Production Technology and the Role of Skipper Skills in Lake Victoria Fisheries

Abstract: In this study we seek to explain the role of skipper skills in the productivity of fishing boats. The data is from the Lake Victoria fisheries for three fishing seasons (normal, peak and off-season) and two major species (Nile perch and Dagaa). We focus the analysis on attributes such as the revenue sharing system between the owner and the crew including the skipper and an extra bonus given to the skipper. We adopt a translog stochastic production frontier model with output-oriented technical inefficiency to estimate skipper skills in terms of gross registered tons of the boat; crew size, net length and hours spent fishing. Results show that extra bonus given to the skipper and what type of remuneration system is used for the crew and the skipper has important implications for the efficiency of the boat. Owner-operated vessels were found to be more efficient. Vessels with hired skippers are more efficient if they get an extra bonus and if they face the risk of zero income. However, the presence onboard of an owner who is not the captain reduces efficiency. We also find that experience as a skipper has a strong positive influence on technical efficiency. The technical inefficiency effects are found to be highly significant in explaining levels and variation in performance in Lake Victoria fisheries.