Financial Feasibility of Investing in Smallholder Cow-Calf Cooperatives in Baluran National Park

https://doi.org/10.22146/jae.23543

Mark Rademaker(1*), Any Suryantini(2), Jangkung Handoyo Mulyo(3)

(1) Student in Master of Agribussiness Management, Universitas Gadjah Mada
(2) Lecture in Master of Agribusiness Management, Universitas Gadjah Mada
(3) Lecture in Master of Agribusiness Management, Universitas Gadjah Mada
(*) Corresponding Author

Abstract


Livestock grazing is a major driver of human-wildlife confl ict in conservation areas. Currently, it is estimated that 3000 heads of cattle illegally grazing within Baluran National Park (BNP) in East Java. The recent research has suggested the potential of livestock system intensifi cation to reduce land-use and conflict through conservation priorities. The research goal was to investigate the fi nancial feasibility of starting intensive cow-calf cooperatives by smallholders in the BNP area. Data were collected using Farm surveys in a Criterion sampling design. Optimal herd management plans were generated using whole farm Linear Programming and fi nancial feasibility was assessed using Discounted cash-flow analysis and debt-servicing capabilities. Investment lifetime was set at 15 years and four alternative varieties of cattle were taken from Bali, Peranakan Ongole, Limousin and Simmental. Results show that investing in all varieties represents a positive investment opportunity. Bali cattle obtaining the highest NPV ($53.769), IRR (14,25%) and B/C ratio (1,13). Farmer income can be increased by 163% by combining additional Off-farm labor. However, debt servicing capabilities of cow-calf cooperative activities showed that the loan principal can only be repaid in the 10th year instead of the maximum eight years set by the government cow-calf credit scheme. We urge the government to reconsider either the grace period or the repayment time of the credit scheme to better fit the cash-fl ow characteristics of cow-calf enterprises.


Keywords


cash-flow analyisis; human-wildlife conflict; linear programming; livestock grazing

Full Text:

PDF


References

Andrade, G.S., & Rhodes, J.R., 2012. Protected areas and local communities: An inevitable partnership toward successful conservation strategies? Ecology and Society, 17(4): 14.

Anggraeni, Y., 2015. Pola Pemanfaatan dan Kontribusi Hasil Hutan Terhadap Pendapatan Masyarakat Desa Penyangga Taman Nasional Baluran. [Bachelor Thesis]. Universitas Jember.

Astuti, M., 2004. Potensi dan keragaman sumberdaya genetik sapi Peranakan Ongole (PO). Wartazoa, 14(3): 98-106.

Caesariantika, E., Kondo, T., et al., 2011. Impact of Acacia nilotica (L.) Willd. ex Del invasion on plant species diversity in the Bekol Savanna, Baluran National Park, East Java, Indonesia. Tropics, 20(2): 45-53.

Cohn, A.S., Mosnier, A., et al., 2014. Cattle ranching intensification in Brazil can reduce global greenhouse gas emissions by sparing land from deforestation. Proceedings of the National Academy of Sciences, 111(20): 7236-7241.

Cundiff, L. V., Szabo, F., et al.,1993. Breed comparisons in the Germplasm Evaluation Program at MARC. Proc. Beef Improv. Ann. Res. Sym. And Ann. Mtg, pp. 124-136.

Dorrough, J., Moll, J., et al., 2007. Can intensification of temperate Australian livestock production systems save land for native biodiversity?. Agriculture, ecosystems & environment, 121(3): 222-232.

Eaton, J.A., Shepherd, C.R., et al., 2015. Trade-driven extinctions and near-extinctions of avian taxa in Sundaic Indonesia. Forktail, 31: 1-12.

Fiallo, E.A., & Jacobson, S.K., 1995. Local communities and protected areas: attitudes of rural residents towards conservation and Machalilla National Park, Ecuador. Environmental Conservation, 22 (3): 241-249.

Fischer, J., Sherren, K., et al., 2009. Toward landscape-wide conservation outcomes in Australia's temperate grazing region. Frontiers in Ecology and the Environment, 8(2): 69-74.

Fleischner, T.L., 1994. Ecological costs of livestock grazing in western North America. Conservation Biology, 8(3): 629-644.

Gomes, M. G., 1991. Whole farm planning for a large scale sheep and beef cattle farm: a case study. [Master Thesis]. Agricultural Science in Farm Management , Massey University, New Zealand.

