JOSR: Journal of Social Research
November 2022, 1 (12), 633-641
p-ISSN: 2827-9832 e-ISSN: 2828-335x
Available online at http:// https://ijsr.internationaljournallabs.com/index.php/ijsr
http://ijsr.internationaljournallabs.com/index.php/ijsr
DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE
SUGARCANE FARMING SYSTEM IN THE COMMUNITY LIVESTOCK
CENTER AREA
Ferdi Fathurohman, Rita Purwasih
Agroindustri Study Program, Subang State Polytechnic
ferdifathurohman@polsub.ac.id
Abstract (Indonesia)
Received:
Revised :
Accepted:
November 18,
2022
November 21,
2022
November 22,
2022
Latar Belakang: Pengembangan sapi potong secara
kuantitas telah memberikan dampak yang sangat nyata
terhadap peningkatan pendapatan masyarakat dalam
meningkatkan kesejahteraannya. Pengembangan peternakan
khususnya pada sapi potong telah dilakukan secara turun
temurun dan menunjukkan perkembangan yang cukup baik,
termasuk pada kelompok k.
Tujuan: Tujuan penelitian ini adalah untuk mengidentifikasi
model bisnis kanvas yang terdiri dari sembilan unsur dan
memetakan bagaimana strategi yang digunakan untuk
perbaikan dan pengembangan agribisnis sapi potong dalam
sistem peternakan tebu.
Metode: Metode yang digunakan adalah metode kualitatif
dan kuantitatif dengan desain eksplorasi berurutan.
Pengumpulan data dilakukan dengan wawancara mendalam
dan observasi kepada petani dan kelembagaan di 15
kelompok ternak di sekitar perkebunan tebu RNI. Hasil yang
diperoleh dimana model bisnisnya baik jika dilihat dari
sembilan unsur sesuai konsep business model canvas.
Hasil: Penelitian ini menemukan bahwa kekuatan kelompok
ternak berada pada kategori tinggi. Peluang yang sangat
tinggi di segmen pelanggan dan ancaman tinggi dalam
proposisi nilai.
Kesimpulan: Oleh karena itu, kelompok ternak disarankan
untuk melakukan pengembangan usaha dengan cara;
menambah segmen pelanggan yaitu restoran, DKM masjid
dan perusahaan besar, meningkatkan value proposition
dengan membuka warung daging dan membuka usaha
pengolahan daging, membuat website, melakukan
konsinyasi dengan beberapa sales point dan berkolaborasi
dengan universitas serta mencari freelance web developer.
Ferdi Fathurohman, Rita Purwasih / JOSR: Journal of Social Research, 1(12), 633-641
DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE SUGARCANE
FARMING SYSTEM IN THE COMMUNITY LIVESTOCK CENTER AREA
634
Kata Kunci: Kelompok Peternakan, Model Usaha Kanvas,
Agribisnis Sapi Potong.
Abstract (English)
Background: The development of beef cattle in quantity has
had a very real impact on increasing people's income in
improving their welfare. The development of animal
husbandry, especially in beef cattle, has been carried out
for generations and shows quite good development,
including in the k groups.
Objective: The purpose of this study is to identify a canvas
business model consisting of nine elements and map out
how strategies are used for the improvement and
development of beef cattle agribusiness in the sugarcane
farming system.
Methods: The methods used are qualitative and
quantitative methods with sequential exploratory design.
Data collection was carried out with in-depth interviews
and observations to farmers and institutions in 15 livestock
groups around RNI's sugarcane plantations. The results
obtained where the business model is good when viewed
from nine elements according to the concept of business
model canvas.
Results: This study found that the strength of the livestock
group was in the high category. Very high opportunities in
the customer segment and high threats in value
propositions.
Conslusion: Therefore, livestock groups are advised to
carry out business development in a way; adding to the
customer segment, namely restaurants, DKM mosques and
large companies, increasing the value proposition by
opening meat stalls and opening meat processing
businesses, creating websites, conducting consignments
with several sales points and collaborating with universities
and looking for freelance web developers.
Keywords: Livestock Group, Canvas Business Model, Beef
Cattle Agribusiness.
*Correspondent Author: Ferdi Fathurohman
Email: ferdifathurohman@polsub.ac.id
INTRODUCTION
Ferdi Fathurohman, Rita Purwasih / JOSR: Journal of Social Research, 1(12), 633-641
DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE SUGARCANE
FARMING SYSTEM IN THE COMMUNITY LIVESTOCK CENTER AREA
635
The development of beef cattle in quantity has had a very real impact on increasing
people's income in improving their welfare. Development that still relies on the power of
community animal husbandry makes this business in general still managed traditionally.
