Impact of Production Efficiency and Appropriate Technology to Smallholder Dairy Farm’s Revenue

Abstract

The research aims to know the influence of appropriate technology toward smallholder dairy farm business revenue and to the technical efficiency of production factors. This research was conducted in Subang district to the members of dairy cooperatives smallholder dairy farmers from the 1stApril to the 30th June 2015. The survey was used to collect the data from 30 respondents, chosen by simple random sampling. The Cobb Douglass analysis was used to determine the appropriate technology as production factors influenced dairy farm revenue. The result showed that the application of appropriate technology feed, cow-shed, breeding and innovation, were significantly affected to the farm revenue (R2=0.823). For production factors, the positive effect of the revenue is show by feed and cow-shed, but the breeding and innovation are not giving effect. The technical efficiency showed that feed had achieved efficiently, drawn from the analysis of return to scale of 1.941. This value shows that the small holder dairy farm is on an increasing return to scale condition which is suitable to develop.  Keywords: Dairy Farmer, appropriate technology, revenue and farm business