prices of variable inputs (ie. fingerlings, feed and
labour), two fixed inputs ( ie. cage volume and experience ) and a
dummy variable to distinguish the family-unit and commercial farm
groups.
The result indicates that all sampled farms are not able to
maximise their short-term profit. This is because there is a
significant difference in relative economic efficiency between
family-unit and commercial farm groups. It is also revealed that
the family-unit farmers are not able to maximise their short-term
profit. This result reflects that they are not price efficient
because the ir efficiency in utilizing their feed resources. As a
result, they are not able to equate marginal product value of the
feed to its price. The reason is that they are not able to adopt
fully t h e new culture technology. On the other hand, the
commercial farmers maximize their profit and use their resources
efficiently. It is also found that the commercial farms possess a
superior technical efficiency as compared to the family-unit
farms. Besides, the commercial marine cage culture production
does not follow constant return stocale . In addition, the
translog functional form is found out to be more appropriate
than Cobb-Douglas form for data analysed.
The productivity and profitability of the family-unit marine
cage culture can be increased through improving price and
technical efficiency. While, the productivity and prof it can only be increased through enhancing technical efficiency for the
commercial farming. As such, it is recommended that marine cage
farming within the commercial size should be encouraged in
Peninsular Malaysia. |
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