Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis
JURNAL AGRISEP VOL. 25 NO. 02 2026 (SEPTEMBER)

Production Risk and Risk Management in Indonesian Poultry and Dairy Agribusiness: A Household Level Analysis

Dwi Rachmina (Agribusiness Department, Faculty of Economics and Management, IPB University, West Java, Indonesia)
Dwi Martha Yulia (Agribusiness Study Program, Faculty of Agriculture, Universitas Trunojoyo Madura, East Java, Indonesia)
Feryanto Feryanto (Agribusiness Study Program, Faculty of Agriculture, Universitas Trunojoyo Madura, East Java, Indonesia)



Article Info

Publish Date
30 Sep 2026

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.

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Journal Info

Abbrev

agrisep

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

Description

(1) The Macro approach of agricultural socio-economic as a system which comprehensive and integrated from subsystems up-stream, subsystems on-farm, subsystems down-stream, subsystems support and the impact of their interrelationships with government policy, international economics, agricultural ...