Economic performance on small holder Ettawah cross breed goat farming at Malang Indonesia.

Abstract

ABSTRACTGoat production is an integral part of farming systems in Indonesia and can play an important role in improving livelihood and food security in rural households. This study aimed to assess the economic performance of goat production in Malang regency, East Java Province of Indonesia. Data were collected from a total of 42 farmers using a survey based on structured questionnaire. Indicators for the economic performance of goat production were profit (P), breakeven point (BEP), margin of safety (MOS) and revenue -cost ratio ((R/C ratio). Farmers were classified into three strata, stratum-1 (0.6-1.0 AU, n=15), stratum-2 (1.1-1.5 AU, n=14), and stratum-3 (1.6 -2.1 AU, n=13). Data included primary information (i.e. production cost, revenue) that obtained by survey method using structured questionnaire, whereas the related institution has supplied secondary data. Descriptive technique with applying economic formulation namely, profit, BEP, MOS and R/C ratio were employed to analyze the data. Results show that feed (concentrate and forage) cost shared the highest costs (expenses ranged from 59.36% to 71.15 %.) of the total production costs. Total variable costs per animal unit were lowest (69.57%) in stratum-1 than those in stratum-3 (80.51%) and stratum-2 (80.79%). Stratum-1 therefore, consider as the best BEP of IDR 346, 694/AU during one month period. The monthly revenue per Animal Unit of stratum-2 (IDR 1,038,945) was slightly different compared to sratum-3 (IDR 978,884), with the lowest one (IDR 824,765) come from stratum-1. Hence, stratum-3 ECB for goat enterprise represented as the best feasible farming with monthly profit of IDR 613,768/AU. Likewise, this farming also executed an efficient enterprise on the basis of 62.64% of MOS and 2.68 of R/C ratio. Overall, high feed cost was the major problem that affected goat economic production. Therefore, improvement of feed use efficiency is recommended.