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Technical Efficiency Analysis of Local Garlic (Allium sativum L.) Production in Karanganyar Regency, Indonesia

ISNAINI ROHMAWATI*, MASYHURI1 AND ANY SURYANTINI
Department of Agricultural Economics, Graduate School, Faculty of Agriculture, Universitas Gadjah Mada (UGM),
Bulaksumur, Caturtunggal, Depok, Sleman, 55281, Yogyakarta, Indonesia
*(e-mail: isnaini.rohmawati@mail.ugm.ac.id; Mobile: 628 78154 26682)
(Received: January 8, 2023; Accepted: February 14, 2023)

ABSTRACT

Garlic (Allium sativum L.) is the primary horticultural commodity in Indonesians. Production efficiency is one of the critical factors of garlic farming in productivity. This study was aimed at analyzing technical
efficiency and assessing technical inefficiency. The analysis used maximum likelihood estimation, and the stochastic production frontier model’s parameters were estimated using the Frontier 4.1 version computer program. The results showed that the average value of technical efficiency was 0.727. Moreover, the results of the one-sample t-test for garlic farming showed 0.022 < 0.05. The results of maximum likelihood estimation showed that technical inefficiency could explain the social factors of garlic farming which affected optimal productivity.
Key words : Garlic, technical efficiency, inefficiency, stochastic frontier