ANALYSIS OF PRODUCTION FACTORS IN LANTING KUNING BUSINESS

Ratna Setyawati Gunawan, Suprapto Suprapto, Istiqomah Istiqomah

Abstract


This study examines the use of production factors in lanting kuning (food made from cassava, shaped like a small circle, and fried to dry like chips) producers in Sumpiuh District, Banyumas Regency. Researchers are interested in conducting research on lanting kuning because the number of producers decreases almost in every year. This study has the following research questions. First, how the influence of the production factors used such as capital, raw materials, and labor on the number of lanting kuning production. Second, how is the level of efficiency of the use of these production factors. The purpose of this study is to analyze the effect of capital, raw materials, and labor on the number of lanting kuning production, and analyze the level of efficiency of production factors based on the returns to scale. The research method used is a survey. Determination of the number of samples using the Slovin formula, found as many as 14 lanting kuning producers as respondents. Estimation of the Cobb-Douglas production function coefficient using multiple linear regression. The results showed that capital, raw materials, and labor had a positive and significant effect on the number of lanting kuning production. The level of efficiency is in decreasing return to scale, which means that increasing the use of all factors of production will be greater than the increase in the number of lanting kuning production. The implication is that the government provides support to micro and small businesses in the form of encouraging banks to provide a portion of working capital loans with interest and conditions that are easily fulfilled by producers. Local governments can help from upstream to downstream, for example, conduct training on how to work with cassava farmers to ensure the availability of raw materials for making lanting kuning, conduct training to improve skills to make food products that are safe for consumption and halal, and teach how to expand the marketing of production.


Keywords: Cassava, Capital, Raw materials, Labor, Total production.


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