Profitability and technical efficiency of Black tiger shrimp (Penaeus Monodon) culture and White leg shrimp (Penaeus Vannamei) culture in Song Song Cau district, Phu Yen province, Vietnam

Abstract

The research measure the profitability and technical efficiency of Black tiger shrimp farms and White leg shrimp farms in Song Cau district, Phu Yen province, Vietnam. Cross-sectional data of 62 Black tiger shrimp samples and 88 White leg shrimp samples were used for comparison two production systems. The profitability analysis shows that White leg shrimp farms achieved an average profit per hectare of 78,883,209 VND ($3,944.16), which was approximately 4 times as much as Black tiger shrimp farms. A nonparametric data envelopment analysis (DEA) approach reveals that the estimated mean technical efficiency of the Black tiger shrimp system under assumption of constant returns to scale, variable returns to scale and scale efficiency were measured to be 0.82, 0.95 and 0.87, respectively. In White leg shrimp system, the farms achieved a mean efficiency level of 0.88, 0.94 and 0.95 under condition of constant returns to scale, variable returns to scale and scale efficiency, respectively. The findings also show that there was positive correlated between profit and technical efficiency.