The purpose of maintenance, which is still a side business of farming activities, causes
market demand has not become the main consideration for livestock businesses. In these
conditions, it is very difficult to encourage the community to achieve an economical
business scale in the livestock business.(Fathurohman, 2018)
The development of animal husbandry, especially in beef cattle, has been carried
out for generations and shows quite good development, including in groups. In general,
the community has livestock, especially sheep and beef cattle with the motive of keeping
as a side business and for savings, this is very possible because natural conditions, the
availability of grass and the attention of the local government to the development of beef
cattle are very supportive.
The Government of the Republic of Indonesia through the Ministry of Agriculture
in 2015 issued a livestock area program under the name Sentra Peternakan Rakyat or
commonly known as SPR. SPR is an association of smallholder breeders with the aim of
realizing different breeders. SPR has been formed for about 2 years. There have been many
programs implemented by SPR ranging from improving group administration, training and
assistance from both the central and local governments. In 2017 the central government's
assistance program for SPR was no longer provided, making the programs that had been
running less effective ([Ditjen PKH] Direktorat Jendral Peternakan dan Kesehatan Hewan,
2015).
One of the livestock areas in Indonesia is the Cinagarabogo livestock area of
Subang Regency. For approximately 2 years running a livestock area business, selling
through offline and online. According to information obtained from livestock groups
belonging to the region, competition in animal husbandry is getting tougher, so breeders
are constantly trying to survive and even develop. Many organizations are growing rapidly
because they can create the right business model. Business model canvas (BMC)
successfully transforms the concept of a complex business model into a simple one(Baharta
et al., 2019)
1.2. Purpose
The use of a simple business model encourages as many breeders as possible to get
involved in the development of the company's business model. Based on the explanations
that have been expressed and if it is related to the concept of BMC, the objectives of this
research are:
1.
Mapping the condition of the ongoing business model of the Subang Regency
livestock area.
2.
Evaluating the business model of the Subang Regency livestock area using strengths,
weaknesess, opportunities, and threats (SWOT) analysis.
Recommend the design of a new business model as a business development for the
Subang Regency Livestock Area.
RESEARCH METHODS
The type of research used is descriptive research. The method used is a combination
of qualitative methods and quantitative methods with sequential exploratory design.
Qualitative data is collected by conducting in-depth interviews and observations,
while quantitative data uses questionnaires in the form of SWOT analysis to evaluate
business models.
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DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE SUGARCANE
FARMING SYSTEM IN THE COMMUNITY LIVESTOCK CENTER AREA
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The object or place of research chosen is the livestock area of Subang
Cinagarabogo Regency (Cipunagara District and Cibogo District). Respondents from
internal parties interviewed were group members and group administrators consisting of
the Chairman, Secretary and Treasurer elements. Meanwhile, external parties researchers
distributed questionnaires to 40 customers and stake holders of the Cinagarabogo
Livestock Area.
This is done to check the answers of respondents who are internal parties and
compare with the perceptions of customers or stake holders as external parties. The
sampling technique used in this study is purposive sampling in which sampling data sources
is based on certain considerations (Sugiyono, 2013).
This study uses BMC as a tool for mapping the conditions of implementation of
the company's business model, as well as proposing a new business model design. The
assessment of the SWOT analysis uses continuum lines that are created categories so that
it can help in proposing a new business model (Fathurohman, 2018b).
