Production efficiency and capacity utilisation of Queensland’s Sydney rock oyster (SRO) industry

PresentationThe Sydney rock oyster (SRO) industry is located on Australia's east coast and is one of the country's oldest farming industries. This industry has been affected by a range of challenges over the past decades, which includes reoccurring disease outbreaks, the management of food security, biodiversity and environmental degradation risks, severe weather events and increased market competition from Australia's Pacific oyster industry.\ud \ud \ud \ud SRO production appears to be particularly challenged in the Queensland's Moreton Bay, the northern most cultivation area of the industry. Today, it is unclear whether this situation is due to oyster farmer's business choices, personal traits or whether environmental conditions in the Moreton Bay limit the economic capacity of the oyster industry in this region.\ud \ud \ud \ud In this study we assess the economic capacity and capacity utilisation of the Queensland SRO industry using cross-sectional time-series data. We use the conventional production input factors, labour and capital, for a multi-output orientated data envelopment analysis (DEA). In a second-stage analysis we estimate the inference of oyster lease owner's personal traits and environmental conditions at production sites on the derived capacity scores over time.\ud \ud \ud \ud The results provide information about the potential industry output that can be produced in Moreton Bay if production capacity is fully utilised under given resource conditions and the extent of capacity underutilisation. This knowledge will form the basis for a discussion about the optimal allocation of territorial access rights for Queensland's SRO industry