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All Journal Jurnal Ilmu-Ilmu Peternakan (Indonesian Journal of Animal Science)
Qolbyh, Nurul
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Financial performance of smallholder beef cattle farming at various herd scales in Soppeng Regency, South Sulawesi Utami, Sri Wira; Indrawirawan; Mutmainnah; Baba, Syahdar; Qolbyh, Nurul; Ramli, Muh. Akbar
Jurnal Ilmu-Ilmu Peternakan Vol. 36 No. 2 (2026): August 2026
Publisher : Faculty of Animal Science, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiip.2026.036.2.11

Abstract

This study analyzes the financial feasibility of smallholder beef cattle farming in Soppeng Regency using fixed costs, variable costs, income, and benefit-cost (B/C) ratio indicators. Data were grouped by herd size, revealing a strong positive relationship between scale and financial performance. The B/C ratio increased progressively with herd size: 1.06 (2–5 head), 1.11 (6–9 head), 1.66–1.70 (10–17 head), 1.91 (18–21 head), and 2.02 (>22 head). Importantly, all herd size categories achieved B/C ratios above 1.0, indicating that smallholder beef cattle farming is financially feasible across all operational scales. However, larger-scale operations demonstrated substantially higher profitability, with the >22 head group achieving nearly twice the cost efficiency compared to the smallest scale. This improvement stems from declining fixed costs per head and higher total income, especially among larger-scale farmers who often use self-produced forage, eliminating major feed expenses. Net income increased dramatically from IDR 156,835 in the 2–5 head group to IDR 7,908,000 in the >22 head group. The findings suggest that enhancing profitability requires scaling up operations where feasible, integrating local forage systems, adopting comprehensive financial recording practices that capture both explicit and implicit costs, and strengthening farmer group institutions. These strategies can help smallholders enhance their already-positive financial performance and achieve greater economic sustainability. With efficient management, adequate scale of operation, and integration of local feed resources, beef cattle farming in Soppeng demonstrates significant potential to be both profitable and resilient across various operational scales.
Co-Authors Indrawirawan Indrawirawan Mutmainnah Ramli, Muh. Akbar Syahdar Baba Utami, Sri Wira