Livestock and Animal Research
Vol 20, No 1 (2022): Livestock and Animal Research

Analysis of technical efficiency and determining factors of the broiler business in North Sulawesi

Lidya Siulce Kalangi (Faculty of Animal Husbandry, Sam Ratulangi University)
Stanly Oktavianus Bryneer Lombogia (Faculty of Animal Husbandry, Sam Ratulangi University)
Jeane Pandey (Faculty of Animal Husbandry, Sam Ratulangi University)
Andi Yulyani Fadwiwati (Gorontalo Assessment Institute For Agricultural Technology)



Article Info

Publish Date
24 Mar 2022

Abstract

Objective: The broiler business with the partnership model has become a choice of society in improving their living. In certain circumstances, however, broiler farmers receive income far beyond their expectations due to declining production, because of some impacts of inefficient input utilization and worse management.  The research, then, aims to estimate the technical efficiency of broiler farming business with an open house system and a partnership business pattern, as well as to analyze the determining factors.Methods: The purposive sampling was employed to identify 80 farmers. In detail, the parameter of production function of the Stochastic Frontier was estimated by using Maximum Likelihood Estimations (MLE) method and Frontier 4.1 program.  Results: The estimated value in the statistic model (γ=0.8634) depicts that the hypothetical result of the production function model was assumedly better, so the production function of Cobb-Douglas was able to explain the existing data related to a phenomenon of the technical inefficiency in broiler business. The calculation result of the value of restriction parameter of LR test was 89.99, was greater than the critical value of the Kodde and Palm Table (=19.384), by the significance level at p<0.01. This means the existing inefficiency effects in the stochastic model. Further, the value of sigma square with the parameter value of 0.0133 was statistically significant by the trust level of 99%, describing that the production variation contributed by technical inefficiency was 1.33%. Conclusions: In conclusion, the value of technical efficiency obtained by broiler farmers under the partnership model in the open-house system was 0.95. Then, the determining variables of the broiler production were feeds, vitamins, medicine, working hours, and the total of electricity. Determinant variables that could reduce technical inefficiency were age, farming experience, and ownership status of lands/cages.

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Journal Info

Abbrev

lar

Publisher

Subject

Agriculture, Biological Sciences & Forestry Biochemistry, Genetics & Molecular Biology Veterinary

Description

Livestock and Animal Research (Livest. Anim. Res.) publishes original research article in the field of livestock and other animal research. This journal previously titled as Sains Peternakan: Jurnal Penelitian Ilmu Peternakan and changed into Livestock and Animal Research in order to broaden the ...