Tropical Animal Science Journal
Vol. 43 No. 2 (2020): Tropical Animal Science Journal

Factors Affecting Farmers’ Participation in Contract Farming: The Case of Broiler Sector in Indonesia

M. Rondhi (Department of Agribusiness, Faculty of Agriculture, University of Jember)
J. M. M. Aji (Department of Agribusiness, Faculty of Agriculture, University of Jember)
A. F. Hasan (Department of Agribusiness, Faculty of Agriculture, University of Jember)
R. Yanuarti (Department of Agribusiness, Faculty of Agriculture, University of Jember)



Article Info

Publish Date
03 Jun 2020

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.

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Journal Info

Abbrev

tasj

Publisher

Subject

Agriculture, Biological Sciences & Forestry Energy

Description

ropical Animal Science Journal (Trop. Anim. Sci. J.) previously Media Peternakan is a scientific journal covering broad aspects of tropical animal sciences. Started from 2018, the title is changed from Media Peternakan in order to develop and expand the distribution as well as increase the ...