Modeling of Livestock Production Activities and Cattle Marketing, A Decision-Making Model of Production and Sales Management

Abstract

Appropriate and accurate decision making is needed in every business activity. Farmers, collectors, and butchers at Slaughterhouses are the main actors in cattle production and marketing to final consumers. Modeling of cattle production activities to marketing helps the analysis and application of the right decision making. This research was conducted in Lolong Guba District, Buru Regency, Maluku Province, Indonesia, and will take place in 2021. The research aims to establish a model of cattle production and marketing activities. The research used a combination method, namely qualitative and quantitative methods. Qualitative methods were used to collect primary data information from cattle breeders, collector traders, and butchers at Slaughterhouses. Quantitative methods are used to record and make quantitative data from the informants. The resulting data will be used for model testing and simulation analysis in the future. The model formulated includes the variables of the amount of cattle produced by the breeder, the amount of production sold, the profit received by the farmer, the cost of production of the farmer, the value of cattle sales at the farmer level, the added value of cattle that are not sold, the price of kilograms of carcass at the farmer level, the value of the sale of cattle at the butcher's level, the profit received by the butcher, and the price per kilogram of carcass at the butcher's level. The model formed consists of 8 structural equations and 2 identity equations.