Abstract

High unemployment rate has encouraged the growth of various business units as job providers for productive age. This study aims to examine the business opportunities of cow farming in Gorontalo region. It uses combination of qualitative and quantitative method. The qualitative method is done by observation and interview. The quantitative analysis is done by calculating cash flow, net present value (NPV), internal rate of return (IRR), benefit cost ratio, and gross margin. The results showed that traditional system of cow farming business by self-management and profit sharing has profitable cash flow, NPV, IRR, BC ratios, and gross margin and worthy for selected. The Cash flow and NPV are positive and IRR level is greater than the required profit level. A semi-modern cow cage system for fattening produces lower cash flow, NPV, IRR, BC ratios, and gross margin. The cages cow breeding produces more attractive cash flow, NPV, IRR, BC ratios and gross margin. Keywords: investment, cow, fattening, breeding, cash flow, NPV, IRR. DOI: 10.7176/RJFA/12-22-13 Publication date: November 30th 2021

Highlights

  • The growth of available jobs is smaller than the labor force

  • Gorontalo region supplied cow to Kalimantan in 1980s to 1990s, but has stopped. This situation illustrates that the production of cow in past is larger than the needs to make this commodity price was lower than Kalimantan area

  • This study shows that Bali cow that are most widely developed by traditional and semi-modern breeders

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Summary

Introduction

Background The growth of available jobs is smaller than the labor force. It causes higher unemployment in productive age. This is a problem faced by government both at national level and regional level in Tomini Bay area without a solution. Resource in livestock sector is one of potentials that can be developed as a driver of economic growth. Gorontalo region supplied cow to Kalimantan in 1980s to 1990s, but has stopped. This situation illustrates that the production of cow in past is larger than the needs to make this commodity price was lower than Kalimantan area. The region development increases the demand for beef in this region

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