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Technical efficiency of tilapia growout pond operations in the Philippines

Abstract The determination of efficient production levels for tilapia growout operations, given the existing technology, is necessary to examine alternative options to increase productivity. If fanners are not making efficient use of existing technologies, improving their efficiency is usually more cost‐effective than introducing new technology. This paper examines the technical efficiency of tilapia growout operations in ponds in the Philippines. A stochastic production frontier with technical inefficiency effects model is specified and estimated. The estimated mean technical efficiency of the 78 farmers in the sample is 83%. Total farm area, education and age of the farmers are some of the factors affecting technical efficiency. Those with a larger farm area, higher age and a higher educational level attain higher technical efficiency. As growers in the Philippines have attained a high level of technical efficiency under existing technology, the introduction of new technology is a key to raising the productivity of tilapia farming. The genetically improved farmed tilapia (GIFT) strain that has recently become available provides a promising new technology to raise the productivity and output of tilapia farming.