Abstract

The partnership program conducted by broiler farmers using a limited capital is continuously developing due to the beneficial profitability. However, in a certain period, broiler farmers do not gain an expected profit (sometimes suffering loss) as various input and output factors, mortality and land ownership occur. The research, then, aims to comprehend the profitability of the broiler business and analyze determining factors of broiler farmer’s profitability, utilizing the open-house cage system under the partnership program. Technically, the sampling method of the respondent was purposively determined, and the data collecting technique was through interview, observation, and recording on 30 farmers existing in Tomohon, North Sulawesi. In detail, all collected data were economically and descriptively analyzed, and the multiple-regression analysis employed Eviews 11 program. As a result, the finding of this research shows that the value of R/C was 1.12, and variables having positive and significant meaning to profit were demonstrated by a total of feeds, and the dummy of the proprietorship; while, the variable of mortality had negative and significant meaning on the profit of broiler farmer. Further, the profitability gained by broiler farmers in the Province of North Sulawesi can be improved by increasing the total of feeds, decreasing mortality, and having broiler businesses in their private land/cages independently.

Highlights

  • A broiler is one of the livestock commodities, potentially developed to produce meat as the main product and protein source

  • Based on the value of R/C as of 1.12, the profitability achieved by broiler farmers in the City of Tomohon is feasibly improved as the main living

  • The profitability of broiler farmers could be improved by better raising management. It could be done by increasing the total of feeds, evenly distributed to broilers, decreasing mortality by considering cages’ sanitation and hygiene, and having broiler business in their private land and cages

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Summary

Introduction

A broiler is one of the livestock commodities, potentially developed to produce meat as the main product and protein source. Regulation of Minister of Agriculture No 13 of 2017 on husbandry partnership program that is a partnership of inter-husbandry business based on the principle of mutual strengthening, demanding, benefiting, respect, responsibility, and dependency. The partnership program of broiler business follows a main-plasma design, describing the partnership of the husbandry company or other sectors, being the main company, and farmers as its plasma. In the partnership program of broiler industry, breeder, being the plasma, obtains guarantee of DOC supply, feeds, disinfectant vaccine (OVD) and marketing, and marketing based on contract’s price under a written agreement with the main company. The main company, is responsible to take and manage all harvests of living birds (LB) from farmers based on the contract’s price 7

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