Production management decision-making and risk analysis of beef cattle breeders in Buru District, Maluku Province, Indonesia
Adolf Bastian Heatubun
, Poerwaningsih S. Legowo, Michel Johan Matatula
Abstract: Decision-making in livestock business activities is the main responsibility of farmers. The success of the beef cattle farmer's business to achieve the highest profit is the main goal. How to take the right decision to achieve these goals and know the various risks in uncertainty, is an important input. This research was conducted on beef cattle breeders in Lolong Guba District, Buru Regency, Maluku Province, Indonesia aiming to determine the impact of various changes in the determinants of cattle breeders' profits and the risks posed by these changes to make decisions for farmer managers. The data collected is primary data recorded in nominal values. Data were analyzed by multiple linear regression model, followed by simulation analysis, and ended with risk analysis. The results of the study met the established hypothesis and were tested statistically significantly. The elasticity of value-added livestock is the largest compared to total sales. The biggest impact of increasing profit is through the increase in the value-added of livestock and the number of sales, although neither is the best choice. Farmer managers' options for dealing with risks and uncertainties in the future are to increase the cost of feeding, add value to livestock, and sell cattle. Mitigation is needed for options, namely farmer managers increasing livestock grazing time, providing supplementary food, monitoring livestock health, and avoiding livestock from environmental disturbances and accidents. Farmer managers need to be equipped with technical knowledge of body weight and carcass estimation of livestock.
Keywords: beef cattle; decision making; profit; risk and mitigation; simulation
Citation: Heatubun, A. B., Legowo, P. S. & Matatula, M. J. (2024). Production management decision-making and risk analysis of beef cattle breeders in Buru District, Maluku Province, Indonesia. Bulg. J. Agri. Sci., 30(2), 203–210
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| Date published: 2024-04-26
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