Research Paper
Year: 2021 | Month: March | Volume: 8 | Issue: 3 | Pages: 535-543
Technical and Economic Efficiency of Arabica Coffee Farming in Sait Buttu Saribu Village, Pamatang Sidamanik District, Simalungun Regency
Restu Aprianta Tarigan1, Kelin Tarigan2, Salmiah2
1,2Master of Agribusiness Study Program on Faculty of Agriculture of University of Sumatera Utara
Corresponding Author: Restu Aprianta Tarigan
ABSTRACT
This study aims to determine the factors that influence Arabica coffee production, to determine the technical efficiency of Arabica coffee farming and to determine the economic efficiency of Arabica coffee farming in Sait Buttu Saribu Village, Pamatang Sidamanik District, Simalungun Regency. The method used in this research is descriptive quantitative. The results showed that partially the land area, the amount of labor, organic fertilizers and inorganic fertilizers did not have a significant effect on increasing coffee production, but the number of coffee trees had a significant effect on the increase in coffee production. The average level of technical efficiency in Arabica coffee farming in this village is 0.94 or 94 percent of the potential, this shows that Arabica coffee farming is approaching technical efficiency and there is still a 6 percent chance to increase it. Arabica coffee production in the study area. The use of production factors in coffee farming is not economically efficient in Sait Buttu Saribu Village, Pamatang Sidamanik District, Simalungun Regency, meaning that arabica coffee farmers in this village have not allocated optimal input.
Keywords: Production Factor, Technical Efficiency, Economic Efficiency.
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