The feasibility of broiler farming in a partnership model

Abstract

This research was conducted at Unggas Jaya Farm, located in Karangrejo Village, Wungu District, Madiun Regency. The purpose of this study was to determine the capital and production costs required to achieve profitability, and to analyze Break Even Point, production costs, revenue, income, Revenue Cost Ratio, and Benefit Cost Ratio. The respondents in this study were the employee and manager of Unggas Jaya Farm. The research was carried out in May 2023 by interviewing the owner of Unggas Jaya Farm by means of questionnaires. The results show that the total business capital was IDR 3,314,388,085; with the production costs was IDR 1,513,357,675. The total revenue was IDR 1,647,660,654; and the total income is IDR.124,901,770.58. The Break Even Point for broiler price is IDR 19,018/kg, with Break Even Point unit of 73,758.85 kg. The Revenue Cost Ratio (R/C) is of 1.08, indicating that the broiler farming business is considered feasible (R/C > 1). The Benefit Cost Ratio is 0.083, indicating a profit of IDR 0.083 for every unit of production cost. The study concluded that Unggas Jaya Farm's broiler farming business is feasible and profitable for further development.