Content area
Full Text
ABSTRACT
Cow farmers in Indonesia have adopted artificial insemination technology for the Simmental and Limousin breed with the local cows (PO), which creates Cow-Calf operation (CCO). This paper aims to identify the performance of PO, SimPO and LimPO breed in the local livestock in Yogyakarta and to determine the economic incentive for CCO from PO, SimPO, and LimPO. We use multistage sample and select 270 cows that consist of PO, SimPO, and LimPO from several sub-districts. We use direct interview with a semi-structured questionnaire to collect the data. In addition, direct observation to the sample cattle is conducted. Our study reveals that SimPO and LimPO Crossbred significantly result in high input-high output, while PO significantly generates low-inputlow output. Moreover, economic incentive in the form of PO net farm income of is the highest one and significantly different to others. Furthermore, we can identify the potential sub-districts to promote CCO. We recommend to terminate the utilization of the SimPO and LimPO for CCO business and focus on PO to improve the welfare of smallholder cattle.
Keywords: Cow calf operation; Ongole crossbred SimPO and LimPO, Net farm income; Economic incentive; Performance
(ProQuest: ... denotes formulae omitted.)
1.INTRODUCTION
The increase in the beef demand in Indonesia is faster than the increase of the national production, thus, it leads to increased import of beef (Widiati, 2014; Pahantus et al. 2017). The average meat consumption per capita per year in Indonesia over the 2002-2019 is 2.26 kg with the average yearly growth is 2.89%. However, the domestic production is not sufficient to cover the demand. Therefore a substantial proportion of beef consumption has to be filled by import. In 2016, imported beef has reached 35.37% of the beef consumption in Indonesia, which is around 675,000 tons (Director General of Livestock and Animal Health, 2017). The demand for national beef is predicted to keep increasing along with the increase in the population of Indonesia by 1.2% per year, where Indonesia's population in 2016 is approximately 237,641,326 (Central Bureau of Statistics, 2013).
The main issue is the slow growth in beef production because almost all local beef supply comes from smallholder farms with small-scale maintenance efforts and lack of working capital (Widiati, 2014; Sodiq et al., 2017). Small-scale livestock businesses conducted...