BROILER POULTRY FARMING OPEN HOUSE SYSTEM PATTERNS STOCHASTIC FRONTIER OF ECONOMIC, TECHNICAL AND ALLOCATIVE EFFICIENCY OF IN LAMONGAN REGENCY EAST JAVA

1. Animal Husbandry Departmentof Polythecnic State Jember. 2. Postgraduate Animal Husbandry of Brawijaya University. ...................................................................................................................... Manuscript Info Abstract ......................... ........................................................................ Manuscript History Received: 30 November 2019 Final Accepted: 31 December 2019 Published: January 2020 The purpose of this study was to examine and analyze the level of economic, technical and allocative efficiency of the use of production factors for the type of open house system cages per breeder individual in Lamongan Regency and study and analyze what factors affect economic efficiency, allocative efficiency and technical efficiency in the closed house system cages.The sampling technique used in this study was a multistage sampling method which consisted of 14 breeders who partner with PT. X Lamongan Regency, East Java. The result of thestudy was the R/C ratio of broiler poultry farming with Closed House System (CHS) of 1.13. Input variables that affected the production function of broiler poultry farming with a Open House System (OHS) patterns are DOC, feed, vaccines, and electricity & water. Input variables that affect the cost function of poultry farming with a Open House System (OHS) pattern were DOC, feed, vaccines, and electricity & water. The Open House System (OHS) broiler poultry farming business in Lamongan Regency has not been technically efficient even though a high level of technical efficiency was obtained in each of the business patterns of 0.958 in the Open House System (OHS) pattern. The diversity of technical efficiency level in the broiler poultry farming business with aOpen House System (OHS) pattern of 0.031 was influenced by inefficiency sources, namely age and education because the age of Open House System breeders in the average productive age and the average education of scholars who supported the operation of broiler poultry cages. The ability of breeders in minimizing costs to achieve average broiler production with a Open House System (OHS) pattern of 15,142.8 live chickens was at satisfaction level but did not meet economic efficiency with an average economic efficiency of 0.9999750 with Open House System (OHS) pattern. The average level of allocative efficiency in broiler poultry farming business with the pattern of Open House System (OHS) the average level of allocative efficiency obtained was 1.045. This showed that the Open House System (OHS) broiler poultry farming business has been allocatively efficient. The suggestions of this studyare the real time monitoring from the core parties namely reporting sapronak data, mortality and daily events on plasma parties by using the application of

The purpose of this study was to examine and analyze the level of economic, technical and allocative efficiency of the use of production factors for the type of open house system cages per breeder individual in Lamongan Regency and study and analyze what factors affect economic efficiency, allocative efficiency and technical efficiency in the closed house system cages.The sampling technique used in this study was a multistage sampling method which consisted of 14 breeders who partner with PT. X Lamongan Regency, East Java. The result of thestudy was the R/C ratio of broiler poultry farming with Closed House System (CHS) of 1.13. Input variables that affected the production function of broiler poultry farming with a Open House System (OHS) patterns are DOC, feed, vaccines, and electricity & water. Input variables that affect the cost function of poultry farming with a Open House System (OHS) pattern were DOC, feed, vaccines, and electricity & water. The Open House System (OHS) broiler poultry farming business in Lamongan Regency has not been technically efficient even though a high level of technical efficiency was obtained in each of the business patterns of 0.958 in the Open House System (OHS) pattern. The diversity of technical efficiency level in the broiler poultry farming business with aOpen House System (OHS) pattern of 0.031 was influenced by inefficiency sources, namely age and education because the age of Open House System breeders in the average productive age and the average education of scholars who supported the operation of broiler poultry cages. The ability of breeders in minimizing costs to achieve average broiler production with a Open House System (OHS) pattern of 15,142.8 live chickens was at satisfaction level but did not meet economic efficiency with an average economic efficiency of 0.9999750 with Open House System (OHS) pattern. The average level of allocative efficiency in broiler poultry farming business with the pattern of Open House System (OHS) the average level of allocative efficiency obtained was 1.045. This showed that the Open House System (OHS) broiler poultry farming business has been allocatively efficient. The suggestions of this studyare the real time monitoring from the core parties namely reporting sapronak data, mortality and daily events on plasma parties by using the application of ISSN: 2320-5407 Int. J. Adv. Res. 8(01), 1053-1060 1054 the FMDC tool for monitoring and evaluating the implementation of partnership cooperation, strict criminal and civil law sanctions for plasma parties which are proven to commit fraud in implementing partnership cooperation, an increase in the price of guarantee certificates for each new plasma that wants to join as a breeder.