Green, R.E., Cornell, S.J., et al., 2005. Farming and the fate of wild nature. Science, 307(5709): 550-555.

Hakim, L., Guntoro, D.A., et al., 2015. Recent status of Banteng (Bos Javanicus) conservation in East Java and its perspectives on ecotourism planning. Journal of Tropical Life Science, 5(3): 152-157.

Heinrichs, A.J., Rogers, G.W., & Cooper, J.B., 1992. Predicting body weight and wither height in Holstein heifers using body measurements. Journal of Dairy Science, 75 (12): 3576- 3581

Hernowo, J.B., 1999. Habitat and Local Distribution of Javan Green Peafowl (Pavo muticus muticus Linneaus 1758) in Baluran National Park, East java. Media Konservasi, 6(1).

Holmgren, L., Dillon, F., 2015. Cost and Returns for a 200 Cow, Cow-Calf Operation, Northern Utah. Utah State University Extension.

Howland, B., Stojanovic, D., et al., 2014. Eaten out of house and home: impacts of grazing on ground-dwelling reptiles in Australian grasslands and grassy woodlands. PloS one, 9(12): e105966.

Ilham, N., & Saliem, H.P., 2016. Kelayakan finansial system integrase sawitsapi melalui program kredit usaha pembibitan sapi. Analisis Kebijakan Pertanian, 9 (4): 349-369.

Infield, M., Namara, A., 2001. Community attitudes and behaviour towards conservation: an assessment of a community conservation programme around Lake Mburo National Park, Uganda. Oryx, 35(1): 48-60.

Jelantik, I.G.N., Copland, R., et al., 2008. Mortality rate of Bali cattle (Bos sondaicus) calves in West Timor, Indonesia. Proceedings of the Australian Society for Animal Production , 27: 8

Lapola, D. M., Martinelli, L. A., et al., 2014. Pervasive transition of the Brazilian land-use system. Nature Climate Change, 4(1): 27-35.

Madden, F., 2004. Creating coexistence between humans and wildlife: global perspectives on local efforts to address human–wildlife conflict. Human Dimensions of Wildlife, 9(4): 247-257.

Martojo, H., 2003. Indigenous bali cattle: the best suited cattle breed for sustainable small farms in Indonesia. Laboratory of Animal Breeding and Genetics, Faculty of Animal Science, Bogor Agricultural University, Indonesia.

Pater, S., 2007. How Much Does Your Animal Weigh? University of Arizona Cooperative Extension.

Paune, S., Ilham, F., et al., 2014. Comparison of Success Rate of Artificial Insemination in Beef Cattle Bali and Peranakan Ongole (PO) in the Regional Technical Implementation Unit (RTIU) Wonggahu Livestock Development. KIM Fakultas Ilmu-Ilmu Pertanian, 2(3).

Rademaker, M. (2017). The Two Faces of Baluran National Park. Mongabay Environmental Science and Conservation news. https://news.mongabay.com. [2 March 2017].

Suri, H., 2011). Document analysis as a qualitative research method. Qualitative Research Journal, 9 (2): 27-40.

Waweru, F.K., Oleleboo, W.L., 2013. Human-Wildlife Conflicts: The Case of Livestock Grazing Inside Tsavo West National Park, Kenya. Research on Humanities and Social sciences, 19 (3): 60-67.

Wianti, K.F., 2014. Land Tenure Conflict in the Middle of Africa van Java (Baluran National Park). Procedia Environmental Sciences, 20: 459-467.

Winarso, B., & Basuno, E., 2013. Pengembangan pola integrasi tanaman-ternak merupakan bagian upaya mendukung usaha pembibitan sapi potong dalam negeri. Forum Penelitian Agro Ekonomi, 31 (2): 151-169.

Wirdahayati, R.B., Fernandez, P.T., et al., 2000. Performance and Survival Rates of Beef Calves Under the Dry Tropic Conditions of Nusa Tenggara, Indonesia. ASIAN AUSTRALASIAN JOURNAL OF ANIMAL SCIENCES, 13: 196-198



DOI: https://doi.org/10.22146/jae.23543

Article Metrics

Abstract views : 989 | views : 828

Refbacks

  • There are currently no refbacks.




Copyright (c) 2017 Agro Ekonomi

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

AGRO EKONOMI ISSN 0215-8787 (print) , ISSN 2541-1616 (online)  indexed by :

sinta worldcat  

 

Web
Analytics View My Stats