Income Analysis of Closed House Broiler Farm with Partnership Business Model

Abstract

This research aims to determine the performance and income of a closed-house broiler farm with partnership business model. The research was conducted in a closed broiler house owned by Faculty of Animal and Agricultural Sciences, Diponegoro University, Semarang, and in a partnership with Cemerlang Unggas Lestari Ltd. A total of 11,000 broilers were raised for each raising period in the closed broiler house. A case study method was used for this research. The data were collected using survey method; the primary data were collected directly through interviews with the farm operators and field observation. Secondary data were collected through data recording which includes production cost and obtained revenue in each raising period. The collected data were then analyzed through quantitative-descriptive study. A total 7 raising periods of production cost, revenue, and income in a year were analyzed. The results of this study showed that the average performances of closed-house broiler farm yield 0.37% depletion, 1.49 FCR, and 398.46 PI. The economic indicators showed that the average production cost was Rp292,668,800.00; which generated Rp327,300,779.00 revenue, Rp34,631,978.00 income, Rp183.055.535.00 NPV, and 1.24 BCR. The study concluded that the closedhouse broiler farm generates higher income compared with the open house system.

Contract broiler farming as an effective pathway to improve rural prosperity in Indonesia

“…The mortality rate was low compared with open‐house technology. This result is consistent with the findings of Santoso et al (2018), who state that the mortality rate with closed‐house technology is low. Using closed‐house technology results in efficient production costs and finally generates a high income.…”

“…Santoso et al. (2018) support this finding by stating that harvested weight positively correlates with income; increasing harvested weight leads to increasing income of the broiler farm. The number of broilers raised would increase the income, in line with Abebe et al.…”

“…It has led to many business collaborations or partnerships in the agricultural business. Partnership or cooperation in the form of a contract is a collaboration between breeders as plasma and a poultry company (nucleus), where from the beginning of the business activity, a contract price of chicken per kilogram is carried out (Santoso et al., 2018). The contract price is determined after all production costs have been incurred.…”

“…As the Indonesian population grows continuously, demand for food follows. In particular, the demand is high (Santoso et al., 2018). Consumption of poultry products is expected to supply nutritious diets, which is complemented with vegetable consumption (Wijaya et al., 2021a; Wijaya et al., 2021b).…”

Analysis of Income on the Partnership Program-based Broiler Business in Regency of North Minahasa, North Sulawesi, Indonesia

“…The mortality rate of broiler can affect income obtained by farmers since it will reduce the total of population and volume of broiler selling (Santoso et al, 2018). This rate is total of dead and deformed broilers divided by total of initially cultivated broilers.…”