The Role of Partnership Analysis to Value Chain of Small-scale Beef Cattle farming in Banjarnegara District, Central Java Province

Abstract

The smallscale domestic beef catte producers have supplied only 70 percent of the national neeed (Ditjennak 2008).This condition potentially caused problem to meet the increasing demand of beef. Smallholder farmers have special characteristics that raise livestock traditionally with a limited scale. The existence of such characteristics can cause problems in the beef marketing chain. Domestic beef marketing chain in Indonesia is identified as a long marketing chain by the number of middlemen. Many market participants from centers of production to centers of consumption causes the magnitude margins and high transaction costs. Thus, the performance of marketing system is inefficient and lead to higher beef prices. Value chain analysis is an analysis that summarizes the marketing activities and the ability of the institutions supporting marketers in accessing environment. The most important thing in the value chain analysis is a relationship management / coordination among the actors of the starting raw material to the finished product. One strategy that can improve the quality of the relationship / coordination is a partnership. With the partnership, the chain becomes shorter marketing so that value chain performance can be improved. Therefore, the purpose of this study is to: 1) describe the role of the value chain of the beef marketing chain formation, 2) analyze the role of marketing partnerships on the performance of actors in the value chain of beef cattle, 3) analyze the cost structure and marketing margins are formed in chains value of beef cattle. The research was conducted in the District Wanayasa, Banjarnegara, Java Tengah.Peternak selected based on the scale of effort, time and transactions made during the transaction. The analysis used is the value chain model adapting Kaplinsy & Morris (2000). The first phase of the analysis is the entry point of analysis is the analysis of the business characteristics of the cattle farmers, the next is the mapping value chain, in this analysis mapped marketing channels and institutions or actors involved, the final analysis is the analysis of value chain performance (performance) that analyzes the performance of actor in accessing supportive environment and marketing efficiency was calculated through marketing margins, farmers share, a matter of profit / cost, and the ratio R / C. Based on the analysis of the characteristics of farmers (entry point), farmers are not partnered cattle ranchers seek independent both of production and marketing, so that all risks and benefits borne alone. Parnership farmers are keeping cattle, meanwhilethe other party provided the capital such as breeding . System developed in partnership Wanayasa District is rowdy or systems can be classified as a partnership Operational Sustainability (KOA). In tis partnership type, there are to parties, farmers and capital owner. Capital owner is a big farmers/traders who provide cattle and guarantee the marketing of beef cattle. Meanwhile farmers obligate to provide input of beef cattle farming and sell cattle to te capital owners. Furthermore, the characteristics of both farmers who work in partnership system and farmers who do not work in the partnership scheme vii specify the number of partner agencies and the length of the channel is formed. Based on the analysis of marketing channels, four channels are identified. Channel 1 or channel is a partnership involving three institutions channel marketers, the breeders and owners of capital and as a merchant, and the merchant cutters. Channel 2 is channel involving four institutions, namely farmers (type one), traders village, district merchants, and traders cutters. Channel 3 is the channel that involves three institutions namely farmers (type 2), district merchants, and processors traders. While channels 4 is channel involving three institutions, namely farmers (type 1), village merchants, and processor traders. Performance assessment of the value chain is the ability of an actor / marketing agencies in accessing supportive environment that access to infrastructure, transportation, information and knowledge as well as access to the organization. Breeder partners have better access to the enabling environment than farmers not partnered. Merchant districts have better access than the village merchants. While processor traders have access to the most among all institutions. Farmer and merchant partners / large farmers have a close relationship and based on the agreement making it easier for both parties in controlling the quality and quantity of beef cattle as well as methods of payment. Based on the analysis of the cost structure and margin, total margin line one coined the smallest, least total cost, and the farmer's share of the most high, and the cost benefit ratio of the greatest, and the R / C ratio of the greatest. From the analysis of proficiency level, then line one diientifikasikan as the most efficient channel, while channel two is the most channels efisien.Sehingga not be concluded that the system has a performance value chain partnership better than a system with no partner. Repair system in a more professional partnership is expected to improve the performance of the value chain so that the beef supply activities can be better.