Proceeding s of Th e 5th Annu al I nt er nat ional Conf er ence Syiah Kuala Universit y ( AI C Unsyiah) 2 01 5
I n conj unct ion w it h The 8th I n t ern at ion al Con feren ce of Ch em ical Eng ineering o n Science and Applicat ions ( Ch ESA) 2 0 15 Sept em ber 9 - 1 1, 2 01 5, Banda Aceh, I ndon esia
Th e An a ly sis of Con st r a in t s a n d Oppor t u n it ie s
D e v e lopm e n t of Liv e st ock in Ace h Be sa r
1*
I kram uddin,
2Ghazali Syam ni,
3Bam bang Ali Nugroho, and
4Nuhfil Hanani
1,2
Doct orat e st udent of Managem ent , Facult y of Econom ics and Business, Syiah Kuala
Universit y , Banda Aceh, I ndonesia and Lect urer at Managem ent St udy Program , Facult y
of Econom ics and Bussiness, Universit as Malikussaleh, Lhokseum awe, I ndonesia;
3
Depart m ent of Vet erinary , Facult y of Vet erinary, Universit as Brawij aya, Malang,
I ndonesia;
4
Depart m ent of Social Econom ic, Facult y of Agricult ural, Universit as Brawij aya, Malang,
I ndonesia;
* Corresponding Aut hor
: ikram _alueraya@yahoo.com
Abst r a ct
This research aim s t o analy ze t he const raint s and opport un it ies of liv est ock business dev elopm ent in Aceh Besar. The dat a used in t his research is prim ary dat a obt ained by dist ribut ing quest ionnaires t o t he relat ed part ies su ch as Anim al husbandry in Aceh and Aceh Besar, breeders, breeders associat ion and m anager of slaught erh ouse. The dat a analy zed by using SWOT analy sis. The research found t hat t he opport unit y of liv est ock dev elopm ent is great enough beside t he av ailabilit y of land, gov ernm ent part icipat ion in giv ing seed ( calf) of Aceh cat t le t o a num ber of breeders, m ow ers/ feed crusher, v accinat ion, adm inist rat ion, art ificial insem inat ion and land dev elopm ent for forage. I n addit ion, t he const raint s ex perienced by cat t le breeders are lim it ed w hich based on t he infrast ruct ure, poor m anagem ent of cat t le breeders, lack of cage sanit at ion, lim it ed forage during dry season, and t he dem ands of indust ry / m anufact ure are st ill dom inat ed by im port ed beef.
Ke y w or ds: const raint s, oppor t unit ies, dev elopm ent of liv est ock in Aceh Besar
I n t r od u ct ion
Livest ock is t he closest real sect or in I ndonesian people, especially Acehnese. Livest ock business is an int egral part in daily life of Acehnese. The Governm ent of Aceh has m ade som e various efforts t o increase product ion and product ivit y of livestock in order t o reduce a dependency on t he ot her regions in handling t he need of livest ock. However, t he effort s of governm ent have not provided t he opt im al results. The indicat or is not achieved yet in Beef self-sufficiency and st ill supplied from out side.
Based on t he report from t he agency of Peternakan dan Kesehat an Hewan Aceh ( 2010) , t he cat t le populat ion in Aceh in 2009 was 590.315 ( 88.11% ) from cat t le populat ion in Aceh about 669.996 around 23 dist ricts/ cit ies in Aceh. The largest population of cat t le in Aceh includes dist rict of East Aceh ( 100.992), North Aceh ( 97.394) , and Aceh Besar ( 96.789) . The populat ion in 2011 is 731.645, t he weight of calf in Aceh is around 128 + 30 kg, and bull is around 145 + 37 kg. Aceh cat t le have been in around of Aceh, and som e dist rict s of Nort h Sum atera. Bps ( Stat ist ical agency) in Aceh ( 2008) , t he t ot al num ber of land area in Aceh is nearly 1,52,578 hect ares and can be used as a source of forage for livest ock wit h t he integrat ion syst em of livest ock wit h plantat ion plant s, Moreover, t he agricult ure waste such as abundant rice st raw have been burned by farm ers, but it also could be funct ioned as forage.
On t he ot her part, beef price in Aceh is ext rem ely high, especially during Ram adan and t wo feasts, and even called as t he highest cost in t he world. The lack of product ion and product ivit y of livest ock because of t he developm ent has not been business- oriented. Livestock in Aceh is st ill t radit ional and in a very sm all- scale enterprise, so t he econom ic im pact is st ill ext rem ely sm all. To change the concept requires hard work and t he integrat ion with som e various agencies (partnership).
