6 RESULT AND DISCUSSION

Transcription

1 6 RESULT AND DISCUSSION This chapter is divided into three parts. There are general characteristics of rice milling industry, efficiency of production factors, relative efficiency of rice milling industry, and comparative test. First describes about type, socioeconomics, and processing activity. Second explain efficiency of variables used in model. Third determine relative efficiency of rice milling industry. The last explain reason that comparative test is not necessary in this study. 6.1 General Characteristics of Rice Milling Industry This study attempted to describe characteristics of rice milling industry. The characteristics were type, socioeconomics, and processing activity of rice miller. Type of rice miller represented the difference between rice millers to each other. Based on business management, this study identified three types of rice miller. First type was makloon (service rice miller). This type only offered milling service to consumers. So, this type did not procure grain for production. In general, this type faced consumers from around rice miller site. Mostly, farmers used rice miller service for own consumption. Amount of milled grain was not too much. It gave an overview that most of this type have relatively small capacity. On average, real capacity of this type in study site was about kg of rice per day. However, not all rice millers only faced farmers as consumers. There were rice millers that offered service to middlemen. Middlemen used service of this type and obtained rice as output. Then, they sold this rice to larger rice millers. The larger rice millers reprocessed rice to increase its quality. Due to product offered, main revenue of makloon type was derived from service fee paid by consumers. However, several rice millers also gained additional revenue from sale of byproduct of grain milling, such as rice bran and chaff. Byproducts were obtained from consumers who leave it for rice millers. So, not all rice millers can obtain additional revenue. Calculation of cost to be paid by consumers was based on amount of rice produced. Service fee offered by this type rice miller was about Rp per

2 43 kg of rice. Average cost was equal to Rp per kg of rice. Difference in the price offered was due to several things. Distance between rice millers to each other, closer distance made more competitive price to attract consumers. Consumers faced, this was related to amount of rice produced. Mostly, middlemen grind more grain than farmers. So, price faced by middlemen was relatively lower. Second type was non-makloon type. This type used machine only for own business activity. Rice millers were not offered service to consumers. For this type, farmers play role as supplier of input production. Then this rice millers processed grain into rice and its byproducts. Product offered by this type was unlike product offered by the makloon type. Rice millers were not sell service as product offered but goods such as rice, broken rice, rice bran, and chaff. So, this type obtained revenue from sale of rice and its byproducts. Real capacity was based on ability of rice miller in the grain procurement. The last type is combination of two previous types in term of cost calculation, service fee, consumers, and revenue of rice miller. This type was not only use the machine for own activity but also offer service to consumers. So, the rice millers obtained revenue from service fee and sale of the outputs produced. The mill capacity of this type was based on the amount of grain which it belong to own and consumers. Total rice millers of makloon and non-makloon were 53 units (56.38 percent) and 14 units (14.89 percent) respectively. The rest were combination of previous types that was about percent of total rice millers (27 units). Distribution of respondents by type of rice milling was shown on Table 7. Table 7 Distribution of Respondents by Type of Rice Milling Type of Rice Milling Number of Rice Percentage Milling (unit) (%) Makloon Non-makloon Combination Total

3 44 This study described about gender, occupational status, and ownership of business as socioeconomic characteristics. Gender is the visible disparity between male and female. It described gender of the owner of rice milling business. Occupational status described position of rice miller as job for owner. It means rice miller can be either main or side job for owner. It measured by length of time spent in a day for owner. In this study, ownership of business described about ownership status of place and machinery. The result showed that most of rice milling owner are male. It was about 90 (95.74 percent) of total respondents. Otherwise, total of female owner was only four respondents (4.26 percent). The occupational status of owner indicated that percent of the respondent claimed rice miller as main job. The rest owners of rice miller (29.79 percent) had other jobs beside rice milling business. The other jobs were farmer, entrepreneur, teacher, and others. Mostly, rice milling businesses whether place and machinery were privately owned. It was about 90 rice millers (95.74 percent). The rest were rent and collective. It was about 2.13 percents for each type. The socioeconomic characteristics of rice miller can be seen on Table 8. Table 8 Socioeconomic Characteristic of Sample Rice Milling Description Number of Rice Percentage Milling (%) Gender Male Female Occupational Main Job Status Side Job Business Private Ownership Rent Type Collective Generally, rice millers had a similar function. Rice millers played role as unit that processed grain into rice. For farmers, rice millers played an important role because in addition to hire services offered by rice millers, farmers can also sold grain produced. In study site, rice millers not only used machine for

