Technical Efficiency of Red Chili Pepper (Capsicum annum L.) Farming in Bangli, Indonesia
Abstract
The trend of production input usage on Demand for Red chili pepper (Capsicum annuum L.) is increasing and a corresponding increase in production needs to be driven by increased efficiency. The aim of this research was to analyse the technical efficiency of red pepper farming, in Bangli District, Bali, Indonesia. Primary data was obtained by interviewing 60 farmers who were selected by random sampling and by using structured questionnaires. Secondary data was collected through literature study. Maximum Likelihood Estimator (MLE) was employed to analyse the data by estimating the stochastic production frontier model. The results of the study showed that (1) increased land size, good quality seed, correct application of KCL, NPK fertilizer, chicken manure, correct application of pesticides and the amount of labour used will be effective in increasing Red chili pepper production. In contrast incorrect fertilizer and pesticide application has the potential to decrease production; (2) Red chili pepper farming had historically been conducted efficiently but is now below optimum; (3) A properly trained and educated workforce will increase Red chili pepper production.References
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