Eduvest Journal of Universal Studies

Volume X Number X, Month, Year

p- ISSN 2775-3735- e-ISSN 2775-3727

 

 

LIVESTOCK BUSINESS DEVELOPMENT STRATEGY

BEEF CATTLE IN INDONESIA

 

 

Ni Made Ayu Gemuh Rasa Astiti

Universitas Warmadewa Denpasar, Bali, Indonesia
Email: ayugemuh@gmail.com

 

ABSTRACT

 

Indonesia is a potential country for the development of a cattle breeding business because it is supported by the availability of land resources that are used as feed sources. The success of developing a cattle breeding business is highly dependent on the selection and application of a strategy that is appropriate to the characteristics of the region. The purpose of this study was to determine the development strategy for beef cattle farming in Indonesia. The research approach used is qualitative with data analysis using the Miles and Huberman interactive analysis model. Miles and Huberman's interactive analysis model includes 3 main things, namely data reduction, data presentation, and drawing conclusions. The results of the study with SWOT analysis show that Strength-Opportunities (SO) are more recommended as a beef cattle farming business development strategy in Indonesia

 

KEYWORDS

strategy, business development, cattle breeding

 

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International

 

 

INTRODUCTION

The livestock sub-sector is one part of the agricultural sector that can be a supporter of development, especially in the economic field. Some of the important roles of the livestock sub-sector are providing meat, egg, and milk production to meet public demand for animal protein sources with high nutritional value and as industrial raw materials (Rianzani et al., 2018). According to (Pujosakti, 2016) the national beef supply comes from 3 (three) main sources, namely: smallholder livestock business, cattle fattening industry using imported seeds, and beef imports.

The policy of developing beef cattle business can basically run synergistically with the activities that have been carried out by rural or local breeder households. The demand for beef as a food source of animal protein continues to increase every year, this is due to the increasing population and increasing consumption of beef per capita. Meanwhile, the amount of domestic production in 2014-2018 always fluctuates every year. To meet this demand, Indonesia imports meat with a trend that tends to increase every year (Wahyudi et al., 2021).

Demand for livestock products increases from year to year in line with the increasing level of public nutrition awareness. However, consumption of animal food in Indonesia is not fully provided from domestic products, but partly provided through imports such as beef and milk (Hubeis, 2020).

Beef imports are still being carried out, because Indonesian local cattle are still unable to produce premium quality meat. Imported meat has several advantages, namely it is more tender, has a high degree of marbling so that it is liked by consumers (Anari et al., 2018).

Beef cattle business development programs need to be directed by utilizing resources in an optimal and efficient manner that are adapted to natural conditions, socio-economic conditions of the local community, infrastructure, developed livestock technology and supporting institutions and policies (Agustomo et al., 2020).

Business development in livestock is shown to increase food security and people's purchasing power through increased income. To be able to achieve the desired goals, the strategy needed is to increase active participation from the community, to encourage investment in livestock business (Suresti & Wati, 2012).

Based on the background described above, the researcher is interested in conducting research entitled "Strategy for Development of Beef Cattle Farming Business in Indonesia"

 

RESEARCH METHOD

The approach used in this study is a qualitative approach that is used to find out or describe the reality of the events being studied, making it easier to obtain objective data (Adhimah, 2020). A qualitative approach is a research and understanding process based on a methodology that investigates a social phenomenon and human problem. In this approach, the researcher creates a complex picture, examines words, reports in detail from the respondents' views, and conducts a study of the situation experienced (Arkandito et al., 2016). While the research model used is the interactive analysis model of Miles and Huberman. Qualitative data analysis activities are carried out interactively and continuously until complete, so that the data is saturated. This analysis consists of 3 main things: data reduction, data presentation, and drawing conclusions (Lisabella & Hasmawaty, 2021).

In data collection, documentation techniques were used by collecting journals with the keywords animal husbandry, cattle farming, and business development from various sources. Then data reduction is carried out, after several relevant journals are obtained, grouping and removing unnecessary data and organizing are carried out. Next, the presentation of data. Presentation of this data began by presenting data from the analysis of various journals regarding business development in business farms. The last thing to do is draw conclusions. This conclusion is made after all the data has been analyzed and presented.

 

 

RESULT AND DISCUSSION

The type of beef cattle that has been widely developed in Indonesia is the Bali cattle which is Indonesia's mainstay of beef cattle. Bali cattle are the offspring of wild cattle which have undergone a long process. However, the rate of increase in beef production has not been able to meet demand due to various factors such as: the supply of meat initially did not match the demand, which still experienced excess demand, increased household income which tended to change consumption patterns towards animal protein from livestock, including meat. beef, changes in people's tastes tend to lead to beef consumption. In (Priyanto, 2011) the supply of national beef comes from three main sources, namely: smallholder livestock businesses, the cattle fattening industry by importing feeder cattle, and beef imports.

