Productive Efficiency Analysis of Olive Flounder Aquaculture in South Korea Using a Stochastic Frontier Approach for Sustainable Aquaculture

Nam-Lee Kim, Kang-Woong Kim and Do-Hoon Kim ()
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Nam-Lee Kim: Subtropical Fisheries Research Institute, National Institute of Fisheries Science, Jeju 63068, Republic of Korea
Kang-Woong Kim: Subtropical Fisheries Research Institute, National Institute of Fisheries Science, Jeju 63068, Republic of Korea
Do-Hoon Kim: Department of Marine & Fisheries Business and Economics, Pukyong National University, Busan 48513, Republic of Korea

Sustainability, 2025, vol. 17, issue 20, 1-17

Abstract: The olive flounder ( Paralichthys olivaceus ) is a significant aquaculture species in Korea, yet production has stagnated due to rising costs, environmental pressures, and shifting consumer preferences. Enhancing farm efficiency is critical not only for economic viability but also for environmental sustainability, as efficient production reduces resource waste, lowers feed inputs, and minimizes the carbon output of aquaculture operations. This study estimated the production function and efficiency of olive flounder farms in Korea using stochastic frontier analysis, drawing on survey data collected directly from producers. Results indicate that the Cobb–Douglas model is more suitable than the translog model for empirical analysis. The average farm efficiency was 0.38, with the lowest recorded efficiency at 0.13. Key determinants of production efficiency included fry quality, workforce size, and feed management. Regional differences were also observed in the technical inefficiency factor. By identifying inefficiencies and management gaps, this study highlights opportunities to enhance resource use efficiency, reduce environmental and economic waste, and promote more sustainable practices. The findings provide insights for policymakers and farm managers seeking to strengthen both the profitability and sustainability of the Korean olive flounder aquaculture industry.

Keywords: sustainable aquaculture; olive flounder; Paralichthys olivaceus; socio-economic sustainability; Stochastic Frontier Approach (SFA) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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