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All Journal Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis
Feryanto Feryanto
Agribusiness Study Program, Faculty of Agriculture, Universitas Trunojoyo Madura, East Java, Indonesia
Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

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Production Risk and Risk Management in Indonesian Poultry and Dairy Agribusiness: A Household Level Analysis Dwi Rachmina; Dwi Martha Yulia; Feryanto Feryanto
Jurnal AGRISEP JURNAL AGRISEP VOL. 25 NO. 02 2026 (SEPTEMBER)
Publisher : Badan Penerbitan Fakultas Pertanian, Universitas Bengkulu

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31186/jagrisep.25.2.499-518

Abstract

Livestock farming in Indonesia faces high uncertainty due to fluctuating selling prices and production risks like diseases and livestock mortality. This study analyzes production risk factors and management practices in poultry and dairy farming. Using data from the 2014 Livestock Business Household Survey (20,601 poultry and 597 dairy farming households), the Just and Pope Model (1976) was employed to examine factors influencing production and risks. Results indicate that risk-increasing factors in poultry farming include feed, education level, number of dependents, livestock quantity, credit, and mortality rate, while risk-reducing factors include sanitation, livestock health, and farming experience. Variables such as disinfectants, farmer's age, activity, and partnerships are insignificant. In dairy farming, risk-increasing factors include sanitation, farming experience, education level, and livestock quantity, while feed reduces risk. Insignificant variables include livestock health care costs, farmer's age, dependents, credit, activity, and partnerships. Farmers adopt three risk management strategies: prevention (improved feed, sanitation, vaccinations, vitamin supplementation, and partnerships), mitigation (enhancing livestock health), and coping (using credit). These strategies aim to minimize risks, reduce impacts before occurrence, or address consequences post-occurrence. Strengthening these approaches is essential for sustainable livestock farming.
Co-Authors Dwi Martha Yulia Dwi Rachmina