CC BY
54
DOI 10.18551/rjoas.2019-07.42
THE INSTITUTIONAL SUPPLY CHAIN OF RABBIT COMMODITIES IN BATU CITY OF EAST JAVA
Dwi Lestari*
Master's Program of Agribusiness, University of Sebelas Maret, Surakarta, Indonesia
Kusnandar, Mohammad Harisudin
Faculty of Agriculture, University of Sebelas Maret, Surakarta, Indonesia
*E-mail: [email protected]
ABSTRACT
Rabbits are alternative livestock that have the opportunity as a provider of healthy and high-quality animal protein sources. In an effort to develop commodity markets and improve the welfare of farmers/breeders, need to be well understood characteristics and the institutional of farmers, suppliers and markets. This study aims to identify key actors as well as institutional patterns of rabbit commodity supply chain for broiler purposes formed at the study site. Using descriptive analytical research methods, research was conducted in Batu City, East Java in December 2018 - March 2019. The results of the study indicate that the goals of rabbits raising by the breeders are more dominant for sale in the form of weaning kits. Cutting the livestock for broiler purposes is conducted on rejected rabbits. Key players in the rabbit supply chain for broiler purposes consist of breeder as producer, group of breeder, wholesaler at subdistrict level, wholesaler at regency level, as well as culinary traders based on rabbit meat. The most strategic role in the whole chain is in the wholesaler at regency level because they have access to farmers/breeders as well as to middleman inside and outside Batu city and have access to market destinations. The policy recommendations produced are the development of rabbit agribusiness for broiler purposes should be carried out in an integrated manner in the whole chain, increasing the active role of extension agents in providing assistance to farmers/breeders and also increasing the government's role in introducing rabbit meat to the community.
KEYWORDS
Rabbits, rabbit meat, supply chain actors.
The supply of meat for the Indonesian people consumption mostly comes from conventional livestock such as cows, chickens, goats, sheeps, buffaloes, and pigs (Pratiwi, et. al, 2017). However, until now the production of meat from these species has not been able to meet the needs of the community so that must conducted the import policy. Considering to this fact, certainly, an alternative strategy is needed to produce animal food in a sustainable manner, one of them is by developing various livestock (rabbits) (Bahri, et.al, 2012). Rabbit is a potential livestock commodity as a provider of meat, because it has a fast rate of growth and reproduction. One reproductive cycle of a rabbit can produce 8-10 kits at the age of 8 weeks (Marhaeniyanto & Susanti, 2017). Rabbit's daily weight gain reaches 32 g/hour/day and gives meat production up to 40 - 120 kg/year with the B/C value Ratio 1,42 to 3,55 (Raharjo, 2015).
Directorate General of Animal Husbandry/DITJENNAK data in 2012 stated that the fulfillment of meat demand derived from rabbit livestock from 2010 to 2011 increased by 71%. Commercially produced rabbits are very beneficial because they can produce quality meat with low production costs (Dalle Zotte, 2000; Dalle Zotte et al., 2011; Dalle Zotte & Cullere, 2019; Jamshidi et al., 2019; El-Deek & El-Sabrout, 2019; Rizwan et al., 2019). In Indonesia, the market development of rabbit products is currently more dominant in Java, such as in Lembang (West Java), Tawangmangu (Central Java), Sarangan and Batu (East Java) (Raharjo, 2008; Siregar, et al, 2014).
The demand for rabbit meat is increasing from 2007 which was only 50 kg/day until in 2015 reached 200-250 kg/day (Batu City Central Bureau of Statistics, 2015). With the high potential of breeders, it is expected to produce high quality rabbit meat that can be used to fulfill community nutrition and help meet market demand for rabbit meat. The distribution of rabbit meat that occured in Batu City encourages distribution actors such as breeders, wholesaler, as well as owners of culinary businesses based on rabbit meat as intermediaries that deal directly with end consumers to carry out marketing strategies in carrying out their activities.
As stated by Chabela et al. (1999); Lukefahr (2007); Harris (1984); Anous (2010); Alturiqi et al. (2012) that the industry of rabbit development consists mainly of farmers with limited resources who maintain small-scale operations with the aim of producing more meat and income, where rabbit development programs are based on clear objectives and supporting goals. So that to conduct marketing activities requires a systematic marketing strategy namely a number of integrated actions that are directed at achieving sustainable competition (Wicaksono, 2017).
Sources of livestock industry growth from the demand side are determined by the factors of population and its growth (Delgado, 2005; Merino et al., 2012; Steinfeld et al., 2013; Herrero et al., 2016; Henchion et al., 2017; Lassaletta et al., 2019; Sheng & Song, 2019; Besbes et al., 2019; van Zyl & Saayman; 2019), income level, the phenomenon of urbanization and market segmentation, and consumer preferences (Ilham, 2017). One of the facilitating factors in livestock development is in its efficient marketing field. Marketing activities play an important role in the continuity of the livestock business. The marketing system is said to be efficient if it can provide a balanced remuneration to all marketing players. But with a high level of competition, every market actor must have an appropriate marketing strategy so that it can compete with others.
