EFFICIENCY OF RESOURCE USE IN SMALL-SCALE WHITE SHRIMP (PENAEUS VANNAMEI ) PRODUCTION IN LAMONGAN REGENCY, EAST JAVA PROVINCE, INDONESIA

This study carried out to determine the efficiency of recourses use in white shrimp (Penaeus Vannamei) production in Lamongan Regency, East Java Province, Indonesia. The simple random sampling technique used to select 125 small-scale white shrimp farmers from six-study areas in Lamongan Regency. The white shrimp production function was estimated using Ordinary Least Square (OLS) technique. The results indicated that Double Log production function had the best fit in explaining the relationship between output of white shrimp and inputs used. The coefficient of determination (R2 = 0.846) indicated that the eighty-four point six percent of variation in output of white shrimp was explained by the independent variables in the model. Findings showed that labor, fertilizer, feed and stocking density are significant determinants of production inputs. Moreover, the estimates of the ratio of the value of marginal product (VMP) to marginal factor cost (MFC) revealed that the non-optimal combination of inputs among the white shrimp farmers, it showed that the aquaculture farms resources were inefficiently utilized for labor, feed and stocking density by 1.94, 1.93 and 171.4 respectively, while fertilizer showed otherwise by 0.11 or over utilized.