Technical and Economic Efficiency Analysis of Cayenne Pepper Farming in Magelang Regency, Central Java

Abstract

Background: A common issue in cayenne pepper farming is the effective optimization of production factors. The inappropriate and inefficient use of production factors leads to a decline in output, resulting in lower farm income. The problem that often occurs in cayenne pepper farming is the maximization of the use of production factors. This is certainly the focus for cayenne pepper farmers in using production factors efficiently to increase their farming income.
Purpose: This study aims to analyze the influence of production and cost factors in the cultivation of cayenne pepper, to determine the technical efficiency of the use of production factors, and to determine the economic efficiency of the use of cost factors in cayenne pepper cultivation in Magelang Regency, Central Java.
Design/methodology/approach: This study was conducted from October to November 2025. The method employed in this study was a survey. The data analysis in this study was conducted using stochastic frontier production function analysis and stochastic frontier cost function analysis, processed with Frontier 4.1 software.
Findings/Results: The analysis results show that the production factors that significantly influence the output of cayenne pepper farming include land area (m²), fertilizer (kg), pesticides (liters), and labor (HOK), while seedlings (units) do not have a significant effect. Similarly, with respect to total production costs, profit sharing and land tax (IDR), cost of seeds (IDR), cost of fertilizer (IDR), cost of pesticides (IDR), and cost of labor (IDR) have a significant influence, while cayenne pepper production (kg) does not have a significant effect. Based on the level of efficiency, 60.19% of the cayenne pepper farmers obtained technical efficiency scores above the average, while 69.19% achieved economic efficiency scores above the average.
Conclusion: Based on the levels of technical and economic efficiency, most cayenne pepper farmers in Magelang Regency have achieved technical and economic efficiency in the use of production inputs.
Originality/value (State of the art): This study provides evidence of the influence of production factors and costs on the total production and total production costs of cayenne pepper farming. Furthermore, this study determined the technical and economic efficiency of cayenne pepper farming in Magelang Regency

Keywords: cayenne pepper, cost function, efficiency, farmers, production function, stochastic frontier