Production risk of pangas ( Pangasius hypophthalmus ) fish farming

Pangas is a relatively new and fast-growing fish species that has great potential for production and export growth in Bangladesh. However, production variability exists from farm to farm and location to location, which indicates that production risk may be a problem in pangas farming. Research on production risk is therefore of great importance, especially for small-scale farming systems in developing countries, where farmers are more vulnerable to risk. This study investigates the production risk of pangas farming in selected areas of Bangladesh. A Just–Pope stochastic production function is chosen to estimate the mean and risk functions. The test result shows that significant production risk exists in pangas farming, and that the risk differs between small and large farms.