Introduction:-
The Indonesian's local poultry market faces uncertain market conditions because Indonesia lost the 2019 World Trade Organization (WTO) session. Indonesia's defeat triggered the opening of opportunities for imported Brazilian broilers to enter the Indonesian market which is predicted to have lower prices because it has a stock of used vaccine thigh meat overflow. The cost of poultry industry feed is high because the price of corn is expensive. The government must protect traditional markets so that the majority of products sold are dominated by local breeds rather than imports. The Indonesian government has made several efforts, namely limiting the production of DOC in breeding with scheduling programs, parent stock rejects early and infertile hatching eggs sold in the market as consumption eggs.
The Indonesian government needs to increase the efficiency of national chicken production, one of them is to improve an efficient cage management system, provide stable and inexpensive chicken feed, increase national chicken production efficiency and regulation of poultry partnership management. By looking at these conditions, the availability of cheap chickens is needed from the efficient management of broiler poultry farming thereby increasing the competitiveness of local poultry products. The purpose of this study was to study and analyze the level of economic, technical and allocative efficiency of the use of production factors for the type of closed house system cages per breeder individual in Lamongan Regency and study and analyze any factors that affectedeconomic efficiency, allocative efficiency and technical efficiency in the Open House Systemcages.

Research Time and Place:
The study was carried out from November 2018 to August 2019. The location was in Lamongan Regencywith a closed house system cages in partnership with PT. X in Lamogan Regency.

Sampling Method:-
The Multistage Sampling Method was used to select PT'. X to determine the sample size of 14 respondents from a total population of 104 respondents from the open house and close house breedersby using the Slovin formula: N n = ---1 + N(e)² Description; n = the total of samples desired N = total population e = precision used 10% which is the degree of deviation from the characteristics of the sample to the population. The research data used were 6 times the last production process from each breeder. The total of data used was the multiplication between the total of broiler poultry breeders and the total of production processes. The Illustration matrix of Open House System contract partnership research data is presented in the following table.

Data Collection Techniques: Data collection in this research was carried out as follows:
Interview, namely in-depth interview with breedersby using a questionnaire, in the form of semi-closed and open questions.

Data Analysis Methods:
The stages of data analysis in this study were as follows: 1) the analytical method used to determine the level of income of closed house system breeders was income analysis. 2) To find out the data used in this study was the Best Linear Unlimited Estimator (BLUE) classic assumption test was performed. 3) To find out the factors that affected the production function and the cost function of broiler poultry farming business with All data in this study were analyzed by using Minitab 16 and Frontier software version 4.1c. to obtain in-depth information and perceptions from respondents.

Analysis of Production Function of Broiler Business:
Factors that directly affect the production of broiler poultry in the Open House System of the contract partnership pattern are: chicken seedlings (DOC), feed, medicine, electricity, fuel and labor. The functional form of Cobb-Douglas is mathematically formulated as follows: LnYchs or ohs = β0 + βILnXl +β2 LnX2+β3 LnX3+β4 LnX4 + β5 LnX5 + β6 LnX6 + β7 LnX7+ β8 LnX8 Vi -rUi Description: Y = Production of Open house broiler poultry systems or open per production period (kg live weight/production period) XI = Total of broiler poultry seeds (DOC) per production period (chick in tail/production period) X2 = Total of feed used per production period (kg feed intake/production period) X3 = Total of medicine used per production period (liters of orange vitamin medicine/production period) X4 = Total of electricity used per production period (kwh/pp) X5 = Total of fuel used per production period (liters of gasolek/production period) X6 = Total of workers used per production period (JKSP/production period) β0 = constant βi chs or ohs -β6 chs or ohs = Predicted variable fixed input parameter Ln = Natural Logarithm e = 2,718 Vi = An error has been made because of a random retrieval Ui = Effect of technical efficiency that appears

