Abstract

Shallot has the highest production value in Indonesia. High production value indicates that shallot is an important commodity, therefore, its potential must be improved. Technical efficiency analysis can be used to measure production efficiency and possible input reduction to maximize the production potential of shallot. The chosen location for this research is Torongrejo Village Batu City, East Java. Shallot productivity value of Batu City is comparable to other central shallot production areas in East Java. The purpose of this research is to understand the farming system and production efficiency of shallot alongside with socio-economics factors affecting its efficiency level. Research method used in this research consists of: profitability analysis of shallot farming, analysis using Data Envelopment Analysis (DEA) to analyze the technical efficiency of shallot production, and Tobit regression to analyze socio-economics factors affecting technical efficiency level. The results from the analyses shows that shallot farming in Torongrejo Village has the R/C ratio of 2,09, with the DEA-CRS technical qfficiency value of 87,7 percent, DEA-VRS technical efficiency value of 99 percent and scale efficiency value of 88,6 percent. The result from Tobit regression using DEA-VRS as dependent variable shows that farming experience and formal education has positive and significant effect on technical efficiency (TE) level, and land ownership status has negative and significant effect on TE level. Shallot production efficiency can be increased by using reduced inputs therefore able to increase farming profit while keep improving farmers’ education and agriculture extension programs for the next generation of farmers.

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