The Success Indicators of a Dairy Farming Cluster in Indonesia: A Case in Malang Regency of East Java Province

Abstract

Background: The success of a dairy farming business was not only determined by technical and economic factors, but also by competitiveness factors. One way to strengthen competitiveness was the management of cluster-based dairy farming areas. Agricultural cluster was greatly significant in promoting regional economic growth, enhancing the rural competitive strength, advancing the specialization of agriculture production and increasing the incomes of the farmers. Methods: Survey research was conducted to identify success indicators of the dairy farming cluster in the Malang Regency. Respondents were 42 farmers members of the "Rukun Tani 2" farmer groups who were selected purposively. The data were analyzed descriptively on the indicators that determine the success of the development of dairy farming clusters in the Malang Regency. Result: The dairy farming cluster in Malang Regency has 17 cluster success indicators consisting of three key factors (networking and partnerships, strong competence and expertise and a strong innovation base), four basic factors (competition, entrepreneurial culture, social capital and infrastructure) and ten smoothing factors (proximity to suppliers, market access, access to information, access to financial resources, access to specialist services, access to supporting services, the existence of big companies, specialties, leadership and shared vision and government policies).