Stochastic Frontier Approach Applied in Measuring Economic Efficiency and Determining Factors on Local Broiler Breeder in Manokwari Regency, West Papua

Abstract

This study was conducted for 2 months with 31 local farmers to analyze the factors influencing broiler production and estimate the level of technical, allocative, and economic efficiency of local broiler breeders in Manokwari Regency, West Papua.The analysis was carried out using the stochastic frontier production function model, the Ordinary Least Square (OLS), maximum likelihood estimate (MLE) methods. The results showed that the variables of feed, DOC, and cage area affected broiler production. Furthermore, the Manokwari Regency local broiler breeders are technically, allocative, and economically efficient. The age, education level, and business experience of the farmers are factors that contribute to the increasing technical inefficiency. Meanwhile, local farmers can further increase broiler production and efficiency by increasing the number of DOC, feed, and cage areas.