RESULTS AND DISCUSSION
The following is an overview of the results of the SWOT assessment evaluation of the
Cinagarabogo Livestock Area of Subang Regency and nine building blocks in the area
based on the data that has been collected accompanied by the results of the discussion of
the appropriate blocks:
Table. 1 SWOT Assessment Evaluation Results of Cinagarabogo Livestock Area
9 Building Blocks
Strengths
Weaknesses
Ancama
(Threats)
Customer Segments
9.51 = Very
High
2.53 = Very Low
6.00 = Enough
Value Propositions
9.00 = Very
High
3.25 = Very Low
8.00 = Very
High
Channels
9.20 = Very
High
3.00 = Very Low
5.00 = Low
Customer
Relationships
8.25 = High
4.00 = Low
2.00 = Very
Low
Revenue Streams
7.00 = High
4.00 = Low
5.50 = Enough
Key Resources
9.51 = Very
High
2.90 = Very Low
7.00 = High
Key Activities
8.00 = High
5.00 = Low
3.50 = Very
Low
Key Partnerships
8.70 = Very
High
3.50 = Very Low
4.00 = Low
Cost Structure
8.75 = Very
High
3.25 = Very Low
4.00 = Low
KP
Shipping
Establishment
,
Suppliers of
livestock
breeds,
THAT
Production,
Promotion, Sales,
Delivery
Maintaning and
website updates
VP
Products:
Prospective cows,
mother cows,
calves, processed
products, fertilizers,
finished feed and
CR
Personal
communications:
SMS, and
whatsapp
CS
Farms in other
groups,
Meat merchant,
Agricultural
groups,
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DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE SUGARCANE
FARMING SYSTEM IN THE COMMUNITY LIVESTOCK CENTER AREA
637
Cattle Dealer,
Consignment
Partners
College
Freelance
web developer
feed ingredients,
opening a meat stall,
opening a meat
processing business
Redemption policy
if not appropriate
Quality Assurance
Priced
The concept of
community
empowerment
Partnership with the
company
Discount dan
event,
Magazines and
Newspapers,
Information on the
website.
Government
procurement
Restaurant
DKM masjid
Large companies
KR
Production tools,
processing tools and
feed ingredients,
Private capital,
government
assistance, and bank
loans
20 cattle groups, 430
members and
administrators
Cinagarabogo
livestock area brand
CH
Offline:
Farmer's cages,
SPR secretariat
and
Slaughterhouses,
consignment
kiosks
Online:
Facebook, website
C$
Value-driven
Earnings of breeders, production,
transportation, promotion
Freelance web developer Wages
R$ Direct sale
Revenue from consignment sales
Picture. 1. Business Model and Business Model Recommendations for Livestock
Districts
a. Customer Segments
The customer segments targeted by Cinagarabogo livestock area are other groups,
meat traders, agricultural groups, government procurement, restaurants and mosque DKM.
The region considers the segment to be the most important customer segment.
Herein lies the weakness of the region, the target customers are groups that tend
not to have good profits and still depend on government assistance.
But the region has the opportunity to capitalize on an increasingly growing market.
This is evidenced by the interest in prospective cow shoes and broodstock that is always
growing, so it is possible for the region to serve new customer segments.
Customer segments are included in the segmented type. The area is difficult to
increase product prices, therefore it can be prepared by expanding the customer segment
by targeting restaurants and hotels.
These people generally have an awareness of the importance of quality and
sustainability to maintain customer trust, and are supported by financial capabilities
because restaurants and hospitality already have clear finances.
b. Value Propositions
The Value propositions type is the value that a region offers to its customers. The
types of products offered include prospective cows, mother cows, calves, processed
products, fertilizers, finished feed and feed ingredients.
The area has advantages in the exchange policy service if it does not match what
is ordered, affordable price services, namely a price policy that is not higher than the market
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DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE SUGARCANE
FARMING SYSTEM IN THE COMMUNITY LIVESTOCK CENTER AREA
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price, the concept of community empowerment where in addition to businesses or
businesses the area sells the concept of community empowerment to further develop,
partnerships with large companies, namely where the custody of imported mother cows in
regional member groups.
Value propositions of the region are included in the very high category, because
the value offered is in accordance with customer needs and is able to satisfy customers.
However, the weakness found in the company is the vagueness of the post-sales service
where there are no people or officers as quality control.
Opportunities that can be utilized by complementing or adding to existing needs.
The threats facing the company belong to the high category. This is because many
competitors or larger companies offer similar products at more attractive prices or offers
and make it possible for customers to move to buy competitors' products.
Regions still have the opportunity to supplement or add to existing offers. The area
can add to the types of products produced, such as food derived from beef or open meat
stalls in the market. In addition, the region must clarify the post-sale services offered,
including product exchange policies if they are not in accordance with what the buyer
wants. It would be better if the region immediately sets the terms and conditions for using
the service, and then communicates it to customers through the company's sales channels.
c. Channels
The region uses the channel online and offline, For the online channel used is
facebook. For offline sales channels, the company has workshops located in several groups
and at the secretariat of SPR Cinagarabogo Padamulya Village, Kecamtan Cipunagara in
addition to that also at the Pagaden Slaughterhouse. In addition to workshops, the company
also participates in product exhibition events.
