The Analysis of Constraints and Opportunities Development of Livestock in Aceh Besar | Ikramuddin | Proceedings of The Annual International Conference, Syiah Kuala University - Life Sciences & Engineering Chapter 5988 12364 1 SM

Proceedings of The 5 th Annual I nt er nat ional Conf er ence Syiah Kuala Universit y ( AI C Unsyiah) 2015
I n conj unct ion w it h The 8 th I nt ernat ional Conference of Chem ical Engineering on Science and Applicat ions ( ChESA) 2015
Sept em ber 9- 11, 2015, Banda Aceh, I ndonesia

The Ana lysis of Con st r a int s a n d Oppor t u nit ie s
D e ve lopm e nt of Live st ock in Ace h Be sa r
1*

I kram uddin, 2Ghazali Syam ni, 3 Bam bang Ali Nugroho, and 4 Nuhfil Hanani

1,2

Doct orat e st udent of Managem ent , Facult y of Econom ics and Business, Syiah Kuala
Universit y, Banda Aceh, I ndonesia and Lect urer at Managem ent St udy Program , Facult y
of Econom ics and Bussiness, Universit as Malikussaleh, Lhokseum awe, I ndonesia;
3
Depart m ent of Vet erinary, Facult y of Vet erinary, Universit as Brawij aya,
Malang,
I ndonesia;
4
Depart m ent of Social Econom ic, Facult y of Agricult ural, Universit as Brawij aya, Malang,

I ndonesia;
* Corresponding Aut hor: ikram [email protected]
Abst ra ct
This research aim s t o analy ze t he const raint s and opport un it ies of liv est ock business dev elopm ent
in Aceh Besar. The dat a used in t his research is prim ary dat a obt ained by dist ribut ing
quest ionnaires t o t he relat ed part ies su ch as Anim al husbandry in Aceh and Aceh Besar, breeders,
breeders associat ion and m anager of slaught erh ouse. The dat a analy zed by using SWOT analy sis.
The research found t hat t he opport unit y of liv est ock dev elopm ent is great enough beside t he
av ailabilit y of land, gov ernm ent part icipat ion in giv ing seed ( calf) of Aceh cat t le t o a num ber of
breeders, m owers/ feed crusher, v accinat ion, adm inist rat ion, art ificial insem inat ion and land
dev elopm ent for forage. I n addit ion, t he const raint s ex perienced by cat t le breeders are lim it ed
which based on t he infrast ruct ure, poor m anagem ent of cat t le breeders, lack of cage sanit at ion,
lim it ed forage during dry season, and t he dem ands of indust ry / m anufact ure are st ill dom inat ed by
im port ed beef.
Ke y w ords: const raint s, oppor t unit ies, dev elopm ent of liv est ock in Aceh Besar

I nt r oduct ion
Livest ock is t he closest real sect or in I ndonesian people, especially Acehnese. Livest ock business is an
int egral part in daily life of Acehnese. The Governm ent of Aceh has m ade som e various efforts t o
increase product ion and product ivit y of livestock in order t o reduce a dependency on t he ot her regions

in handling t he need of livest ock. However, t he effort s of governm ent have not provided t he opt im al
results. The indicat or is not achieved yet in Beef self-sufficiency and st ill supplied from out side.
Based on t he report from t he agency of Peternakan dan Kesehat an Hewan Aceh ( 2010) , t he cat t le
populat ion in Aceh in 2009 was 590.315 ( 88.11% ) from cat t le populat ion in Aceh about 669.996
around 23 dist ricts/ cit ies in Aceh. The largest population of cat t le in Aceh includes dist rict of East Aceh
( 100.992), North Aceh ( 97.394) , and Aceh Besar ( 96.789) . The populat ion in 2011 is 731.645, t he
weight of calf in Aceh is around 128 + 30 kg, and bull is around 145 + 37 kg. Aceh cat t le have been in
around of Aceh, and som e dist rict s of Nort h Sum atera. Bps ( Stat ist ical agency) in Aceh ( 2008) , t he
t ot al num ber of land area in Aceh is nearly 1,52,578 hect ares and can be used as a source of forage
for livest ock wit h t he integrat ion syst em of livest ock wit h plantat ion plant s, Moreover, t he agricult ure
waste such as abundant rice st raw have been burned by farm ers, but it also could be funct ioned as
forage.
On t he ot her part, beef price in Aceh is ext rem ely high, especially during Ram adan and t wo feasts,
and even called as t he highest cost in t he world. The lack of product ion and product ivit y of livest ock
because of t he developm ent has not been business- oriented. Livestock in Aceh is st ill t radit ional and in
a very sm all- scale enterprise, so t he econom ic im pact is st ill ext rem ely sm all. To change the concept
requires hard work and t he integrat ion with som e various agencies (partnership).
Part nership is a successful m ovem ent in developing a sm all- scale livestock. The integrat ion wit h
private ent repreneurs in livest ock needs t o be m ade in order to learn about t he changes from
t radit ional livest ock t o be agribusiness livest ock. Part nership and cooperat ion am ong breeders,