Part nership is a successful m ovem ent in developing a sm all- scale livestock. The integrat ion wit h private ent repreneurs in livest ock needs t o be m ade in order to learn about t he changes from t radit ional livest ock t o be agribusiness livest ock. Part nership and cooperat ion am ong breeders, businesses and local governm ents in livest ock m ust be synergist ically. Besides, by having technical capabilit y such as select ion of locat ion, and partnership also play role in provision of seeds, m aintenance, business, capit al, and m arket ing
Long ago, governm ent of I ndonesia has issued Regulat ion Num ber. 44 of 1997 on t he partnership which is direct ed on t he basis of t he econom ic norm s t hat applid in business relat ions, m ut ual need,
Proceeding s of Th e 5th Annu al I nt er nat ional Conf er ence Syiah Kuala Universit y ( AI C Unsyiah) 2 01 5
I n conj unct ion w it h The 8th I n t ern at ion al Con feren ce of Ch em ical Eng ineering o n Science and Applicat ions ( Ch ESA) 2 0 15 Sept em ber 9 - 1 1, 2 01 5, Banda Aceh, I ndon esia
m ut ually reinforcing, and profit able. Furt herm ore, t he Decree of t he Minister of Agricult ure Num ber. 940 / Kpt s / OT.210 / 10/ 1997 on the guidelines of Agricultural Business Part nership. The purpose of partnership is t o increase revenue, im prove qualit y of hum an resources part nership, increase business scale, keep business cont inuit y, and t o foster and enhance t he abilit y of a part ner group. The applicable Part nership pat terns are: Core-plasm a, Sub- cont ract ing, Public t rading, agency and et c, such as agribusiness operat ional cooperat ion in which involves supervision and cont rol by board agribusiness, DG Scope of Departm ent of Agriculture, Agricult ure Ext ension cent er, and Departm ent of Technical Scope of t he Minist ry of Agricult ure.
The research conducted by Azhar and Syam ni ( 2010) claim ed that problem s are com pet it ion, a long process of export docum ents, product qualit y, export barriers, t ransportat ion delays, com m unicat ion lim it , lack of understanding about t he internat ional m arket , im port adm inist rat ion procedure, inabilit y t o m eet t he m arket needs, lag of shipm ent. The sam e case also faced by t he breeders such as lag of developm ent , and lim ited private investm ent in t he livest ock sect or. Because of livest ock sect or is considered as a risky sector, t he banks considere it less int erest ing. Based on t he descript ion above, t he purpose of of t his research is t o know t he const raint s and opportunit ies for part nership developm ent of breeders in Aceh.
M a t e r ia ls a nd M e t h ods
Procedure
The dat a classified into prim ary and secondary dat a. The prim ary data collected by using sam pling procedures in a research survey, and t he secondary dat a collected from docum ents of relevant agencies such as Bps ( St at ist ical Agencies) , Bappeda Aceh, Departm ent of anim al husbandary and anim al health, stat ist ical office of subdist rict , agency of local m arket and scient ific publicat ions. The research conducted in t he area of product ion centers and livest ock developm ent in Aceh Besar. Aceh Besar was chosen because t his dist rict requires 25- 30 cat t le every day and able t o be supplied by it s local cat t le ( Seram bi I ndonesia newspaper, 2015)
D a t a An a lysis M e t hod s
The st udy of part nership bet ween t he breeders and businesses also revisited based on t he const raint s and opportunit ies of partnership so that is expected t o obt ain a form of part nership which is really profit able, especially t he breeders. Furtherm ore SWOT analysis was carried out based on the ident ificat ion of internal and ext ernal fact ors to form ulate the feasible policies and st rategies of livest ock developm ent in Aceh. The assessm ent of business partnership between farm ers wit h business is conducted t hrough SWOT analysis ( St rengt hs, Weaknesses, Opportunit ies, Threats) .
