Cisarua District produces the least amount of cow's milk among numerous cows' milk production centers in Bogor Regency. Additionally, the fluctuations in milk production caused by disease in dairy cattle are also known to occur in Cisarua District. The study aimed to determine the expected business income when a production risk exists. The cross-sectional data used in this study were obtained from 57 dairy cattle farmers with an average number of 4 lactating cows consisting of second lactating cows, third lactating cows, and pregnant cows. Business income was calculated using R/C ratio analysis, and the expected value of income when production risk exists was measured using expected return. The expected return value was positive, which was IDR 1,907,582. The value represents dairy cattle farmers were risk takers because they continued to run the dairy cattle farming business when a production risk existed. The probability of disease as a production risk factor demonstrated that the dairy cattle farming business in Cisarua District remained profitable.
Cisarua District is one of the dairy farming centers with the lowest amount of milk production in Bogor Regency. The amount of milk production in Cisarua District is also known fluctuate. Differences in breeders' preferences in the use of production inputs affect production risk in dairy farming businesses. The aims of this research are to analyze the effect of production factors to production risk and risk preference of dairy farmers in Cisarua District. This research was conducted in Cisarua Subdistrict, Bogor Regency. The cross section data sourced from 91 dairy farmers were producing milk form second and third lactation cows. The model used in this research were Just and Pope model to analyze dairy farm risk production function and the Arrow-Pratt Absolute Risk Analysis model to analyze farmer's risk preferences. The results showed that forage and polar are risk reducing factors. Meanwhile, rice bran, tofu waste, concentrate, and work time are risk inducing factors in dairy farm. The risk preference of dairy farmers are risk taker to the use all of production inputs.
Cisarua District is one of the dairy farming centers with the lowest amount of milk production in Bogor Regency. The amount of milk production in Cisarua District is also known fluctuate. Differences in breeders' preferences in the use of production inputs affect production risk in dairy farming businesses. The aims of this research are to analyze the effect of production factors to production risk and risk preference of dairy farmers in Cisarua District. This research was conducted in Cisarua Subdistrict, Bogor Regency. The cross section data sourced from 91 dairy farmers were producing milk form second and third lactation cows. The model used in this research were Just and Pope model to analyze dairy farm risk production function and the Arrow-Pratt Absolute Risk Analysis model to analyze farmer's risk preferences. The results showed that forage and polar are risk reducing factors. Meanwhile, rice bran, tofu waste, concentrate, and work time are risk inducing factors in dairy farm. The risk preference of dairy farmers are risk taker to the use all of production inputs.
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