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Advances in Agriculture
Volume 2017, Article ID 5878725, 7 pages
https://doi.org/10.1155/2017/5878725
Research Article

Estimating Profit Efficiency of Artisanal Fishing in the Pru District of the Brong-Ahafo Region, Ghana

1Department of Agricultural and Resource Economics, University for Development Studies, Tamale, Ghana
2Department of Agricultural Economics, Agribusiness and Extension, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana
3Discipline of Agricultural Economics, University of KwaZulu-Natal, Pietermaritzburg, South Africa

Correspondence should be addressed to Gideon Danso-Abbeam; hg.ude.sdu@maebbaosnad

Received 26 February 2017; Accepted 26 November 2017; Published 21 December 2017

Academic Editor: Claus A. Soerensen

Copyright © 2017 Edinam Dope Setsoafia et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This study evaluated the profit efficiency of artisanal fishing in the Pru District of Ghana by explicitly computing profit efficiency level, identifying the sources of profit inefficiency, and examining the constraints of artisanal fisheries. Cross-sectional data was obtained from 120 small-scale fishing households using semistructured questionnaire. The stochastic profit frontier model was used to compute profit efficiency level and identify the determinants of profit inefficiency while Garrett ranking technique was used to rank the constraints. The average profit efficiency level was 81.66% which implies that about 82% of the prospective maximum profit was gained due to production efficiency. That is, only 18% of the potential profit was lost due to the fishers’ inefficiency. Also, the age of the household head and household size increase the inefficiency level while experience in artisanal fishing tends to decrease the inefficiency level. From the Garrett ranking, access to credit facility to fully operate the small-scale fishing business was ranked as the most pressing issue followed by unstable prices while perishability was ranked last among the constraints. The study, therefore, recommends that group formation should be encouraged to enable easy access to loans and contract sales to boost profitability.