The impact of input factors on the economic efficiency of lobster farming in Phu Yen province

0.0212 - 0.00159 = 0.8723< 1. This shows that productivity according to investment scale in lobster farming is decreasing.

The results of the average product value are all positive and consistent with the theory. The value of marginal product (MP i ) is lower than the average product value (AP i ) showing that the current lobster productivity in Phu Yen province is decreasing according to the scale of investment in input factors.

Lobster farmers have not effectively used input factors to achieve maximum profits. To achieve economic efficiency in lobster farming, lobster farmers can increase the stocking density by 2,417 lobsters/m3 and reduce the amount of feed by 65.85 kg/m3, assuming other factors remain unchanged.

Based on the research results, the topic has proposed solutions and suggested policies related to breeds, food, and medicine for lobsters as well as issues related to training, propaganda, and improving the shrimp farming skills of households to improve the economic efficiency of lobster farming in Phu Yen province.

Maybe you are interested!

Chapter 1: INTRODUCTION

1.1 Research problem statement:

Lobster farming currently brings very high economic value. After each lobster harvest, farmers can earn double the profit of their investment. According to the report at the Workshop "Sustainable lobster development in the Central region" on August 16, 2015, from the beginning of 2014, the price of commercial lobster was nearly 2.5 million VND/kg, by 2015 it was about 1.2-1.3 million VND/kg, much higher than other agricultural, forestry and aquatic products in our country. Cage lobster farming in Vietnam has really developed since 2000. By August 2015, the number of cages was estimated at more than 53,000, of which Phu Yen had more than 23,627 cages, Khanh Hoa 28,455 cages... with about 8,000-10,000 farming households, the output reached about 1,600 tons/year, bringing in revenue of 3,500 billion VND/year.

Phu Yen is one of the provinces with the largest lobster farming in Vietnam. With a 189km long coastline, Phu Yen province has great potential for developing fishing and aquaculture. Many mountain ranges extend to the sea to form bays, lagoons and many islands can protect against wind and waves, creating favorable conditions for the development of cage aquaculture as well as lobster farming.

However, lobster farming in our country in general and Phu Yen province in particular is currently showing many limitations. After more than a decade of development, lobster farming is still passive in terms of seed sources, increasing diseases, improper treatment of the farming environment, increasing input prices, unstable prices and output markets, lack of planning, unstable lobster output. This is a big challenge for lobster farmers and policy makers. The top concern of farmers and managers is the profitability and stability of the farming profession. Therefore, analyzing the profitability of lobster farming from different approaches, researching to improve economic efficiency by optimally using input factors in lobster farming is an urgent need to help managers advise farmers and propose measures and policies to develop.

lobster farming development

Through the topic "Influence of input factors on economic efficiency of lobster farming in Phu Yen province" can provide a deeper insight into the input factors affecting lobster productivity, thereby analyzing and evaluating their influence on technical efficiency, economic efficiency in lobster farming of households in Phu Yen province. On that basis, some measures and policies will be suggested to promote and improve the economic efficiency of lobster farming in Phu Yen province.

1.2 Research objectives:

1.2.1 General objectives

Identifying and analyzing the impact of input factors on lobster productivity and analyzing economic efficiency will help to make some recommendations to increase lobster productivity in Phu Yen province.

1.2.2 Specific objectives

- Identify and analyze the impact of input factors on lobster productivity in Phu Yen province.

- Analysis of economic efficiency in lobster farming in Phu Yen province.

- Propose solutions and suggest some policies to contribute to increasing productivity and improving economic efficiency of lobster farming in Phu Yen province.

1.3 Research question:

- How do input factors affect lobster productivity in Phu Yen province?

- Technical efficiency of inputs used in lobster farming households in Phu Yen province? Are inputs used efficiently to achieve maximum profit?

- How to improve the economic efficiency of lobster farming in Phu Yen province?

1.4 Data analysis method:

The topic uses Excel to load collected data and calculate important indicators in production. Use Stata software to analyze descriptive statistics, analyze linear regression and test necessary assumptions for the topic.

1.5 Research objects and scope:

 Research object: on the situation of lobster farming, factors affecting productivity, costs, revenue and profit from lobster farming of households representing 09 districts, communes and cities of Phu Yen province.

 Scope of research: The topic focuses on surveying practical data on the main lobster farming situation in 2015 in 5 communes and wards of Song Cau town, with the largest area, number of cages, and number of lobster farming households and typical for Phu Yen province, namely Xuan Canh commune, Xuan Phuong commune, Xuan Yen ward, Xuan Thanh ward, Xuan Dai ward.

1.6 Steps to conduct research:

- Identify the research problem, research purpose, data analysis method, research object and scope.

