Judul: The effect of partnership to efficiency of virginia tobacco in Lombok Island West Nusa Tenggara
Abstrak: The 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
Keyword: partnership system, eficiency, inefficiency, agribusiness