businesses and local governm ents in livest ock m ust be synergist ically. Besides, by having technical
capabilit y such as select ion of locat ion, and partnership also play role in provision of seeds,
m aintenance, business, capit al, and m arket ing
Long ago, governm ent of I ndonesia has issued Regulat ion Num ber. 44 of 1997 on t he partnership
which is direct ed on t he basis of t he econom ic norm s t hat applid in business relat ions, m ut ual need,

247

Proceedings of The 5 th Annual I nt er nat ional Conf er ence Syiah Kuala Universit y ( AI C Unsyiah) 2015
I n conj unct ion w it h The 8 th I nt ernat ional Conference of Chem ical Engineering on Science and Applicat ions ( ChESA) 2015
Sept em ber 9- 11, 2015, Banda Aceh, I ndonesia

m ut ually reinforcing, and profit able. Furt herm ore, t he Decree of t he Minister of Agricult ure Num ber.
940 / Kpt s / OT.210 / 10/ 1997 on the guidelines of Agricultural Business Part nership. The purpose of
partnership is t o increase revenue, im prove qualit y of hum an resources part nership, increase business
scale, keep business cont inuit y, and t o foster and enhance t he abilit y of a part ner group. The
applicable Part nership pat terns are: Core-plasm a, Sub- cont ract ing, Public t rading, agency and et c,
such as agribusiness operat ional cooperat ion in which involves supervision and cont rol by board
agribusiness, DG Scope of Departm ent of Agriculture, Agricult ure Ext ension cent er, and Departm ent of
Technical Scope of t he Minist ry of Agricult ure.

The research conducted by Azhar and Syam ni ( 2010) claim ed that problem s are com pet it ion, a long
process of export docum ents, product qualit y, export barriers, t ransportat ion delays, com m unicat ion
lim it , lack of understanding about t he internat ional m arket , im port adm inist rat ion procedure, inabilit y
t o m eet t he m arket needs, lag of shipm ent. The sam e case also faced by t he breeders such as lag of
developm ent , and lim ited private investm ent in t he livest ock sect or. Because of livest ock sect or is
considered as a risky sector, t he banks considere it less int erest ing. Based on t he descript ion above,
t he purpose of of t his research is t o know t he const raint s and opportunit ies for part nership
developm ent of breeders in Aceh.
M a t e r ia ls a nd M e t hods
Procedure
The dat a classified into prim ary and secondary dat a. The prim ary data collected by using sam pling
procedures in a research survey, and t he secondary dat a collected from docum ents of relevant
agencies such as Bps ( St at ist ical Agencies) , Bappeda Aceh, Departm ent of anim al husbandary and
anim al health, stat ist ical office of subdist rict , agency of local m arket and scient ific publicat ions. The
research conducted in t he area of product ion centers and livest ock developm ent in Aceh Besar. Aceh
Besar was chosen because t his dist rict requires 25- 30 cat t le every day and able t o be supplied by it s
local cat t le ( Seram bi I ndonesia newspaper, 2015)
D a t a Ana lysis M e t hods
The st udy of part nership bet ween t he breeders and businesses also revisited based on t he const raint s
and opportunit ies of partnership so that is expected t o obt ain a form of part nership which is really

