Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional
Jatinangor, 16 November 2013 ISBN: XXXXXX
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34. TECHNICAL SKILLS OF THE DAIRY FARM ENTREPRENEURS CASE
STUDY: MALANG, EAST JAVA AND BOGOR, WEST JAVA
Pamela
1
, Yustika Muharastri
2
, Ratna Winandi
3 1,2,3
Program Studi Magister Sains Agribisnis, Fakultas Ekonomi dan Manajemen, Institut Pertanian Bogor,
Jl. Kamper, Wing 4 Level 5, Kampus IPB Dramaga, Bogor 16680, Jawa Barat
E-mail: mel_situmorangyahoo.com,muharastriyahoo.com
ABSTRACT
The essence of entrepreneurship is innovation which can be obtained from any sensitivity to grab opportunities of a situation and apply it into business field that can be referred to as entrepreneurial skills.
This research presents the results from 1 Several relevant literatures of entrepreneurial dairy farmer behavior in many central areas of dairy farm in Indonesia and 2 In depth interview with two dairy farmers
in Malang Regency, East Java; one dairy farmer in Bogor Regency and one dairy farmer in Bogor Municipality, West Java as one of dairy farm central areas in Indonesia. Based on this information, it can be
concluded that technical skill of dairy farmer as entrepreneur in Malang Regency, East Java; Bogor Regency, West Java; and Bogor Municipality, West Java is at middle level. It depends on frequency of training. The
more dairy farmers engage in training, the more technical skill they have. The training could be organized by dairy farm cooperative.
Keywords : entrepreneur, technical skill, dairy farmer, milk, cooperative INTRODUCTION
Entrepreneurship is one of the important issues in economic activities. Entrepreneurship is the dynamic process of creating incremental wealth Ronstadt in Hisrich and Peters 1992. Acs 2007 stated that
entrepreneurship could create higher economic growth. Entrepreneurial activities create new business and new jobs. The new jobs create intensify competition and increase productivity through technological change.
Entrepreneurs are the folk heroes of modern business life. Entrepreneurs provide jobs, introduce innovations and strength the economic growth. Entrepreneurs are the energizers who take risks necessary in a growing,
productive economy Longenecker, et al. 1994.
Innovation is the essence of entrepreneurship Schumpeter in Lambing and Kuehl, 2003. Innovation takes the form of new products, markets, organizational forms or sources of supply. Innovation is
not only directed to produce the affordable products goods and or services on price, but also the availability of the products. Innovation provides new market for entrepreneurs and provides preferred price for
entrepreneur and customer and as the key of a business success for entrepreneur. An entrepreneur, as a producer, needs good technical skills to grow dairy darm business.
Dairy farmer as an entrepreneur is a producer and also a marketer for fresh milk. The fresh milk is also can be processed into processed milk products, such as pasteurized milk, yoghurt, butter, cheese, ice
cream, soap, skin moisturizer and shampoo. Many variants of the processed milk product indicates that it has good opportunities for dairy farmers to enlarge business scale and increase entrepreneurial skills.
Nevertheless, dairy farmers in Indonesia faced many challenges.
The challenges are the low number of milk consumption, the domination of milk market structure by imported milk products and the low productivity of dairy cows Directorate General of Animal Husbandry
and Health Ministry of Agriculture, 2012. The average productivity of dairy farm in Indonesia is around 8-9 kilogramsdaycow and the world average productivity is 15-16 kilogramsdaycow FAPRI, 2010.The
Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional
Jatinangor, 16 November 2013 ISBN: XXXXXX
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research aims to gain a deeper understanding about technical skills of the dairy farm entrepreneurs. This research was conducted through in-depth interview with four dairy farmers, i.e. two dairy farmers in Malang
Regency, East Java; a dairy farmer in Bogor Regency, West Java and Bogor Municipality, West Java with convenience sampling method. This research was conducted in September 2012.
LITERATURE REVIEW
The entrepreneurial success is depends on what the entrepreneurs know and what the entrepreneurs can do with they know. Entrepreneurs recognize the value of current events, what is going on, where and
why Rathna and Vijaya, 2009. The most of dairy farm enterprises in Indonesia are in a small scale. Latha and Murthy 2009 found out that support from family members encourages the entrepreneurs to start the
new ventures. Fuah, et al 2011 found out that activity of dairy farm in West Java, Central Java and East Java carried out and managed traditionally by smallholder dairy farmers. The average of milk yield was low
and the main product was also still carried out without technological diversification and possession of a low number of animals due to obstacles in feeding, management and processing technology and less skill of dairy
farmers to implement good farming practices in related fields. To overcome these obstacles, improving of management and technology application can be applied.
Empowerment of the dairy farmers is the growth rate of dairy farmer potential in his role as farm manager, livestock keepers and autonomous individual. Empowerment of the dairy farmers and the dynamic
group of diary farmers in Bandung Regency, West Java were at low level, especially in his role as a manager and as an autonomous individual. There was a positive significant correlation between the dynamics of
farmers group and the empowerment of dairy farmers. Yunasaf, et al, 2008
The research conducted by Muatip 2008 found out that the entrepreneurship competence of the dairy farmers in Bandung Regency, West Java was at medium category in technical skill and managerial skill.
Entrepreneurship competencies of dairy farmers has a significant influence to the productivity level of the dairy farmers. The factors that influence the entrepreneurship competencies of the farmers are education
background and the number of family members, lacking of facilities, information and the policy of the government. The strategies for entrepreneurship competencies improvement are through the strengthening
of informal education and more involvement of daily facilities and information and strengthening of government support.
