4801-Article Text-16967-2-10-20230329
4801-Article Text-16967-2-10-20230329
2, 2020
Received [30 October 2020] | Revised [27 November 2020] | Accepted [30 November 2020]
Introduction
Broiler chicken farm business is not separated from some of the obstacles
encountered. These constraints are quite serious obstacles in broiler chicken farming
business, limited capital, simple technology and management that is still lacking. In
addition, the obstacles faced by small breeders are the high level of input price risk, such
as DOC, feed and medicines. The unclear market makes farmers unable to sell all the
chickens that are kept so as to make the cost of production increase. The knowledge of
farmers in terms of climate and disease is necessary to minimize the risks faced. The
ability to manage good risk is indispensable to farmers, so as to get maximum profit and
can develop their livestock business. In its implementation there is a difference between
independent business patterns and partnerships that will affect the difference in income
level of broiler chicken business.
One of the efforts to minimize the risk in the broiler chicken farm sector is by the
absence of corporate partnership institutions through a pattern of core-plasma
partnerships with the aim of increasing revenue, improving the quality of farmers'
Jurnal Peternakan Integratif Vol. 8, No. 2, 2020
resources. In the implementation of partnership patterns the company and the people's
farmers must be in the same position so that the vision of the partnership
can be achieved both in terms of income and production costs that are fully regulated by
the company and agreed together with the farmer.
Materials and Methods
TR = Q × P
Jurnal Peternakan Integratif Vol. 8, No. 2, 2020
Description:
TR = Total revenue/receipt (Rp) Q
= Total production
P = Price (Rp)
Income is the difference between receipts and all costs. To find out the income of
broiler chicken farmers used the following formula [8]:
Pd = TR - TC
Description:
Pd = Total income earned by farmers (Rp) TR
= Total revenueearned by farmers (Rp)
TC = Total cost/ cost incurred by the farmer (Rp)
R/C = TR
TC
Description:
TR = Total receipt (Rp)
TC = Total production cost (Rp)
Criteria:
If R/C Ratio < 1, then the farmer's business is unprofitable and unfit for business If R/C
Ratio = 1, then the farmer's business is not profitable and has nothing to lose (break even)
If R/C Ratio > 1, then the farmer's business is profitable and worth working on.
Break Event Point (BEP)
Break Event Point (BEP) is a state that shows the company is not profitable and
has nothing to lose. The variables used in the BEP analysis are fixed costs and variable
costs[6]. Theoretically it can be written as follows:
Fixed Cost
BEP (Rp) = Price per Unit −Variable Cost per Unit
Fixed Cost
BEP Unit = 1 Variable Cost Total
− Sales Total
NPV1
IRR = i1+ (𝑁𝑃𝑉1−𝑁𝑃𝑉 2) (i1-i2)
The biggest expense for both breeders is the purchase of feed. Partner breeders
spend Rp 20,786/head and independent breeders spend Rp 17,852/head. The cost incurred
by partner breeders for doc purchases is also higher than that of independent breeders.
This is due to the company's set DOC price higher than the doc price in the market
purchased by independent breeders. Partner breeders are obliged to pay it if they have
received payment for the harvest.
Another cost component is the cost of buyering vitamin and chemical drugs.
Independent breeders use more ovk, because chickens cultivated by independent breeders
are more often exposed to diseases that require more medicines. Partner breeders have
Jurnal Peternakan Integratif Vol. 8, No. 2, 2020
standards and provisions in the administration of medicines for the treatment of diseases
to increase income.
The highest cost of feed is partner breeders because the amount of use in each
period is more than that of independent farmers. The needs of partner breeders are indeed
less than independent breeders, but the price of sapronak purchased is mostly more
expensive than self-sustaining breeders. So the cost of sapronak incurred by farmers is
higher than that of partner breeders.
An area of 1 m2 is used for 12 chickens, but to increase the heavy production of
chickens an area of 1 m2 is used for eight chickens so as not to interfere with the air
circulation which causes chickens to be susceptible to disease and interfere with the
growth of chickens. This provision is used by some respondents so that it does not differ
between partner breeders and independent
b. Operating Expenses
The largest expenditure of the operating costs of partner and independent farmers
is labor costs. Heating (gas solex) is used for cage temperature heaters. Some
independent breeders still use traditional heaters that use furnaces. The needs and costs
of partner and independent breeder husk are almost the same. The cost of capture wages
is the cost prepared by partner and independent farmers to finance the implementation of
the harvest.
c. Depreciation costs
The small cost of depreciation of cage equipment borne each period is influenced
by the scale of the business. The cost of depreciation of equipment and cages of
independent breeders is lower than the depreciation that partners must bear. Independent
breeders only spend Rp. 393/head while partner breeders spend Rp. 412/head - Rp.
