PROFITABILITY OF SMALLHOLDER DAIRY FARMS BASED ON THE PERFORMANCE OF LACTATING COWS AND FRESH MILK MARKET PRICES AT LOWLAND AREAS OF YOGYAKARTA
Abstract: This study was aimed
to determine the profitability of smallholder dairy farmers at the lowlandareas
of Yogyakarta related to dairy cow performance (milk production) to be achieved
at various freshmilk market prices. Thirty lactating Holstein cows belonging to
the 16 farmers at the lowland areas ofYogyakarta Province selling milk directly
to the consumers were drawn as the samples. Profitability wasdetermined by
enterprise budgeting (accounting profit and economic profit) and break even
point. Inputand output data were obtained from interview with the farmer
samples along with direct observations onthe cows performance. The results
indicated that under the observed condition of 9.28 liter/day averagemilk
production at IDR 4,700 market price, the accounting profit was found to be
IDR7,758,862/lactating cow/year. The farmers were able to make an economic
profit of IDR 1,839,875 withprofit margin index of 0.12. If the farmers have to
sell the fresh milk to the Cooperatives at the price ofIDR 2.800 or IDR 3.200/liter,
in order to gain a positive economic profit, milk production must be atleast
13.5 or 12.0 liters/day, respectively.
Keywords: Enterprise
budgeting. accounting profit. economic profit. break even point. dairy cow. Lowland
Author: R. Widiati, A.
Adiarto, B.S. Hertanto
Journal Code: jppeternakangg120072
