Gross Margin Analysis of Brahman Cross Weaned Cattle Farmers with a Partnership System in Central Java

The research aimed to objective the gross margin income of weaned Brahman cross (BX) cattle raised by smallholder farmers in Karanganyar Regency, Central Java. This research involved 30 farmers who are partners of feedlot company. The technique of identifying respondents used purposive sampling method. Smallholder farmers involved in this study are farmers who raise cattle from partnerships with feedlot company in Indonesia. The scale of business was 5 head per farmer. The partnered cattle were weaned BX cattle aged 3 to 6 months. This research was a survey method. The data taken were primary and secondary data. Primary data collected included feed consumption and body weight during 12 months of cattle production. Secondary data collected were all variable data, namely feed costs, livestock shipping costs, livestock health costs, livestock group levy, livestock insurance, and interest costs. Revenue was only obtained from the sale of feeder cattle. The data is then used to calculate Average Daily Gain (ADG), Break Event Point (BEP) and gross margin analysis. Data was analysed quantitatively descriptively. The ADG results obtained were 0.62+0.09kg/day, variable costs were IDR 13,611,300.21+1,363,499.82 per head. The BEP unit and BEP price for weaned BX cattle kept by smallholder farmers are respectively 302.47±30.30kg/head, and IDR 35,231.89±3,288.41/bodyweight. The value for the final weight of cattle was obtained at 402.68 ± 41.47 kg and the existing value for cattle prices was IDR 45,000.00/BW so existing value higher than BEP. The gross margin results obtained by smallholder farmers were IDR 3,851,699.79 per head. The gross margin income obtained is positive so it is profitable. It is concluded that raising weaned BX cattle using a partnership system is profitable and the BEP value is smaller than the existing value, so it is feasible to implement. © Published under licence by IOP Publishing Ltd.