profit able, especially t he breeders. Furtherm ore SWOT analysis was carried out based on the
ident ificat ion of internal and ext ernal fact ors to form ulate the feasible policies and st rategies of
livest ock developm ent in Aceh. The assessm ent of business partnership between farm ers wit h
business is conducted t hrough SWOT analysis ( St rengt hs, Weaknesses, Opportunit ies, Threats) .
SWOT analysis carried out to form ulate t he im plem ented st rategies, and this analysis classified t he
environm ent al factors faced by livest ock business as st rength, weakness, opportunit ies and t hreat s
fact ors. The analysis of quant it at ive used I FE m at rix, EFE and I E by t he following steps: ( 1)
indent ifying ext ernal and int ernal fact ors of livestock business, ( 2) determ ining weight of each
variable, ( 3) rat ings. This analysis aim ed t o know t he abilit y of livest ock in facing t he int ernal and
ext ernal environm ent . The way t o figure out t he condit ion of livest ock on t he environm ental condit ions
could be done by t hese ways: The score of I FE group in a st rong posit ion ( 3,0- 4,0) , average score
( 2,0- 2.99) and weak ( 1,0- 1.99) . While the score of EFE classified int o a st rong posit ion ( 3.0- 4.0),
m iddle posit ion (2,0- 2.99) , and low posit ion ( 1.0- 1.99) . SWOT m at rix is prepared t o find out S- O
St rategy, W- O st rategy and W- T st rategy.
Results a nd D iscussion
Table 1. Breeder Organizat ion in Aceh Besar
Num
be r

Orga n iz a t ion


1.

Agrona

2.
3.
4.
5.

Hiday ah
Lam
Seulawah
Seulawah Ray a
Bersam a
Seunong Cot

6.

Kube Cot Jure


7.

Sinar Muda

Orga n iz a t ion a dd re s
Desa Saree Aceh, Kec Lem bah
Seulawah
Desa Lam t am ot ,
Kec. Lem bah Seulawah
Desa Lam carak , Kec. Seulim u m
Desa Bit hak , Kec. Kut a Cot Glie
Desa Keum ire,
Kec. Kut a Cot Glie
Desa Lam panah Day ah, Kec.
I ndrapuri
Desa Meureu Ule Tit i, Kec.
I ndrapuri

248


Tot a l of
Grou p
M e m be rs
10

Fa cilit ie s Obt a in e d
by Or ga n iz a t ion

Tot a l

Cat t le, Com post Hom e

76

15

-

70


8
20
25

Cat t le, Cage, Medicine
Cat t le,
Cage,
HMT,
Medicine
Cat t le,
Cage,
HMT,
Medicine
HMT

24
56
62


29
30

51
43

Proceedings of The 5 th Annual I nt er nat ional Conf er ence Syiah Kuala Universit y ( AI C Unsyiah) 2015
I n conj unct ion w it h The 8 th I nt ernat ional Conference of Chem ical Engineering on Science and Applicat ions ( ChESA) 2015
Sept em ber 9- 11, 2015, Banda Aceh, I ndonesia

8.

Cot Malem Farm

9.
10.

Hik m ah
Tsunam i
Usaha Jay a


11.

Peuk an Cot

12.

Cot Pak rut

13.

Sibreh Jay a

14.

Saboh Hat e

15.

Bak Mee Ray a

16.

Aneuk Tani

17.
18.

Sapeu Pak at
Usaha
Mit ra
Ternak Bersam a
Meubeudoh
Saj an
Bina Bersam a

19.
20.
21.

Desa Krueng Lam k areung, Kec.
I ndrapuri
Desa Lem beut ong, Kec. I ndrapu ri

30

Cat t le, Cage, Medicine

32

10

Com post Hom e

14

Desa Tu m bo Baro,
Kec. Kut a Malak a
Desa Teu Day ah, Kec. Kut a
Malak a
Desa
Lam birah,
Kec.
Suk am ak m ur
Desa Buk loh,
Kec. Suk am ak m ur
Desa Piy eung, Kec. Mont asik

20

Cat t le,
Cage,
Medicine
-

13
30
10
25

Desa Cot Leuot , Kec. Blang
Bint ang
Desa Krueng Anoi, Kec. Kut a Baro

15
20

Desa Cot Preh, Kec. Kut a Baro
Desa Lam puuk , Kec. Kut a Baro

13
10

Desa Lam U, Kec. I ngin Jay a

10

Desa Lubok Bat ee, Kec. I ngin
Jay a
Desa Lam reh, Kec. Mesj id Ray a

10

Mandiri
10
Sej aht era
Source : Depart m ent of Anim al Husbandary Aceh Besar Dist rict , 2015 .

