The profit analysis of beef cattle farming in Tanah Laut District, South Borneo

Abstract

The feasibility study of financial farming was needed to be analyzed by local farmers. This study was conducted purposively in Banua Tengah Village, Takisung Sub-District, Tanah Laut District, in July - September 2017. Respondents were selected by simple random sampling of 30 persons in the village sample. Data were collected in the form of primary data and secondary data Tabulation analysis was needed to analyze the data on farmer's household characteristics and housing management characteristics, also farmer's household income and expense data. Financial feasibility analysis for calculating the feasibility of beef cattle breeding business investment was determined using the feasibility indicators namely: NPV, B/C Ratio and IRR, while the indicators of the feasibility of cattle fattening: BEP, ROI, and R/C. The result showed that (1) The business of beef cattle breeding using 5 females aged 1 year old in the fourth year (until bore 1 calf/head) was quite feasible to be developed cause it resulted in Gross B/C Ratio value of 1.23 (B/C > 1), NPV value of 21,500,194 (positive), and IRR value of 14.61% by Discount Rate of 10 %. (2) Fattening beef cattle business using 5 cattles/farmer (3 months raising period) will resulted benefit for farmers when the BEP selling price was above IDR 39,152/kg of live weight, and the total BEP of beef cattle weight gain after 3 months fattening period above 1,700 kg or above 340 kg/head, with ROI value of 31.09% (each cost incurred about IDR 1 will get a profit of IDR. 0.3109), and R/C value = 1.31 ( quite feasible to be developed).