437/head. The large cost that partner farmers have to insend is due to the influence of the
use of heating equipment, partner breeders use solex gas while some independent
breeders still use artificial heaters or furnaces. Economic lifespan is also an influence in
depreciation costs, while independent farmers save more on the use of production
equipment. If the amount of equipment is reduced it
is feared that the feeding and drinking is uneven, thus inhibiting the growth of chicken
weight.
d. UN Fees
The cost of UN incurred by partner farmers and independent breeders is almost the
same, which is Rp. 5,2/head – Rp. 7,1/head. U.N. costs are incurred by partner breeders
and are self-sustaining once a year despite no production activities.
The following is a table of production costs, receipts and income on broiler chicken
business with partnership patterns and independent patterns per head/period.
Table. 1 Matrix on broiler business with partnership pattern and independent per
head/period
Breeders Partnership
Independent
Cost Type Company Company B Company C Breeders
A
Acceptance
Chicken reception Acceptance 31.776 31.573 30.374 29.351
of faeces and atal 310 225 352 267
Bonus 339 411 320 0
Manufacturers
Feed (Rp) 20.786 20.429 19.744 17.852
DOC (Rp) 7.500 7.541 7.250 6.500
OVK (Rp) 416 323 300 750
Manpower (Rp) 410 429 520 520
Electricity (Rp) 145 143 93 93
Atal (Rp) Heater 252 229 240 247
(Rp) 145 134 140 135
Capture wage (Rp) 51 54 47 50
Depreciation (Rp) 437 424 412 393
United Nations (Rp) 5,2 7 7,1 5,8
atal, and bonuses (achievement fees and market subsidies from the company). The
acceptance of independent pattern breeders is obtained from the sale of chickens, the sale
of manure and the sale of atal.
Income
Income is the difference between total receipts and the total cost of production
incurred. The average independent farmer earned the highest income of Rp 3,077/head
and the lowest income of farmers who partnered with Company A at Rp 2,216/head
compared to company B of Rp 2,407/head and company C of Rp 2,310/head. This is
because the amount of costs incurred by partner breeders is greater than that of
independent breeders. The selling price of chickens on independent pattern breeders is
greater than the farmer's partner pattern. This is in accordance with research[1] which
states that the income earned by partner breeders is smaller than that of independent
breeders, as the amount of cost incurred by mitrra breeders is greater than that of
independent breeders. However, partner farmers benefit greatly from participation in
partnerships such as capital assistance, guidance and counseling and product marketing.
Financial Analysis of Chicken Livestock Business Partnership Pattern and Independent
Pattern
Financial analysis is necessary to determine the feasibility of a business reviewed
from the financial aspect, namely by calculating the cost flow and receipt flow of
financial eligibility analyzed using methods such as: Revenue Cost
Ratio (R/C), Break Event Point (BEP), Return on Investmen (ROI) and Internal Rate of
Return (IRR).
6,344 kg. This is in accordance with the statement [8], stating a situation in which the
company cannot profit or lose/break even. BEP production volume is a safe point in
chicken livestock business either partnership pattern or self- contained pattern with the
lowest production that must be produced so as not to suffer losses.
b. BEP Production Price (Rp)
Bep production price of independent pattern farmers will be achieved if the price of
life weight is Rp 18,828/head, and farmers who partner with Company A, Company B
and Company C amounting to Rp 16,781, Rp 16,582 and Rp 16,951 so that the costs
incurred can be returned. Research conducted [7] BEP production price of independent
pattern breeder chicken life is Rp 14,143.88/head and partner breeder amounts to Rp
13,110.92/head. The higher the sales price at the farmer level from bep production price,
then the farmer partnership pattern and independent pattern is more profitable so on the
contrary, the lower the sales price at the farmer level from the BEP production price, then
the farmer both the partnership pattern and the independent pattern will suffer losses.
REFERENCES
[1] Anshory, Dessy Rifah.. Comparison of income of chicken business breed broiler
pattern partnership and self-reliance. Faculty of Economics and Management bogor
Agricultural Institute. 2016
[7] Situmorang, Glorya, F., Hasnudi, and Usman Budi. Analysis of Broiler Farm Business
Partnership Pattern and Independent Breeder in Deli Serdang Regency (Case Study
at PT Satwa Utama Raya). Faculty of Agriculture University of North Sumatra.2013
[8] Soekartawi, Economic Theory of Production With The Subject of Cobb- Douglas
Function Analysis. Jakarta: PT. King Grafindo Persada. 2003
[10] Warsana, Analysis of Efficiency and Profit of Corn Farming. (Study in Randublatun
District, Blora Regency). [Thesis]. Semarang: Master of Economics and Development
Studies at Diponegoro University. 2007