Analysis of Determining Factors and Strategies in Dairy Cattle Agribusiness Improvement to Increase Milk Production in Central Java

This research aims to analyze factors and strategies in dairy cattle agribusiness improvement to increase milk production in Central Java. Survey method was used in this research, The research sites were selected by purposive sampling method, based on the potential development area for dairy cattle business in Central Java. The two sites were: Semarang Regency and Boyolali Regency. Two urban villages with the highest population of dairy cattle were selected. Simple random sampling was used to select 15 dairy farmers from each Regency, making the total dairy farmer sample population of 30 respondents. In addition to the dairy farmers, 15 stakeholders were selected from each Regency in relation to improvement strategy analysis. Primary data collection was achieved through interview with the dairy farmers, based on the formatted questionnaires and observation on dairy cattle business. The secondary data were collected from Governmental Services and Agencies/other stakeholders in relation to the research subject. The data were analyzed descriptively and statistically. Factors in improvement of dairy cattle agribusiness to increase milk production were analyzed using multiple linear regression statistical model. The dependent factor (Y) in the analysis was milk production and the independent factors were the number of lactating cattle (x1), age of the farmer (x2), main occupation of the farmer (x3), business experience of the farmer (x4), price of milk (x6), number of dependents in the family (x7), formal education background of the farmer (x8), and business motivation (x9). The strategies of dairy cattle agribusiness improvement were analyzed using the Strength, Weakness, Opportunity, Threat (S.W.O.T) model. The research found that the independent factors overall significantly influenced (P<0.01) the production of milk, with a coefficient of determination (R2) value of 0.60. It was determined that the best strategy for dairy cattle agribusiness improvement was the SO strategy, which is to utilize strength to achieve business opportunity.