HMT,

32
12

Cat t le, m edicine, Feed,
Recording Facilit y
Cat t le

56
32

Cat t le,
Cage,
Medicine
Cat t le,
Cage,
Medicine
Cat t le,
Cage,
Medicine
Cat t le,
Cage,
Medicine
-

HMT,

34

HMT,

60

HMT,

47

HMT,

37
-

Cat t le,
Cage,
Medicine
Cat t le,
Cage,
Medicine

HMT,

-

HMT,

70

-

Beef catt le in Aceh Besar
Governm ent program s in purifying cow of Aceh are being encouraged, eit her in Pulo Raya, Aceh Besar
dist rict or by giving cows t o t he cat t le for breeding of Aceh cat t le wit h Grant system . Breeding
program is organized by a group of breeders and t hat assist ance needs t o be done t o im prove
breeders welfare and t o keep the developm ent on local catt le of Aceh. However, som e breeders prefer
t o feed t he catt le from out side of Aceh such as Brahm ana, Lim usin and Sim ent al because t hey are
bigger and can produce a plent y beef in Aceh.
The im provem ent of livest ock program has been conducted in Aceh Besar. I n 2012, t here was a
cont rol on product ive cat t le/ buffalo by saving, im proving t he st rategic area and com pet it ive
com m odit ies t hrough t he im provem ent of beef cat tle area, and im proving t he integrated cat t le of
Rum inansia t hrough t he im provem ent of integrated cat t le. I n 2013, there were catt le seeding,
im provem ent area of cat t le, and bull procurem ent for seeding.
I n 2014, t here were developm ent of Aceh cat t le t hrough t he art ificial cat t le feeding. The governm ent
also provided m owers, besides giving forage to, som e of breeders also feed t heir cat t le by giving t he
art ificial feed. Basically, breeders product t he art ificial feed by using m achine t han m ixing it with
anot her ingredients ( cocoa, palm residue, soybean, bran, and wheat ) t hrough these m echanism s:
sago 55% , soybeans 10% , palm residue 20% , wheat 10% , and bran 5% .
Const raint s and Opportunit ies Livest ock Sect or in Aceh
I n t he developm ent of livest ock sect or in Aceh appears som e const raint s such as t echnical aspects in
breeders level, supply chain m anagem ent and inst it ut ional part nerships. I n addit ion, Aceh also has a
great opport unit y for developm ent of livest ock sector. The followings will figure out t he const raints
and opport unit ies for t he developm ent of beef cat t le in Aceh Besar.

Const raint s in Livest ock developm ent in Aceh Besar
Technical aspect
1. Cat t le feeding only by giving forage will cause difficult ies in having forage.
2. There is no any art ificial feed because it is only produced by beef cat t le com panies for t heir
private needs and not for selling.
3. Lack of capital and access to t he capit al sources.
4. Beef catt le rarely bat hed and cage sanit at ion is bad that affects t he qualit y of cat t le.
5. Lack of Aceh catt le

249

Proceedings of The 5 th Annual I nt er nat ional Conf er ence Syiah Kuala Universit y ( AI C Unsyiah) 2015
I n conj unct ion w it h The 8 th I nt ernat ional Conference of Chem ical Engineering on Science and Applicat ions ( ChESA) 2015
Sept em ber 9- 11, 2015, Banda Aceh, I ndonesia

6.
7.

