Determining the Cost of Beef Production from Cattle Fattening in the Smallholder Farming

Abstract

Cost of production is a key piece of information needed to make the best to economic decision when selling animal. The  objective of this research was to determine cost of production of beef that was produced by the smallholder farming. The research was carried out from  October 2016 to February 2017, with the method of case study on fattening cattle at two of farmers group at Sleman Yogyakarta  who  directly sell to livestock market. Thirty cattle fattening that ready to sale for slaughter from the two groups of farmers  taken as a sample.   Data collecting   related of cattle price, fixed costs and variable costs during fattening period using survey method with deep interviews  to farmers with questionnaires ,  as well as cattle body weight was estimated using a tool of  measure tape.  Cost of production analysis by using full costing method performed in this study.  The results  showed , (1) the cost of production for fattening cattle was  IDR 40,509;00/kg live  weight, and (2) the selling price of live cattle from farmers  were IDR 44,579.00, farmers have got profit from cattle fattening amount of  IDR 4,070.00/kg live weight. Farmers will suffer losses if the price of cattle under market condition drops below of production costs.