Production efficiency in New England's oyster aquaculture industry

In coastal New England, growing oysters is a long-established practice that has exhibited a renaissance over the past few decades (Lapointe, Northeast region ocean council white paper: Overview of the aquaculture sector in New England, 2013). This industry generates millions in annual revenue, significantly boosting the economies of many coastal communities (Augusto & Holmes, 2015). However, oyster aquaculture has received relatively little attention from the field of economics. To our knowledge, 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. Our findings indicate significant potential to increase productivity by reducing inefficiency in oyster production. However, industry-wide production efficiency has been increasing between 2013 and 2015. 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 insights into inefficiency in oyster production, enabling governance bodies and outreach specialists to make more informed decisions regarding this industry.