THE COMPARISON OF TECHNICAL EFFICIENCY ON CATTLE BREEDING BUSINESS BETWEEN SHARE-BEEF CATTLE MODEL AND FARMER-OWN BEEF CATTLE MODEL AT MUARO JAMBI REGENCY, JAMBI PROVINCE
ABSTRACT: The lack of capital
for investment and limited access for small beef cattle farming to obtain
credit from financial institution have contributed to the occurrence of
share-beef cattle in rural areas. Through share-beef cattle pattern, the
farmers (tenant) can rent livestock from other parties (individual nor government)
within a share-beef cattle contract agreement. The purposes of this study were
to determine the technical efficiency and the factors which influence the
inefficiency from 108 small beef cattlebreeding, which consists of 59 farming
operated by owner and 49 operated by tenant. The unit samples were selected by
snowball sampling method and analysed by Stochastic Frontier Production. Our
study showed that the average technical efficiency of beef cattle breeding
operated by owner was at 0.73, otherwise operated by tenant was at 0.790. The
inefficiency of beef cattle breeding operated by owner has negatively
corresponded to the number of cows, the farmer age, the age of cow and the
application of artificial insemination (IA), but positively corresponded to
allocation of family labour and level of farmer education. The inefficiency of
beef cattle breeding operated by a tenant has negatively corresponded to the
application of artificial insemination (AI). Specific conclusion of the study
was the technical efficiency level of small beef cattle breeding was not only
affected by the ownership of beef cattle but also by the pattern of share-beef
cattle. The share-beef cattle based on share income(50:50) may improve the
value of technical efficiency compared to share-beef cattle based on share
in-kind (share-beef cattle revolving cow or share-beef cattle revolving calf).
Keywords: Beef cattle
breeding, Share-beef cattle, Stochastic Frontier Analysis, Technical efficiency
Penulis: Bagus Pramusintho
Kode Jurnal: jppeternakandd170193
