Comparative analysis of profitability and resource use efficiency between Penaeus monodon and Litopenaeus vannamei in India

The study aimed to highlight the profitability and production function analysis of Penaeus monodon and Litopenaeus vannamei in intensified shrimp farms in Gujarat (India). Two hundred and twenty (220) shrimp farm households were used to identify (principal component and cluster analyses) 8 clusters of management practices that reflected various scales of production intensity ranging from 0–2999 kg/ha/crop to 9000kg/ha/crop and above for both the species. The Cobb-Douglas production function, which relates production output to several independent input variables, was used to determine productivity. The budgeting analysis for both the species showed that more intensively managed farms performed more than the less intensive farm. Empirical results show feed as most significant input for Penaeus monodon and Litopenaeus vannamei seed and labor that affected production. Average net returns/ha/year for Penaeus monodon was $16313.13 and for Litopenaeus vannamei $41640.99. Aquaculture exhibited decreasing returns to scale for both the species and estimates on resource use efficiency revealed that in Penaeus monodon the resources were economically utilized and in case of Litopenaeus vannamei the output was likely to increase if more of seed and less of labor would have been used. The major constraint for the shrimp farmers was diseases which can be mitigated by optimum stocking densities and proper feed management.