The Impact of External and Internal Factors on the Dairy Farmer’s Household Economics
Abstract
Domestic milk production is currently only able to meet 20% of the total domestic demand of milk, but this opportunity has not been responded well by dairy farmers. The objectives of this study were: (1) to analyze the performance of dairy farmers and (2) to analyze the impact of external factors (concentrate feed and milk prices) and internal factor (marginal productivity of concentrate feed) on production, income, and household welfare of dairy farmers. The number of sample households was 97 cooperative-member farmers and 46 cooperative-nonmember farmers in Lembang, West Java. The analytical method used included descriptive analysis and household economic models in the form of simultaneous equations. The results of the study showed that the scale of small-scale business with the percentage of lactating cattle and dairy farmers’ productivity was still low. When the price of concentrate feed rises, the impact of the policy of increasing milk prices is greater than the increase in the marginal productivity of concentrate feed on increasing business income and household welfare of dairy farmers.
References
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Sirajuddin, S. N., H. Siregar, B. Juanda, & A. H. Dharmawan. 2012. The influences of transaction costs on dairy farming system in South Sulawesi Province. Jurnal Ilmu dan Teknologi Peternakan 1: 17-26.
Sitepu, R.K. & B.M. Sinaga. 2018. Aplikasi Model Ekonometrika: Estimasi, Simulasi dan Peramalan Menggunakan Program SAS@ 9.2. PT Penerbit IPB Press, Bogor.
Srairi, M.T., M.E. Jaouhari, A. Saydi, M.Kuper, & Y.L. Gal. 2010. Supporting small-scale dairy farmers in increasing milk production:evidence from Morocco. Trop. Anim. Health Prod. 43:41-49. https://doi.org/10.1007/s11250-010-9652-9
Wantasen, E & U. Paputungan. 2017. Household income investigation in smallholder cattle farming at Minahasa Regency North Sulawesi Province-Indonesia. Journal of Agriculture and Veterinary Science 10:06-12. https://doi.org/10.9790/2380-1007020612
Widiasti, W., T. Prasetyo, Y.Y. Suranin, S. Nistini, Supriadi, & I. Harsanto. 2010. The performance of credit program for smallholder’s dairy cattle development in Indonesia. The 5th International Seminar on Tropical Animal Production. Community Empowerment and Tropical Animal Industry. October 19-22, 2010. Yogyakarta, Indonesia.
Yuliandri, L.A. 2015. Pola dan perilaku konsumsi pangan asal ternak pada rumah tangga peternak sapi perah di Jawa Tengah. Jurnal Ilmu Pertanian dan Peternakan 3:1-10.
Asmara, A., Y.L. Purnamadewi, & D. Lubis. 2017. The relationship analysis between service performances of milk producer cooperative with the dairy farm performance of members. Med. Pet. 40:143-150. https://doi.org/10.5398/medpet.2017.40.2.143
Dalewikow, R.L., W. Sumekar, & A.Setiadi. 2016. The profitability analysis of dairy cattle business on the group of dairy farmers in West Ungaran District Semarang Regency. J. Indonesian Trop. Anim. Agric. 4:216-223. https://doi.org/10.14710/jitaa.41.4.216-223
Derosari, B.B, B.M. Sinaga, N. Kusnadi, & M.H. Sawit. 2014. The impact of credit and capital supports on economic behavior of farm households: A household economic approach. Int. J. Food Agric. Econ. 2:81-90.
Ekowati,T., D.H. Darwanto, S. Nurtini & A. Suryantini. 2011. The Analysis of beef cattle subsystem agribusiness implementation in Central Java Province, Indonesia. J. Indonesian Trop. Anim. Agric. 36:281-289. https://doi.org/10.14710/jitaa.36.4.281-289
Elizaphan, J.O.R, I. Omondi, A.A. Karimov, & I. Baltenweek. 2016. Dairy farm households, processor linkages and household income: the case of dairy hub linkages in East Africa. International Food and Agribusiness Management Review 19:95-108. https://doi.org/10.22434/IFAMR2014.0177
Halolo, R.D., S.I. Santoso, S. Marzuki, W. Roessali, & A. Setadi. 2013. Profit function analysis of dairy cattle farming in Getasan and West Ungaran Districts, Semarang Regency. J. Indonesian Trop. Anim. Agric 38: 65-72. https://doi.org/10.14710/jitaa.38.2.116-122
[Kementan. 2016]. Kementerian Pertanian 2016. Outlook Susu: Komoditas Pertanian Subsektor Peternakan. Jakarta (ID): Kementan.
