Technical Efficiency Analysis of Smallholder Cacao Plantations in Lampung Province

Abstract

<em>Low productivity is the main problem in smallholder cacao plantation. One effort to overcome the problem is through rehabilitation. The research aimed to (1) analyze the factors affecting cocoa bean production, (2) analyze technical efficiency level, and (3) analyze the factors affecting technical efficiency of smallholder cacao plantation in Lampung Province. The research was conducted in Tanggamus and Pringsewu Regency, Lampung, from September to November 2015. A purposive sampling was used which obtained 32 samples of farmers as respondents from rehabilitated plantation with side-grafting technique and non-rehabilitated plantation, respectively. Data were analyzed using stochastic frontier analysis. The results indicated 4 factors affecting smallholders cacao production in Lampung Province, namely land, chemical fertilizer, family-labour, and rent-labour. Smallholder cacao plantation in Lampung Province was technically efficient (0.82) which affected by farmers’ age, farmers’ dependents, farmers group membership, and side-grafting application. Rehabilitated smallholder cacao plantation also showed higher level (ET=0.92) than non-rehabilitated one (ET=0.73). The research implicates on increasing smallholder cacao productivity in Lampung Province, especially the local government, to put more priorities in those factors significantly affecting smallholder cacao production, as well as to give support and facilitate plant rehabilitation program using side-grafting methods.</em>