Stochastic frontier model for profit efficiency of beef cattle farming during the covid 19 pandemic in West Pasaman Regency, West Sumatera Province

Abstract

Study aimed to estimate profit efficiency and determine factors affecting the profit efficiency of beef cattle farming in West Pasaman Regency, West Sumatera Province. A survey was conducted in West Pasaman regency at October 2020. Respondents consisting of 60 beef cattle farmers were questioned using structural questionnaires. Stochastic Frontier Analysis was used to estimate profit efficiency and factors influencing profit efficiency of beef farm in West Pasaman Regency. Important factors affecting the profit efficiency of beef cattle farming business in West Pasaman Regency were feed price, cost of veterinary medicine, fixed cost, labor cost and number of cattle affecting significant to beef cattle farming profit. The average level of profit efficiency was 39, 4%. Considering the importance of profit efficiency beef cattle farming there is a need for improving level of farmer’s education and experience in beef cattle farming, but farmers should be of productive age.