Is Input Utilization Inelastic to Coffee Production

Abstract

The agricultural sector is one of the important sectors for the Indonesian economy. Coffee is one of the commodities produced from the plantation sub-sector included in the agricultural sector which also contributes greatly to the Indonesia economy, especially as a source of foreign exchange, employment and income sources as well as other economic actors. This study aims to determine whether the factors of land area production, number of productive trees, farming costs and labour used by coffee farmers are elastic or inelastic to coffee production. Samples were taken as many as 400 coffee farmers spread in four districts namely North Toraja Regency, Enrekang Regency, Sinjai Regency and Bantaeng Regency, South Sulawesi, Indonesia. Data collected in the form of primary data and secondary data. The analysis used the Cobb-Douglass production function. The results show that the use of production factors; land area, number of productive trees, farming costs and labor are inelastic to coffee production, the scale of farming follows the rules of increasing return to scale. Therefore, it is expected that the support of local government (related institutions) to assist coffee farmers in providing superior seeds to increase coffee production, farmers incomes and reduce land conversion.

The Impact of Sustainable Technology Adoption on Coffee Farming in Tana Toraja, Indonesia: A Call for Comprehensive Support

“…Indonesia is known in the international market as a producer of high-quality Arabica specialty coffee with a good reputation [8]. A renowned region for Arabica coffee production is located in Toraja Regency [9], in the forested regions of Toraja, one can also find different variations of Arabica typica coffee, recognized as Todolo coffee among the local inhabitants.…”

“…However, the coffee production and productivity are intertwined with a range of challenges experienced across the entire coffee supply chain, from the initial stages to the final steps. Among the challenges encountered in the early stages are land-related issues, suboptimal productivity of plant materials, reduced productivity due to the aging of coffee plants, and the utilization of cultivation methods [7], use of seeds that are not superior and maintenance is not optimal [8].…”

Evolução da Produtividade do Trabalho e da Terra na Cafeicultura Baiana: Uma Análise Comparativa entre os Anos Censitários 2006 e 2017

“…Na literatura internacional, parte dos estudos centram-se na análise da produtividade do setor cafeeiro a partir da estimação dos determinantes de produtividade, a exemplo de estudos realizados por Nurhapsa et al (2020); Prasad et al (2019); Temesgen e Tufa (2017) na Indonésia, Nepal, Luanda e Etiópia, respectivamente, utilizando, principalmente, modelos de regressão linear múltipla tomando por base teórica a função Cobb-Douglas. Esses autores verificaram que culturas consorciadas e sombreadas com café, densidade de plantio, acesso à irrigação, experiência na atividade, posse de veículos, participação em programas de treinamento relacionados à produção e comercialização, fertilizantes, tamanho da fazenda, mão de obra familiar são fatores relevantes na determinação da produtividade do café.…”