Productive efficiency and capacity utilization of sea bass grow-out culture in peninsular Malaysia

Abstract

Sea bass (Lates calcarifer) is a key aquaculture species in Malaysia, produced as part of a polyculture system in cages but predominantly as a single species in ponds. The production of sea bass in Malaysia has decreased substantially since 2015. Several studies suggest disease may be the main cause for such decline, but changing economic conditions may also have played a role in this decline. In this paper, we use Data Envelopment Analysis (DEA) to examine these issues as well as identify the key drivers of efficiency and capacity utilization in the grow-out finfish industry. Our results suggest that most farms are technically efficient, but many are operating at lower levels of capacity utilization. Socio-demographic factors appear to affect pond production but less so cage production. The results suggest that the reduced output of sea bass is largely in response to changed economic conditions (output and input prices).