4 45 commercial activity but also for service (custom) activity. So, it helped farmers who need milling service to convert grain into rice either for eating or storing. In terms of production process, rice millers had similar activity. First, rice millers buy their input, especially grain from farmers. They purchased in two forms, either in wet form (dry grain harvest) or dry form (dry grain milled). If they purchased in wet form, the grain dried by the sun. It also can be done by dryer machine, but almost all rice millers did not have dryer machine. So, almost all respondents were drying the grain manually. Process of converting grain into rice was depicted in Figure 11. Drying Process Chaff Husking Process Brown rice Rice Polishing Process Rice bran Broken Rice Figure 11 Activities of Rice Miller in Changing Paddy into Rice

5 46 Figure 12 illustrated activity of rice miller in changed grain into rice. Once dry, grain was ready for milling. First, the grain was grounded by husker (huller). This machine was used to peel skin of brown rice to produced white rice. Byproduct of this process was chaff. Then, the grain was transferred to polisher. This machine was used for polishing brown rice into white rice. Byproducts of this process were rice bran and broken rice. In the production process, each rice miller had own combination in using machine. For example, rice millers can use husker and polisher more than one time to obtained gloss white rice. The other example, rice millers used husker twice or more to produce more chaff. Conversely, rice millers used polisher more than one time to generate more rice bran. This was related to byproduct produced by each machine. In addition had similarities in the production process, there was differences about drying process and quality control of rice. First, there was no drying process in production process of makloon type. Farmers did drying process either by using personal dryer or rice miller dryer property for free. Second, in quality control of rice, makloon type was not concerned it because rice millers only provided milling services to farmers and had no control over the grain used. Otherwise, non-makloon and combination type more concerned for quality of rice produced. This was due to both types had control on the grain used. 6.2 Efficiency of Production Factors As a unit production, rice miller used input factor to produce output in certain level. Basis for determining the efficiency of each variable was value of slack owned. Output slack represented lack of output produced in the set of input. Meanwhile, input slack reflected input overuse to produce output in the same level Output Side The percentage of all variables produced in this study was mentioned on Appendix 1. This percentage was information obtained from the owner or manager of rice miller directly. For makloon type, there were 18 units rice miller

6 47 that had no information about percentage of output produced. To address this problem, this study used average percentage of the other rice millers. Percentage of rice was percent of grain used. Percentage of broken rice was zero because rice miller of this type did not do separation to obtained broken rice. Percentage of rice bran and chaff were and percent respectively. Distribution of rice miller separated by percentage of rice produced can be seen on Figure Frequency (unit) Makloon Non-makloon Combination Total Percentage of Rice Produced Range (%) Figure 12 Distribution of Rice Miller Separated by Percentage of Rice Produced Figure 13 showed that percentage of rice produced were concentrated in the percent range. 40 units in this range were makloon type. Referring to Appendix 1, the most percentage was percent which was percentage of this type. 18 rice millers were makloon type that did not had information about percentage of output produced. The rest were spread in the other range. The smallest range was percent, mostly filled by five units of rent type rice miller. The highest range was percent, all filled by eight units of rent type rice miller. Non-makloon and combination types were concentrated in the percent range. Distribution of rice miller separated by percentage of broken rice produced was illustrated on Figure 14.

7 48 77 Frequency (unit) Makloon Non-makloon Combination Total Percentage of Broken Rice Produced Range (%) Figure 13 Distribution of Rice Miller Separated by Percentage of Rice Bran Produced Figure 14 showed that 77 units of all types of rice miller were concentrated in the percent range for broken rice produced. All of rent type rice miller was 53 units in this range. Referring to Appendix 1, the rice millers had zero percent for broken rice. This type rice miller that found in the field did not produce broken rice. This was due to rice miller just follow ordered by consumer. Consumers tended to hire service to produce rice without separated from broken rice. Mostly, consumers of this type rice miller were farmers who directly consume or store rice as inventory consumed during growing season. While the other consumers were middlemen, they did not separate rice from broken rice. The rice directly sold to market or the larger rice miller for reprocessing. In this range, there were nine units rice miller of non-makloon type, in which five units rice miller had percentage by two percent for broken rice. While combination type rice miller was 15 units, in which six units had percentage by one percent. The next range, percent range, was filled by 11 units. There were eight units combination type, which in four units had percentage about five percent. The rest were non-makloon type, which in two units had percentage about five percent.

