Year: 2018
Type: article
Abstract: Sugar consumption in Indonesia is dominated by households and industry consumption.During 2015-2016, consumption of households was 2.9 MT and industry -2.7 MT.On the same period, sugar production was 2.497 MT only.The gap between domestic output and demand of sugar increased gradually, and now Indonesia is becoming one of the biggest sugar net-importers.The dependence on large quantity of imported sugar has to be minimized.Scarcities of land and production resources require a strategy to increase agricultural productivity by using resources efficiently.Coelli et al (2002) revealed that the technical efficiency has an important role in productivity and agricultural growth.Therefore, efforts attempt to measure the technical efficiency of farming activities needs to be done in order to obtain an increase efficient productivity.The objective of this study is to analyze how the resource inputs were efficiently used determine scale efficiency of sugarcane farmers.Results show that the average technical efficiency and scale efficiency level are 0.917 and 0.856 respectively.Sugarcane farmers who had low TE scores (technically inefficient) were farmers who allocated their inputs (seed, fertilizer, herbicide and labor) excessively.This study also provides evidence that only 13% of sugarcane farmers in Kediri District who operate on optimal scale (Constant Return to Scale).
Authors: Fahriyah, N. Hanani, D. Koestiono, Syafrial
Institution: University of Brawijaya
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $28
OpenAlex ID: W2807141059