Conserving Ongole Crossbreeds with an Approach to the Value of Existence and Willingness to Pay
Farmer’s in Yogyakarta Indonesia
Elisa Christian Adhie Ernanto1, Rini Widiati2, and Tri Anggraeni Kusumastuti2*
1
Student at Faculty of Animal Science, Universitas Gadjah Mada, Jl. Fauna 3, Bulaksumur,
Yogyakarta 55281, Indonesia
2
Department of Livestock Social Economics, Faculty of Animal Science, Universitas Gadjah Mada,
Jl Fauna 3, Bulaksumur, Yogyakarta 55281, Indonesia
*Correspondence: trianggraeni@ugm.ac.id
Abstrak
Tujuan: Tujuan dari penelitian ini yaitu mengidentifikasi dan mengukur existence usaha serta menganalisis Willingness To Pay peternak untuk menjaga
Metode: Penelitian dilakukan di Kelompok Taruna Mandiri Kecamatan Ngemplak Kabupaten Sleman dengan pertimbangan merupakan kelompok ternak sapi
PO yang mempunyai jumlah anggota terbanyak di Kabupaten Sleman. Penentuan responden secara sensus sebanyak 40 peternak. Pengumpulan data
dilakukan melalui wawancara dengan menggunakan kuesioner sebagai instrumen penelitian. Identifikasi eksistensi usaha meliputi ketersediaan input,
perkembangan output dan aksesibilitas penunjang sapi PO digunakan skala Likert. Pengujian konsistensi item pernyataan diuji validitas dan reliabilitasnya.
Metode Contingent Valuation digunakan untuk mengestimasi Willingness to Pay peternak dalam mempertahankan usaha .
Hasil: Nilai keberlanjutan usaha dari eksistensi input (0.896), output (0.985), dan penunjang (0.885) masuk kategori tinggi. Nilai WTP terbesar yaitu
pembelian ternak betina muda dengan nilai rerata sebesar Rp 14.5000.000/ekor , diikuti pengolahan limbah sebesar Rp11.509.000/tahun dan asuransi induk
Kesimpulan: Kelompok ternak dapat mempertahankan keberadaan sapi PO karena dukungan eksistensi usaha , pemanfaatan limbah kotoran untuk
peningkatan pendapatan, dan kemauan membayar peternak. Di sisi lain dukungan pemerintah untuk memberikan subsidi pada sistem pembibitan tetap
Kata Kunci: nilai keberadaan , eksistensi usaha, sapi Peranakan Ongole, Willingness To
Pay
Abstract
Objective: The objective of the research was to identify and measure the value of existence, thus to analyze Willingness To Pay of farmer to keep the
1
Methods: The research was conducted in the Independent Taruna Group, Ngemplak District, Sleman Regency with the consideration that it is a PO cattle
group that has the largest number of members in Sleman Regency. Determination of respondents by census as many as 40 farmers. Data was collected through
interviews using a questionnaire as a research instrument. The identification of the existence of the business includes the availability of inputs, the
development of outputs and the accessibility of supporting PO cattle using a Likert scale. Testing the consistency of statement items is tested for validity and
reliability. The Contingent Valuation method is used to estimate the Willingness to Pay of farmers in maintaining their business.
Results: The value of business sustainability from the existence of input (0.896), output (0.985), and support (0.885) is in the high category. The largest WTP
value is the purchase of young female cattle with an average value of IDR 14.500.000/head, followed by waste treatment of IDR. 11,509,000/year and parent
insurance of IDR. 40,000/head/year. The aggregate value of the group's WTP is IDR. 1,350,000,000/year.
Conclusions: Livestock groups can maintain the existence of PO cattle because of the support of business existence, utilization of dung waste to increase
income, and willingness to pay farmers. On the other hand, government support to provide subsidies and Siwab or its extension Mandatory cattle breeding is
Pay
INTRODUCTION
Cattle farmer in Indonesia dominated by traditional scale system. Livestock is used as saving, kept in densely populated village and carried out from
generation to generation [1]. The smallholder cattle farming business is managed intensively and traditionally, managed by local people on a scale of 1 to 2
heads. Limited resources make business had a risks to problems. The greater the access of farmers to resources, more greater also the opportunity for
developing business [2].