(Rusman et al., 2020) said that the national beef cattle breeding center is a potential for the development of a national beef cattle breeding area. National beef cattle breeding centers are determined parametrically with weighting on: feed carrying capacity, livestock population, livestock infrastructure, livestock disease status, farmer households, livestock institutions and master plan support. Local government support for livestock development is also a consideration in determining livestock centers.

 

SWOT analysis

Beef cattle farming business management has various strengths and opportunities as well as facing weaknesses and threats. These interact with each other and need to be managed properly in order to benefit farmers.

1.   Strength

a.   The desire of farmers to improve their standard of living is that they respond to their area which is a rainfed land to raise cattle.

b.   The role of the KUD, in motivating cattle farmers, is to provide guidance and technical assistance for beef cattle development, to provide soft loans, to provide credit for production facilities such as concentrates, drugs, and equipment, as well as to accommodate and market the meat produced.

c.   The government's roles include: providing artificial insemination, establishing artificial insemination service posts and animal polyclinics in beef cattle breeding centers, increasing the beef cattle population with government assistance programs, providing technical assistance and monitoring, as well as diversifying processed products made from beef.

d.   The role of the Pasar Bank with a policy of providing working capital in the form of credit for one group.

e.   The KUD policy that compensates if the meat from the breeder is not selling well.

2.   Weakness

a.   Weak business management as seen from non-representative cages.

b.   Farmers provide feed that is not suitable so that the quality of beef decreases.

c.   Standard quality of meat produced is still below standard.

d.   Feed prices continue to increase, the feed given to beef cattle greatly affects the quality of the meat.

e.   Water shortages in the dry season.

f.    The difficulty of green fodder in the dry season.

g.   Cheap price of beef.

h.   Beef cattle farming business has not yet reached an efficient business scale.

3.   Opportunity

a.    Improving the economic status of the community, with this increase will improve people's consumption patterns. Thus, the desire to consume beef will also increase.

b.   The social level in society has increased which has caused beef to become the main menu in serving dishes.

c.   Demand for processed products (meatballs, sausages, etc.) tends to increase.

4.     Threat

a.   Import prices are much cheaper, so consumers switch.

b.   Various processed products that are sold are cheaper and have various types so that they are more attractive.

c.   The abolition of the government's policy regarding busep (absorption evidence) regarding government policies through the Three Ministerial Decree which permits the purchase of domestic meat.

 

Development Strategy

The development strategy is formulated based on identified internal and external factors. Alternative strategies that can be formulated in the development of beef cattle farming business are:

1.   S-O strategy

a.   Increase business scale at the farmer level. Existing financial institutions need to provide convenience facilities in the form of soft loans with simple procedures that can be used by farmers to increase business scale so that it becomes more efficient.

b.   Expanding beef cattle business.

c.   Improve meat quality by improving beef cattle management.

2.   Strategi W-O

a.   Carry out the import of superior cattle breeds.

b.   Combine feed so as to produce minimum costs that meet the minimum requirements that meet the biological and physiological requirements of beef cattle for slaughter. Reinforcing feeds in the form of concentrates, rice bran and tofu dregs are feeds prepared with special compositions with high nutritional value.

c.   Diversify processed beef products.

3.   Strategi S-T

Optimizing the programs provided by the government in the development of beef cattle.

4.   Strategi W-T

Improving the management of beef cattle based on the knowledge, skills and experience of breeders. Hereditary raising experience needs to be combined with more modern knowledge, technology, and management.

In research conducted by (Malotes, 2016) stated that the recommended alternative in the development of beef cattle farming is the SO (Strenghs-Opportunities) strategy, namely the strategy of comparative advantage intended to draw advantage, namely the meeting between external opportunities and strengths.

In line with (Nursan & Sukarne, 2021) states that the agribusiness development strategy that needs to be implemented is a strength-opportunity (SO) strategy which includes a strategy to increase the population and productivity of cattle by utilizing reproductive technology, and agricultural technology parks, increasing HR knowledge and skills breeder.

 

CONCLUSION

Based on the analysis processed with the SWOT matrix, it can be concluded that a suitable strategy in developing beef cattle farming business in Indonesia is the Strength-Opportunities (SO) strategy, namely by strengthening capital in order to be competitive, expanding the business of developing beef cattle farms, and increasing livestock yields. beef cattle.

 

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