Abstract

The biggest challenge in increasing the population of beef cattle and beef production in Indonesia is on the main actor of beef cattle business, farmers. Farmers as the subject and the main player in livestock business are very important in increasing livestock population and beef production. It is because of 99% of livestock business in Indonesia is managed by community livestock business. This study aims to measure the level of profit and the competitiveness of beef cattle breeding business in North Penajam Paser Regency. Furthermore, the results of this study are used as a basic consideration of improvement of beef cattle breeding business performance especially in community livestock-based. The data collection was conducted by using a survey method. Meanwhile the data analysis was conducted by using qualitative descriptive method and Policy Analysis Matrix (PAM) method. Based on the result, the value of financial analysis is 949,803 IDR per head per period and the value of economy analysis is 86,585 IDR per head per period. The result shows that the business is profitable and feasible. Based on the competitive and comparative advantage analysis, the PCR value is 0.77 and the DCR value is 0.96. it shows that the beef cattle breeding business in North Penajam Paser Regency competitively and comparatively has competitiveness.

Highlights

  • The Indonesian agricultural sector has a very strategic role in the national economy for the domestic food needs and being the sector which has most labor

  • This research was conducted in North Penajam Paser Regency of East Kalimantan Province which focus on two Sub-districts; Penajam Sub-district and Sepaku Sub-district

  • The analysis shows that the Private Cost Ratio (PCR) value is 0.769. competitive advantage can be achieved because it results a single unit of value added which needs 0.769 unit of domestic factor

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Summary

Introduction

The Indonesian agricultural sector has a very strategic role in the national economy for the domestic food needs and being the sector which has most labor. This role will be more difficult to play in the future because the production food capacity is more limited caused by degradation of agricultural land as the effect of land conversion and land use competition. The beef demand in Indonesia from year to year is increasing It is affected by the enhancement of population and the enhancement of their knowledge about the importance of animal protein which influence their consumption pattern. Indonesian Statistics and Directorate General of Livestock and Animal Health Services estimate that the national beef consumption will reach 1,045 million tons in 2024 and can be produced domestically for about 546 thousand tons (52%) or the shortage is 499 thousand tons

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