<![CDATA[Goat milk sales are dominated by unprocessed raw milk, resulting in limited profit margins for farmers due to the dominance of intermediaries in the marketing chain. This study aims to: (1) analyze an integrated agribusiness model based on goat farming, spanning from upstream to downstream subsystems; (2) analyze the value-added of processed goat milk products—specifically pasteurized milk and ice cream—using the Hayami method; and (3) formulate recommendations for business development strategies. A mixed-methods approach was employed, combining qualitative descriptive analysis to map the upstream-downstream agribusiness system with quantitative descriptive analysis to assess costs, revenue, and value. The study was conducted at Embik Eco Green Farm in Jambangan Village, Malang Regency, using primary data collected through in-depth interviews, observation, and documentation. The results demonstrate that an integrated agribusiness model linking upstream subsystems (breeding stock, feed, supplements), on-farm activities (rearing and hygienic milking), downstream processes (pasteurization and product diversification), and multi-channel marketing yields highly efficient business performance, characterized by a net profit margin of 87.6% and an R/C ratio of 8.05. Hayami value-added analysis reveals that GEMIK pasteurized milk generates a positive value-added of Rp4,052 per liter of raw material with a ratio of 37.5% (medium category), whereas GEMIK ice cream yields a negative value-added of Rp−4,052 per liter of raw material (ratio of −15.1%) due to high costs of other inputs relative to sales revenue. These findings indicate that successful upstream-downstream agribusiness integration does not guarantee positive value-added across all food product lines; therefore, specific evaluations of selling prices and production scales for each product are essential before making expansion decisions. This study offers empirical insights into integrated agribusiness development models for medium-scale goat milk agro-industries in Indonesia.]]>
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