Allocative Efficiency of Cocoa Farming in Madiun Regency

Abstract

The objectives of the study are: (1) to identify factors that affect the production of cocoa farming, (2) to measure the allocative efficiency of cocoa farming, and (3) to estimate the income and profit of cocoa farming in Madiun Regency. The general method used in this research is descriptive analysis. This research was conducted in District Dagangan and District Gemarang, Madiun Regency, from October 2017 to March 2018. The selection of research location and respondents used purposive sampling, with the total of the respondents were 50 farmers. The analysis methods used in this study are a regression analysis to determine the factors affecting the production of cocoa, allocative efficiency analysis, as well as revenue and profit analysis. The result showed that: (1) factors that increase the production of cocoa farming were the total of cocoa trees, the used of fungicide, and farming experience, while factor that decreases the production of cocoa farming is the age of cocoa trees, (2) total of cocoa trees and use of fungicide had not achieved efficiently, and (3) the average of income from cocoa farming is IDR 9,633,555.45/ha/year, and the profit is IDR 1,617,338.24/ha/year.