The influence of agribusiness subsystem on beef cattle fattening farm's profit in Central Java

Abstract

This study was aimed : (i) to know the subsystem implementation and agribusiness planning in beef cattle fattening; (ii) to count the profit of beef cattle farming; (iii) to analyze the effect of agribusiness subsystem implementation and agribusiness planning to beef cattle fattening profit. This study was carried out using survey method and the elementary units were feedlot farmers. The sample was determined by Purposive Quota Sampling Method on 112 respondents spread across five regencies, namely Blora, Rembang, Grobogan, Wonogiri, and Boyolali. Data were collected from primary and secondary sources. The data analysis used quantitative descriptive and inferential statistics method, which include scoring, financial, and multiple linear regression analysis. The results showed that : (i) the implementation of agribusiness subsystem (including preproduction subsystem, marketing, and agribusiness support services) and agribusiness planning were not so good category, while the cattle farming subsystem was moderate category; (ii) the average of farming scale in each feedlot farmer was 2.95 head of cattle with the profit rate was IDR 1,044,719 per fattening period during 6.68 months (equivalent to IDR 156,395 per month); (iii) agribusiness subsystem and agribusiness planning had significant impact on feedlot farmer profit simultaneously, but preproduction subsystem and the agribusiness support services subsystem partially had a significant impact on feedlot farmer profit.