Ongole crossbreed is the largest population of cattle in Indonesia. This cattle must be maintained in order to keep the purity and sustainability according to the
agro-ecosystem and local farmer preferences [3]. The existence of Ongole crossbreed depends on the farmer’s preference. Farmer choose Ongole crossbreeds
because its adaptable to climate, resistant to tick infection and skin diseases, and good feed conversion [4].
The operational cost in cattle fattening is for purchase of calf, feed and labor. It makes farmers more wise to manage their operational in order to meet the
profitable business [5]. The breed of calf can affect the preference of farmer. It can affects also on Willingness To Pay from farmers to keep the sustainability
from their business. Willingness To Pay is an individual’s willing to pay for good services [6].
Ngemplak Subdistrict is one of the locations that has a lot of beef cattle. The number of beef cattle in this area in 2020 was recorded at 2469 heads [7].
Ngalian village Ngemplak Subdistrict Sleman District has 32 farmer groups, one of which is called Taruna Mandiri. Taruna Mandiri is one of the groups in
the advanced group category. Taruna Mandiri is the one of the groups that trying to conserve the existence of Ongole crossbreed through forming a livestock
village and manure processing to increase the economic value of the environment.
The beef cattle area in the Special Region of Yogyakarta is located in the Regencies of Kulon Progo, Gunungkidul, Sleman and the city of Yogyakarta. The
development of the area is strengthened by the Decree of the Minister of Agriculture Indonesia No.43/Kpts/PD.410/2015 January 16, 2015 concerning The
designation of National Areas for Beef Cattle, Buffaloes, Goats, Dairy Cattle, Sheep and Pigs [8]. Regulation related to germplasm conservation included in
Minister of Agriculture Regulation No.35/Permentan/OT.140/8/2006 mentioned that must be considered in exploration, identification, characterization, and or
evaluation of livestock genetic resources are maintaining and storing livestock genetic resources in accordance with its physical condition and designation [9].
2
Ongole crossbreed is one of the local cattle that are not pure breeds which have the potential and thus threatened about its existence [10]. Based on the
description above, it is necessary to analyze the willingness to pay of farmers and the factors that influence it to maintain the sustainability of Ongole
crossbreed, especially in Sleman District.
Materials
The material in the research is a sample of Taruna Mandiri farmers who are members of its. Sampling of farmers was carried out by census, which took all
respondents as many 40 farmers.
Methods
This research uses pre survey and survey methods. The pre survey is carried out to determine the research location that will be used as respondent and
interviewed for primary data collection. The next step is a survey of all farmers using a questionnaire through interview. To determine the value of intangible
benefits and costs, an exploratory study was conducted through indepth interview with the management of the livestock group.
Data Analysis
Identification and measurement of existence value with 2 measurements, namely:
a. Identification of business existence from the aspect of input availability, output development and accessibility of supporting PO cattle villages using a
Likert scale with 5 ranges of statements, namely 5(SS), 4(S), 3(N), 2(TS), 1(STS) which the validity and reliability of the question items have been tested.
Availability of inputs is identification of livestock ownership based on the composition of livestock types, both male, female, heifer and calf in tail units and
livestock units (UT), changes in the function of group pen land and utilization of production inputs (land, capital, livestock, labor). The development of output
includes the development of production scale and sales volume as well as by-products with selling value, while accessibility includes the availability of water
sources, road conditions, and market facilities.
b. The measurement of existence value is how much preference breeders have to maintain the presence of PO cattle through the assessment of the farmer's
willingness to pay or Willingness to Pay (WTP) based on aspects of input availability, output development, and accessibility. PO cow. This approach asks
farmers directly what is the maximum value they are willing to pay for the benefits of having PO cattle that they will receive. The steps taken in the approach
include:
1) Setting Up the Hypotetical Market
At this stage, farmers are given an overview about the advantages of livestock, the benefit from conserving Ongole crossbreed for increasing income and pre-
serving livestock germplasm. It is intended that respondents can decide about price are willing to pay for conserving Ongole crossbreed. Based on this back -
ground, a hypothetical market is created with the following scenario:
If the existence of Ongole crossbreed becomes extinct, it will be replaced by imported cattle from abroad whose availability of stock is limited because there
are restrictions on imported cattle. In addition, the cost of imports is expensive and takes a long time and the quality assurance of broodstock or progeny is
also unpredictable.
