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The effect of partnership to efficiency of virginia tobacco in Lombok Island West Nusa Tenggara

dc.contributor.advisorKusnadi, Nunung
dc.contributor.advisorKuntjoro, Sri Utami
dc.contributor.advisorFariyanti, Anna
dc.description.abstractThe grand objective of the study is to analyse the effect of partnership to efficiency of agribusiness of virginia tobacco in Lombok Island by stochastic frontier production function approach and stochastic frontier translog profit function approach. The specific objectives are to determine factors affecting output of virginia tobacco; to study the effect of partnership to technical efficiency and technical inefficiency; to study the effect of partnership to profit efficiency and profit inefficiency. The multy stage purposive sampling technique was used to select 2 regencies, East Lombok Regency included eight subdistricts (Terara, Sikur, Sukamulia, East Sakra, Sakra and West Sakra) consists of 19 villages, and Central Lombok included 2 subdistricts (Kopang and Janapria) consists of six villages. The respondents were 300 growers of virginia tobacco consists of 150 partnership farmers and 150 nonpartnership farmers. The cross section data were gathered from those 300 respondents through indepth interview. The Stochastic Frontier Production Function was used to analyse the data. The Stochastic Frontier Cobb- Douglas was used to analyse the technical efficiency an technical inefficiency. Whilest, the stochastic frontier translog profit function was used to analyse the profit efficiency an profit inefficiency. Each parameter of β0, βi, the variant of ui and vi were estimated by using Maximum Likelihood Estimation (MLE) method. Furthermore, the factors affecting output level and profits, and inefficiency factors (-ui) were analysed. The Frontier 4.1 program was used to estimate the production function parameter and profit function stochastic frontier. The results showed that the partnership had statistically an insignificant effect on the technical efficiency indicated by almost similar percentage of indice technical efficiency of both partnership and nonpartnership farmers. As well as, the parameter of partnership dummy variable as the technical inefficiency factor had a positive sign and insignificant. However, it statistically had significant effect to profit efficiency. The factors decreasing technical inefficiency and profit inefficiency were the land tenancy status, the minimum land spacious, the farming experience of farmers, the type of soil of ricefield and the kind of fuel for tobacco leaves drying. Technically, the tenant farmers more efficient indicated by the positif parameter of tenancy variable, but economically the tenancy tends to increase the profit inefficiency because of the expensive land rent. Technically, the narrow land area was more efficient, but economically the wider the land the greater the profit. In term of fuel used, kerosene was more efficient technically compared to other fuel because the farmers were accustomed to use it. They do not need much time to control it continuously, and using it could get better quality of dried leaved of Virginia tobacco. However, using it could increase profit inefficiency because it was the most costly fuel compared to others. Using eggshel of oil palm as an alternative fuel for tobacco leaves drying could decrease profit inefficiency, eventhough it is mixed with fire wood. vii The price of outputs and inputs had a significant effect to profit efficiency of agribusiness of Virginia tobacco, so that the outputs price is often to be farmers‟ consideration for production decision. The outputs and inputs price are the main determinant of production decision of farmers. Therefore, the private firms, local government and representative farmers always conduct output price discussion regularly every early sowing season. The determination of output price is determined based on the total cost of production per hectare plus the persentage of reasonable profit. The most expensive production cost components of agribusiness of Virginia tobacco was the wages of casual labors followed by the cost of fuel. The high cost of agribusiness of Virginia tobacco is related to the existence of transaction costs. The high cost also affected the profit inefficiency. The transaction costs were presumable adhered in the variable costs, such as the price of KNO3, Fertila, SP36, pesticide and fuel. The other costs affecting profit efficiency were shell stove maintanance, interest rate, marketing expenditure and wages of labors. The productivity of Virginia tobacco and profit could be improved through empowering and involving non partnership farmers. It could be joining them to skilled partnership farmers who have much experinces. Empowering nonpartnership farmers is an appropriate strategy to improve outputs quality of Virginia tobacco. To do so, there will not be a rejected tobacco by private firms of tobacco in Lombok. The sustainable agribusiness of Virginia tobacco in Lombok is not enough by involving private firms of tobacco and estate office only, but it is very important to involove other stakeholders, such as climate and meteorological forecasting board (BMKG), Bank NTB and trade office. The local government should do some efforts and strategies to facilitate farmers on partnership particularly in fuel supply. Financial institution, such as Bank NTB is expected to be accessible for farmers of Virginia tobacco. Eventhough the partnership had statictically insignificant effect on technical effciency, but it is still needed for decreasing profit inefficiency. It has a big chance fo improve its implementation properly. Implementing partnership of agribusiness of Virginia tobacco in Lombok is an appropriate and feasible choice for improving economy of farmers. It is still needed so far as long as the growers of Virginia tobacco have not found any other market access to sell their outputs.en
dc.publisherIPB (Bogor Agricultural University)
dc.titlePengaruh kemitraan terhadap efisiensi agribisnis tembakau virginia di Pulau Lombok Nusa Tenggara Baraten
dc.titleThe effect of partnership to efficiency of virginia tobacco in Lombok Island West Nusa Tenggara
dc.subject.keywordpartnership systemen

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