The strength of the company's sales channels is in online channels that are
considered to be effective, efficient and in accordance with customer segments. Meanwhile,
the company's weakness lies in the workshop location which is less strategic and difficult
to reach.
The area does not yet have a Website. Regions can use the services of universities
or freelance website developers, but it must be noted that the cooperation that is established
must have a contract and a written agreement according to mutual agreement. The benefits
obtained by the region by using the website include: (a) it can be used as an online catalog
to make it easier for users to see products, (b) it is easy to find in search engines by applying
search engine optimization (SEO), (c) navigation on the website is easier so that users feel
comfortable, (d) can clarify information on both products and services, and orders can be
made at website thus simplifying the purchase process.
d. Customer Relationships
The region has used several ways of establishing relationships with customers to
retain customers, among them using social media networks. For personal communications,
the company uses short message services and whatsapp. To attract the attention of
customers, the region also provides promotions including discounts, events, and marketing
in print media
The strength of the region is the ability to build strong relationships with customers
and stake holders of the services provided. Meanwhile, the company's weakness is that it
does not bind customers through high moving costs. The opportunity to improve relations
with customers falls into the category of sufficient and the threat to the relationship
established with customers is relatively low.
The relationship established between the region and the customer is a buying and
selling relationship that is included in the category of personal assistance relationship
types. The ongoing relationship is that customers can interact and communicate directly
with salespeople to get help during the sales process or the buying process is complete. By
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DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE SUGARCANE
FARMING SYSTEM IN THE COMMUNITY LIVESTOCK CENTER AREA
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using the website, the region can communicate the advantages of the services offered,
because so far online customers do not get clear enough information about existing
services. Regions can educate customers by providing knowledge behind the production
process. Informed about the value that has been paid and can be enjoyed by customers. Use
this media to sell stories or stories behind the production process or maintenance process,
either through writing or video.
e. Revenue Streams
The area obtains income from the sale of products, namely the sale of prospective
cows, mother cows, calves, processed products, fertilizers, finished feed and feed
ingredients through online sales, exhibitions, and workshops. The pricing of products in
the region is determined by the cost of production, judging from the price of raw materials,
the scarcity of raw materials, as well as the type of customer whether it is a rutuin customer
or a temporary customer. The weakness of the region is that it relies only on product sales
revenue directly to consumers. There is an opportunity to add or create a source of income.
Regions can add revenue streams from consignment. If you implement
consignment cooperation, the turnover of money will be faster and income will not be
focused on one dealer alone.
f. Key Resources
The physical assets needed are housing and equipment for production. Small
equipment for the processing of feed and feed retrieval breeders bring their own. The area
only provides large production tools such as coppers, mixers etc. and materials such as
decomposing bacteria, molasses. The source of funds was initially from group funds, then
developed assistance from the government and loans from banking and CSR companies.
Human resources, the area has 430 breeders spread across 20 groups, while to take
care of managerial affairs is handled by 9 regional administrators commonly called the
Livestock Owner Representative Group (GPPT) and 1 technical manager. For intellectual
resources in the process of applying regional technology in collaboration with IPB and
Padjadjaran University.
The region is able to maximize its strength. However, there are still weaknesses,
namely limited sources of capital and quality mother cows are difficult to find. The
opportunity to take advantage of opportunities from the resources used is included in the
low category.
The threat to regional resources is included in the high category, this is because the
region faces large companies where the prices offered by large companies tend to be lower
and use imported cattle and threats to the resources used, for example farmers who change
professions to factory workers.
Motivating breeders, the region can show expressions of recognition to breeders
including;
• some people are motivated by the opportunity to get their names displayed on the
wall, put up posters with photos of employees with themes such as the most diligent
employees, employees who achieve targets, absentee rates, accuracy without being
late, lack or no work mistakes,
• give a gift such as a small gift or a family leisure ticket,
• holding internal regional events that strengthen relations between breeders,
• build a family atmosphere and comfort,
• Give bonuses fairly, that is, based on the performance of each breeder.
g. Key Activities
The area provides friendly service to satisfy its customers. Activities to reach
customers include promotions every day, every time there is stock piled up in the workshop
area will make discounts to regular customers. Activities to maintain relationships with
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DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE SUGARCANE
FARMING SYSTEM IN THE COMMUNITY LIVESTOCK CENTER AREA
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customers, keep contact and ask for feedback from customers. Activities to get income, the
region is always ready for products.
