Allocative Efficiency of Sentul Chicken Farming in Ciamis Regency, West Java Province, Indonesia

Abstract

This research was carried out with the aim to determine allocative efficiency, factors that influence allocative inefficiency and the level of allocative efficiency achieved in the Sentul chicken farming in Ciamis District. Allocative efficiency is approached by using a stochastic frontier cost function model. The results showed that output and feed costs have a positive and significant effect on production costs, while day-old chicken costs, labor costs and veterinary costs have no significant effect. Education, family size, sex and extension have a significant effect on allocative inefficiency, while age, experience and access to credit have no significant effect. Allocative efficiency level ranged from 0.4561 to 0.9956 with an average of 0.7984.

Keywords: Sentul chicken, Allocative efficiency, Allocative inefficiency