Efficiency determination of the trout farm units using a deterministic parametric frontier (DPF) analysis method in Lorestan province (case study of Alshtar city)

In order to investigate the efficiency of farms and the rainbow trout production function, the study was carried out at rainbow trout breeding farms in Alshtar city in Lorestan province during 2017. The data collection method was interviews and questionnaires. Data on production functions were estimated by Cobb Douglas functions and technical efficiency by deterministic parametric frontier (DPF) analysis method. The average technical, allocative and economic efficiency was 62.1%, 57.7% and 54.6%, respectively, that indicating significant potential of the units in increasing their efficiencies. The results of trout production function showed that the amount of feed intake and the area of fish farm with elasticity coefficients (0.369 and 0.270) had the most effect on trout production (P<0.01). The results showed that most trout breeding farms in Alshater due to lack of observance of economic principles in management, lack of knowledge of the factors affecting the production had low efficiency and profitability. In general, according to the results, there was a considerable gap between the units studied in Al-Shater city in terms of economic performance. This is due to the lack of attention to management issues in choosing the right combination of inputs (low allocative efficiency), respectively. Therefore, improving the conditions of breeding units, including nutrition and hygiene, is necessary to increase the efficiency and production of fish farms units in Alshtar.