Causes of panic selling in broiler farms in Malang raya

Abstract

Broiler farmers in Malang Raya are not only faced with chicken performance targets that must be achieved. However, farmers are more faced with the powerlessness to determine prices and unpredictable market conditions. It was found that many intermediary traders were speculating to reduce the price of chicken at the farmer level, especially during a pandemic. Farmers experience panic selling by choosing to sell chickens below the Cost of Production (HPP) rather than delaying the harvest schedule. The imbalance between the production price and the sales price causes the farmers to suffer losses. An analysis of the factors causing panic selling was carried out to find out the root of the problem in order to create a solution for chicken price stability at the farmer level. This study used a descriptive research design through filling out questionnaires by 30 respondents. Data analysis used quantitative descriptive and Partial Least Square (PLS-SEM). The results showed that the factors causing panic selling in broiler farms in Malang Raya were internal factors (38.9%), demography (29.9%), the Covid-19 pandemic (15.3%) and external factors (0.6%). External factors were confirmed to significantly strengthen the influence of the Covid-19 pandemic on panic selling with a p-value of 0.035 and a path coefficient of 29.6%. In addition, internal factors were confirmed to significantly strengthen the influence of demography on panic selling with a p-value of 0.083 and a path coefficient of 23.2%. The biggest cause of panic selling is internal factor so that the selection of sapronak used and maintenance management determines the mortality rate of the chickens and the performance of the chickens produced. Because both of them determine the income earned by farmers as a motivation to remain wise in raising livestock.