Income share and technical efficiency in the broiler partnership system in Sleman regency, Yogyakarta

Abstract

Abstract This study aimed to measure the income share of the owner of production factors of plasma-core in partnership system, and analyze the technical efficiency based on economics of scale. The research was conducted in Sleman Regency as broiler production centre, using 64 determined farmers purposively as samples based on farmers’ participation in the partnership for at least 1 year long. Primary data was acquired by survey method with in-depth interviews using questionnaires. Descriptive analysis showed in average and percentage was used to measure income share in the partnership system, whereas Cobb-Douglass production function was used to determine technical efficiency with OLS method. The results showed that the core company as the owner of the production factors took 87.14% of the gross income for feed, DOC, medicines cost that were supplied. Plasma gets of income share from labor and management as 1.76% and 1.50% respectively. The Cobb-Douglass regression shown that coefficient ß is 0.946 (P <0.01), this which mean the plasma was in a condition of decreasing return to scale. They need better cooperation between core and plasma in the use of production factors such as feed and medicines, then that the plasma can be technically more efficient.