Technical Efficiency of Small-Scale Pig Farming in Indonesia
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Published
Feb 27, 2023
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Abstract
Live pigs are still the mainstay of livestock sub-sector exports in
Indonesia. Although pig farming in Indonesia has competitiveness
in the international market, its productivity shows a declining
condition. The purpose of this research is to measure the level of
technical efficiency of small-scale pig breeding and fattening
businesses. The data used come from the results of the Farm
Household Survey conducted by the Central Bureau of Statistics
(BPS). The survey was conducted in 20 provinces in Indonesia,
with a sample size of 6,681 small-scale or household-scale pig
farming. The research used the Stochastic Production Frontier
(SPF) model to measure the level of technical efficiency of pig
farming and used the maximum likelihood method to estimate it.
The results showed that the level of technical efficiency of pig
farming is relatively low. The average technical efficiency level of
fattening pig farming is higher than that of the breeding. The
factors of farming experience, market orientation, and feed type
combination have a positive influence in improving efficiency.
Public policies that improve pig farmers' access to farm inputs and
markets are expected to significantly improve the productivity of
small-scale pig farming.
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How to Cite
KERARU, Ester Nurani; HARIANTO, Harianto; YUSALINA, Yusalina.
Technical Efficiency of Small-Scale Pig Farming in Indonesia.
SOCA: Jurnal Sosial Ekonomi Pertanian, [S.l.], v. 17, n. 1, p. 27 - 38, feb. 2023.
ISSN 2615-6628.
Available at: <https://ojs.unud.ac.id/index.php/soca/article/view/82752>. Date accessed: 30 june 2024.
doi: https://doi.org/10.24843/SOCA.2023.v17.i01.p03.
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Articles
References
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Tabe-Ojong, M. P. Jr., & Molua, E. L. (2017). Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach. Journal of Management and Sustainability, 7(4), 27. https://doi.org/10.5539/jms.v7n4p27
Thanapongtharm, W., Linard, C., Chinson, P., Kasemsuwan, S., Visser, M., Gaughan, A. E., Epprech, M., Robinson, T. P., & Gilbert, M. (2016). Spatial analysis and characteristics of pig farming in Thailand. BMC Veterinary Research, 12(1), 1–15. https://doi.org/10.1186/s12917-016-0849-7
Tian, X., Sun, F., & Zhou, Y. (2015). Technical efficiency and its determinants in China’s hog production. Journal of Integrative Agriculture, 14(6), 1057–1068. https://doi.org/10.1016/S2095-3119(14)60989-8
Tokach, M. D., Goodband, B. D., & O’Quinn, T. G. (2016). Performance-enhancing technologies in swine production. Animal Frontiers, 6(4), 15–21. https://doi.org/10.2527/af.2016-0039
Umeh, J. C., Ogbanje, C., & Adejo, M. A. (2015). Technical efficiency analysis of pig production: A sustainable animal protein augmentation for Nigerians. Journal of Advanced Agricultural Technologies, 2(1), 19–24. https://doi.org/10.12720/joaat.2.1.19-24
Weerasak, T., Kannika, S. L., & Anupong, W. (2021). Technical Efficiency of Nursery Swine Production of VPF Group (1973) Co.,Ltd. Chiang Mai Province. Journal of Positive School Psychology, 2022(3), 7641–7646. http://journalppw.com
Atsbeha, D. M., Flaten, O., Olsen, H. F., Kjos, N. P., Kidane, A., Skugor, A., Prestløkken, E., & Øverland, M. (2020). Technical and economic performance of alternative feeds in dairy and pig production. Livestock Science, 240. https://doi.org/10.1016/j.livsci.2020.104123
Bahta, S., Omore, A., Baker, D., Okike, I., Gebremedhin, B., & Wanyoike, F. (2020). An Analysis of Technical Efficiency in the Presence of Developments Toward Commercialization: Evidence from Tanzania’s Milk Producers. European Journal of Development Research, 0123456789. https://doi.org/10.1057/s41287-020-00279-8
BPS [Badan Pusat Statistik]. (2020). Pork Production Statistics by Province(s). Jakarta. Diambil dari https://www.bps.go.id/indicator/24/484/1/produksi-daging-babi-menurut-provinsi.html.
Coelli, T. J., Rao, D. S. P., O’Donnel, C. J., & Batesse, G. E. (2005). An introduction to efficiency and productivity analysis. 349. https://doi.org/https://doi.org/10.1007/b136381
Dietze, K. (2011). Pigs for prosperit. Rural Infrastructure and Agro-Industries Division Food and Agriculture Organization of the United Nations.
Kariyasa, I. K., & Ilham, N. (2003). Analisis Penawaran dan Permintaan serta Potensi Ekspor Daging Babi Indonesia. SOCA: Jurnal Sosial Ekonomi Pertanian, 3(1), 1–24.
