Effects of open water availability on productivity and efficiency of tilapia fish farming

Abstract Intensive pond aquaculture production is increasing and playing a major role in global aquaculture production, especially in developing countries. Empirical evidence shows that the access to and exchange of fresh water in tilapia pond aquaculture is important for making pond production ecologically more sound, efficient and productive. This study investigates productivity and efficiency differences between farms with access to open water resources and farms without access using data obtained from 311 interviews with tilapia farmers in Bangladesh. Propensity Score Matching (PSM) and meta-frontier DEA have been employed to estimate productivity and efficiency differences between the groups. Results show that farms located in areas with access to open water resources are significantly more efficient, but a bit surprisingly less productive than farms located in areas with deficit access to water resources. Furthermore, output could be increased by 29% and 40% without increasing input in areas with good access and limited access to water, respectively. Thus, promoting intensive aquaculture pond production in areas with access to water resources should focus on how to increase productivity, while areas with limited access should focus on optimal use of input in order to improve water quality and efficiency.