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Broiler Partnerships Scheme Advantages toward Minimising Its Production and Marketing Risks at Mojokerto Indonesia

Hari D. Utami, Bambang A. Nugroho, Umi W. Ningsih, Lilik E. Radiati, and Hary Nugroho
Socio-economy Department, Animal Husbandry Faculty, University of Brawijaya, Indonesia
Abstract—Small scale broiler farmers have faced problems of the capital limitation, less information and technology access, and lead to uncertainty in providing the input production as well as no marketing guarantee. The existence of poultry partnership scheme may become alternative risk management strategy in supplying the continuity DOC, feed concentrate, Vitamin, and medicine in up-stream sub-system and ensuring for broiler marketing at downstream sub-system. Research proposed to relate with production and marketing risk alleviation for broiler plasma farmers at Mojokerto Regency. Case study used 30 plasma farmers who selected by purposive sampling method. Data consisted of six broiler production periods during one year. Primary data consisted of production cost, revenue, and liabilities that obtained by survey method using structured questionnaire. Core Company and related institution has provided secondary data. Data analysis employed descriptive technique with applying economic formulation involving Profit, Rentability, and Debt to Asset Ratio (DTAR). Results discovered that poultry partnership participants was male farmers aged between 31 - 40 years old with tertiary school attainment, 7 – 10 years experiences in operating broiler farming, and less than two years joining in broiler partnership scheme. The first produce period has utilised the poultry partnership scheme in reducing production risk through the good production performance in terms of FCR which still involved in the range of core company standard (1.68), low mortality (4.10%), and quite higher of harvest live weight broiler (1.95 Kg). The role of broiler partnership scheme in mitigating market risks occurred in the sixth harvest time through financial performance achievement on the basis of high profit (IDR 399/Kg live body weight), the low category of enterprise and economic rentabilities (REnt=4.07% and REco = 1.68%), and a limited payment capability toward total liabilities as the solvency level in the caution category (DTAR = 55.87%). 
 
Index Terms—FCR, profit, rentability, DTAR, solvency

Cite: Hari D. Utami, Bambang A. Nugroho, Umi W. Ningsih, Lilik E. Radiati, and Hary Nugroho, "Broiler Partnerships Scheme Advantages toward Minimising Its Production and Marketing Risks at Mojokerto Indonesia," Journal of Advanced Agricultural Technologies, Vol. 5, No. 3, pp. 222-226, September 2018. Doi: 10.18178/joaat.5.3.222-226
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