Background Demand for fisheries commodities is expected to increase. In 2008,

222 I output transfer; J input transfer; K factor transfer; and L net transfer. Here are the identities and ratios of PAM analysis [5]: Private profitability [ = − + ] is a measure of competitiveness of the agricultural business system at certain technologies, output prices, input costs, and applied policies. Social profitability [ = − + ] is a measure of efficiency or comparative advantages in prices that reflect scarcity values or social opportunity costs efficiency price. Thus if D and H0, then the pangasius fish farming business is profitable in private and social prices respectively. Private cost ratio [ = − ] and domestic resource cost ratio [ = − ] are used to compare the competitiveness and comparativeness of other agricultural systems that produce unlike outputs respectively. Private cost ratio and domestic resource cost ratio show how much the system can afford to pay domestic factors and still remain competitive in its private and social prices respectively. Thus if PCR and DRC is less than 1, then the pangasius fish farming business has competitive and comparative advantages respectively. Nominal protection coefficient on outputs [ = ] and inputs [ = ] can be used to compare the output and input protection of other agricultural system respectively. Thus, if NPCO1 and NPCO1 then the output and input in the pangasius fish farming business receiving protection.

2.4. Input and output social price determination Output

. Social price of fresh pangasius fish is approximated from the FOB price of frozen pangasius fish fillets from Vietnam to US. Tradable input. Social prices of pangasius fish fingerlings; rice bran; dried salted fish; vitamin and mineral; and dolomite are estimated from their actual market prices subtracted by their policy or regulation which is attached to them such as value added tax. This can be performed because they are produced locally in the vicinity area and traded in a perfect competitive market. The social price of fuel is estimated from its economical prices released by the Ministry of Energy and Mineral Resources of Republic Indonesia. The social price of urea and salt are estimated from their FOB and CIF price respectively. Non-tradable input. Social price of land, capital and labor are predicted through the observations on their rural factor markets. Capital includes the feed pellet machine, feed warehouse, drying floor, and equipment. The value of capital in the private prices was determined from its depreciation costs. Feed pellet machine was fully subsidized by the government as an act of support from the government. Thus, its private price was zero and its social prices equaled to its depreciation costs. The social