Citation:

Fitri Dian Perwitasari, Raden Ahmad Romadhoni. Tri Anggraeni Kusumastuti, Rini Widiati. "Investment and Competitiveness of Cross-breed Beef Cattle Fattening Businesses in Indonesia" International Research Journal of Economics and Management Studies, Vol. 3, No. 2, pp. 44-53, 2024.

Abstract:

The growth of cattle farming businesses in Indonesia was investigated by 1) determining the feasibility of investment in cross-breed cattle farming and 2) analysing the competitiveness of such indigenous cattle farming businesses in eastern West Java Province, Indonesia, in this study. Primary and secondary data were collected consecutively from the respondents and related institutions. Early data screening showed that the indigenous farming in the study area mainly adopts two fattening systems. System I takes 12 months per fattening period, and System II takes only six months. With a snowball sampling, 154 indigenous farmers participated in the survey, consisting of 114 farmers who adopted System I with an average of 2 cattle and 40 farmers of System II with an average of 11 cattle. Financial investment feasibility of cross-breed cattle uses the BCR, NPV, IRR, and PPC analyses, which were conducted based on a five-year investment period with a discount factor of 6% annually and included the inflation rate into the formula. Business competitiveness was assessed with the PAM method. The result showed that among the two systems adopted, System II showed signs of financial feasibility and profitability prospects rather than System I. Further results showed System II also exhibited good competitiveness. Therefore, System II was suggested to be adopted to optimize the cross-breed beef cattle fattening business. Nevertheless, this should also be supported by government policies that provide higher positive incentives for the farmers.

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Keywords:

Cross-breed cattle fattening, investment feasibility, Competitiveness.