Strategies to Strengthen Dairy Cooperatives Performance through Cooperative Financial Performance Approach

Abstract

Dairy cooperatives plays an important role in building people's dairy farming business in Indonesia. It needs the right strategy to strengthen the performance of dairy cooperatives. This research applied survey method and stratified proportional random sampling to determine respondents. The 0bserved variables were financial performance and trends in cooperative financial. The results revealed that 30% of dairy cooperatives had effective financial performance. Average trends of dairy cooperative financial which based on liquidity ratios, solvency ratios, and profitability ratios tend to decrease each year. Based on the SWOT analysis, there are several strategies that can be applied to improve financial performance of dairy cooperatives, namely 1) increasing the productivity of business units on an economic scale by utilizing government loans and GKSI support, 2) raising awareness of the importance of the role of members through fostering skills and strengthening the roles and functions of livestock group. The strengthening strategies for cooperatives with ineffective financial performance are 1) efficiency of production operational costs and adding equity by utilizing government assistance to reduce the burden of cooperative debt, 2) optimizing productive business units.