Production economics of Nile Tilapia (Oreochromis niloticus) pond culture in El-Fayum Governorate, Egypt

Abstract

Econometric techniques were used to estimate a production function for tilapia pond culture in El-Fayum Governorate, Egypt, utilizing cross-sectional field data. Explanatory variables were feed, initial stocking weight, and pond size. The function was used to examine returns to scale, estimate the productivity of feed and initial stocking weight, and estimate the profit maximizing demand equations for feed and fingerlings. Diminishing returns to scale seem to exist for tilapia pond culture. Optimal economic stocking and feeding rates, yield, and profits for the whole sample were estimated at prevailing prices. Results indicated that producers were using stocking rates greater than the optimal by 36% to 115% and using insufficient feed by 8% to 22%. Investigation of the effects of changes in tilapia selling price and feed price on optimal stocking and feeding rates, yield, and profits showed that a change in tilapia selling price has greater effect on profits, yield, stocking, and feeding rates than a proportional change in feed price. Profits, feeding, and stocking rates are more sensitive than yield to changes in selling price, while feeding rate is more sensitive than stocking rate, yield, and profits to changes in feed price.