Feasibility Study and Strategy Development of Cluster of Dairy Farmer in Sub District Cisarua, District Bogor

Abstract

Dairy farmer in Sub District Cisarua is expected to be developed as cluster, an integrated dairy farmer from milk production aspects to processing and marketing (on an off farm). Milk processing can be executed by the processing industry or the dairy farmers themselves. This study aims to (1) identify and analyze the components of the cluster, (2) feasibility study of cluster related to increasing of value added of dairy products, and (3) determine the appropriate strategies of business development dairy farmers in Sub District Cisarua, District Bogor. Primary data collected through field surveys and interviews by questionnaires to dairy farmer and other respondent, to obtain supporting data with Non probability method as purposive sampling. Dairy farmers were divided into 3 (three) business scale, namely the ownership of adult cow < 6, 6-10 and > 10. Secondary data collected through literature, documents and related reports. Cluster dairy farmer in Sub District Cisarua formed from the main component of dairy farmers, Primary Cooperation (KUD) Giri Tani, and PT Cimory. Other components are influential in its development is the government, academia, and Dairy Processing Cooperation (KPS) Bogor. Business of dairy farmers in Sub District Cisarua is generally feasible. Average of Pay Back Period (PBP) at 18% interest rate range is 2 years 6 months. Average of Net Benefit/Cost (B/C) 97% of dairy farmers is 2.67. On 2008, 93% of farmers reached Break Event Point (BEP) and on 2009 all farmers reached. Net Present Value (NPV) : Discount Factor (DF) 14% of 97% farmers is positive. NPV;DF 18% of 90% farmer is positive. Average of IRR at NPV1; DF 14% and NPV2; DF Internal Rate of Return (IRR) of 18% is 25.15% for 97% of farmers, higher than interest rate in 2008-2009 (14-15%). Yoghurt processing unit was feasible to develop. The value added of fresh milk into yogurt products is Rp. 1,814,-/l. PBP is 11 months. Net B/C is 3.35. NPV (DF) 14% is positive Rp. 147,150,300. DF NPV of 18% is positive Rp. 95,059,288. IRR is 25.30%. The Development strategies of dairy farmers cluster in Sub District Cisarua are production aspect, market aspects, and information technology aspects.