Studying efficiency and profitability of trout culture farms in Fars province

Document Type : Research Paper

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Abstract

The objective of this study was to investigate the production condition of the individual trout culture farms in Fars  Province. To get the objective, concepts of production economics including production function, efficiency and profitability was applied using data of 56 active farms in 2008. Findings showed that Fars province trout culture industry faces a constant return to scale and food is the main production factor causing difference in farm productions. Under variable return to scale, the technical, allocative and scale efficiency of the farms were obtained 0.937, 0.512 and 0.971 on average, respectively. The results showed increasing (decreasing) return to scale in the case of 40 (30)% of the farms. Clustering the farms based on cluster analysis showed that more than 55% of the farms may be regarded as farms with low profitability experiencing profit of 132000 Rials per square meter while the corresponding figures for the class of farms with moderate and high profitability are more than 320000 and 920000 Rials, respectively. Operating with low scale was recognized as main source of low profitability.

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