8 49 Related to the percentage of rice produced, greater percentage of rice then obtained smaller percentage of broken rice. This was due to broken rice was a byproduct resulted from the separation of rice with broken rice. Next byproduct of rice milling was rice bran. Distribution of rice miller separated by percentage of rice bran produced was illustrated on Figure Frequency (unit) Makloon Non-makloon Combination Total Percentage of Rice Bran Produced Range (%) Figure 14 Distribution of Rice Miller Separated by Percentage of Rice Bran Produced Mostly, rent type rice millers were concentrated in the percent range. There were 32 units rice miller. 18 units of rice miller which were have no information about percentage of output produced dominate this range. The rice millers had percentage by percent. The rest were rent type rice millers that had been knows the percentage. There were eight units combination type and three units non-makloon type. All rice millers had percentage about percent. Rice millers of rent type filled in the percent range were 18 units. Seven units were non-makloon type rice miller. The rest were combination type. The three types in this range had percentage by percent. Total rice millers in the percent range were 13 units. This number was dominated by combination type about nine units. Six units had

9 50 percentage about ten percent and the rest were spread out in the range. Three units rent type were contained in this range and all units had different percentages. The rest were non-makloon type with the percentage about ten percent. In the percent range, there was only two units non-makloon type with the percentage about percent. While in the range, there were a unit non-makloon type with the percentage about percent and a unit combination type with the percentage about percent. The last byproduct was chaff. Distribution of rice miller separated by percentage of chaff produced was depicted on Figure Frequency (unit) Makloon Non-makloon Combination Total Percentage of Chaff Produced Range (%) Figure 15 Distribution of Rice Miller Separated by Percentage of Chaff Produced Figure 16 showed that all types of rice miller were concentrated in the percent range. For rent type, 41 units were filled this range. This number was dominated by 18 units rice millers which were had no information about percentage of output produced with percentage about percent. The rest had spread out percentage in this range. There were seven units non-makloon type, which in five units had percentage about percent. While there were 18 units combination type filled this range. Seven units had percentage about percent and the rest spread out in the range.

10 51 Total rice millers in the percent range were 24 units. This number was dominated by rent type about 12 units. Seven units had percentage about percents and the rest spread out in this range. Six units were nonmakloon type and the rest were combination type. In percent range, there was a unit non-makloon type with percentage by 8.75 percent and a unit combination type with percentage about four percent. In the highest range, percent, there were only two units combination type with percentage about and percent. Based on the explanation above, information related to percentage of output produced was obtained for each rice miller. First, mostly, makloon type rice millers had percentage about percent for rice, zero for broken rice, percent for rice bran, and percent for chaff. The four percentages were percentage owned by 18 units rice miller that did not had information about percentage of output produced. Hence, the rice millers used the average percentage of percentage owned by the other rice millers. Slightly different from makloon type rice miller, percentage of non-makloon type and combination type were more spread. Both types produced four products from rice milling. Thus, each rice miller from both types had information about percentage of the output produced Input Side In addition to the output variables described above, the study also used input variables. It was including grain, working hour, and fuel. First, amount of grain used depends on percentage of output produced. It can be seen on the Appendix 2. While distribution of rice miller separated by working hour used was depicted on Figure 17. Figure 17 showed that majority of makloon type rice millers used machine a day in the hours range. Total of makloon type in this range were 32 units. 14 units used machine about three hours, ten units about four hours, six units about five hours, and the rest about 3.50 hours. A unit non-makloon type in this range used machine about four hours. While rice millers of combination type