2) Getting bid value
The bid value in this study was obtained through indepth interview with respondents by questionnaires to obtain the maximum value that respondents wanted
to pay for the conserving Ongole crossbreed. The technique used to get the bid value is by using the bidding game. This technique is done by asking respon-
dents repeatedly whether they want to pay a certain amount. The amount will be increased or decreased depending on whether the respondent is not willing to
pay the previously offered amount. Bidding will stop when the respondent has met the estimated point of willingness to pay (WTP).
3) Measuring average value of WTP
The value is calculated based on the total auction value obtained in the previous stage and divided by the number of respondents. The average value of WTP is
calculated by the formula:
n
E WTP = ∑ Wi ( Pfi)
i=1
where:
E WTP = estimated average WTP of respondents (Rp)
3
Wi = WTP value - i (Rp)
Pfi = Relative frequency - i
n = Total respondent
i = Respondent -i (i= 1,2,……,39)
4) Aggregating total WTP data
The calculation of the total WTP data aggregation is obtained by means of the WTP average value that has been obtained multiplied by the number of respon -
dents. The total WTP calculation uses the following formula:
TWTP = EWTP x Ni
where:
TWTP = Total WTP value (Rp)
EWTP = estimated average WTP of respondents (Rp)
Ni = Total respondent
RESULTS
Characteristic of Farmer
Characteristics of breeders including age, formal and non-formal education, experience in raising livestock, number of family members, and
type of work describe the potential of resources as one of the production inputs.
Table 1. Characteristic of farmer
Age 32 80.00
Productive (16 to 65) 8 20.00
Non-productive (<16 and >65)
Formal education 5 12,50
Primary level 8 20.00
Secondary level 24 60.00
Higher secondary level 3 7,50
Graduate
Non-formal education 5 12,50
Cattle farming 15 37,50
Reproduction 20 50,00
Fertilizer processing
Household size (number) 13 32.50
1-2 26 65.00
3-5 1 2.50
>5
Farming experience (year) 16 40,00
1 to 5 7 17,5
6 to 10 17 42,5
> 10
Main occupation 25 62,50
Farmer 4 10,00
Private employee 1 2,50
Self-employee 1 2,50
Paid labor 6 15,00
Student 3 7,50
Civil servant
Characteristics of respondents indicate that 80% of farmers are in productive age, formal education is equivalent to high school (60%). Most of
the farmers participate in fertilizer processing training activities to increase income in addition to livestock reproduction and seed selection. This is related to
the number of families where family members also play a role in fertilizer processing and the use of fertilizer for planting vegetables so that they can carry out
4
the integration of crops and livestock. Farming experience more than 10 years shows that the business can be relied upon to help household income in addition
to the main job as a rice and horticultural farmer.
Table 2. Average livestock (IDR/farmer)
The average livestock ownership was mostly young females of 1.18 ± 0.04 heads or 0.71 ± 0.02 UT. Although breeders prefer the fattening
system over nurseries because of the relatively short maintenance period of 7.00 ± 0.21 months, some breeders have mothers and young females to maintain
the population of PO cattle in the group.
Table 3. Problems in Ongole crossbreed
Based on the survey, the price of male PO cattle is IDR. 15,000,000/head, while the price of the parent is IDR. 14,000,000/head. The price of
males is higher because there are more carcasses than females. The presence of PO cattle must also be maintained because it is difficult to get pregnant, so
many breeders rely on IB for population increase or better known as contract marriages of IDR. 350,000/head until they are pregnant.
