Factors affecting variation of total factor productivity in cocoa farming in the Central Sulawesi, Indonesia

Abstract

One of the main cocoa producing areas in Indonesia is the Central Sulawesi region. Cocoa farmers have been given extension and training about agricultural technology such as pruning, fertilizing and side grafting. Nevertheless, the cocoa productivity is still low. This case has been questioned by authorities; so this research aims to measure and analyze the factors that have affected the variation of total factor productivity (TFP) in cocoa farming in the Central Sulawesi. The study selected a total of 424 cocoa farmers using a simple random sampling technique. The model of stochastic frontier function of translog forms was used to anticipate factors affecting cocoa production. The Cobb-Douglas production function was used in TFP variation. The results showed that TFP of cocoa farming varied from a minimum of 0.371 to a maximum of 1.407 with an average of 0.803. Technical efficiency, education, extension access, cocoa farming experience, sanitation, and fermented cocoa beans affected TFP variation significantly. These six factors appeared to be the main determinant factors of TFP variation. However, technical efficiency was the most important factor, so policies should aim at mobilizing resources toward expanding education and extension. In addition, extension services should provide information to cocoa farmers on using inputs efficiently.

Evaluation of economic efficiency from smallholder cocoa investment in Indonesia: A case study in central Sulawesi province with tropical climate

“…This happened because of the cultivation costs including the cost of fertilizers, pesticides, and labor (production inputs). The use of fertilizer and labor could increase the production and quality of cocoa Effendy and Antara, 2015;Effendy, 2018). Figure 3 shows the total costs, revenue, and income of cocoa farming in the research area.…”

“…Pest and disease attacks, old plant age, lack of resources and improper production mechanisms have resulted in decreased production and quality of cocoa beans in Indonesia (Neilson, 2008;Effendy and Antara, 2015). Cocoa production in Indonesia has a stagnant or decreasing trend (Effendy et al, 2013;Effendy and Antara, 2015;Effendy, 2018). One of the possibilities that could change the current state is to apply new technologies such as somatic embryogenesis technology and side-grafting (DPDJP, 2009;Effendy et al, 2013;Claudia et al, 2016).…”

“…The problem of cocoa bean production has not been resolved completely. This was evidenced by the decrease in cocoa beans production exports, the decrease of the orchards area and the yield per hectare Effendy and Antara, 2015;Effendy, 2018). Farming companies were forced to follow changes in the international market, so the new investment decision became a solution.…”

“…These costs could be reduced by improving labor productivity and introducing resistant varieties against various diseases and pests. Reducing operating costs would improve cost efficiency so that they would improve product competitiveness (Patil and Poddar, 2016;Effendy, 2018). Economic efficiency of cocoa farming became the strategic task of farmers.…”

The Efficiency of Smallholder Rubber Plantations and the Factors That Influence It: A Case Study in Indonesia

“…However, the increase in rubber productivity is still slow, so it is necessary to design a strategy that can be implemented to improve smallholder rubber productivity. One effort that significantly affects productivity is a more efficient allocation and use of resources [5,6]. However, efforts to improve productivity must be supported by solid empirical knowledge of the technical efficiency of production and the allocation of resources.…”