Capital aspects of livestock procurement in households raising beef cattle in Nagari Lakitan Utara, Pesisir Selatan Regency

This study aimed to describe the sources of capital for livestock procurement, especially the gaduhan (sharing) system, in small-scale operations in in Lakitan Utara Nagari, Lengayang Subdistrict, Pesisir Selatan Regency, Sumatera Barat Province. This descriptive study was conducted by observations, surveys, and interviews, involving 100 respondents. Results showed that 61 adopted the gaduhan system, 28 were self-funded, while 8 used self and gaduhan funds, and 3 received endowment in addition to their own funds. The gaduhan system was widely practiced because many farmers still experienced a limited access to capital. The profit sharing of this system could further categorised into two types, which were distributions of sales proceeds from fattening of male cattle and distributions of calves from a cow-calf operations. © Published under licence by IOP Publishing Ltd.