11 52 in this range were six units. Three units used machine about four hours and the rest used machine about five hours Frequency (unit) Makloon Non-makloon Combination Total Working Hour Used Range (hour) Figure 16 Distribution of Rice Miller Separated by Working Hour Used In the hours range, there were only ten units of makloon type. Three units used machine for an hour and the rest used machine for two hours. In the hours range, there were seven units makloon type rice miller. Five units used machine for six hours and the rest used machine for seven hours. Seven units non-makloon type filled this range. Three units used machine for six hours and the rest used machine for seven hour. Nine units combination type filled this range. Five units used machine for six hours and the rest used machine for seven hours. In the hours range, there were 11 units combination type. All units used machine for eight hours. Four units makloon type filled this range. Four units makloon type were in this range, which in three units used machine for eight hours and the rest used machine for nine hours. In addition, there were six units non-makloon type and all use machine for eight hours. The highest range, hours, there was only one rice combination type which used for 11 hours.

12 53 The other input variable used was fuel. Distribution of rice miller separated by fuel used was depicted on Figure Frequency (unit) Makloon Non-makloon Combination Total Fuel Used Range (liter) Figure 17 Distribution of Rice Miller Separated by Fuel Used Figure 18 showed that the most makloon type rice miller using fuel in the liter range. There were 46 units makloon type in this range. Eight units used two liters of fuel, nine units used three liters of fuel, five units used four liters of fuel, ten units used five liters of fuel, five units used ten liters of fuel, and the rest used fuel with the other amount spread out in this range. In the liter range, there were five units makloon type rice miller. Three units used liter of fuel and the rest use 25 liter of fuel. There are nine units non-makloon type, which in five units use fuel about liter. While the remaining number use fuel with the other amount spread out in this range. In the liter range, there were six units combination type. Two units used fuel by liter and the rest used fuel with the other amount scattered in this range. There were three units non-makloon type with different amount each other. In this range, there was only one makloon type which uses 32 liters of fuel. In the range liter range, there were only three rice millers of combination type. Two units used liter of fuel and the rest used liter of fuel. In the liter range, there was a unit of rent and combination

13 54 types. Both types used fuel by liters. In the liter range, there was only a unit combination type which used fuel by 80 liters. Time of machine used and the amount of fuel used depend on the amount of grain processed. The more grain was processed, then more time and fuel of fuel required. However, both variables usage also depend on the machine used condition. The better machine condition safe more time and fuel required. Input slack was the number of input that could be reduced by rice miller to produce the same output. On the other hand, output slack was the amount of output that could be increased without adding the input. Summary of output and input slack of all respondents were represented in Appendix 4. Appendix 4 showed that zero slacks of all variables produced and grain for all respondents. Hence, there was no average value for slack of those variables. While, average slack of working hour and fuel were and respectively. The average output and input slacks of all respondents were represented in Table 9. Table 9 Average of Slack in Variables Used and Total Rice Miller with Non-Zero Slack Variable Mean of Slack Total Rice Miller Rice Broken Rice Rice Bran Chaff Grain Working hour Fuel Referring to Table 9, in general, rice milling industry inefficient because zero slack for all variables used was not achieved. In input side, rice milling industry was inefficient percent rice millers can reduced working hour and fuel used by hour and liter in the same level of output. However, rice milling industry was efficient in output produced. It can be seen on Table 9 that zero slack achieve for all variables output. Rice millers can produce optimal output by using all input.

14 55 However, personally, that percent of all respondents achieved zero slack of all variables (see Appendix 4). Appendix 4 illustrated the slack for each variable used of every rice miller. For example, rice miller number 1 had positive slack of fuel by It means an excess of fuel used by liter to produce output in the same level. This study attempted to link the result obtained from data processed, and its relation to input used. It was connected by using a peer of each rice miller sample. The analysis was done by taking three samples rice miller from each type analyzed. Related to Appendix 5, rice miller no 1 was compared with five other rice millers in calculating relative efficiency of both ES and slack value. The five rice millers were rice miller no 65, 22, 83, 40, and 55. Summary of variables used of the rice millers was depicted on Table 10. Table 10 Summary of Variables Used of Six Rice Millers Variable Rice Miller Rice (kg) Broken Rice (kg) Rice Bran (kg) Chaff (kg) Grain (kg) Working hour (hour) Fuel (liter) Table 10 showed that rice miller no 1 was compared with the other five rice millers similar type. As with rice miller no 1, the five rice millers were also makloon type. Rice miller no 55 is rice miller that did not had information about percentage of output produced. Referring to Appendix 1, percentage owned by rice miller no 1 same as rice miller no 40. Difference of both rice millers was time of machine used and the amount of fuel used. Then, both things made a difference in the slack calculated. Rice miller no 1 used machine for three hours and fuel by five liters to produce kg of rice. While rice miller no 40 only used machine for five hours and fuel about eight liter to produce 1, kg of rice. This amount was three times the amount of rice produced by rice miller no 1. It made the difference in slack

