Open AccessPROFITABILITY AND EFFICIENCY OF DAIRY FARMING IN SLEMAN REGENCY
Author(s) -
Muhammad Fauzan
Publication year - 2021
Publication title -
agric
Language(s) - English
Resource type - Journals
eISSN - 2549-9343
pISSN - 0854-9028
DOI - 10.24246/agric.2020.v32.i2.p173-188
Subject(s) - profitability index , livestock , agricultural science , business , production (economics) , livelihood , agriculture , dairy farming , agricultural economics , economics , geography , finance , forestry , environmental science , archaeology , macroeconomics
The eruption of Mount Merapi has caused a serious impact on dairy farming in Sleman Regency. The death of livestock and the destruction of forage has decreased the income of dairy farmers, which is the main livelihood of the community. This study aims to analyze the profitability, the factors that influence the level of milk production, the level of technical efficiency, and the factors that cause the in-efficiency of dairy farming in Sleman Regency. This study used a questionnaire on 62 respondents. Analysis of profitability and production functions of the stochastic frontier is used for data analysis. The results showed that the business activities of dairy farming in Sleman Regency were profitable businesses with an average income from cash production costs per year is Rp. 18,347,565.38 per livestock business or Rp. 6,437,742.24 per unit of livestock. Factors that influence milk production were concentrate feed and the amount of livestock ownership. The level of technical efficiency of dairy farmers is 88.9%. The level of technical efficiency was influenced by the age of the farmer and animal’s health examination.