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The Impact of Vertical Integration Intensity on Broiler Farms Technical Efficiency: The Case of Contract Farming in West Sumatera

Tropical Animal Science Journal · Vol. 42 No. 2 (2019) · hlm. 167–174

DOI
10.5398/tasj.2019.42.2.167
ISSN
2615-790X, 2615-787X
Terbit
2019-07-23
Penerbit
Faculty of Animal Science, IPB University
Bahasa
eng

Abstrak

Contractual arrangements of different types have increasingly found in West Sumatera not only in subsistence and commercial crops but particularly also in livestock sector. Contract farming in livestock agribusiness is generally defined as broiler farms under an agreement between farmers and a livestock inputs supplier. Within this broad definition, there are different variants of contracts depending on the formality and intensity of contractual arrangement. This study objective was to prove that the design of a contract, as representation of vertical integration intensity in broiler agribusiness, has different efficiency effects on production. The stochastic frontier production function was used in this study, and employed a regression method to estimate the level of technical efficiency. Data were collected from 87 broiler fattening farms consisted of 50 broiler fattening farms under formal contractual system and 37 broiler fattening farms under informal contractual system. The results showed that farm experience and improvement of the contract system would reduce the level of technical inefficiency of broiler farms. The study concluded that broiler farms under formal and detail contract farming had greater technical efficiencies compared to broiler farms under informal unwritten contract arrangement. However, the broiler farms under informal contract obtained higher net returns compared to the broiler farms under formal contract arrangement.

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  • Hasanuddin University
  • Universitas Muhammadiyah Bulukumba
  • Institut Teknologi Bacharuddin Jusuf Habibie
  • IPB University
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Meysa Atika PuteriAfiliasi tidak diketahui1
Threevaldo Joan SaputraAfiliasi tidak diketahui1
Musdalifah Akbar SimanjuntakAfiliasi tidak diketahui1
Edwin RandalangiAfiliasi tidak diketahui1
Athira SalsabilaAfiliasi tidak diketahui1
Andi Hamril Vikri Al FarisiAfiliasi tidak diketahui1
Meysa Atika PuteriHasanuddin University1
Harianto HariantoHasanuddin University1
Threevaldo Joan SaputraHasanuddin University1
Musdalifah Akbar SimanjuntakHasanuddin University1
Edwin RandalangiHasanuddin University1
Athira SalsabilaHasanuddin University1
Andi Hamril Vikri Al FarisiHasanuddin University1
Harianto HariantoHasanuddin University1
Sulma SulmaUniversitas Muhammadiyah Bulukumba1
Muhammad Rifki NisardiInstitut Teknologi Bacharuddin Jusuf Habibie1
Suriani SurianiHasanuddin University1
Hukmah HUkmahUniversitas Muhammadiyah Bulukumba1
Dian FirmayasariUniversitas Muhammadiyah Bulukumba1
Juhadi JuhadiAfiliasi tidak diketahui1
Sula Ari ApriantoAfiliasi tidak diketahui1
Ananto AjiAfiliasi tidak diketahui1
Rakhman SofyanAfiliasi tidak diketahui1
Siti JahrohAfiliasi tidak diketahui1
Rike SitioAfiliasi tidak diketahui1
Suprehatin SuprehatinAfiliasi tidak diketahui1
Norma NingsihAfiliasi tidak diketahui1
Teguh SutantoAfiliasi tidak diketahui1
Dominicus Savio PriyarsonoAfiliasi tidak diketahui1
Noer Azam AchsaniAfiliasi tidak diketahui1
Dina Nurul FitriaAfiliasi tidak diketahui1
Ujang SumarwanIPB University1
Yudha Heryawan AsnawiAfiliasi tidak diketahui1
Affan Hilman SutartoAfiliasi tidak diketahui1
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Sumber metadata: OAI-PMH (metadata jurnal) https://journal.ipb.ac.id/index.php/tasj/oai, pertama di-harvest 10 Nov 2026, terakhir terlihat 10 Nov 2026.
Metadata asli (oai_dc) 
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	<dc:title xml:lang="en">The Impact of Vertical Integration Intensity on Broiler Farms Technical Efficiency: The Case of Contract Farming in West Sumatera</dc:title>
	<dc:creator xml:lang="en">Harianto, Harianto</dc:creator>
	<dc:creator xml:lang="en">Kusnadi, N.</dc:creator>
	<dc:creator xml:lang="en">Paramita, D. A.</dc:creator>
	<dc:subject xml:lang="en">broiler farming</dc:subject>
	<dc:subject xml:lang="en">contract-farming</dc:subject>
	<dc:subject xml:lang="en">technical efficiency</dc:subject>
	<dc:subject xml:lang="en">vertical-integration</dc:subject>
	<dc:description xml:lang="en">Contractual arrangements of different types have increasingly found in West Sumatera not only in subsistence and commercial crops but particularly also in livestock sector.  Contract farming in livestock agribusiness is generally defined as broiler farms under an agreement between farmers and a livestock inputs supplier. Within this broad definition, there are different variants of contracts depending on the formality and intensity of contractual arrangement. This study objective was to prove that the design of a contract, as representation of vertical integration intensity in broiler agribusiness, has different efficiency effects on production.  The stochastic frontier production function was used in this study, and employed a regression method to estimate the level of technical efficiency.  Data were collected from 87 broiler fattening farms consisted of 50 broiler fattening farms under formal contractual system and 37 broiler fattening farms under informal contractual system. The results showed that farm experience and improvement of the contract system would reduce the level of technical inefficiency of broiler farms. The study concluded that broiler farms under formal and detail contract farming had greater technical efficiencies compared to broiler farms under informal unwritten contract arrangement.  However, the broiler farms under informal contract obtained higher net returns compared to the broiler farms under formal contract arrangement.</dc:description>
	<dc:publisher xml:lang="en">Faculty of Animal Science, IPB University</dc:publisher>
	<dc:date>2019-07-23</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.ipb.ac.id/tasj/article/view/22524</dc:identifier>
	<dc:identifier>10.5398/tasj.2019.42.2.167</dc:identifier>
	<dc:source xml:lang="en">Tropical Animal Science Journal; Vol. 42 No. 2 (2019): Tropical Animal Science Journal; 167-174</dc:source>
	<dc:source>2615-790X</dc:source>
	<dc:source>2615-787X</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.ipb.ac.id/tasj/article/view/22524/17248</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2019 Tropical Animal Science Journal</dc:rights>
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