SWOT analysis carried out to form ulate t he im plem ented st rategies, and this analysis classified t he environm ent al factors faced by livest ock business as st rength, weakness, opportunit ies and t hreat s fact ors. The analysis of quant it at ive used I FE m at rix, EFE and I E by t he following steps: ( 1) indent ifying ext ernal and int ernal fact ors of livestock business, ( 2) determ ining weight of each variable, ( 3) rat ings. This analysis aim ed t o know t he abilit y of livest ock in facing t he int ernal and ext ernal environm ent . The way t o figure out t he condit ion of livest ock on t he environm ental condit ions could be done by t hese ways: The score of I FE group in a st rong posit ion ( 3,0- 4,0) , average score ( 2,0- 2.99) and weak ( 1,0- 1.99) . While the score of EFE classified int o a st rong posit ion ( 3.0- 4.0), m iddle posit ion (2,0- 2.99) , and low posit ion ( 1.0- 1.99) . SWOT m at rix is prepared t o find out S- O St rategy, W- O st rategy and W- T st rategy.
Resu lts a nd D iscussion
Table 1. Breeder Organizat ion in Aceh Besar
N u m
be r Or ga n iz a t ion Or ga n iz a t ion a dd r e s
Tot a l of Gr ou p M e m be r s
Fa cilit ie s Obt a in e d
by Or ga n iz a t ion Tot a l
1. Agrona Desa Saree Aceh, Kec Lem bah Seulaw ah
10 Cat t le, Com post Hom e 76
2. Hiday ah Lam Seulaw ah
Desa Lam t am ot , Kec. Lem bah Seulaw ah
15 - 70
3. Seulaw ah Ray a Desa Lam carak , Kec. Seulim u m 8 - 24
4. Bersam a Desa Bit hak , Kec. Kut a Cot Glie 20 Cat t le, Cage, Medicine 56 5. Seunong Cot Desa Keum ire,
Kec. Kut a Cot Glie
25 Cat t le, Cage, HMT, Medicine
62
6. Kube Cot Jure Desa Lam panah Day ah, Kec. I ndrapuri
29 Cat t le, Cage, HMT, Medicine
51
7. Sinar Muda Desa Meureu Ule Tit i, Kec. I ndrapuri
30 HMT 43
Proceeding s of Th e 5th Annu al I nt er nat ional Conf er ence Syiah Kuala Universit y ( AI C Unsyiah) 2 01 5
Governm ent program s in purifying cow of Aceh are being encouraged, eit her in Pulo Raya, Aceh Besar dist rict or by giving cows t o t he cat t le for breeding of Aceh cat t le wit h Grant system . Breeding program is organized by a group of breeders and t hat assist ance needs t o be done t o im prove breeders welfare and t o keep the developm ent on local catt le of Aceh. However, som e breeders prefer t o feed t he catt le from out side of Aceh such as Brahm ana, Lim usin and Sim ent al because t hey are bigger and can produce a plent y beef in Aceh.
The im provem ent of livest ock program has been conducted in Aceh Besar. I n 2012, t here was a cont rol on product ive cat t le/ buffalo by saving, im proving t he st rategic area and com pet it ive com m odit ies t hrough t he im provem ent of beef cat tle area, and im proving t he integrated cat t le of Rum inansia t hrough t he im provem ent of integrated cat t le. I n 2013, there were catt le seeding, im provem ent area of cat t le, and bull procurem ent for seeding.
I n 2014, t here were developm ent of Aceh cat t le t hrough t he art ificial cat t le feeding. The governm ent also provided m owers, besides giving forage to, som e of breeders also feed t heir cat t le by giving t he art ificial feed. Basically, breeders product t he art ificial feed by using m achine t han m ixing it with anot her ingredients ( cocoa, palm residue, soybean, bran, and wheat ) t hrough these m echanism s: sago 55% , soybeans 10% , palm residue 20% , wheat 10% , and bran 5% .
Const raint s and Opportunit ies Livest ock Sect or in Aceh
I n t he developm ent of livest ock sect or in Aceh appears som e const raint s such as t echnical aspects in breeders level, supply chain m anagem ent and inst it ut ional part nerships. I n addit ion, Aceh also has a great opport unit y for developm ent of livest ock sector. The followings will figure out t he const raint s and opport unit ies for t he developm ent of beef cat t le in Aceh Besar.
Const raint s in Livest ock developm ent in Aceh Besar Technical aspect
1. Cat t le feeding only by giving forage will cause difficult ies in having forage.
2. There is no any art ificial feed because it is only produced by beef cat t le com panies for t heir private needs and not for selling.
