The Power of Resources in Independent Livestock Farming Business in Malang District, Indonesia

Abstract

Independent farmers principally provide all production inputs from their own capital and can liberally conveytheir products on the market. From the problems found in the real life, thus the purposes of this study are: 1) to assess the resources that can be accessed by independent broiler breeders, 2) to find the strength of independent broiler breeders’ resources that support business development.A total of 144 independent pattern broiler breeders are still running their livestock businesses in Malang Regency. Data were analyzed using SEM (Structural Equation Model) with SmartPLS 2.0 application. The results showed that: 1) independent broiler breeders have access to financial resources, technological resources, physical resources, economic resources, environmental resources, and social resources; and 2) financial, technological, physical, economic, environmental and social resources affect farmer human resources by 82.7%, while financial, technological, physical, economic, environmental, social, and HR resources have an influence on the development of chicken farming broiler at 16.3%. Economic resources have a direct and significant negative effect on the development of independent pattern broiler farming.