Measurement of existence value
a. The existence of farming from input
Table 4. Existence construction from input
Item Construction
5
b. 25-50 percent comes from own capital 1
c. < 25 percent comes from own capital
7 Distance to find forage (mugut = Javanese) 3
a. < 1 km 2
b. 1-5 km 1
c. 5 km
8 Availability of concentrate feed (pollard/bran) 3
a. Can be obtained any time and a lot 2
b. Can be obtained any time with a limited amount 1
c. Difficult to obtain and limited amount
9 Distance of buying concentrate feed 3
a. < 1 km 2
b. 1-5 km 1
c. 5 km
6
7 7 97 80,83 Invalid
8 8 118 98,33 Valid
9 9 117 97,5 Valid
10 10 115 95,83 Valid
11 11 118 98,33 Invalid
12 12 112 93,33 Valid
13 13 117 97,5 Valid
14 14 118 98,33 Invalid
15 15 48 40 Invalid
*Maximum intensive class score: the highest score for each statement item (3) multiplied by the number of respondents (40) = 120
Categorization
Xn− Xi
C=
k
33−11
C= =7,33
3
Decsription:
C = class interval
Xn = maximum score
Xi = minimum score
K = total class
Table 6. Measuring class interval and determining the category of existence from input
1 11-18.33 Low
2 18.34-25.67 Midium
3 25.68-33.01 High
Item Construction
1 Amount of cattle 3
a. Increase 2
b. Constant 1
c. Decrease
2 Selling livestock 3
a. Increase 2
b. Constant 1
c. Decrease
3 Development of manure compost, biogas 3
a. Increase (until buying from outside the group) 2
b. Constant 1
c. Decrease
4 Selling manure (compost and liquid fertilizer) 3
a. Increase 2
b. Constant 1
c. Decrease
5 Raising cattle can contributes to family income 3
a. 50 percent 2
b. 25-50 percent 1
c. < 25 percent
7
Table 8. Score and achievement of existence from output
*Maximum intensive class score: the highest score for each statement item (3) multiplied by the number of respondents (40) = 120
Categorization
Xn− Xi
C=
k
9−3
C= =2
3
Description:
C = class interval
Xn = maximum score
Xi = minimum score
K = total class
Table 9. Measuring class interval and determining the category of existence from output
1 3–5 Low
2 6–8 Midium
3 9 – 11 High
8
6 Source of water 3
a. The well in the group cage 2
b. From home 1
c. Water spring
7 Condition of water spring 3
a. Good and well cared for 2
b. Fixed and no change 1
c. Not maintained and damaged
8 Animal market availability 3
a. Is in every village 2
b. Is in every district 1
c. Is in every sub-district
9 Source of electricity used 3
a. Register at PLN specifically for livestock 2
b. Register at PLN but mix with household 1
c. Take from the street power connection
10 Availabilitu of transportation to the nearest animal market 3
a. There are lots of public transportation 2
b. There is rarely public transportation 1
c. No public transportation available
*Maximum intensive class score: the highest score for each statement item (3) multiplied by the number of respondents (40) = 120
Categorization
Xn− Xi
C=
k
18−6
C= =4
3
Description:
C = class interval
Xn = maximum score
Xi = minimum score
K = total class
Table 12. Measuring class interval and determining the category of existence from support
1 6 – 10 Low
2 11 – 15 Midium
3 16 – 20 High
9
Mean score 17.8
Category high
Measuring WTP
Table 13. Types of activities and value of WTP
The largest WTP value is the purchase of young female with an average price of IDR. 13,500,000/head. Purchasing female hens is intended as
a potential replacement for the parent in the nursery system. Livestock insurance with a WTP value of IDR. 40,000/heifer. Livestock insurance is a subsidy
from the government to protect the existence of broodstock. Manure waste treatment with the label PON (Organic Fertilizer Ngaliyan) is mostly carried out by
young breeders with an average WTP value of IDR 11,509,000 / year. Waste treatment is indirectly related to the presence of PO cattle because with the
addition of income from the use of waste, the the parent is not sold all but some are kept.
Table 14. Distribution and aggregate WTP of farmers
The largest WTP class that shows the appreciation of farmers to maintain the presence of PO cattle is in class 2 of IDR. 20,000,000/breeder (45%) while the
total WTP of livestock group is IDR. 1,350,000,000/year.
DISCUSSION
Respondent Characteristic
Farmers in the study area with productive age as much as 80% and 20% non-productive. Farmers have an average productive age of 44 years. Productive age
ranges from 16 to 60 years, while non-productive age is less than 16 years and more than 60 years. Business that owned by productive age of farmer will have
more potential to manage their farm [11]. A farmer’s age affects the efficiency in performing farm management decisions [12].
The level education of farmers in this area is dominated by high school, which is 60%. The smallest education level with the smallest number is tertiary
education, which is 7,5%. A higher level of education allows farmers to change their attitudes and behavior to act more rationally [13]. Other research said
that in cattle fattening business, farmer’s about 46,7% had primary education, 15,6% completed their secondary education, while 24,4% had up to graduate
education. This shows that literate people are more involved in the fattening business [14].
Farming experience in this area is about 40% of the respondents had 1 to 5 years, 17,5% had 6 to 10 years and dominated by 42,5% farmer had more than 10
years experience. Experience correlated with skill and application of technology. Farming experience usually obtained from their parents from generation to
generation. The long experience indicates that the knowledge and skill of farmer have better abilities [15].