Kodde, D. A., & Palm, F. C. (1986). Wald Criteria for Jointly Testing Equality and Inequality Restrictions. Econometrica, 54(5), 1243. https://doi.org/10.2307/1912331
Kumbhakar, S. C., Wang, H.-J., & Horncastle, A. (2015). A Practitioner’s Guide to Stochastic Frontier Analysis Using Stata. Cambridge University Press. https://doi.org/https://doi.org/10.1017/CBO9781139342070
Latruffe, L., Desjeux, Y., Fogarasi, J., Bakucs, L., & Ferto, I. (2010). Efficiency and environmental pressures of Farrow-to-finish and finishing pig farms in Hungary. Proceedings of the 8th International Conference of DEA “Performance Management and Measurement with Data Envelopment Analysis,” 151–154. https://doi.org/10.13140/2.1.2743.2009
Mwangi, T. M., Ndirangu, S. N., & Isaboke, H. N. (2020). Technical efficiency in tomato production among smallholder farmers in Kirinyaga County, Kenya. African Journal of Agricultural Research, 16, 667–677. https://doi.org/10.5897/ajar2020.14727
Olagunju, K. O., Ogunniyi, A. I., Oyetunde-Usman, Z., Omotayo, A. O., & Awotide, B. A. (2021). Does agricultural cooperative membership impact technical efficiency of maize production in Nigeria: An analysis correcting for biases from observed and unobserved attributes. PLoS ONE, 16(1 January). https://doi.org/10.1371/journal.pone.0245426
Petrovska, M., Martinovska-Stojceska, A., Öhlmer, B., & Kotevska, A. (2013). Technical efficiency of Macedonian pig farms. Agroeconomia Croatica, 3(1), 18–25. https://doi.org/10.22004/ag.econ.172538
Rahayu, B. W. I., Widayati, T. W., & Logo, N. (2020). Produktivitas Ternak Babi di Wamena Kabupaten Jayawijaya. Prosiding Seminar Teknologi Dan Agribisnis Peternakan VII–Webinar: Prospek Peternakan Di Era Normal Baru Pasca Pandemi COVID-19, Fakultas Peternakan Universitas Jenderal Soedirman, 27 Juni 2020, ISBN: 978-602-52203-2-6, 414–420.
Raja, M. B., Selvakumar, K. N., Pandian, A. S. S., Sundaram, S. M., Anbukkani, P., & Jayanthi, R. (2022). Profitability and efficiency of pig production in Tamil Nadu. Indian Journal of Animal Sciences, 92(3), 365–369. https://doi.org/10.56093/ijans.v92i3.122271
Rinaldi, E. S. A., Sunaryanto, L. T., & Nadapdap, H. J. (2019). Strategi Pengembangan Usaha Peternakan Babi di Kecamatan Getasan Kabupaten Semarang. SOCA: Jurnal Sosial Ekonomi Pertanian, 13(2), 248–263. https://doi.org/10.24843/soca.2019.v13.i02.p08
Schmidt, P. (2011). One-step and two-step estimation in SFA models. Journal of Productivity Analysis, 36(2), 201–203. http://doi.org/10.1007/s11123-011-0228-0
Siregar, M., & Ilham, N. (2016). Upaya Peningkatan Efisiensi Usaha Ternak Ditinjau dari Aspek Agribisnis yang Berdaya Saing. Forum Penelitian Agro Ekonomi, 21(1), 57. https://doi.org/10.21082/fae.v21n1.2003.57-66
Tabe-Ojong, M. P. Jr., & Molua, E. L. (2017). Technical Efficiency of Smallholder Tomato Production in Semi-Urban Farms in Cameroon: A Stochastic Frontier Production Approach. Journal of Management and Sustainability, 7(4), 27. https://doi.org/10.5539/jms.v7n4p27
Thanapongtharm, W., Linard, C., Chinson, P., Kasemsuwan, S., Visser, M., Gaughan, A. E., Epprech, M., Robinson, T. P., & Gilbert, M. (2016). Spatial analysis and characteristics of pig farming in Thailand. BMC Veterinary Research, 12(1), 1–15. https://doi.org/10.1186/s12917-016-0849-7
Tian, X., Sun, F., & Zhou, Y. (2015). Technical efficiency and its determinants in China’s hog production. Journal of Integrative Agriculture, 14(6), 1057–1068. https://doi.org/10.1016/S2095-3119(14)60989-8
Tokach, M. D., Goodband, B. D., & O’Quinn, T. G. (2016). Performance-enhancing technologies in swine production. Animal Frontiers, 6(4), 15–21. https://doi.org/10.2527/af.2016-0039
Umeh, J. C., Ogbanje, C., & Adejo, M. A. (2015). Technical efficiency analysis of pig production: A sustainable animal protein augmentation for Nigerians. Journal of Advanced Agricultural Technologies, 2(1), 19–24. https://doi.org/10.12720/joaat.2.1.19-24
Weerasak, T., Kannika, S. L., & Anupong, W. (2021). Technical Efficiency of Nursery Swine Production of VPF Group (1973) Co.,Ltd. Chiang Mai Province. Journal of Positive School Psychology, 2022(3), 7641–7646. http://journalppw.com