Risk Aversion, Risk Preference and Farmers’ Decision to Participate in Broiler Contract Farming: A Case Study in Jember, Indonesia

Rondhi, Mohammad; Aji, Joni Murti Mulyo; Khasan, Ahmad Fatikhul; Putri, Adinda Tissa Rachmasari; Yanuarti, Rizky

doi:10.20961/carakatani.v35i1.37964

Cited by 9 publications

(5 citation statements)

References 24 publications

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“…As in the organic rice CF in India, where extension services are one of the benefits received by farmers from CF (Mishra et al, 2018). The similar results were also found in broiler CF (Rondhi, Aji, Khasan, Putri, & Yanuarti, 2020) and tobacco CF in Indonesia .…”

Section: Discussionsupporting

confidence: 69%

Assessing Determinants of Farmer’s Participation in Sugarcane Contract Farming in Indonesia

Rokhani

Rondhi

Kuntadi

et al. 2020

agr

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The integrated value chain is a prerequisite for the successful industrialization of the agricultural sector. Contract farming (CF) is a useful instrument to integrate the agricultural value chain in developing countries such as Indonesia. The purpose of this study was to identify the determinants of farmer participation in sugarcane contract farming. The data utilized in this study was obtained from the Indonesian Plantation Farm Household Survey 2014 for Sugarcane. The data consists of 8.831 farmers distributed in 8 provinces. Logistic regression was used to estimate the determinants of farmer participation in sugarcane CF. The result shows that age, education, and type of cultivated land negatively affect farmer participation in sugarcane CF. Meanwhile, land tenure, cultivation area, cropping system, certified seed, membership in a cooperative, access to extension services, and membership in farmer's association positively affect farmer participation in sugarcane CF. The policy implication for increasing farmer participation in CF is to intensify the information of CF to the farmer with a large cultivation area. Since these farmers tend to participate in CF to anticipate marketing risks.

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Section: Discussionsupporting

confidence: 69%

Assessing Determinants of Farmer’s Participation in Sugarcane Contract Farming in Indonesia

Rokhani

Rondhi

Kuntadi

et al. 2020

agr

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“…The average consumption of animal protein in developed and developing countries is more than 20 kg per capita per year. Singapore and Malaysia itself have an average consumption of 28 kg of meat and 36 kg per capita per year, far from Indonesia, where the consumption of meat is 5.566 kg per capita per year (Rondhi et al, 2020). One of the types of livestock which is the main source of meat production is broilers, where the maintenance and consumption has spread throughout Indonesia.…”

Section: Introductionmentioning

confidence: 99%

The mediation role of supply chain agility on supply chain orientation-supply chain performance link

Mukhsin¹,

Taufik²,

Ridwan³

et al. 2022

10.5267/j.uscm

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This study aims to analyze the supply chain performance mediation on the relationship between supplier flexibility, supply agility, and company performance. The population in this study were 100 broilers in the districts / cities in Banten Province. The data to be used in this study are primary data, through sending questionnaires. Development of theoretical models with five hypotheses processed in the analysis using SmartPLS Software version 3.0.m3. The results showed that supplier flexibility and supply agility have a positive and significant effect on company performance, supplier flexibility and supply agility have a positive and significant effect on supply chain performance and supply chain performance has a positive and significant effect as an intervening variable to the company performance. Supply chain mediation has an important role in integrating production processes from upstream to downstream, including establishing good relations between businesses involved in supply chain management to improve the company's performance.

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“…BPPP (2019) stated that the broiler breeding business is sufficient to provide good business opportunities, as long as maintenance management follows applicable procedures and regulations through various partnership patterns with a business scale of 15 thousand chicks. According to Rondhi et al (2020), the farm management of the broiler is unstable due to the possibility of farm risk. Contract farming in a plasma-core relationship can reduce production risk.…”

Section: Research Implicationmentioning

confidence: 99%

The production risk of broiler farm management at plasma breeders: Evidence from Indonesia

Suwarta

Hanafie

2021

JSeD

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The broiler chicken business is essential to providing national meat consumption in Indonesia. However, the business also faces a very significant management risk. The purpose of this research is to study broiler farm management and the effect of its business management on the production and production risk. This research was conducted in Lamongan regency of East Java by interviewing broiler chicken farmers and using descriptive and multiple linear regression analysis. The results of the research show that the implementation of broiler farm management reached 73.48% of ideal situation, with planning reaching 67.64% ideal situation, 65.58% for ideal organizing, 84.18% for optimal direction, 74.43% for ideal coordination, and 77.58% for ideal control. Also, the management had a positive influence on the production of the broiler livestock business, with an elasticity of 0.700. The management had a negative effect on the risk of production of broiler livestock business with the elasticity of 0.237. Production risk was negatively affected by the number of chicks and the amount of feed. To provide support for breeders in their business, it is necessary to have a policy of low cost of broiler cultivation, especially the cost of chicks and feed, by setting DOC prices and cheap or cheaper feed. Besides, it is required to develop cooperation with companies using broiler primary products, as well as certain policies so that there will be businesses that use broiler primary products as their main ingredient.JEL Classification D13; Q02; Q12

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Risk Aversion, Risk Preference and Farmers’ Decision to Participate in Broiler Contract Farming: A Case Study in Jember, Indonesia

Cited by 9 publications

References 24 publications

Assessing Determinants of Farmer’s Participation in Sugarcane Contract Farming in Indonesia

Assessing Determinants of Farmer’s Participation in Sugarcane Contract Farming in Indonesia

The mediation role of supply chain agility on supply chain orientation-supply chain performance link

The production risk of broiler farm management at plasma breeders: Evidence from Indonesia

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