The Efficiency Analysis of Sugar Cane Production in the Working Area of PTPN VII Bungamayang Business Unit North Lampung District Lampung Province.

Abstract

The objectives of this study are: (1) to analyze smallholder sugarcane farm system (plant-cane and ratoon cropping patterns) in partnerships that Tebu Rakyat Kredit (TRK-Credit Sugarcane Smallholder partnership) and Tebu Rakyat Bebas (TRB-Independent Sugarcane Smallholder partnership) in the working area of PTPN VII Bungamayang Business Unit and influence partnerships on sugarcane farmers' income levels of sugarcane smallholder, (2) to analyze production efficiency rate on sugarcane smallholders in the working area of PTPN VII Bungamayang Business Unit and influence of partnership on production efficiency on sugarcane smallholders. The results of farm income analysis indicate that smallholder sugarcane farm in the study area on plant-cane and ratoon cropping pattern financially feasible. Farmers' income on ratoon greater than plant-cane cropping pattern and farmers' income on TRK partnership greater than TRB. The estimation results of smallholder sugarcane farms using a frontier production function shows that land, fertilizer (Urea, TSP, KCL), pesticide (solid and liquid) and labour variable have positive significant effect in plant-cane cropping pattern. While land, fertilizer (Urea, TSP, KCL), pesticide (liquid) and labour variable have positive significant effect on ratoon cropping patterns. The technical inefficiency of farmers on plant-cane and ratoon cropping pattern is influenced by education, experience and farm size. Farm size has greatest influence to reducing technical inefficiencies. The partnership has positive influence because it makes farmers efficient technically on plant-cane and ratoon cropping patterns. The farmers have been able to reach allocative and economic efficiency on ratoon but have not on plant-cane cropping patterns. Based on partnership TRB farmers more efficient in technical, allocative and economic efficiency than TRK.