PRODUCTION AND MARKETING EFFICIENCY OF PATCHOULI OIL INDUSTRY IN INDONESIA

E. ERNAWATI

Ph.D Scholar in Economics, Faculty of Economics and Business, Universitas Syiah Kuala (USK), Atsiri Research Center-Pusat Unggulan Iptek Perguruan Tinggi (ARC-PUIPT) Nilam Aceh, USK, Indonesia

minaraqi@yahoo.com

Raja MASBAR

Professor, Faculty of Economics and Business, Universitas Syiah Kuala (USK), Indonesia

raja.masbar53@gmail.com

M. Shabri Abd. MAJID*

Professor, Faculty of Economics and Business, Universitas Syiah Kuala (USK), Indonesia

 mshabri@unsyiah.ac.id

*Corresponding author

Abd. JAMAL

Associate Professor, Faculty of Economics and Business, Universitas Syiah Kuala (USK), Indonesia

abdjamal@unsyiah.ac.id

Abstract

This study aims to empirically measure and analyse the production and marketing efficiency of the patchouli oil industry in Aceh, Indonesia. The study uses primary data collected from 120 patchouli farmers and analysed using the Data Envelopment Analysis (DEA) approach. The results showed that, on average, the patchouli oil production and marketing efficiency levels were in the moderate-eficient and the low-efficient categories, respectively. The patchouli farmers have great opportunities to improve their production and marketing efficiency by optimising the use of proper inputs’ combinations and agricultural intensification technologies.

Keywords: Production efficiency, Marketing efficiency, Agricultural technology, DEA

JEL classification: D24, C14, Q13

 pp. 135-148

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