SEMI-INTENSIVE SHRIMP FARMING SYSTEM OF KERALA, INDIA: A PRODUCTION FUNCTION ANALYSIS

Abstract

An analysis of the factor-product relationship in the semi-intensive shrimp
farming system of Kerala, farm basis and hectare basis, we are attempted
and the results reported in this paper. The Cobb-Douglas model, in which
the physical relationship between input and output is estimated, and the
marginal analysis then employed to evaluate the producer behaviour, was·
used for the analysis. The study was based on empirical data collected during
November 1994 to May 1996, covering three seasons, from 21 farms spread
over Alappuzha, Ernakulam, and Kasaragod districts of the state. The sample
covered a total area of 61.06 ha. Of the 11 explanatory variables considered
in the model, the size of the farm, casual labour and chemical fertilizers
were found statistically significant. It was also observed that the factors
such as age of pond, experience of the farmer, feed, miscellaneous costs,
number of seed stocked and skilled labour contributed positively to the
output. The estimated industry production function exhibited unitary
economies of scale. The estimated mean output was 3937 kglha~ The test of
multi-co-linerity showed that there is no problem of dominant variable. On
the basis of the marginal product and the given input-output prices, the
optimum amounts of seed, feed and casual labour were estimated. They were
about 97139 seed, 959 kg of feed and 585 man-days of casual labour per farm.
This indicated the need for reducing the stocking density and amount of feed
from the present levels, in order to maximise profit. Based on the finding of
the study, suggestions for improving the industry production function are
proposed.
Keywords : Semi-intensive shrimp farming, production function, factor
product relationship, optimum level of input, economic of scale