The analysis of beef cattle subsystem agribusiness implementation in Central Java province, Indonesia

Abstract

The study aimed to analyze the implementation of subsystem agribusiness on the beef cattle farming in Central Java. Five districts (Rembang, Blora, Grobogan, Boyolali and Wonogiri) were purposively chosen based on the value of Location Quotient (LQ). The study was conducted using quota sampling method. Forty respondents of each district were chosen randomly using quota sampling. Data were analyzed through Structural Equation Model (SEM). The results showed that each subsystem agribusiness had adequate potential score. The score of 0.693, 0.721, 0.684, 0.626, and 0.691 were given for up-stream subsystem, on-farm, down-stream subsystem, marketing and supporting institution, respectively. The results showed that the SEM model was feasible with Chi-Square value=0.952; RMSEA=0.000; Probability =0.621 and TL1=1.126. The significant results of Critical Ratio (CR) were: up-stream subsystem to the on-farm agribusiness; on-farm subsystem to down-stream agribusiness; down-stream subsystem to the farmer's income; marketing subsystem to the up-stream agribusiness and Supporting Institution to the marketing subsystem and down-stream agribusiness. The conclusion of research indicated that the implementation of beef cattle subsystem agribusiness had adequate index and give positive effect to the beef cattle agribusiness.