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All Journal journal of Basic Medical Veterinary
Imam Mustofa
Department of Veterinary Reproduction, Faculty of Veterinary Medicine, Universitas Airlangga, Surabaya, Indonesia
Agriculture, Biological Sciences & Forestry Biochemistry, Genetics & Molecular Biology Immunology & microbiology Medicine & Pharmacology Veterinary

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Feasibility and Sensitivity Analysis of Broiler Chicken Farming with the Partnership Pattern of the “Lumajang Broiler Group” in Lumajang Regency Fara Abafuri Permata; Imam Mustofa; Sunaryo Hadi Warsito; Mohammad Anam Al Arif; Sri Hidanah; Erma Safitri; Widya Paramita Lokapirnasari; Emy Koestanti Sabdoningrum
Journal of Basic Medical Veterinary Vol. 15 No. 1 (2026): Journal of Basic Medical Veterinary, June 2026
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jbmv.v15i1.83597

Abstract

This study aimed to evaluate the financial feasibility and sensitivity of the broiler chicken farming business of the “Paguyuban Broiler Lumajang” Livestock Group in Lumajang Regency. The research employed a descriptive observational method using a survey approach, involving 20 farmers who were categorized into two groups based on partnership companies (national and multinational companies). Feasibility analysis was conducted using four key financial indicators: Net Present Value (NPV), Average Rate of Return (ARR), Benefit–Cost Ratio (B/C Ratio), and Payback Period (PP). Sensitivity analysis focused on the impact of changes in feed prices (increases of 5%, 10%, and 15%) and broiler selling prices (decreases of 5%, 10%, and 15%). The results indicated that all groups were financially feasible, with positive NPV values, ARR significantly exceeding prevailing interest rates, PP under five years, and B/C Ratio values above 1. Sensitivity analysis revealed that a decrease in broiler selling prices had a greater impact on profit generation than an increase in feed prices. In conclusion, all groups in the “Paguyuban Broiler Lumajang” were financially viable and showed strong potential for further development. Government support in stabilizing broiler prices and feed costs is essential to ensure business sustainability and farmers’ welfare.
Co-Authors Al arif, Mohammad Anam Emy Koestanti Sabdoningrum Erma Safitri Fara Abafuri Permata Sri Hidanah Warsito, Sunaryo Hadi Widya Paramita Lokapirnasari