3. Lack of capital and access to t he capit al sources.
4. Beef catt le rarely bat hed and cage sanit at ion is bad that affects t he qualit y of cat t le. 5. Lack of Aceh catt le
Proceeding s of Th e 5th Annu al I nt er nat ional Conf er ence Syiah Kuala Universit y ( AI C Unsyiah) 2 01 5
I n conj unct ion w it h The 8th I n t ern at ion al Con feren ce of Ch em ical Eng ineering o n Science and Applicat ions ( Ch ESA) 2 0 15 Sept em ber 9 - 1 1, 2 01 5, Banda Aceh, I ndon esia
6. Cat t le securit y is less assured because t he locat ion of livest ock is in upland areas and around the riverbanks of Krueng Aceh t hat is far from hum an habit at ion.
7. Low of bargaining on t he cat t le cost because of m arket price and the qualit y of cat t le
Supply Chain Managem ent
1. Lack of m arket infrast ruct ure such as veterinary and m eat m arket s so t hat breeders t end t o sell t heir cat t le t o t he t raders.
2. High cost t ransportat ion t o vet erinary m arket
3. Generally, indust ry/ m anufact ure t ends t o use t he im port ed beef because of t he cost is m uch cheaper than Aceh beef.
4. High im port s cat t le and beef in Aceh.
Part nership I nst it ut ional
1. Lack of m anufact uring indust ry so t hat t here is no direct part nership between breeders and m anufact uring indust ry
2. Lack of inst it ut ional consolidat ion in the breeders eit her m em bership, m anagem ent, m arket access or capital access.
3. Part nership pat tern of livestock is st ill in a general t rade, so t hat t here is no t echnical and inst it ut ional aspect.
Opportunit ies on Livest ock Developm ent in Aceh Besar
1. High m arket dem and on beef every year in Aceh
2. High price beef in Aceh, especially during Meugang or t wo days before religious holiday 3. There is a possibilit y of ut ilizat ion of farm waste as t he cat t le feed.
4. The exist ence of governm ent program s for refining cow of Aceh. 5. There are goverm ent program s t o help t he livest ock .
6. High dem and for m eat m anufacturing indust ry.
Con clusions
Livest ock sect or in Aceh st ill provides a great opport unit y because of t he existance of high dem and and m axim um cost in m arket . I n addit ion, t he goverm ent support s by giving calf ( seed) and feeding program , and beef dem and from indust ry and rest aurant are st ill high. I n anot her part, livestock in Aceh also faces som e const raints such as technology, support from governm ent and privat e sector in providing t he qualit y seeds, availabilit y of feed fact ory around livestock t o ant icipat e t he increase of feed prices, developm ent of breeder organizat ions ( groups of breeders, breeders associat ions), m arket access, inst it ut ional of m arket t hat needs to be increased in accordance wit h t he area of livest ock developm ent , and som e im provem ent s t oward educat or role, art ificial insem inat ion officers, m edical personnel in livest ock. All of t hem could be carried if t he livest ock in Aceh runs with t he integrated, sustainable and part nership syst em , and the act ive role of breeder organizat ion.
Ack n ow led g em e n ts
Our t hanks t o t he Minist ry of Research, Technology and Higher Educat ion, especially t he Direct orate of Research Com m unit y Service ( DP2M), which has funded grants I nt er College 2- year period 2014-2015
.
Re fe r e n ce s
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Disk esw annak Aceh. ( 2010) . Annual Report . Banda Aceh; Dinas Kesehat an Hew an dan Ternak Aceh. _______ ______ ___. ( 20 12) . Annual Report . Banda Aceh; Dinas Kesehat an Hew an dan Ternak Aceh.
Sy am ni, Ghazali dan I k ram uddin. ( 20 14) . Model of Supply Chain Part nership and Business Value Chain of Folk Liv est ock in Order t o St rengt hen t he Econom ics in Aceh. Research of I nt er- Univ ersit ies Collaborat ion.
HlBAH PEKERTl – DlKTl First y ear. Lh ok seum aw e.
Supply Chain Part nership and Business Value Chain Liv est ock Folk I n Order To St rengt hen Econom ics I n Aceh. Seram bi I ndonesia ( 2015 ) The Gov erm ent of Aceh Besar I ncrease Cat t le Populat ion, Sunday , January 18 201 5.
Accessed on June, 2015.
Perat uran Pem erint ah Republik I ndonesia No. 44 Tahun 199 7 t ent ang Kem it raan Ket erk ait an Usaha.
Surat Keput usan Ment eri Pert anian No. 940/ Kpt s/ OT.210/ 10 / 1997 t ent ang Pedom an Kem it raan Usaha Pert an ian.
