Abstract
The broiler is a highly demanded animal protein source for Indonesian people. Nowadays, primary and derived product demand for broiler chicken increases steadily. So it is necessary to increase broiler farm performance in order to meet the increased demand. One of the broiler farm centers which have fulfilled the rapid request of broiler chicken is located in Bogor, West Java. However, there was an important issue facing the broiler industry in Bogor, namely the decreased growth of broiler chicken population in Bogor. This indicates in the optimized business performance of broiler farm, impacting on business sustainability. Theoretically, business performance can be improved by stimulating farmer entrepreneurial competence. This study aimed to analyze factors affecting entrepreneurial competencies of farmers and determine the influence of farmer entrepreneurial competence on broiler farm performance in Bogor. This study used a convenience sampling method involving 120 contract farmers when running their business. Data were analyzed using descriptive method and multivariate analysis using structural equation modeling (SEM). The results showed that farmer entrepreneurial competencies were very dominant in broiler farm business performance. The entrepreneurial competence variable was mostly influenced by the managerial competence variable of farmers. The influential manifested variable to increase managerial competence was the farmer's ability in human resource management.Keywords: broiler farm, business performance, entrepreneurial competencies
Highlights
Broiler farming is one of potentially developed business in Indonesia
Business was performed to resemble the plasmacore cooperation pattern between farmers and largescale livestock companies. This result was consistent with the previous research that discussed most of price contract farming in broiler business using core-plasma cooperation pattern (Suwarta et al 2010, Fitrizia et al 2012, Subkhie et al 2012)
The results showed that the broiler farm performance is only influenced by the farmer entrepreneurial competences with 0.42 influence coefficient
Summary
Broiler farming is one of potentially developed business in Indonesia. The broiler consumption level increases in Indonesia with an average of 11.76 percent per year due to many derivative products from broiler chicken (Kusnadi et al 2013), besides having cheaper price than other meats (Nurfadillah and Rachmina, 2015). The growth rate makes broiler chicken as the main contributor of meat production in Indonesia with 53.13 percent, while beef only gets 18.14 percent (Directorate General of Livestock and Animal Health, 2015). Bogor Fisheries and Animal Husbandry Unit (2015) stated that Bogor broiler production growth in 2014 only reached 6.85 percent, decreased by 11.41 percent in 2015 This situation happened due to decreased interests among businessmen as high risk occurence in broiler business. This phenomenon was caused by the lack of farmer capabilities to maintain the broiler condition during the treatment period, causing the chickens became susceptible to diseases and high mortality rate
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