Technical efficiency of beef cattle production in the regency of Minahasa Tenggara, province of North Sulawesi, Indonesia

Abstract

A fattening cultivation of beef cattle in the Province of North Sulawesi is managed by the backyard farming, characterized by a lower productivity, small-scaled business, and traditional management. This type of business has become priority to satisfy the need of beef consumption. Then, the objective of this research is to analyze the extent of technical efficiency of beef cattle fattening. In detail, data collection was conducted in both Districts of Belang and Tombatu Timur, Regency of Minahasa Tenggara on January-February 2022. Two villages of the respective District were selected purposively as the sampling village. Additionally, the research used primary data, obtained from 60 farmers and selected by purposive sampling method. The data, then, was analyzed using the production function of the Stochastic frontier. In sum up, the results of analysis demonstrate that the fattening industry of beef cattle was feasible to perform, but the output of technical efficiency of beef cattle industry was still low, by its average of efficiency index value of 0.670. Meanwhile, the determining factors of beef cattle production were labor, green feed, and weight of feeder cattle. The access, therefore, to information sources, such as technical training and access to the improvement of total beef by capital increasing, is necessary to be developed.

Technical Efficiency of Beef Cattle Farms in Peninsular Malaysia

“…Some literature provides in detail the input use in the farms. The input list include concentrated feed (kg), roughage feed (kg), veterinary services and cost, worm medicine(dose), vitamins (dose), fuel (litre), farm size (acre), herd size (head), energy cost and other variable cost (Gul et al, 2018: Wantasen et al, 2022: Hansson & Öhlmér, 2008Nwigwe et al, 2016;Madau et al, 2017;Palacpac & Valiente, 2023).…”

“…Meanwhile, this research focus on the beef productivity. Most of the research focus on the financial value of the beef cattle in currency such as revenue and sales (Hansson, 2008;Wantasen et al, 2022;Dakpo et al, 2019). Few of the literature had highlight the beef cattle in volume of kilogram as output (Wantasen et al, 2022).…”

“…Isyanto et al (2013) found the beef cattle fattening efficiency determined by the involvement of family labour and concentrated feed while education, experience, number of cattle ownership, and credit had significant effect on the level of technical inefficiency with age and family size had no significant effect. Wantasen et al ( 2022) suggest the beef cattle farm would increasing their business scale (more efficient) with the inclusion of family labour and expectation to increase income. It shows, then, that the lesser total raised cattle, lower education, smaller annual income and business risk, the higher the opportunity to improve the business scale of beef cattle farms in North Sulawesi .…”