Function cost analysis of Broiler Poultry Farming Business:
Factors that directly affect the cost function in the broiler poultry farming business with the open house system (OHS) contract partnership patterns are: chicken seed costs (DOC), feed costs, medical costs, electricity costs, fuel costs, labor and production costs. The mathematical formula is as follows: LnCi chs or ohs = α0 + α1LnW1 + α 2LnW2 + α3LnW3 + α4LnW4 + α5 Ln W5 + α 6LnW6 + α 7LnY + α 8LnY Vi + Ui Description: LnCi = Production costs of broilers poultry closed house system or open house system per production period (IDR/head/production period) W1 = Cost of broiler seedlings (DOC) per tail (IDR/ tail/production period) W2 = Feed cost per kilogram in one production period (IDR/tail/production period) W3 = Medical cost per unit in one production period (IDR/tail/production period) W4 = Cost of electricity used per production period (IDR/kwh/tail/production period) 1056 W5 = Fuel cost per liter in one production period (IDR/liter/tail/production period) W6 = Labor costs used per production period (IDR JKSP/day/production period) Y = Total of broiler poultry production closed house system or open house system per production period (IDR/tail/production period) α0 = Constant α1 -α6 = Parameter for expected input variable Ln = Natural Logarithm e = 2,718 Vi = An error has been made because of a random retrieval Ui = Effect of technical efficiency that appears Result And Discussion:-Technical Efficiency Analysis:  Table 2is found that the Open House System (OHS) has been technically efficient. The achievement of a high technical efficiency index value reflects the achievements of broiler poultry breeders in both business groups that are very satisfying in managing livestock business, especially in the mastery of information and the decision making the process for managing factors production. The Open House System (OHS) is a measure that breeders still have the opportunity to add several input variables to increase broiler poultry production, but the possibility to increase productivity is very small because of the narrow interval between the level of productivity that has been achieved with the maximum level of productivity. The decision on the addition of several variables became the choice of the second breeder of the broiler poultry farming business group. The input variables that are recommended to be added by broiler poultry breeders with a Closed House System (CHS) pattern are chicken feed and seedlings (DOC).  Res. 8(01), 1053-1060 1057 Figure 1 shows the technical efficiency per individual in a broiler poultry farming business with a Open House System (CHS) pattern. From these results, it is obtained the highest value of 0.971 in breeder no. 6 and the lowest value of 0.923 in breeder no. 5.  (2019) The estimation of the effect of the technical inefficiency of production in the broiler poultry farming business with the Open House System (OHS) pattern shows that the Age and Education variable has a significant effect on the production of the broiler poultry farming business, while the other variables do not have a significant effect.

Allocative Efficiency Analysis:
Every entrepreneur in production always uses several inputs in an optimal total to get the maximum number of production results. The use of several production factors will be different between one entrepreneur and another entrepreneur so that the production results and the profits obtained will also be different. The difference is also experienced by broiler poultry breeders with an open house system pattern. The difference is thought to be caused by differences in the ability of both knowledges about livestock business and financial capabilities. The difference in ability between broiler poultry breeders causes differences in the proportion of the use of production factors and the price of production factors. The use of production factors and the different price of production factors between breeders in the broiler poultry farming business with a closed house system pattern and broiler poultry breeders with a Open House System pattern will have an impact on the profits obtained by breeders. Therefore, with different abilities owned by breeders, it will be different in maximizing profits. The efforts of broiler poultry breeders with a closed house system pattern in maximizing profits can be seen from the achievement of allocative efficiency values.
The estimation of the allocative efficiency level in most previous studies uses the ratio between the Marginal Product Value (MPV) and the price of production factors. The estimation aims to determine the level of use of production factors. In this study, the allocative efficiency level is assumed to use the ratio between the results of the level of economic efficiency derived from the frontier cost function and the result of the level of technical efficiency derived from the frontier production function. The purpose of using this method is so that the level of allocative ability per individual breeder both broiler poultry breeders with a closed house system pattern can be known. The distribution of allocative efficiency values achieved by broiler poultry breeders with the closed house system pattern is presented in the following table.  Table 4 shows that the allocative efficiency values obtained by broiler poultry breeders with a open house system pattern range from 1,000 to 1,211. Based on the highest and lowest allocative efficiency values achieved by the two broiler poultry farming businesses, there is diversity in the ability of breeders to maximize profits, but this is not the case when seen from the average allocative efficiency values obtained. The average value of the allocative efficiency of a broiler poultry farming with the closed house system pattern obtained is 1.0 (rounding number).

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These results indicate that the overall broiler poultry farming business with closed house system pattern has maximized the level of profit or in other words that the overall broiler poultry farming business has used several inputs optimally to obtain the maximum total of production. The achievement of the average allocative efficiency values between the two groups of the same broiler poultry farming (rounding numbers) is thought to be caused by several factors of production used originating from the same source and the similarity in the price of these factors of production.

Economic Efficiency Analysis:
The success rate of the performance of broiler poultry breeders with a open house system pattern can be known through the use of production factors in producing high production with minimum costs to the production factors. The success rate of broiler poultry farming can be said to be economically efficient if technically the breeders are efficient using production factors by streamlining the prices of these production factors. The level of success achieved between breeders will differ from one another due to differences in the level of knowledge and ability to the broiler poultry farming business. Achieving economic efficiency from broiler poultry breeders with a closed house system pattern is presented in the following table. Based on table 5,it shows the average value of economic efficiency achieved by the broiler poultry farming business with a closed house system pattern is 0.9999740 (rounding number). This shows that on average all breeders in the two broiler poultry farming business groups have almost the same ability in minimizing production costs for the use of several production factors. The ability which is almost the same between the two broiler poultry farming businesses is thought to be caused by all the production factors used originating from one source which causes the uniformity of the price of the production factor.