True Shallot Seed Efficiency on the Production and Income of Shallot Farmers

DOI

10.2991/978-94-6463-028-2_25How to use a DOI?

Keywords

True Shallot Seed; Efficiency; Stochastic profit frontier analysis; Inefficiency effect

Abstract

Shallot is included in volatile food groups in Indonesia. Any fluctuation in shallot production will influence the inflation level. One of the main problems that reduce local shallot production capacity is high production cost. Local shallot is mainly produced from bulb seeds that consume roughly about 50% of the production cost. Therefore, the government introduced a new seed named True Shallot Seed (TSS). It reduces seed cost up to 10 times the initial cost of bulb seeds and offers higher productivity. However, two critical aspects need to be considered, shallot production efficiency and farmer’s income. This research aimed to study the potency of true shallot seeds to the profit efficiency and farmer’s income level. The stochastic profit frontier and inefficiency effects model is used to measure the profit efficiency between two groups of farmers. The research was conducted in 3 regions (district), namely, Grobogan, Brebes and Cianjur. The result shows the existence of inefficiency effects in farmers that utilized TSS or Bulb seeds. However, farmers with bulb seeds have a mean profit efficiency of 66%, higher than TSS farmers, with 60% profit efficiency. This means, the farmers who implement TSS is experienced more profit loss than the farmers who do not. This caused by the farmer’s failure in the nursery phase of the TSS that reduced the potential production and the existence of some market discrimination to the bulb harvested from TSS crops. Lastly, efficiency differences are primarily explained by age, farming experience, education, and land ownership (tenancy).

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Muhammad Ivan Fadzil
AU  - Muhammad Firdaus
AU  - Netti Tinaprilla
PY  - 2022
DA  - 2022/12/12
TI  - True Shallot Seed Efficiency on the Production and Income of Shallot Farmers
BT  - Proceedings of the International Symposium Southeast Asia Vegetable 2021 (SEAVEG 2021)
PB  - Atlantis Press
SP  - 224
EP  - 237
SN  - 2468-5747
UR  - https://doi.org/10.2991/978-94-6463-028-2_25
DO  - 10.2991/978-94-6463-028-2_25
ID  - Fadzil2022
ER  -