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All Journal Agrifo: Jurnal Agribisnis Universitas Malikussaleh
Aulia Rahman
Malikussaleh University
Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

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Analysis of Production and Efficiency of Cayenne Pepper Farming in Labuhanbatu Regency Aulia Rahman; Rita Ariani; Adhiana Adhiana
Agrifo : Jurnal Agribisnis Universitas Malikussaleh Vol. 11 No. 2 (2026): November 2026
Publisher : LPPM Universitas Malikussaleh - Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29103/ag.v11i2.26295

Abstract

This study aims to analyze the factors influencing the production and efficiency of cayenne pepper farming in Labuhanbatu Regency. The study was conducted using a survey method on 84 cayenne pepper farmers selected using simple random sampling. Production factor analysis was conducted using the Cobb-Douglas production function with input variables in the form of land area, pesticides, seeds, fertilizers, and labor. Furthermore, technical, allocative, and economic efficiency analyses were conducted using the Data Envelopment Analysis (DEA) approach with the assumption of Variable Return to Scale (VRS). The results showed that simultaneously all production factors significantly influenced cayenne pepper production, but partially only land area had a significant effect on production. The average value of technical efficiency was 0.70, allocative efficiency was 0.51, and economic efficiency was 0.37. These findings indicate that cayenne pepper farming in Labuhanbatu Regency is not yet efficient as a whole and still has considerable opportunities to increase production and efficiency of input use.
Co-Authors Adhiana, Adhiana Rita Ariani