S. Pakage, B. Hartono, Z. Fanani, B.A. Nugroho
The general objective of the study was to calculate the production efficiency of broiler farmers using the closed house system in three Sub-districts of Malang East Java, Indonesia. Cross-sectional data were used to analyze the factors affecting production and production costs, factors causing technical inefficiency and technical, allocative and economic efficiency. Sampling technique used in this study is total sampling. Data collected from 55 respondents The Stochastics Frontier Analysis was employed to measure production efficiency. Analysis showed that the factors positively affecting production of broilers are DOC, feed, and medicine. Variables of Day Of Chick (DOC), feed, and electricity costs are influential to the production cost. The diversity of broiler production levels caused by differences in the level of technical efficiency among farmers is at 0.63% with the average of 0.929. Estimation of the effects of technical inefficiency that all variables are statistically determinants has no real effect. However, the level of formal education and gender contributed to improving technical inefficiency. Allocative efficiency levels ranged from 0.881 to 1.310 with an average of 1.008. These results indicate that farmers have been allocatively efficient. The diversity of level of production costs caused by the influence of economic efficiency equals to 0.255% with an average of 0.931. © 2015 Fundacion CIPAV. All rights reserved.
University of Papua, Manokwari, West Papua, Indonesia; University of Brawijaya, Malang, East Java, Indonesia