Cat t le securit y is less assured because t he locat ion of livest ock is in upland areas and around the
riverbanks of Krueng Aceh t hat is far from hum an habit at ion.
Low of bargaining on t he cat t le cost because of m arket price and the qualit y of cat t le

Supply Chain Managem ent
1. Lack of m arket infrast ruct ure such as veterinary and m eat m arket s so t hat breeders t end t o sell
t heir cat t le t o t he t raders.
2. High cost t ransportat ion t o vet erinary m arket
3. Generally, indust ry/ m anufact ure t ends t o use t he im port ed beef because of t he cost is m uch
cheaper than Aceh beef.
4. High im port s cat t le and beef in Aceh.
Part nership I nst it ut ional
1. Lack of m anufact uring indust ry so t hat t here is no direct part nership between breeders and
m anufact uring indust ry
2. Lack of inst it ut ional consolidat ion in the breeders eit her m em bership, m anagem ent, m arket
access or capital access.
3. Part nership pat tern of livestock is st ill in a general t rade, so t hat t here is no t echnical and
inst it ut ional aspect.
Opportunit ies on Livest ock Developm ent in Aceh Besar
1. High m arket dem and on beef every year in Aceh
2. High price beef in Aceh, especially during Meugang or t wo days before religious holiday
3. There is a possibilit y of ut ilizat ion of farm waste as t he cat t le feed.
4. The exist ence of governm ent program s for refining cow of Aceh.
5. There are goverm ent program s t o help t he livest ock .
6. High dem and for m eat m anufacturing indust ry.
Conclusions
Livest ock sect or in Aceh st ill provides a great opport unit y because of t he existance of high dem and
and m axim um cost in m arket . I n addit ion, t he goverm ent support s by giving calf ( seed) and feeding
program , and beef dem and from indust ry and rest aurant are st ill high. I n anot her part, livestock in
Aceh also faces som e const raints such as technology, support from governm ent and privat e sector in
providing t he qualit y seeds, availabilit y of feed fact ory around livestock t o ant icipat e t he increase of
feed prices, developm ent of breeder organizat ions ( groups of breeders, breeders associat ions), m arket
access, inst it ut ional of m arket t hat needs to be increased in accordance wit h t he area of livest ock
developm ent , and som e im provem ent s t oward educat or role, art ificial insem inat ion officers, m edical
personnel in livest ock. All of t hem could be carried if t he livest ock in Aceh runs with t he integrated,
sustainable and part nership syst em , and the act ive role of breeder organizat ion.
Ack now ledgem e nts
Our t hanks t o t he Minist ry of Research, Technology and Higher Educat ion, especially t he Direct orate of
Research Com m unit y Service ( DP2M), which has funded grants I nt er College 2- year period 20142015 .
Re fe re n ce s
Azhar dan Sy am ni, Ghazali,( 201 0) . Sev eral Problem s t hat Need t o Be Underst ood by Sm all Ent repreneurs in
I ndonesia. Nat ional Sem inar & Work Shop: The I n t ernat ional Com pet it iv eness of I ndonesia's
Organizat ions in t he Dy nam ic Global Env ironm en t . Facult y Econom ic and Managem ent , I PB, Bogor, 2010.
Badan Pusat st at ist ik Aceh.( 20 08) . Aceh dalam Angk a. Banda Aceh; BPS Prov insi Aceh.
Disk eswannak Aceh. ( 2010) . Annual Report . Banda Aceh; Dinas Kesehat an Hewan dan Ternak Aceh.
_______ ______ ___. ( 20 12) . Annual Report . Banda Aceh; Dinas Kesehat an Hewan dan Ternak Aceh.
Sy am ni, Ghazali dan I k ram uddin. ( 20 14) . Model of Supply Chain Part nership and Business Value Chain of Folk
Liv est ock in Order t o St rengt hen t he Econom ics in Aceh. Research of I nt er- Univ ersit ies Collaborat ion.
HlBAH PEKERTl – DlKTl First y ear. Lh ok seum awe.
Supply Chain Part nership and Business Value Chain Liv est ock Folk I n Order To St rengt hen Econom ics I n Aceh.
Seram bi I ndonesia ( 2015 ) The Gov erm ent of Aceh Besar I ncrease Cat t le Populat ion, Sunday , January 18 201 5.
Accessed on June, 2015.
Perat uran Pem erint ah Republik I ndonesia No. 44 Tahun 199 7 t ent ang Kem it raan Ket erk ait an Usaha.
Surat Keput usan Ment eri Pert anian No. 940/ Kpt s/ OT.210/ 10 / 1997 t ent ang Pedom an Kem it raan Usaha Pert an ian.

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