Production Function and Efficiency of Indonesian Fisheries Agroindustry (A study in East Kalimantan Province)

Abstract

Agroindustry development is an effort to improve the quality of human resources in utilizing natural resources optimally. This study aims to determine the production efficiency and competitiveness of fisheries agro-industries in East Kalimantan Province. The analysis model used is the stochastic frontier production function to determine technical, allocative and economic efficiency. This research was conducted in East Kalimantan Province, by taking locations in 5 districts and cities. The types of fisheries agroindustry that are sampled are Amplang agroindustry and salted fish.The results showed that the amplang agro-industry business technically, allocation and economy had an average value that was higher than the salted fish agro-industry. Amplang agro-industry still has a chance to improve technical efficiency by increasing productivity through better management. The average annual output of agang industry is 2010 kg, while the average value of inputs for fish is 714.4 kg, eggs 183.1 kg, flour 1,319.9 kg, and working time is 247.5 HOK. The salted fish industry produces an output of 5,456.7 kg with an average fish input of 9,716.1 kg, 2,110.1 kg of salt and 829.4 HOK working time.

Keywords: agro-industry, fisheries, production function, efficiency, Indonesia

DOI: 10.7176/JESD/10-24-09

Publication date: December 31^st 2019