Abstract
This paper aims to analyze the efficiency of the meat processing industry in Indonesia large-scale and medium-year period 1990-2013. The method used data envelopment analysis (DEA) model of Variable Return to Scale (VRS) Input-oriented. It was found that, the estimation value Constant Return to Scale (CRS) model of efficiency with an average of 89.38 percent, which means that the industry is only able to optimize the resources available inputs to produce a production of 89.38 per cent, in other words there is still potential inputs that they can be optimized for 10.62 percent assuming all companies operating at an optimal scale. VRS model results by an average of 95.7 percent, which means that the efficiency is still below 100, there are inefficiencies at 4.3 percent, assuming the company is not operating at optimal scale due to factors existing constraints, medium scale efficiency (Scale) an average of 93.36 per cent less than 100 percent means that the industry is on a scale of inefficiency. The implications of negative growth efficiency or below 100 percent is the need for skills development of workers in order to adapt to technological upgrading and make the selection of efficient combination of inputs.
Highlights
«It was inevitable that the future is in the processing industry,» this is what the statement C.P
Variable Return to Scale (VRS) model results by an average of 95.7 percent, which means that the efficiency is still below 100, there are inefficiencies at 4.3 percent, assuming the company is not operating at optimal scale due to factors existing constraints, medium scale efficiency (Scale) an average of 93.36 per cent less than 100 percent means that the industry is on a scale of inefficiency
Conditions return to scale is at λ> 1 means that the degree of change in output as a result of changes in input called the degree of acquisition ascending
Summary
«It was inevitable that the future is in the processing industry,» this is what the statement C.P. According to BPS data (2015), the contribution to Gross Domestic Product of the meat processing industry each year has increased from 8.72 percent in 2007 to 56 percent in 2012, a share which is the 2nd highest of the food and beverage industry. The same was reported Probowo and Cabanda (2011), in the period 2000-2005 the processing industry in Indonesia is experiencing technical inefficiency. Ali (2007) conducted a study in India found that in the period from 1980 to 2003 occurred inefficient use of capital and labor inputs and the low productivity growth. Nossal et al, (2008) conducted a study in Australia, found that the productivity of beef processing industry is increasing every year, driven by a combination of a moderate expansion of output and a decline in the use of multiple inputs
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