Production Efficiency of Small-Scale Layers in Indonesia

Abstract

Competitiveness of  layer business was determined by the level of efficiency, which among others were influenced by the level of technology adoption, production costs, and economy of scale. This study was carried out from April to July 2017 with aimed to analyze the performance of small-scale layer poultry farming. The study site was in the layer production center, namely in Payakumbuh West Sumatera, Blitar East Java and Sidrap South Sulawesi. Primary data were collected through interviews with 50 farmers and 12 poultry shops at all study sites. Analysis of the efficiency level is using DEAP (Data Envelopment Analysis Program) software and business feasibility using financial analysis. The following were the main research findings: (1) the development of layer farming technology has not been responded well by farmers, thus the level of production and mortality of chickens were still below standard; (2) relatively, the level of layer poultry farming efficiency in Sidrap and Payakumbuh was better than in Blitar with a value closer to one, where the inefficiency was due to the use of excessive inputs; and (3) small-scale layer poultry farming was financially feasible, where the determining factors were feed and eggs price. The study recommended the need addition of both technical service staff from poultry shops as well as local agricultural extension workers. Feed costs should be reduced by IDR 1,000 in Blitar and IDR 57 di Sidrap per kilogram of eggs produced per period. In addition, an accurate and better allocation of corn for feed was needed to optimize the ratio of feed and egg price optimal.

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