Analisys of Dairy Farmers’ Transactions Costs: A Case Study of Cooperative Member in Kuningan West Java.

Abstract

The study is carried out by transactions cost (non-productivity) approach in solving the poverty problem of dairy farmers which is rarely used to supplement productivity approach. In addition to analyzing the structure of income and production, this study specifically aims to analyze the structure of transaction cost and the factors leading to the emergence of transaction costs encountered by dairy farmers of cooperative members in Kuningan West Java. Methods to determine the structure of income, production cost and transaction cost analysis is performed by farming analysis. Factors affecting dairy farmers’ revenue structure are analyzed using tobit regression analysis and the factors that affect transaction costs dairy farmers are analyzed using multiple regression. Analysis of income structure shows the average of dairy farmer revenue per day per animal unit Rp31 276.74 consist of cash revenue (88.62%) and noncash revenue (11.38%). Cash revenue includes the sale of milk to the cooperative (75.20%), sales of cattle (13.21%), sales of sacks (0.21%), while non-cash revenue include the value of milk for calf consumption (8.06%), the value of milk for family consumption (0.67%), the value of usage of concentrate sacks (0.24%) and the value of manure (2.41%). Based on Tobit regression analysis, the factors that influence the revenue with dependent variable of transaction costs to revenue ratio, dairy farmers revenue is influenced by dairy farmer’s age and farming scale. Analiysis of structure of production costs showed that the average of production cost of dairy farmers per day per animal unit Rp38 974.96 consist of variable production costs of 64.68% and the remaining 35.32% is the fixed production cost. Variable costs amounted to feed concentrate is 44.59% and the value of forage feed costs by 19.80%, and the cost of medicines, vitamins, and health services 0.29%. Meanwhile, the components of fixed production costs consist of labor costs value is amounted to 25.78%, property tax or land rent, electricity and water expense for 0.59%, 0.39% of cages depreciation cost, equipment depreciation costs for 0.08%, depreciation costs for lactating cows for 2. 99% and the cost of cooperatives membership and farm credit installment amounting to 5.49%. Analysis of structure of transaction cost showed that the average of dairy farmer transaction costs amounting to Rp849.88 consists of contract costs (3.06%), the welfare cost of funds (1.51%), cost of maintenance of livestock resources (56.52%), as well as the cost of milk delivery and feed search or production inputs (38.90%). The average of transaction costs ratio to dairy farmers revenue of 0.0272 and the average of transaction costs ratio to the total cost dairy farmers at 0.0213. Afterwards, based on the results of multiple regression analysis of determinants of transaction costs, revenue and education level of farmers have significant effect on the amount of of transaction costs.