Financial Analysis of Beef Cattle Business in People's Farms of Pulau Rakyat District Asahan Regency

Abstract

This study aims to determine the income of beef cattle breeders, to determine the analysis of beef cattle business in terms of financial and non-financial aspects, and to determine whether the beef cattle business can help breeders' lives in fulfilling their needs. The research was conducted in Pulau Rakyat Subdistrict, Asahan Regency in July-August 2020. The types of data used in this study are primary data and secondary data. Determination of the sample by stratified sampling, namely by dividing three groups based on livestock population, namely the low population group (1-10 cow), the medium population group (11-20 cow) and the high population group (21-41 cow) then by purposive sampling, namely by taking 9 farmers from each population group.
 The results showed that beef cattle acceptance could meet production costs so that the income was positive. The financial analysis of beef cattle business on smallholder farms obtained the value of R/C >1, the value of BEP >0, value Net B/C and Gross B/C >1, the NPV value >0 or positive, the IRR value with an interest rate of 16.75%, respectively is 25.85%, 25.80% and 26% greater than the rate interest and PP 7,7,5 months respectively before the project age (5 years). Based on the results of the non-financial analysis, it shows that the beef cattle business in Pulau Rakyat District in the legal aspect shows that the beef cattle business does not require a business license from the government because the ownership scale has not reached the applicable rules, namely >50 heads. The organizational aspect is that breeders are not tied to farmer/livestock groups, this is because the system in farmer groups is considered too complicated for breeders. The technical aspect explains that the location of the beef cattle business is strategic and the workforce used is that of family members. The management aspect explains that the farmer has managed the beef cattle business as much as possible to produce good productivity. The marketing aspect explains that the products produced have been accepted by the market and are profitable for breeders, breeders sell cattle directly to agents and the price of cows varies depending on gender, age of cattle and body weight of cattle.