Abstract
Cocoa is an export oriented strategic plantation commodity that contributes to foreign exchange in Indonesia. It is mostly planted in Sulawesi Island, therefore, serves as a source of income for farmers. The purpose of this study was to analyze the efficiency of cocoa farming in Pohuwato Regency, Gorontalo. A total of 55 respondents were selected by simple random sampling. Furthermore, the Cobb Douglas stochastic frontier production function was used to analyze technical production efficiency and factors affecting it. Cocoa farming can be categorized as profitable, as the farmer reached average profit IDR 6,312,679/ha/year. However, in general cocoa farmers have not yet technically efficient because their technical efficiency value was only 0.52. The cocoa production efficiency was positively and significantly affected by land area, fertilizer, pesticides and labor. The increase in farmer age causes a positive and significant rise in inefficiency. Conversely, education and the number of family members have a negative effect, although not significant. Therefore, it requires to increase cocoa farming efficiency by increasing farmers’ access to production inputs such as fertilizers and pesticides, and improving the management of cocoa cultivation.
Highlights
Cocoa is an important plantation product in Indonesia and an export commodity that provides foreign exchange
The simple random sampling technique was adopted for the selection of respondents, and data were collected in December 2017
The primary data, which include the socio-economic characteristics of farmers, and the input or output production as well as their respective prices were obtained from a survey of cocoa farmers selected by simple random sampling
Summary
Cocoa is an important plantation product in Indonesia and an export commodity that provides foreign exchange. From 2014-2018, export volume increased from 333,680 to 380,830 tons with a value of USD 1,245.80 million [1] This is in line with the trend of cocoa production over the past two decades, which experienced a growth rate of 3.6 percent, with 421,142 tons in the year 2000 increasing to 737,483 in 2020 [1]. This shows that 97.29% of Indonesian cocoa is produced by small-scale plantations [2] with farmers' involvement by 1,370 million households [3].
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