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All Journal Tropical Animal Science Journal
R. Yanuarti
Department of Agribusiness, Faculty of Agriculture, University of Jember
Agriculture, Biological Sciences & Forestry Energy

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Factors Affecting Farmers’ Participation in Contract Farming: The Case of Broiler Sector in Indonesia M. Rondhi; J. M. M. Aji; A. F. Hasan; R. Yanuarti
Tropical Animal Science Journal Vol. 43 No. 2 (2020): Tropical Animal Science Journal
Publisher : Faculty of Animal Science, Bogor Agricultural University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (615.124 KB) | DOI: 10.5398/tasj.2020.43.2.183

Abstract

Contract farming (CF) has been used extensively to integrate broiler value chain both in the developed and developing countries. Participation in CF is associated with the increased farm productivity and farmer income. Therefore, the purpose of this study was to analyze factors affecting Indonesian broiler farmers’ participation in CF. This study used the nationally-representative data of smallholder broiler farmers in Indonesia. The data were the results of the 2014 Indonesian Livestock Farm Household Survey (ILFHS) and consisted of 1,142 farmers distributed in 20 provinces. Logistic regression was used to analyze thirteen factors that potentially affected farmers’ decision to participate in CF. Those factors were age, gender, education, household size, farming experience, farm area, broiler population, cooperative membership, cooperative service, farmer group membership, farmer group service, farmer association, and agricultural extension. The results showed that six factors had statistically significant effects on farmers' decision to participate in CF. Education, land size, population, farmer group, and agricultural extension have a positive influence on farmers' decisions. Meanwhile, cooperative service has a negative effect. Farmer group and agricultural extension service have the strongest effect on participation in CF. The results suggest that farmer groups and extension services to small scale farmers are promising to improve their participation in CF.
Determinants of Cost Inefficiency and Farmer Performance in Broiler Contract Farming J. M. M. AJi; M. Rondhi; A. Suwandari; T. D. Hapsari; J. Januar; R. Yanuarti; Rokhani
Tropical Animal Science Journal Vol. 46 No. 3 (2023): 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.2023.46.3.382

Abstract

The broiler industry plays an important role in meeting the growing demand for animal protein. Ensuring favorable farming conditions are needed to maintain the meat supply, and theoretically, this can be improved through the implementation of Contract Farming (CF). CF grants farmers the privilege to predict quantities, prices, and reduce production risks. However, one of the key challenges in establishing CF is the cost efficiency and performance of farmers. This study aims to develop a cost function for farmers, identify factors contributing to inefficiency, and evaluate farmer performance. The purposive sampling method is employed to select broiler farmers participating in contract farming as the sample for this study. Primary data were collected through surveys. Stochastic frontier cost analysis is utilized to derive a broiler cost function while examining the causes of farm inefficiency and their relationship with farmers’ performance variables. The results indicate that the broiler cost function is significantly influenced by labor costs, the price of day-old chickens, feed expenses, and harvest tonnage. Meanwhile, the inefficiency effect is substantially influenced by farmer age, education, household size, experience, and mortality ratio (MR). Reducing the MR can increase broiler yield, directly improving cost efficiency and, thus farmers’ income. Nonetheless, a comprehensive approach that includes training, monitoring, feedback, and incentivization is needed to enhance farmer performance in broiler contract farming.
Co-Authors A. F. Hasan A. Suwandari J. Januar J. M. M. Aji Mohammad Rondhi Rokhani T. D. Hapsari