Technical Production Efficiency of Small-scale Cassava Processed in Rural Lampung, Indonesia.

This study aimed to explore the performance of production efficiency of local cassava processed in rural. The field survey conducts at the center of local cassava processed in Lampung Province, Indonesia. Sampling method design by the case study approach. Data analysis used descriptive statistical analysis and frontier production efficiency. Based on the investigation, the frontier production efficiency showed that the local cassava processed operated under the potential production. It was not efficient yet. The value of the mean efficiency was 0.59. It denoted that the cassava home industries only achieved 59% of the potential frontier production. The sector performed under development because they operate lower than the potential output. This fact also informed that the cassava home industries still can increase productivity. The productivity could enhance by adequate input allocation and technology improvement. Strengthen the local cassava processed is necessary to improve their productivity. The revenue structure analysis showed that local cassava was beneficial as a source of family income in rural higher than regional minimum wages. The existence of the local cassava processing has the potential to employ rural labor. [ABSTRACT FROM AUTHOR]