The egg-laying chicken business plays an important role in the food industry. The Sidenreng Rappang (Sidrap) district is among the centers of egg-laying chicken production in South Sulawesi and contributes significantly to meeting national egg demand, but production efficiency still varies among farmers. This study aimed to measure the efficiency of layer chicken businesses in Sidrap using data envelopment analysis (DEA) and stochastic frontier analysis (SFA), identify factors that affect efficiency, and formulate strategies to improve the efficiency of layer chicken farming businesses. This study used a quantitative approach through a survey of 88-layer farmers selected using the Slovin method, with a margin of error of 10%. Primary data were collected through interviews and questionnaires, whereas secondary data were obtained from the Livestock Service and the Central Statistics Agency. DEA has been used to measure relative efficiency among farmers, whereas SFA has been used to estimate inefficiency and the factors influencing it. With respect to the DEA results, only 25% of the farmers were technically efficient, while the other 75% were still experiencing inefficiency, especially in terms of feed use, number of chickens, and operational costs. The results of the SFA estimation with the Cobb–Douglas production function also revealed that the feed and number of chickens were the most influential production factors for increasing egg production. Analysis of inefficiency factors also revealed that farming experience and water quality significantly reduced technical inefficiency, whereas climate and weather factors tended to increase inefficiency.
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