- Identify relevant theoretical bases.

- Collect primary and secondary data.

- Data analysis, hypothesis testing, models.

- Present the main research results of the topic.

- Propose measures and policy suggestions.

1.7 Practical significance of the topic:

The topic has applied the theory of agricultural household economics in general and aquaculture in particular, the theory of Cobb - Douglass production function... to determine the characteristic factors affecting the productivity of lobster farming. Based on actual data collected from lobster farming households, applying economic models

to demonstrate the influence of these factors on economic efficiency in lobster farming. Propose measures and suggest policies to improve economic efficiency in lobster farming.

1.8 Structure of the topic

The topic consists of 6 Chapters.

 Chapter 1: Introduction.

Introduce basic issues of the research such as: research problem statement, research objectives, research questions, research data analysis methods, research objects and scope; present research steps, practical significance of the topic and structure of the topic.

 Chapter 2: Theoretical basis and related studies.

Presenting theories related to the research content including theories of agriculture and aquaculture, theories of economic efficiency in agriculture, theories of input factors, economic analysis methods using production functions, the law of diminishing marginal productivity and applications of the Cobb - Douglas production function; domestic and foreign empirical studies related to the topic.

 Chapter 3: Research methodology.

Present the research methodology including sample selection, data collection and data analysis.

 Chapter 4: Overview of the research area.

Present an overview of the research area characteristics, aquaculture situation in Phu Yen province, lobster farming situation in Phu Yen province, and technical regulations for shrimp farming.

 Chapter 5: Research results on lobster production and farming efficiency.

Descriptive statistical analysis of lobster farming situation of households and production results statistics, partial accounting analysis, production function model results analysis, optimal input factor analysis.

 Chapter 6: Conclusion and recommendations

Conclude the main research content and results, propose some measures and suggest some policies to improve the economic efficiency of lobster farming of households in the research area.

Chapter 2: RELATED THEORIES AND STUDIES

BEFORE

2.1 Related theories

2.1.1 Concept and characteristics of aquaculture:

2.1.1.1 Concept

Household economy is considered a business organization owned by a household, recognized by law as a basic economic unit. Farming households become autonomous units in agricultural production. Members have common assets and contribute their efforts to common economic activities in agricultural, forestry and fishery production (Mai Thi Thanh Xuan et al., 2013).

Aquaculture is the process of farming aquatic species including fish, molluscs, crustaceans and aquatic plants in inland and coastal areas, including interventions in the rearing process to increase production and organizations and individuals carrying out aquaculture activities (FAO, 2008). Aquaculture in the world has a history dating back to about 500 years BC in China. Aquaculture in Vietnam began in the 1960s and developed rapidly since the 1970s (Nguyen Thanh Phuong et al., 2009).

2.1.1.2 Characteristics of aquaculture:

Aquaculture is an outdoor production activity and the production objects of the aquaculture industry are animals that live in the aquatic environment, have cold blood, and are directly affected by many environmental factors. Organisms and production conditions such as weather, climate, environmental factors (hydrology, hydrochemistry, hydrobiology) ... impact, influence each other and have unpredictable changes. Production techniques help the cultured objects develop well, achieve high and stable productivity and output only when they are suitable for ecological requirements, suitable for the growth, development and reproduction laws of the cultured objects.

Therefore, in order for cultivated objects to grow well, humans must create a suitable living environment for each object.

In the production process, the aquaculture industry is subject to both natural and economic laws. The climate and weather conditions of each region in Vietnam are different. The same farming object but in different localities have different production seasons, therefore, its economic efficiency is also different. Moreover, the level of infrastructure investment also determines the level of intensive farming and production capacity of aquaculture.

Aquaculture is very seasonal. In aquaculture, in addition to direct human impact, the farmed objects are also affected by the natural environment. Therefore, in aquaculture, working time does not completely match the production time. The basic factor that determines seasonality is the growth and development of the farmed objects. On the other hand, the seasonality of the aquaculture industry requires each farming household to have a plan and organize the harvest and consumption of products well, such as determining appropriate seasonal prices.

2.1.2 Economic efficiency in agriculture in general and aquaculture in particular

Economic efficiency or production efficiency is an economic category that includes technical efficiency and distribution efficiency. Technical efficiency is the ability of a production household to achieve the maximum output level from a certain set of given input factors corresponding to a certain technical level. Distribution efficiency is considered the optimal combination of input factors to minimize costs for a given output level or maximize profits. Economic efficiency is the product of technical efficiency and distribution efficiency (Farrell, 1957).

The assessment of the economic performance of a farming system is an overall quantitative assessment of the entire system and the production activities taking place within the system.

The impact of input factors on the economic efficiency of lobster farming in Phu Yen province - 2

Comment