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Production Efficiency Of Small-Scale Shallot Producers In East Java, Indonesia

Author

Listed:
  • . Sujarwo

    (Department of Agricultural Economics and Agribusiness, University of Brawijaya, Malang, Indonesia.)

  • Michael Reed

    (Department of Agricultural Economics, University of Kentucky, USA.)

  • Sayed Saghaian

    (Department of Agricultural Economics, University of Kentucky, USA.)

Abstract

This study attempts to find ways for small-scale farmers to increase efficiency with their current technology for shallots. The efficiency measurements rely on a double-log production function, which is estimated by Principal Component Regression (PCR) to remove multicollinearity from the model. The results confirm that small-scale shallot farmers have difficulty in allocating their inputs efficiently. Land, seed, and labor are over-utilized; while fertilizer and pesticide are under-utilized. Small-scale shallot farmers have estimated gross profit losses of 32% due to inefficient allocation of inputs.

Suggested Citation

  • . Sujarwo & Michael Reed & Sayed Saghaian, 2015. "Production Efficiency Of Small-Scale Shallot Producers In East Java, Indonesia," Post-Print hal-05366607, HAL.
    • Handle: RePEc:hal:journl:hal-05366607
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