TECHNICAL EFFICIENCY ANALYSIS OF DRYLAND SUGARCANE FARMING IN JOMBANG DISTRICT
Muhammad Idris Asyarif *, Nuhfil Hanani
Program Studi Agribisnis, Fakultas Pertanian, Universitas Brawijaya
*Penulis korespondensi: idrisyarifmuhammd@gmail.com
ABSTRACT
Sugar is a strategic commodity in Indonesia's economy. Annual consumption of not less than 3
million tons. Efforts to develop the sugar industry is highly dependent of the availability of raw
materials, namely sugarcane as the main raw material. Sugarcane is a seasonal crop of one of
the crops that are developed in the plantation area and yield the final product of sugar and
molasses. Jombang is a center of production of sugarcane in the province of East Java, which
ranks fourth. Sugarcane crop productivity is influenced by many factors, not just the type of
land, but also in the use of production facilities and techniques in the cultivation of sugar cane.
The purpose of this study to analyze the level of technical efficiency and scale efficiency in the
use of factors of production in cane farming dry land in Jombang. The analytical method used
is by Data Envelopment Analysis (DEA) using the DEAP 2.1. The results of the study for the
first goal, namely, the level of technical efficiency using the DEA show that there is a 53% or
19 respondent’s farmers in a state of technical efficiency, while the rest of 47% or 17 farmer
respondents in a state of technical inefficiency. The average value of technical efficiency is
0.982, this value means that the average efficiency of input use is 98.2%, which means that
technically the use of factors - factors dry land production cane farming has not yet reached full
efficiency level (Less than 100%) but already approaching full efficiency conditions. The cause
inefficient use of production factors cane dry land District Bareng, Jombang is too much amount
of inputs used, the overall input indicating the use of excessive and should be reduced is labor
inputs, seeds, and herbicides. Results of analysis for the second objective, namely, the level of
efficiency of scale by using DEA showed that out of 36 respondents (UKE), about 53% or 19
UKE has scaled CRS (constant returns to scale), 25% or 9 UKE has scaled DRS (decreasing
returns to scale) and 22% or 8 UKE with scale IRS (increasing return to scale).
million tons. Efforts to develop the sugar industry is highly dependent of the availability of raw
materials, namely sugarcane as the main raw material. Sugarcane is a seasonal crop of one of
the crops that are developed in the plantation area and yield the final product of sugar and
molasses. Jombang is a center of production of sugarcane in the province of East Java, which
ranks fourth. Sugarcane crop productivity is influenced by many factors, not just the type of
land, but also in the use of production facilities and techniques in the cultivation of sugar cane.
The purpose of this study to analyze the level of technical efficiency and scale efficiency in the
use of factors of production in cane farming dry land in Jombang. The analytical method used
is by Data Envelopment Analysis (DEA) using the DEAP 2.1. The results of the study for the
first goal, namely, the level of technical efficiency using the DEA show that there is a 53% or
19 respondent’s farmers in a state of technical efficiency, while the rest of 47% or 17 farmer
respondents in a state of technical inefficiency. The average value of technical efficiency is
0.982, this value means that the average efficiency of input use is 98.2%, which means that
technically the use of factors - factors dry land production cane farming has not yet reached full
efficiency level (Less than 100%) but already approaching full efficiency conditions. The cause
inefficient use of production factors cane dry land District Bareng, Jombang is too much amount
of inputs used, the overall input indicating the use of excessive and should be reduced is labor
inputs, seeds, and herbicides. Results of analysis for the second objective, namely, the level of
efficiency of scale by using DEA showed that out of 36 respondents (UKE), about 53% or 19
UKE has scaled CRS (constant returns to scale), 25% or 9 UKE has scaled DRS (decreasing
returns to scale) and 22% or 8 UKE with scale IRS (increasing return to scale).
Keywords: Technical Efficiency, Scale of efficiency, Data Envelopment Analysis.
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