Analysis of Efficiency of Chili Production Cost

Ekawati, Rahmatullah Rizieq, Iqbal Firdausi, Iqbal Firdausi, Zulfahmi, Yudasto Krisnanto

2019

Abstract

This research aimed to find if the chili production has been efficient. The efficiency was perceived from the cost aspect. This research was important to avoid any inefficiency of input use in chili production. The more efficient the costs, the bigger the profit received by the farmers. One of factors leading to the lack of farmers’ interest in growing chilies was the small profit as well as the high price fluctuations. The inefficiency of the input use caused high production costs. Therefore, it was important to find if the chili production has been efficient. The data were obtained from 30 chili farmers of three villages of Rasau Jaya sub-district, Kubu Raya district. The samples were determined using balanced simple random sampling method. The cost analysis was done by estimating the frontier cost function. The efficiency levels were calculated by comparing the real costs and the frontier costs. The results revealed that the input use was efficient. The average cost efficiency was 1.4. The implication of this research was that further study is required to find the sustainablility of the efficiency.

Paper Citation

in Harvard Style

Ekawati., Rizieq R., Firdausi I., Zulfahmi. and Krisnanto Y. (2019). Analysis of Efficiency of Chili Production Cost. In Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA, ISBN 978-989-758-582-1, pages 411-416. DOI: 10.5220/0010435100002900

in Bibtex Style

@conference{miicema19,
author={Ekawati and Rahmatullah Rizieq and Iqbal Firdausi and Zulfahmi and Yudasto Krisnanto},
title={Analysis of Efficiency of Chili Production Cost},
booktitle={Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,},
year={2019},
pages={411-416},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010435100002900},
isbn={978-989-758-582-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 20th Malaysia Indonesia International Conference on Economics, Management and Accounting - Volume 1: MIICEMA,
TI - Analysis of Efficiency of Chili Production Cost
SN - 978-989-758-582-1
AU - Ekawati.
AU - Rizieq R.
AU - Firdausi I.
AU - Zulfahmi.
AU - Krisnanto Y.
PY - 2019
SP - 411
EP - 416
DO - 10.5220/0010435100002900