ANALYSIS OF VARIOUS FACTORS IN ORDER TO ENHANCE PRODUCTIVITY AND INCOME OF DAIRY CATTLE FARMERS IN CENTRAL JAVA - INDONESIA

This survey aims were to determine the potency of dairy cattle development, and to find the relationship among of various factors to improve productivity and income of dairy cattle farmers. Semarang, Boyolali and Banyumas districts were taken as study location. Total respondents were 495 farmers, in which 225 farmers were members of the Village Unit Cooperative (VUC), 180 farmers were member of Various Business Cooperative (VBC) and 90 farmers were member of Farmer Group Association (FGA). Primary data were obtained through interviews with farmers and secondary data were obtained from related institution. Descriptive and Structural Equation Modelling (SEM) analysis were used in the study. Based on LQ (Location Quotiens) analysis, dairy cattle in Central Java was potential to be developed. The LQ value of Semarang, Boyolali and Banyumas districs were 4.57, 7.68 and 0.46, respectively, with 4.24 on average. The dairy cattle farmer income was IDR 1.024.095/month with an average of scale ownership lactation cattle was 2.7 head/farmer. Model Goodness of Fit of SEM was fit with the SEM requirement. The productivity was influenced significantly (P<0.01) by environmental, economic, institutional, and social factors. Dairy cattle farmer income were influenced highly significant (P<0.01) by technical and institutional factors (P<0.05) of the income. These results indicated that the role of technical factors, social, economic, institutional and business environment needs to be considered in order to increase business productivity and farmer incomes.