Financial Analysis of Dairy Cattle Farming (Case Study in Pujon District, Malang Regency, Indonesia)
International Journal of Managerial Studies and Research
Livestock is part of the agricultural sub-sector that has an impact on the economy in Indonesia, because most of the population gets a source of income from this sector Rianzani, (2017); (Rompas, Engka and Tolosang, 2015) ; (Sirajuddin et al., 2019) . Increasing population, income, need for animal protein, and increasing public awareness of nutritious food have an impact on increasing demand for livestock and processed products. Meanwhile, the dairy farming business in Indonesia is currently
... sia is currently dominated by smallholder farms, with three to six cattle per farmer. East Java is a population center and national dairy cattle production with a total of 265.44 thousand heads or 49.50 percent of the total national dairy cattle population with an average milk production in 2011 to 2015 of 475.10 thousand tons or 54.58 percent of national production. Dairy cattle development in East Java is almost spread in various regions. Malang Regency is one of the largest dairy industries in East Java. The dairy business in Malang Regency is spread over almost all districts, but the largest population of dairy cattle is in Pujon District, with 24,097 heads. Sukomulyo Village, located in Pujon District, is one of the villages that produces fresh milk. The dairy cattle farming business that is developing in Sukomulyo Village is still on a small scale with 3 to 6 dairy cattle per farmer. The majority of dairy farmers in Sukomulyo Village almost never calculate their entire production costs. The farmer will buy equipment, supplies, medicines for his livestock and add capital only when needed. The farmer does not calculate whether the amount of production costs that have been spent is proportional to the income received. On the other hand, production costs which continue to increase while the selling price of milk does not increase will affect the income of dairy farmers in Sukomulyo Village.