Analysis of technical, allocative and economical efficiency in small beef cattle farming: (A Case Study in Tumpang Sub-district, Malang Regency)

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Umi Wisapti Ningsih, Budi Hartono, Bambang Ali Nugroho, Hari Dwi Utami

2016 International Journal of Economic Research Vol. 13 Issue 1 Article Cited by 1 Quartile

Abstract

This research was set out to analyze technical, allocative and economical efficiency, and factors affecting production function of public beef cattle farming in Tumpang Subdistrict, Malang Regency. The locations of the research were in Jeru village and Benjor village which were in the area of Tumpang Sub-district, Malang Regency. The data collection was taken in April September 2014. The research method used was survey by involving 75 respondents through purposive sampling. The data was analyzed using Cobb-Douglass Stochastic Frontier Production Function version 4.1. The research result showed that the value of respondents technical efficiency below 0.8 were 20% and technical efficiency above 0.80 was 80%. Then, the value of respondents economical efficiency below 0.8 was 78.67% and economical efficiency above 0.8 was 21.33%. Meanwhile, the value of respondents alloctive efficiency below 0.8 was 56% and allocative efficiency above 0.8 was 44%. Lastly, feed cost effects on economical efficiency and production cost per animal unit effects on allocative efficiency. © Serials Publications.

Affiliations

University of Brawijaya Indonesia, Indonesia