Farmers in this area have an size of household 1 to 2 persons is about 32,5% while the smallest size is more than 5 persons (2,5%) and the largest size is 3 to 5
persons (65%). Other research said that the average household in cattle farmers is 4,1 persons, suggesting that family labor was available to help manage the
cattle operation. The smaller size of household, the smaller also costs incurred to meet the needs of family, so that the results obtained can be used to increase
the scale of business [16].
Farming activity is the main occupation in this area (62,5%). Other occupations are private employees by 10%, self-employed 2,5%, paid labor 2,5%, students
15%, and civil servants 7,5%. Besides farming, off-farm or non-farm wage work was common as a secondary job [16].
Livestocks Characteristic
10
Almost all farmers own a heifer in order to keep the existence of Ongole Crossbreeds. There are two types of investation on cattle farming, namely fattening
and breeding. In general, farmer more like to focus on fattening because need shorter time than breeding. The pattern of cattle fattening from the present study
indicated that 30% farmer practiced fattening only before special event like Eid-ul-Azha, 63,8% farmer practiced fattening round the year and the rest of the
farmers perform seasonal fattening. Fattening period was the most important factor because it measured profit percentage of the respondents [17].
Problems on Ongole Crossbreed
Low of service per conception (S/C)
Cattle in this area is difficult to pregnant because one of the problem can come from service per conception (S/C) rate. The high of service per conception can
causing difficult pregnancy. It indicates that the fertility of cow is low. Ideal service per conception range is from 1,6 to 2 [18]. It can be correlated with age at
puberty of Ongole crossbreed. Most of heifers reach puberty at age of 1,5 to 2 years. Longer time of puberty indicate low reproductive performance [19].
Low of selling price
Most of farmers said that selling price of Ongole cow is lower than the crossbreed cow. The experience of farmers in selling cows was taken under varying
age conditions for the cow. Ongole cow had the lowest selling price, as well as cow with Brahman breeds. The main cow with the highest average selling
price was Brangus which was a cross between Brahman Cattle and Aberdeen Angus cattle. Other cow breeds that have high selling prices were Lim-PO
(Limousin-PO) and Sim-PO (Simmental-PO) [20].
CONCLUSION
Livestock groups can maintain the existence of PO cattle because of the support of business existence, utilization of dung waste to increase income, and
willingness to pay farmers. On the other hand, government support to provide subsidies to the breeding system is maintained to maintain the presence of PO
cattle
CONFLICT OF INTEREST
The authors declare no conflict of interest with any financial organization regarding the material discussed in the manuscript.
ACKNOWLEDGMENTS
The authors would like to thank Universitas Gadjah Mada for the funding support of the research through “Hibah Tematik Laboratorium number
2330/J01.1.25/KU/2021 ”. We are grateful to all farmer’s group Taruna Mandiri in Ngemplak Sleman Yogyakarta.
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[1] Z. Zakiah, A. Saleh, and K. Matindas, “Gaya Kepemimpinan dan Perilaku Komunikasi GPPT dengan Kapasitas Kelembagaan Sekolah
Peternakan Rakyat di Kabupaten Muara Enim,” J. Penyul., vol. 13, no. 2, p. 133, 2017, doi: 10.25015/penyuluhan.v13i2.14977.
[2] H. Pa, “Permasalahan Utama Usaha Ternak Sapi Potong di Tingkat Peternak dengan Pendekatan Vilfredo Pareto Analysis,” pp. 241–250, 2019,
doi: 10.14334/pros.semnas.tpv-2019-p.241-250.
[3] P. Sudrajad and Subiharata, “( Po ) Kebumen Phenotypic Characteristics of Ongole Grade Cows,” Balai Pengkaj. Teknol. Pertan., pp. 283–290,
2011.
[4] Y. N. Anggraeny, T. A. Sulistya, P. K. Sukmasari, and R. Wandansari, “Potensi Pengembangan Sapi Potong Peranakan Ongole di Kota
Probolinggo : Peluang dan Tantangan Berdasarkan Potensi Pakan , Karakteristik dan,” Pros. Semin. Nas. Inov. Teknol. Pertan., pp. 1186–1195, 2016.
[5] A. A. Rouf and S. Munawaroh, “Technical efficiency analysis and The determinants of inefficiency factors of beef cattle fattening in Gorontalo
District,” J. Pengkaj. dan Pengemb. Teknol. Pertan., vol. 19, no. 2, p. 103, 2016.
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