Khan, A.B.M.K.I, M.A. Baset, & S.K. Fouzder. 2010. Study on management and production system of small scale dairy farm in a selective rural area of Bangladesh. J. Sci. Foundation. 8:13-23. https://doi.org/10.3329/jsf.v8i1-2.14615
Kumar,V., K.G. Wankhede, & H.C. Gena. 2015. Role of cooperatives in improving livehood of farmers on sustainable basis. Am. J. Educ. Res. 3:1258-1266.
Morey, P. 2011. Report for International Finance Corporation on “Indonesia Dairy Industry Development”. International Finance Corporation. Morelink Asia Pasific. Vic 3629. Australia.
Nugroho, B.A. 2012. The relevance of a rules-based fresh milk price structure policy in East Java: An evidence-based assesment. International Journal of Rural Studies (IJRS). 19:1-7.
Ohla, R. 2013. Effeciency and total factor productivity growth in India dairy sector. Quarterly Journal of International Agriculture. 52:1-10.
Quen, T.M.A., A.D. Lestari, & S. Situmorang. 2014. The analysis of income and welfare level of animal husbandry cooperation’s member in South Bandung (KPSBS Pangalengan). Jurnal Ilmu Ilmu Agribisnis (JIIA) 2:109-117.
Ramadhan, D.R, S. Mulatsih, & A.A. Amin. 2015. Sustainable dairy cattle farming system: A case study of smallholders in Bogor Regency. Jurnal Agro Ekonomi 33:51-72. https://doi.org/10.21082/jae.v33n1.2015.51-72
Resty, Y., R. Baars, M. Vershurr, & G. Duteurtre. 2017. The role of cooperative in the milk value chain in West Bandung Regency, West Java Province. Med. Pet. 40:210-2017. https://doi.org/10.5398/medpet.2017.40.3.210
Saefullah, R., S. Marzuki, & M. Handayani. 2012. Comparation of costs and revenues of dairy farm between village unit cooperative members and non-members of village unit cooperative in Banyumas Regency. Animal Agriculture Journal 1:845-858.
Santoso S.I., H.I. Nisa, Mukson Mukson, & M. Handayani. 2016. Profitability analysis of dairy cattle farming of village cooperative members in Semarang Regency. Jurnal Ilmu dan Teknologi Peternakan 4:139-145.
Septiani, W., Marimin, Y. Herdiyeni, & L. Haditjaroko. 2017. Risk base milk pricing model at dairy farmers level. Med. Pet. 40:218-227. https://doi.org/10.5398/medpet.2017.40.3.218
Sinaga, B.M. 2011. Pendekatan Kuantitatif dalam Penelitian Agribisnis: Konsep, Model dan Metode. Program Studi Ilmu Ekonomi Pertanian. Sekolah Pascasarjana. Institut Pertanian Bogor, Bogor.
Sirajuddin, S. N., H. Siregar, B. Juanda, & A. H. Dharmawan. 2012. The influences of transaction costs on dairy farming system in South Sulawesi Province. Jurnal Ilmu dan Teknologi Peternakan 1: 17-26.
Sitepu, R.K. & B.M. Sinaga. 2018. Aplikasi Model Ekonometrika: Estimasi, Simulasi dan Peramalan Menggunakan Program SAS@ 9.2. PT Penerbit IPB Press, Bogor.
Srairi, M.T., M.E. Jaouhari, A. Saydi, M.Kuper, & Y.L. Gal. 2010. Supporting small-scale dairy farmers in increasing milk production:evidence from Morocco. Trop. Anim. Health Prod. 43:41-49. https://doi.org/10.1007/s11250-010-9652-9
Wantasen, E & U. Paputungan. 2017. Household income investigation in smallholder cattle farming at Minahasa Regency North Sulawesi Province-Indonesia. Journal of Agriculture and Veterinary Science 10:06-12. https://doi.org/10.9790/2380-1007020612
Widiasti, W., T. Prasetyo, Y.Y. Suranin, S. Nistini, Supriadi, & I. Harsanto. 2010. The performance of credit program for smallholder’s dairy cattle development in Indonesia. The 5th International Seminar on Tropical Animal Production. Community Empowerment and Tropical Animal Industry. October 19-22, 2010. Yogyakarta, Indonesia.
Yuliandri, L.A. 2015. Pola dan perilaku konsumsi pangan asal ternak pada rumah tangga peternak sapi perah di Jawa Tengah. Jurnal Ilmu Pertanian dan Peternakan 3:1-10.
Authors
AtmakusumaJ., SinagaB. M., KusnadiN., & KariyasaI. K. (2019). The Impact of External and Internal Factors on the Dairy Farmer’s Household Economics. Tropical Animal Science Journal, 42(3), 245-252. https://doi.org/10.5398/tasj.2019.42.3.245
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