15 56 value of both rice millers. Rice miller no 40 achieved zero slack for all variables used. While rice miller no 1 had slack on fuel usage by It means rice miller no 1 can reduced fuel usage by liter to produced output in the same level. Second, rice miller no 18 was compared with six other rice millers in calculating relative efficiency of both ES and slack value. Peers for this rice miller were rice miller no 91, 67, 88, 16, 75, and 73. Summary of variables used of the rice millers was depicted on Table 11. Table 11 and Appendix 2 showed that rice miller no 18 was compared with the six other rice millers. Three of which were the same type rice miller. The rest were combination type. Table 11 Summary of Variables Used of Seven Rice Millers Variable Rice Miller Rice (kg) Broken Rice (kg) Rice Bran (kg) Chaff (kg) Grain (kg) Working hour (hour) Fuel (liter) In working hour variable, rice miller no 18 used machine for eight hours to produce rice about 4, kg. While rice miller no 91, 67, 88, and 75 required same time to produce more amount of rice, almost achieved percent of the difference. This made a positive value on slack for working hour variable of rice miller no 18 by Slack means that rice miller no 18 can reduce working hour by hours to produce the output in the same level. Third, rice miller no 3 was compared with six other rice millers in calculating relative efficiency of both ES and slack value. Peers for this rice miller were rice miller no 55, 67, 6, 9, 88, and 16. Four units are the same type rice

16 57 miller. While both others were makloon and non-makloon type of rice miller. Summary of variables used of the rice millers was depicted on Table 12. Table 12 Summary of Variables Used of Seven Rice Millers Variable Rice Miller Rice (kg) Broken Rice (kg) Rice Bran (kg) Chaff (kg) Grain (kg) Working hour (hour) Fuel (liter) Table 12 showed that the amount of rice produced by rice miller no 3 same as rice miller no 9. Rice miller no 3 required time of machine usage about eight hours. While rice miller no 9 only required five hours to produce the same amount. If rice miller no 3 was compared with rice miller no 67 and no 88, both rice millers were able to produce more rice by the same time of machine usage. Meanwhile, when compared with rice miller no 16, rice miller was able to produce in greater number about kg by using only five hours of working hour. Similarly, when compared with rice miller no 6, rice miller was able to produce rice about 2, kg by using only four hours of working hour. Therefore, rice miller no 3 had positive value on working hour variable about This slack means that rice miller can reduce working hour about hours to produce output in the same level. Based on slack value of all variables used, there still rice millers who not achieved zero slack on all variables. It occurred whether on working hour and fuel. It means rice miller can reduced whether working hour and fuel or both to produce outputs in the same level. This helped the rice millers to improve efficiency in the use of inputs.

17 Relative Efficiency of Rice Milling Industry Average score of constant return to scale technical efficiency (CRSTE), variable return to scale technical efficiency (VRSTE), and scale efficiency (SE) of all respondents were the same. All rice millers had ES equal to one. It was depicted in Table 13. While, the efficiency scores of each rice miller were illustrated in Appendix 3. Table 13 Summary of Average CRSTE, VRSTE, and SE Scores of All Respondents CRSTE VRSTE SE Mean Maximum Minimum Efficiency Score equal to one Efficiency Score less than one The rice milling businesses with efficiency score of were best performing rice milling. The frequency distribution of technical efficiency (CRSTE), pure technical efficiency (VRSTE), and scale efficiency (SE) scores were shown in Figure Frequency (unit) < Efficiency Score CRSTE VRSTE SE Figure 18 Distribution of CRSTE, VRSTE, and SE Scores of All Respondents In pure technical (VRS) side, referring to Appendix 3, all rice millers were operating at MPSS. Manually, this condition can be determined by comparing

