Optimizing Salt Farming Efficiency Based on Frontier Model: Empirical Insights from Coastal Madura, Indonesia | ||||
| Egyptian Journal of Aquatic Biology and Fisheries | ||||
| Article 159, Volume 29, Issue 4, July and August 2025, Page 4901-4916 PDF (525.47 K) | ||||
| DOI: 10.21608/ejabf.2025.446716 | ||||
 View on SCiNiTO | ||||
| Author | ||||
| Fauziyah et al. | ||||
| Abstract | ||||
| Salt is an essential commodity for the food, pharmaceutical, and chemical industries. In Indonesia, domestic production is unable to meet the high demand for salt. Madura Island is a key production center, contributing around 32% of the national supply. This study aimed to analyze the determinants of salt production, efficiency levels, and sources of inefficiency in the coastal areas of Madura Island, Indonesia. A purposive sampling method was used to select 160 salt farmer respondents. The analysis employed the Cobb–Douglas stochastic frontier production function with a technical efficiency effects model. The results indicate that salt production is positively influenced by crystallization land area, capital, and the use of geomembrane plastic. Most farmers are not technically, allocatively, or economically efficient, and age is a factor that increases inefficiency. In contrast, participation in extension activities and salt farmer groups, involvement in the ‘Pugar’ (People's Salt Business Development) program, adoption of geomembrane technology, and favorable pricing and trading systems all help reduce inefficiency. Therefore, increasing salt production on Madura Island requires improving farmers’ participation in extension programs and the Pugar initiative, encouraging wider use of geomembrane technology, and strengthening the bargaining position of the salt-producing community. | ||||
| Keywords | ||||
| Efficiency; Cobb Douglas frontier Stochastic production function; Salt farming | ||||
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