Analysis of Business Efficiency and Profit Factors of Local Broiler Duck Using Cobb-Douglas Production Function

Abstract

The local broiler duck business has a large and potential market in urban areas. Because it has adequate transportation facilities and infrastructure, so duck meat that is raw material can be immediately accepted by consumers. Local duck farming can be well developed through: facility and infrastructure subsystem, cultivation business, post-harvest, yield processing, and yield marketing business. This study aims to determine how much the cost of concentrate ration, seedling costs, labor costs, and mortality affect business efficiency, and determine the profit factor of the business of duck farming. The model used in this analysis is the Cobb-Douglas production function. The results of the efficiency analysis show that all local beef duck business is efficient, with an average efficiency level of 1.60. Factor ration prices, seed prices, labor costs, and mortality have a negative and significant effect partially on business profits. All independent variables consisting of concentrate ration costs, seed costs, labor wage costs, and mortality together affect profit. The analysis yields a coefficient of determination of 74%, this shows that the independent variable variation can explain the relationship of 74% to the profit of local broiler ducks, and the remaining 16% by other factors not explained by the model.