Thesis (BS Agribusiness Economics) -- University of the Philippines Mindanao, May 2019

One of the most valued export commodities of the fishery and aquaculture industry in the Philippines is the Black Tiger Prawn (P. Mondon). Despite its significant contribution to the economy of the country and the increasing demand, production is low and there are still constraints that keep the industry from growing and achieving its full potential. Therefore, there is a need to examine the production process of prawn farming and the link between producers to final consumers. This study aimed to determine the technical efficiency of the prawn farmers in Lanao del Norte using the Stochastic Production Frontier and their profitability was measured using cost and return analysis. The existing value chain of prawns was also analyzed to identify the gaps along the chain. Results show that there are only three key players in the province: the input supplies, producers, and local buyers. The producers have the highest net margin of 71.74% while the wholesalers have the lowest net profit margin of 9.20%. the value addition mostly happens in the processor/exporter sector but here are no processors and exporters in Lanao del Norte. The lack of transparency along the chain should be improved so that all key players, can improve their operations. The profitability analysis shows that the average yield of prawn farming is 311.87/kg per hectare per year and the average price per kilogram is PhP 381.51. Prawn farming generates a net return of PhP 85,352.35 per hectare per year with a net profit cost ratio of 253,81%. The Stochastic Frontier Analysis reveals that the significant factors affecting the technical efficiency of the farms operators are education, feeding management, culture period, and the use of lime