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The study aims to evaluate the Domestic Resources Cost (DRC) of beef cattle raised either on grazing, or a tethering system of small-scale beef cattle farming. The study was done using a survey method. A total of 120 respondents were selected purposively to consist of 60 farmers applying the grazing system and another 60 farmers applying the tethering system. The parameters measured were socio-economic characteristic, Domestic Resources Cost Ratio (DRCR) and Private Cost Ratio (PCR). Data were analyzed by applying a method of Policy Analysis Matrix (PAM). The result of the study indicated that 87% of those farmers involved in the grazing system and 85% of those involved in tethered beef cattle production, were within the productive age range. In the grazing system, the cattle farmers upstream of Benain-Noelmina watershed area gain the private and social profit levels which is IDR 406,284,-/AU/year and IDR 688,388,-/AU/year, respectively. Further, in the tethering system, the average of private and social profit gain is IDR 855,222,-/AU/year and IDR 1,385,712,-/AU/year, respectively. The small-scale beef cattle farming upstream of Benain-Noelmina watershed has competitive and comparative advantages, indicated by the value of PCR and DRCR which are less than 1. The PCR value was 0.41 in the grazing system and 0.71 on the tethering system; hence, the DRCR of the grazing system was 0.29 and 0.60 of the tethering system.

Domestic Resources Cost Analysis of Small-Scale Beef Cattle Farming at Upstream Area of Benain-Noelmina Watershed, West Timor, East Nusa Tenggara