Analyzing Efficiency of Coffee Agribusiness in Malang: Data Envelopment Analysis Approach

Department of Development Economics, Faculty of Economics and Business, Universitas Negeri Malang, Indonesia

^* Corresponding author: muhammad.hasyim.fe@um.ac.id

Abstract

The Malang Regency holds significant potential for the advancement of coffee plantations as a leading commodity. The Dampit District has emerged as the top district in coffee production, producing 2,280.30 tons. The aim of this research is to assess the technical effectiveness of the robusta coffee sector in the Dampit District of Malang, Indonesia. The approach employed in this research to achieve its aims is Data Envelopment Analysis (DEA). Technical efficiency is evaluated to measure the productivity of robusta coffee farms located in the Dampit District of Malang Regency. The results of the research suggest that there exists a particular region with a relatively efficient score of 1. This region acts as a standard by which other regions can be evaluated. We engaged 10 groups of farmers, referred to as DMUs (Decision Making Units) in the DEA method. Based on the results of the Data Envelopment Analysis (DEA), it is clear that the robusta coffee plantations in Dampit District, Malang Regency, have not achieved optimal levels of efficiency in their operations. The use of different input variables, such as land area, tree quantity, and fertilizer volume, has resulted in less-than-optimal results.