In dairy cattle agribusiness, the farmers are integrated with the milk oriented cooperatives that play important role in the development of dairy cattle agribusiness in Indonesia. Rusdiana, et al 2009 found out
that to encourage the development of dairy cattle agribusiness, it is necessary to empower the cooperatives in order to improve agribusiness scale, to enhance milk production capacity and to lower the production cost.
Cooperatives empowerment is conducted through provision and improvement female dairy cows, the high quality of concentrate at affordable price and a better management of the cooperatives.
The research by Bergevoet, et al 2005 indicated that using the concept of competencies can give insight into entrepreneurial behavior of farmers and provides a means to evaluate an intervention program
aimed at development of a strategic plan by entrepreneurs. It was also said that the entrepreneurial competencies have a positive relation with the farm size of dairy farmers in the Netherlands. The result of
the case study indicated that it is possible to improve entrepreneurial competencies of dairy farmers by means of developing and discu
ssing the farmer‟s strategic plans in a study group. On average all participants benefited from the program, irrespective of farmer and farm characteristics or the level of competencies at
the start of the program.
DISCUSSION
This research was conducted by in-depth interview with four respondents. The respondents are dairy farmers who have more than seven years experience as a dairy farmer. More than seven years work
experiences as a dairy farmer indicates that the dairy farmer is well experienced in dairy farm business. Four respondents had been selected by convenience sampling method. Characteristic differences among
each respondent are listed as Table 1.
Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional
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The Level of Entrepreneurial Skill of Respondent
Entrepreneurial skill of respondents is measured by the technical skills. Technical skill is an ability to organize projects, to set specific objectives, to set schedules and to ensure that necessary resources are in
the right place at the right time Wickham, 2004. In this research, the technical skill of respondents measured by 1 observation of the technical process of cultivation for dairy farmer who does not sell fresh
milk to dairy cooperative and laboratory results for first and second respondent, and 2 the farm gate price of fresh milk for dairy farmer who sell fresh milk to dairy cooperative for third and fourth respondent. The
price has positive reflects fresh milk quality, so milk quality indicates the technical skill of dairy farmer. Farm gate price is used for measurement of technical skill for third and fourth respondent, because the
market structure is monopsony. In the other hand, farm gate price could not be used for measurement of technical skill for first and second respondent, because the structure market is perfect competition.
Table 1. Characteristics of Respondent Description
Respondent 1
2 3
4 Location
Bogor, West Java Malang, East Java
Dairy Scale lactating cows 12
large scale 70
large scale 3
small scale 7
middle scale Education Level
University University
Elementary school Senior high
school Age years old
38 59
54 24
Sex Male
Female Male
Female Price Milk Rp L
5000 3500
3100 3300
Training Never
Often Often
Often Level of Technical Skill
Low High
Middle High
Respondent 1
First respondent lives in Bogor, West Java. Technical skill of the respondent can be classified into the low level. It can be inferred from the cowshed and the milking process hygiene does not meet hygiene
standards and the respondent does not have the technical skill to process fresh milk into processed milk products. The constraints that faced by first respondent is the lack of technical dairy farming training and
dairy product processing. Nevertheless, first respondent has a good communication and negotiation skill with business colleagues that support to expand market and get higher price than sell to cooperative.
Respondent 2
Second respondent lives in Bogor, West Java. Technical skill of the respondent can be categorized into the high level. It can be inferred from the performance of the respondent in managing business in
accordance with technical standards, both in technical cultivation and processing milk. The second respondent has formal educational background which is relevant to development of the dairy farm business,
both technical and managerial. The constraint faced by respondent is limited availability of breed for artificial insemination in dairy farm cooperative that cause in-breeding which also cause decrease of milk production.
Respondent 3
Third respondent lives in Malang, East Java. Technical skill of the respondent can be classified into middle level. It can be inferred from the farm gate milk price of third respondent. Farm gate milk price of
third respondent is Rp. 3,150. The price is at middle level in Malang Regency. The middle level of farm gate price in Malang Regency, East Java is Rp. 3,100
– 3200 liter Local Government of Malang Regency, Official of Animal Husbandry and Health, 2012. Farm gate price divided into three levels that listed as Table 2.
Respondent 4
Fourth respondent lives in Malang, East Java. Technical skill of the respondent can be classified into high level. It can be inferred from the farm gate milk price of third respondent. Farm gate milk price of
third respondent is Rp. 3,300. The price is at high level in Malang Regency. The high level of farm gate price in Malang Regency, East Java is above 3200 Local Government of Malang Regency, Official of Animal
Husbandry and Health, 2012. Farm gate price divided into three levels that listed as Table 2.
Penerapan Ilmu Sistem dan Kompleksitas Dalam Pengembangan Agribisnis Nasional
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The Alternative Solution
To solve constraint faced by respondent, the respondent could ask dairy farm cooperative as an institution that is directly related to business activities of dairy farmers to hold technical training about dairy
farming and dairy product processing training. Table 2. Milk Farm Gate Price Level in Malang, Eats Java
Level Price Rupiah
Low 3,100
Middle 3,100-3,200
High 3,200
Source: Local Government of Malang Regency, Official of Animal Husbandry and Health 2012
CONCLUSION
Based on these case, this research found that technical skill of the dairy farmer as an entrepreneur in Malang, East Java and Bogor, West Java is at the middle level. The technical skill depends on the frequency
of training. The dairy farmers will have a better technical skill through a dairy farming training. The training could be organized by dairy farm cooperative.
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35. PERAN KOPERASI DALAM IMPLEMENTASI PROGRAM OVOP DAN
