An Analysis of the Technical Efficiency of Non Motorized Small Scale Shrimp Fishers in the Coastal Areas of Delta State, Nigeria

Abstract

The study examined the technical efficiency of small scale shrimp fishers, the socio-economic characteristics and specific factors that affect the efficiency level, and the costs, revenues and profit structures of non motorized small scale shrimp fishers in the coastal areas of Delta State. The study was based on primary data obtained in a cross section survey that involved 220 shrimp fishers selected using a multistage random sampling procedure in four Local Government Areas of Delta State between July and October, 2010. Applying a Cobb Douglas stochastic production frontier function analysis to the data sets, the results showed that the mean technical efficiency (TE) was 73% for non motorized shrimp fishers in the study area. The result also showed that boat capacity, nets and labour impacted positively on output of shrimps with nets being significant at 5% while the technical efficiency of these fishers were positively and significantly related with age, education, access to credit, distance covered and membership of local cooperative groups. Results from the analysis showed that the average gross margin and net margin of non motorized small scale shrimp producer per year are N709, 636.67 and N619, 086.33 respectively while the return on sale was 0.37, return on investment was 265% and operating ratio was 0.39 indicating high profitability of shrimp fishing enterprise in the study area. In order to improve the technical efficiency, profitability and income of artisanal shrimp producers, Government needs to initiate and implement policies aimed at the provision of subsidized inputs (nets boats, and outboard engines), improve access to credit, encourage local cooperative group formation and regulate and enforce relevant laws to control water bodies pollution and environmental degradation.

DOI: 10.5901/mjss.2015.v6n1p285