Geophysical and Climatic Conditions

Referring to Table 6, Ciwalen contains the highest number of rice millers. Otherwise, Mekarwangi has the less number of rice millers. Total number of rice millers in Warungkondang is 77 units. Similar to Gekbrong, this information also was obtained from Statistics Indonesia. The number of rice mills in Warungkondang was more than in Gekbrong. Based on the information, the study only used 64.94 percent of all rice mills in Warungkondang. 6 RESULT AND DISCUSSION This chapter is divided into three parts. There are general characteristics of rice milling industry, efficiency of production factors, relative efficiency of rice milling industry, and comparative test. First describes about type, socioeconomics, and processing activity. Second explain efficiency of variables used in model. Third determine relative efficiency of rice milling industry. The last explain reason that comparative test is not necessary in this study.

6.1 General Characteristics of Rice Milling Industry

This study attempted to describe characteristics of rice milling industry. The characteristics were type, socioeconomics, and processing activity of rice miller. Type of rice miller represented the difference between rice millers to each other. Based on business management, this study identified three types of rice miller. First type was makloon service rice miller. This type only offered milling service to consumers. So, this type did not procure grain for production. In general, this type faced consumers from around rice miller site. Mostly, farmers used rice miller service for own consumption. Amount of milled grain was not too much. It gave an overview that most of this type have relatively small capacity. On average, real capacity of this type in study site was about 751.85 kg of rice per day. However, not all rice millers only faced farmers as consumers. There were rice millers that offered service to middlemen. Middlemen used service of this type and obtained rice as output. Then, they sold this rice to larger rice millers. The larger rice millers reprocessed rice to increase its quality. Due to product offered, main revenue of makloon type was derived from service fee paid by consumers. However, several rice millers also gained additional revenue from sale of byproduct of grain milling, such as rice bran and chaff. Byproducts were obtained from consumers who leave it for rice millers. So, not all rice millers can obtain additional revenue. Calculation of cost to be paid by consumers was based on amount of rice produced. Service fee offered by this type rice miller was about Rp 130-600 per kg of rice. Average cost was equal to Rp 295.85 per kg of rice. Difference in the price offered was due to several things. Distance between rice millers to each other, closer distance made more competitive price to attract consumers. Consumers faced, this was related to amount of rice produced. Mostly, middlemen grind more grain than farmers. So, price faced by middlemen was relatively lower. Second type was non-makloon type. This type used machine only for own business activity. Rice millers were not offered service to consumers. For this type, farmers play role as supplier of input production. Then this rice millers processed grain into rice and its byproducts. Product offered by this type was unlike product offered by the makloon type. Rice millers were not sell service as product offered but goods such as rice, broken rice, rice bran, and chaff. So, this type obtained revenue from sale of rice and its byproducts. Real capacity was based on ability of rice miller in the grain procurement. The last type is combination of two previous types in term of cost calculation, service fee, consumers, and revenue of rice miller. This type was not only use the machine for own activity but also offer service to consumers. So, the rice millers obtained revenue from service fee and sale of the outputs produced. The mill capacity of this type was based on the amount of grain which it belong to own and consumers. Total rice millers of makloon and non-makloon were 53 units 56.38 percent and 14 units 14.89 percent respectively. The rest were combination of previous types that was about 28.72 percent of total rice millers 27 units. Distribution of respondents by type of rice milling was shown on Table 7. Table 7 Distribution of Respondents by Type of Rice Milling Type of Rice Milling Number of Rice Milling unit Percentage Makloon 53 56.38 Non-makloon 14 14.89 Combination 27 28.72 Total 94 100.00