This research aims to identify several business models of fresh milk agro-industry that are emerging in rural areas, as well as factors that influence agro-industry development, and establish a dairy agro-industry business model framework. The case study method used in this research consists of an agro-industry with business models and cooperatives. According to the finding of this research, there are seven supporting factors that influence the growth of the fresh milk agro-industry in rural areas, that are; (1) organizational structure, (2) fresh milk handling operations, (3) technology application for production activities, ( 4) training of employees and breeders, (5) product marketing strategies, (6) product quality and quality assurance, (7) company actor's innovation. These seven factors can be determined using the weight ratio to assess the value of each factor that influences the development of the fresh milk agro-industry in rural areas, namely business management (0.2641), raw material handling (0.1510), and quality assurance (0.1347). The importance of the decision is a crucial factor in the development of the dairy agro-industry in rural areas. In rural areas, the fresh milk agro-industry business model is a cooperative form of business, as well as a business model that incorporates both private and cooperative business practices. The more varied the business models examined, the stronger the fresh milk agro-industrial business model system would be. Since they help small-scale milk farmers in rural areas market their products, regional milk cooperatives are still the best business model to use.

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Ciwidey is one of the fresh milk production areas with many tourist attractions has the potential to be developed, especially in the sale of processed milk products. The four processed whole milk products produced in Ciwidey are fresh milk, candy, yogurt, and greek. The purpose of this study is to determine the added value and the level of profit generated from the fresh milk processing business and to determine the superior processed products that are a priority to be developed in Ciwidey. The method used in this research is value added analysis using the Hayami method. The components of the calculation of the Hayami method are output, input, price, and income which give the results of conversion factors, labor coefficients, product values, value added ratios, labor benefits, other input contributions, and profit levels and margins. The results of the analysis show that there is added value from the production process of fresh milk, caramel milk candy, yogurt, and Greek, respectively, amounting to IDR 1.396/kg; IDR 21,141/kg; IDR 18,398/kg; and IDR. 69,947/kg. The biggest profit rate for fresh milk products is 98%. Yogurt and Greek products have the same profit rate of 89-90%. The lowest profit rate for candy products is 75%. The selected pure milk product is greek because the highest value of the added value, added value ratio, direct labor income, and the profit compared to the other 3 pure milk products.

Rumah Kedelai Grobogan (RKG) focuses on the production and dissemination of local soybean Grobogan varieties. One of its business units, Rumah Tempe, produces hygienic tempe from soybean Grobogan varieties. It has good prospect and is expected to be the driver of the development of RKG. The development of Rumah Tempe is expected to increase the use of soybean Grobogan varieties and improve RKG performance. This research aims to determine an appropriate strategy for Rumah Tempe. This research focuses on 4 stages: (1) identifying factors influencing Rumah Tempe's business development, (2) determining and selecting criteria, (3) determining alternatives for business development, (4) selecting the most preferred strategy for Rumah Tempe's business development. Analytical Hierarchy Process (AHP) was conducted to prioritize the preferred strategy. The results shows the criteria were weighted as follows: (1) New product development (0.1022), (2) Product quality (0.2747), (3) Continuity product availability (0.2938) and (4) Customer satisfaction (0.3293). Customer satisfaction is the most prioritized criteria in Rumah Tempe's business development. Alternative strategy are clasified into 4 types: prospector strategy, defender strategy, analyzer strategy, and reactor strategy. The result of the assessment shows that defender strategy is the most preferred prioritized strategy for Rumah Tempe.

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