Accessibility of beef cattle farmers for formal financing institutions in Bontomarannu District, Gowa Regency, South Sulawesi

Abstract

Every beef cattle business owner has certain considerations in choosing the type of financing to run his business. One type of external financing available comes from formal institutional financing, but household-scale beef cattle farms with little livestock ownership make access to financing sources primarily financing from formal institutions difficult. The middle to lower livestock business actors is generally less able to reach formal financial institutions such as banks to obtain additional capital so that this financial market segment is actually filled by non-formal financial institutions such as loans from close relatives, merchants suggesting production and even money lenders. The purpose of this study is to determine the accessibility of household-scale beef cattle business to formal financial institutions. The types of data used in this study are qualitative and quantitative data. The research data was collected through a survey using interview techniques. The results showed that the accessibility of beef cattle breeders to formal financial institutions was relatively low, even to non-formal financial institutions originating from close relatives.