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<p>The red algae species Kappaphycus alvarezii holds significant potential to evolve into a multimillion-dollar industry in the Solomon Islands. However, production levels have remained stagnant over the past decade. This study hypothesizes that technical inefficiencies at the farm level are a major factor limiting the industry's growth. Specifically, we examined the relationships between farm characteristics, resource use, and production efficiency in Wagina, an island with high cultivation potential. We selected 78 farmers for the survey via a structured questionnaire. Technical efficiency (TE) was assessed using Stochastic Frontier Analysis (SFA) conducted in R software. Results revealed mean TE values of 0.362 for small-scale and 0.535 for medium-scale production systems, suggesting substantial inefficiencies in resource utilization. Notably, the number of plots, the number of lines, and seed density per line were positively associated with TE, while education level and farmers’ age were negatively correlated. The results suggest that improving farm structures and optimizing resource allocation could enhance production efficiency. Addressing the factors that negatively influence TE may help unlock the industry’s full potential.</p>

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Technical efficiency of Kappaphycus alvarezii farming in Wagina, Choiseul Province (the Solomon Islands)

  • 期刊论文

  • 发表日期：

    2025年4月24日

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  • James Ngwaerobo,
  • Thanh Viet Nguyen,
  • Rannveig Bjornsdottir

摘要

The red algae species Kappaphycus alvarezii holds significant potential to evolve into a multimillion-dollar industry in the Solomon Islands. However, production levels have remained stagnant over the past decade. This study hypothesizes that technical inefficiencies at the farm level are a major factor limiting the industry's growth. Specifically, we examined the relationships between farm characteristics, resource use, and production efficiency in Wagina, an island with high cultivation potential. We selected 78 farmers for the survey via a structured questionnaire. Technical efficiency (TE) was assessed using Stochastic Frontier Analysis (SFA) conducted in R software. Results revealed mean TE values of 0.362 for small-scale and 0.535 for medium-scale production systems, suggesting substantial inefficiencies in resource utilization. Notably, the number of plots, the number of lines, and seed density per line were positively associated with TE, while education level and farmers’ age were negatively correlated. The results suggest that improving farm structures and optimizing resource allocation could enhance production efficiency. Addressing the factors that negatively influence TE may help unlock the industry’s full potential.