The Existence Of Diary Farming As The Raw Material Supplier To Milk Processing Industry In Yogyakarta Special Region

Abstract

The objective of this research were to evaluate the existence of dairy farming as the raw material supplier to milk processing industry especially in relation to financial profits, social profits, competitive advantage and comparative advantage. The research was conducted at Cangkringan, Pakem, Tempe1 and Turi in Sleman, Yogyakarta Special Region. One hundred and sixty respondents were collected by stratified sampling, divided into four strata. One to three AU ownership with > 70%, lactation cow (stratum I), one to three AU ownership with 70% lactation cow (stratum 2), more than three AU ownership with < 70% lactation cow (stratum 3), and more than three AU ownership with 70% lactation cow (stratum 4). The data were analyzed by Policy Analysis Matrix (PAM). The results of this research showed that only stratum 4 had positive financial profit and competitive advantage, while strata 2,4 and DIY (total average) had positive social profit and comparative advantage. It was concluded that only stratum 4 had positive financial profit, positive social profit, competitive advantage and comparative advantage. Sensitivity analysis resulted in DIY would achieve positive financial profit and competitive advantage if domestic fresh milk price rises of above 22,41% (> Rp 1.909,57 per liter), or tariff of above 34% imposes, and keep obtaining positive social profit and comparative advantage if shadow exchange rate rises of below 11,05% (> Rp 8.555,62 per US$) or imported milk price decrease of below 1 1,04% (3Rp 1.459,80 per liter).