Luxy Lutfiana Rachmawati, Fitri Kartiasih


The Milk Self-sufficiency Program targeted by the government reached in 2020 is in danger of failing because the higher milk imports and local production can only meet 18 to 20 percent of national needs. This study aims to see the level of technical efficiency of people's dairy cattle business in Java and analyze the factors that influence milk production using Stochastic Frontier Analysis. The results showed that the feed / tail / day input variables had a positive effect on the average milk production per head per day, while the cage per bird area had a negative effect. The average level of efficiency of dairy cattle business in Java is 83.56 percent, but statistically there are effects of inefficiency in this business. Factors that influence the inefficiency of livestock businesses are the age of the farmer, the latest education, participation in cooperatives and farmer groups.

Keywords: dairy cows, Stochastic Production Frontier, technical efficiency

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