Technical Efficiency Analysis of Sugar Cane Production in East Java

Abstract

Having an important role as the main supplier of sugar cane in Indonesia that processed into sugar, so that East Java as a producer of sugar cane both with Ratoon Cane (RC) and Plant Cane (PC) must be supported by the government to be more productive and competitive. One of them is through increasing sugar cane yield through increasing technical efficiency. The purpose of this study is to analyze the level of technical efficiency in the use of sugar cane farming and identify the level of technical efficiency of farm households. The research location was determined purposively in Malang, Pasuruan, Lumajang, Bondowoso and Situbondo Regencies in July -December in 2018. Determination of respondents was carried out using the typical case sampling method. The technical efficiency of each farmer is carried out using a comparison of the actual production functions achieved by farmers using the frontier production function. The results showed the level of technical efficiency in sugar cane farming in wetland and dry land using RC and PC planting systems respectively averaged 89.44% and 99.80% so it was technically efficient.

Technology gap ratio decomposition in sugarcane farming in Indonesia

“…For example, Yusuf, Jamhari, and Irham (2020) revealed that sugarcane farming in East Java, whether employing the plant cane or the ratoon cane system, was still technically inefficient. Widyawati (2020) showed that sugarcane farming with the plant cane system was more technically efficient than the ratoon cane system. Meanwhile, Ambetsa, Samuel, and Samuel (2020) and Ali and Jan (2017) discovered that fertilisers, seeds, and labour were the factors that most affected the production and technical efficiency of sugarcane farming.…”

“…Extensive research has been conducted on sugarcane farming efficiency, covering different developing countries; however, these studies have only measured the technical efficiency of sugarcane farming (Carrer et al, 2022;Francis et al, 2020), compared efficiency levels based on cultivation techniques (Widyawati, 2020), and identified the factors affecting technical efficiency levels (Ali & Jan, 2017;Ambetsa et al, 2020). To date, little research on sugarcane farming has simultaneously examined technical efficiency levels and gaps in technological inefficiency (GTI) and managerial inefficiency (GMI), especially in Indonesia.…”