Assessment of Oyster Production in Maine and New England

Project Description

This study evaluates the production efficiency of New England’s oyster aquaculture industry. A mixed mode survey has been designed and implemented to collect information from oyster growers in the region. This survey was sent to 530 oyster farming businesses located throughout Maine, New Hampshire, and Massachusetts. Growers were asked about their production methods and the inputs used in their oyster growing operations. Additional questions focused on demand for insurance and social networking among oyster growers.

This project will focus on identifying the factors that significantly contribute to production efficiency in the industry. A stochastic frontier production function (SFPF) will be estimated to evaluate the productive efficiency of oyster operations. SFPF models have been employed extensively to analyze productive efficiency in agricultural as well as aquacultural settings. The resulting SFPF model will investigate the relative contribution of different productive inputs to the overall productivity of each oyster farm. Researchers will assess the impact of factors such as location, experience, and diversity of species as contributors to inefficiency for aquaculture operations.

This study will provide a tool that allows individual oyster growers to evaluate the technical efficiency of the production methods they are currently employing. Assessing the relative efficiency of Maine’s oyster aquaculture industry will allow policymakers to determine whether more resources need to be dedicated to education and outreach to improve outcomes in this industry. This information could play a critical role in helping Maine’s oyster aquaculture business owners continue to be successful.

Results and Accomplishments

In coastal New England, growing oysters is a long-established practice that has exhibited a renaissance over the past few decades. This industry generates millions in annual revenue, significantly boosting the economies of many coastal communities. However, oyster aquaculture has received relatively little attention from the field of economics. This study represents the first evaluation of productive efficiency among oyster producers in the United States, and the first comparison of oyster production methods used in this country.

The project’s findings indicate significant potential to increase productivity by reducing inefficiency in oyster production. However, industry-wide production efficiency has been increasing. Further analysis revealed several factors that significantly influence inefficiency in oyster production, including a grower’s education level, location, and farm diversification. This study provides valuable information that could help governance bodies and outreach specialists make more informed decisions regarding this industry.

Summary of Data Being Collected

Data	Type	Quantity	Location
Info from Oyster Farmers	Financial, social	> 35	Maine
Info from Oyster Farmers	Financial, social	< 20	New Hampshire
Info from Oyster Farmers	Financial, social	> 40	Massachusetts