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N. Kusnadi
Department of Agribusiness, Faculty of Economics and Management, IPB University (Bogor Agricultural University)
Agriculture, Biological Sciences & Forestry Energy

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Journal : Tropical Animal Science Journal

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The Impact of Vertical Integration Intensity on Broiler Farms Technical Efficiency: The Case of Contract Farming in West Sumatera Harianto Harianto; N. Kusnadi; D. A. Paramita
Tropical Animal Science Journal Vol. 42 No. 2 (2019): Tropical Animal Science Journal
Publisher : Faculty of Animal Science, Bogor Agricultural University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (450.956 KB) | DOI: 10.5398/tasj.2019.42.2.167

Abstract

Contractual arrangements of different types have increasingly found in West Sumatera not only in subsistence and commercial crops but particularly also in livestock sector.  Contract farming in livestock agribusiness is generally defined as broiler farms under an agreement between farmers and a livestock inputs supplier. Within this broad definition, there are different variants of contracts depending on the formality and intensity of contractual arrangement. This study objective was to prove that the design of a contract, as representation of vertical integration intensity in broiler agribusiness, has different efficiency effects on production.  The stochastic frontier production function was used in this study, and employed a regression method to estimate the level of technical efficiency.  Data were collected from 87 broiler fattening farms consisted of 50 broiler fattening farms under formal contractual system and 37 broiler fattening farms under informal contractual system. The results showed that farm experience and improvement of the contract system would reduce the level of technical inefficiency of broiler farms. The study concluded that broiler farms under formal and detail contract farming had greater technical efficiencies compared to broiler farms under informal unwritten contract arrangement.  However, the broiler farms under informal contract obtained higher net returns compared to the broiler farms under formal contract arrangement.
The Impact of External and Internal Factors on the Dairy Farmer’s Household Economics J. Atmakusuma; B. M. Sinaga; N. Kusnadi; I. K. Kariyasa
Tropical Animal Science Journal Vol. 42 No. 3 (2019): Tropical Animal Science Journal
Publisher : Faculty of Animal Science, Bogor Agricultural University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.5398/tasj.2019.42.3.245

Abstract

Domestic milk production is currently only able to meet 20% of the total domestic demand of milk, but this opportunity has not been responded well by dairy farmers. The objectives of this study were: (1) to analyze the performance of dairy farmers and (2) to analyze the impact of external factors (concentrate feed and milk prices) and internal factor (marginal productivity of concentrate feed) on production, income, and household welfare of dairy farmers. The number of sample households was 97 cooperative-member farmers and 46 cooperative-nonmember farmers in Lembang, West Java. The analytical method used included descriptive analysis and household economic models in the form of simultaneous equations. The results of the study showed that the scale of small-scale business with the percentage of lactating cattle and dairy farmers’ productivity was still low. When the price of concentrate feed rises, the impact of the policy of increasing milk prices is greater than the increase in the marginal productivity of concentrate feed on increasing business income and household welfare of dairy farmers.
Co-Authors B. M. Sinaga D. A. Paramita Harianto Harianto I. K. Kariyasa J. Atmakusuma