18 59 both CRSTE and VRSTE scores. Due to both scores of all rice millers were similar (equal to one), all rice millers were in the same condition. Summary of return to scale of all respondent was illustrated on Table 14. Table 14 Summary of Return to Scale of All Respondents NIRS Efficiency Number of Efficiency Type Condition Rice Miller IRS Efficient Technically 0 Pure Technically 0 Scale 0 Inefficient Technically 0 Pure Technically 0 Scale 0 MPSS Efficient Technically 94 Pure Technically 94 Scale 94 Inefficient Technically 0 Pure Technically 0 Scale 0 DRS Efficient Technically 0 Pure Technically 0 Scale 0 Inefficient Technically 0 Pure Technically 0 Scale 0 Table 14 showed that a hundred percent of all respondents were at MPSS condition. Even, all of rice millers were efficient both technically, pure technically, and scale. In order to see distribution of the rice millers of each subdistrict, the table below was summary of total rice miller separated by sub-district, efficiency score, return to scale condition of all respondents that illustrated in Table 15.

19 60 Table 15 Summary of Total Rice Miller Separated by Sub-Districts, Efficiency Score, and Return to Scale Condition Sub-Districts Efficiency Total Rice Miller Score (ES) IRS MPSS DRS Total Gekbrong ES = ES < Total Warungkondang ES = ES < Total Table 15 showed sub-district of the rice miller in the first column. All rice millers both in Gekbrong and Warungkondang had ES equal to one. All rice millers in both sub-districts were at MPSS condition. Similar to Table 15, Table 16 also showed all rice millers have ES equal to one and at MPSS condition on the distribution of rice miller by type. As explanation previously, there were three types of rice miller that were separated by activity. Summary of total rice miller separated by type, efficiency score, and return to scale condition can be seen on Table 16. Table 16 Summary of Total Rice Miller Separated by Type, Efficiency Score, and Return to Scale Condition Type Efficiency Total Rice Miller Score (ES) IRS MPSS DRS Total Rent ES = ES < Total Non-makloon ES = ES < Total Combination ES = ES < Total All rice millers had ES equal to one and at MPSS condition. Present scale of all rice millers operation leads to 100 percent scale efficiency. MPSS condition means that rice millers maximize the average productivity for its given input-

20 61 output mix and then DRS set in. Based on ES and value of slack, distribution of percentage both efficient and inefficient rice millers in Gekbrong and Warungkondang was illustrated in Table 17. Table 17 Percentage of Efficient and Inefficient Rice Miller in Gekbrong and Warungkondang Type Efficiency Frequency Percentage 1 2 Total 1 2 Total Makloon Efficient Inefficient Nonmakloon Inefficient Efficient Combine Efficient Inefficient Efficient Inefficient Total Note: 1 = Gekbrong Sub-District 2 = Warungkondang Sub-District Table 17 showed distribution of rice millers both efficient and inefficient for all types. Overall, there was more numbers of efficient than inefficient of makloon type. It was occured in both sub-districts. Total number of efficient rice miller was 32 units of 53 units makloon type. As makloon type, overall, non-makloon type rice miller also had more numbers of efficient rice millers than inefficient. There were nine units of 14 units rice miller. However, in Gekbrong sub-district, number of rice miller between efficient and inefficient was quite balanced. While in the Warungkondang subdistrict, seven units of ten non-makloon type were efficient. In the combination type, the number of efficient rice miller a little more than inefficient. The number of efficient rice miller was 16 of 27 units rice miller. Overall, percent rice millers were efficient, which in 26 units were in Gekbrong and 31 units are in Warungkondang. Related to explanation above, rice milling industry was not meet one of efficiency requirements. This requirement stated that rice milling industry must

21 62 achieved zero slack of all variables used. So, this study concluded that rice milling industry in study site was inefficient. 6.4 Comparative Test This test was conducted to compare efficiency score of all rice millers in Gekbrong and Warungkondang of this study. ES of DEAP output indicated that all rice millers had same scores (equal to one). Thus, this test was not necessary because all scores were not different significantly. Therefore, all rice millers can be analyzed in a single model. Similar ES also made all rice millers did not need to be processed separately by type.