Regional activity belongs to the high category, rudimentary because production
activities are easily imitated by other groups. The opportunity to increase key activities in
the company belongs to the category of very high. Regions can standardize on key
activities, and are supported by the presence of information technology (IT) to improve
regional efficiency.
Activities that occur in the region are included in the production category. This
activity is related to the design, manufacture and delivery of products in large quantities
and or superior quality. The presence of a website, the area must also prepare how to
maintain and update the content of the website. This can be submitted and discussed with
freelance website developers.
h. Key Partnerships
Relationships with outside parties include cattle delivery service providers, cattle
breeding companies and buyers or cattle dealers. The area purchases its own seeds or
candidates and raw materials by visiting its store or provider. As for packaging, there are
the same suppliers for subscriptions and for sample tests in collaboration with Unpad, IPB
and BPTP West Java.
The weakness of the region is that it does not have partners to assist the region in
selling regional products. Threats that can disrupt relationships with partners fall into the
low category, the region is less dependent on one partner and is less of a problem when
those partners collaborate with competitors or even lose partners.
The area can conduct consignment with several sales points with consideration;
• workshops that are invited to work together are in a strategic location,
• many customers visited,
• the sales of the workshop are relatively high,
• choose a consignment partner that targets the same target market as the region,
• The selected consignment partner does not offer the product
Another collaboration that is built is cooperation with universities or freelance web
developers. The use of freelance power is carried out to save costs incurred. Find
freelancers at the cheapest possible price if it can be free. Companies can take advantage
of the expertise of students who understand in developing corporate IT. Establish
cooperation and good relations so that there is no confusion as before.
i. Cost Structure
The costs incurred include costs for the purchase of raw materials and auxiliary
materials. Transportation costs incurred include costs at exhibitions and coordination with
partners or stake holders. The promotional costs incurred pay for the printing of the product
catalog. So the most expensive activity is production, and the most expensive resource is
human resources.
The opportunity to minimize the costs incurred by the region belongs to the low
category. This is because the region cannot reduce existing costs. The threat to regional
costs is included in the low category, because regional administrators and managers are
able to control costs so that there are no unpredictable costs.
Regions have a value-driven cost structure where the region does not make cost a
major consideration but rather focuses on the value that will be created for customers to
provide satisfaction. By conducting consignment with several sales points, the region will
incur costs for profit sharing costs with consignment partners. Using the website area will
increase the cost of paying freelance website developer wages. This needs to be considered
because the role of IT is needed to improve regional efficiency.
Ferdi Fathurohman, Rita Purwasih / JOSR: Journal of Social Research, 1(12), 633-641
DEVELOPMENT OF BEEF CATTLE AGRIBUSINESS IN THE SUGARCANE
FARMING SYSTEM IN THE COMMUNITY LIVESTOCK CENTER AREA
641
CONCLUSION
The results obtained where the business model is said to be good when viewed
from nine elements according to the concept of business model canvas. This study found
that the strength of the livestock group is in the high category. Very high opportunities in
the customer segment and high threats in value propositions. Therefore, livestock groups
are advised to develop their business in a way; adding to the customer segment, namely
restaurants, DKM mosques and large companies, increasing the value proposition by
opening meat stalls and opening processed meat businesses, creating websites, conducting
consignments with several sales points and collaborating with universities and looking for
freelance web developers.
BIBLIOGRAPHY
Baharta, R., Fathurohman, F., Purwasih, R., & Mukminah, N. (2019). Analisis
pengembangan kawasan peternakan ayam petelur (studi kasus di Kabupaten
Subang). Bulletin of Applied Animal Research, 1(1), 26–30.
[Ditjen PKH] Direktorat Jendral Peternakan dan Kesehatan Hewan. (2015).
Pedoman umum program sentra peternakan rakyat. Ditjen PKH.
Fathurohman, F. (2018). Model Bisnis Kawasan Peternakan Kabupaten Subang.
Jurnal Ilmiah Ilmu Dan Teknologi Rekayasa, 1(1), 36–45.
Sugiyono. (2013). Metodologi Penelitian Bisnis. Alfabeta.
© 2021 by the authors. Submitted for possible open
access publication under the terms and
conditions of the Creative Commons Attribution
(CC BY SA) license
(https://creativecommons.org/licenses/by-
sa/4.0/).