Abstract
Contract farming is a form of business cooperation between two or more parties in a certain period of time to help farmers provide production facilities. The superiority of the partnership is as a partner to share the risk burden of production between core companies and small farmers. The risk of production in broiler chicken farming includes DOC quality, feed, and disease. Therefore, production risk management must be able to manage these factors well so they cannot cause losses. The material in this research is thirty partnership farmers in Blitar, East Java, Indonesia. The method used is a survey by observation and interview. The sources of data used are primary and secondary data sources from the results of interviews and observations. The analysis used is production risk analysis to determine the level of production risk in Blitar, East Java, Indonesia and descriptive analysis to find out the production risk management used by partnership farmers in Blitar, East Java, Indonesia. The results of this study can be concluded that the risk of production in Blitar, East Java, Indonesia is categorized as high risk caused by death. Meanwhile, production risk management carried out by farmers in Blitar, to reduce mortality is spraying disinfectants.
Highlights
Contract farming (CF) has attracted considerable at–tention over the past decades
The analysis used is production risk analysis to determine the level of production risk in Blitar, East Java, Indonesia and descriptive analysis to find out the production risk management used by partnership farmers in Blitar, East Java, Indonesia
These results indicate the level of risk of partnership broiler farmer production in Blitar East Java, Indonesia was very large
Summary
Contract farming (CF) has attracted considerable at–tention over the past decades. Several studies show that CF increases farm productivity, profitability, farmers’ income, and food security [1,2,3]. In the dry season, the temperature of the air inside the cage gets hot, carbon dioxide levels increase and the air in the cage feels more stuffy Such conditions are difficult to avoid and result in death with a fairly high mortality rate. The economic feasibility of the production system increases with the level of welfare improvements for a sufficiently high price level for broiler meat and low volatility in producer prices. If this is not the case, risk attitudes of farmers become important as well as the use of potential risk management instruments. If this is not the case, risk attitudes of farmers become important as well as the use of potential risk management instruments. [10]
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