Triyanti, (2015) states that marketing through large traders experiences ups and downs in terms of business sustainability and most are not financially independent. According to Daryanto (2009) there are four steps in implementing supply chain management that need to be considered by relevant stakeholders in an effort to increase the competitiveness of livestock products, namely: (1) creating relationships between chains to be more specific to the business sector so that a pattern that is mutually integrated and related is formed; (2) management support starts from the process of planning, organizing, coordinating the implementation up to the control; (3) build partnerships in an agreement on the whole chain as well as (4) build an integrated information system in every part involved in the supply chain system. From the above explanation then it is necessary to examine regarding with the key actors and institutional patterns of supply chain for rabbits commodities in Batu City.
METHODS OF RESEARCH
The method used in this study uses descriptive analytical research methods. Descriptive research method is a research method that seeks to reveal the facts of an event, object, activity, process and also human beings "as it is" at the present and in the period that is still possible in the memory of the respondent. Data collection techniques were by observation, interviews, and documentation. Determination of the location of the study was carried out by purposive sampling, namely in Bumiaji Subdistrict, Batu City, East Java with consideration: 1). It is a population center area and development of rabbit livestock in Batu City, 2). The population of rabbits in Bumiaji Subdistrict is the largest compared to other subdistricts namely 80,4% from the total rabbit population in Batu City, 3). It is an area of agricultural production center , where there are many leftovers or agricultural wastes that can be used as feed ingredients for rabbits, 4). It is an area that has easy access to transportation facilities, 5). Geographical location that supports the development of rabbit livestock.
The data used in this study are primary data and secondary data. Primary data is obtained by conducting direct interviews with respondents consisting of farmers, traders (wholesaler at subdistrict level, wholesaler at regency level and culinary traders based on
rabbit meat, group of rabbit farmers/ breeders and the local Livestock Service). The aspects studied include the key factors involved in the whole chain, their status and role as well as the institutional pattern of the rabbit commodity supply chain for broiler purposes at the research location.
While secondary data focus on data and information about population development and rabbit production and the results of previous studies related to rabbits. Research is limited to rabbits for broiler purposes. The time of the study was carried out in December 2018 - March 2019. The types and number of respondents as shown in Table 1.
Table 1 - Type and Number of Respondents
No_Types of Respondents_Number (person)
1 Rabbit Breeders 20
2 Groups of Rabbit Breeders 2
3 Wholesaler at subdistrict level 2
4 Wholesaler at regency level 2
5 Culinary traders based on rabbit meat 1
6_Agriculture Service_2_
Total 29
RESULTS AND DISCUSSION
Based on the survey results, the average rabbit breeder in the study location is classified into productive age namely 15 - 64 years old equal to 95%. With a higher average productive age, then this area is a potential area for rabbit livestock development because breeders have the good physical condition and thinking ability so they can improve their skills and knowledge in raising rabbits. Utami (2015) states that age affects a person's ability to work. This is in accordance with the opinion of Poluan, et al (2017), which states that the age level affects a person's ability to carry out activities either physically and different thought concepts.
Formal education that has been taken by respondents as many as 60% is junior high school. The large number of respondents who have low levels of education certainly can inhibit the adoption of innovations in technology development and also information. Mulyawati, et al. (2016) stated that the education level of farmers can influence farmers in adaptation and innovation in raising livestock. The level of education plays a role in supporting farmers' knowledge so that the higher the level of education will be easier in accepting and absorbing new innovations and ultimately can apply the new technology according to the real conditions in the field so that productivity and income will increase (Emawati, 2008).
The experience in raising rabbits of the respondents showed that the most were between 6 - 10 years (55%) and which showed an experience of rising more than 10 years equal to 30%. The length of experience can help farmers/breeders in carrying out their business because breeders can be easier in making a decision regarding the management of their business as well as knowing and are more skilled in dealing with problems in their livestock business. Sarjono, et al (2019) states that age, length of livestock raising, number of livestock, gender, and level of education cause differences in the mindset that will influence the decision making process and adoption of technological innovation.
The main livelihood of the respondent was 55% as farmers. Rabbit farming is a side business that is a savings and also cash income outside of their farming business. The family is the main source of labor for rabbit farms in Bumiaji Subdistrict. The use of family labor is generally widely used to look for forage food carried out together with agricultural activities, feeding the livestock and also cleaning the cages. The use of family labor is considered to be more efficient and can reduce expenditure costs to a minimum.
The results of the study in the field show that the purpose of raising the rabbits in this area is dominant to be sold as weaning kits (age of 25-30 days) for ornamental purposes. Cutting the livestock for broiler purposes is conducted on rejected rabbits. The average ownership of rabbits by farmers/breeders shows that farmers/ breeders with a business scale
<50 brooders amounted to 19%, business scale 50 - 100 brooders as many as 48% and the remaining 33% are farmers/breeders with a business scale of more than 100 brooders. This condition shows that at the study location, the scale of rabbit farming is still dominated by middle-scale farmers/breeders.
The level of profit from livestock business is determined by whether efficient or not the use of production factors. Elements of efficiency in livestock business are closely related to the scale of business owned; on a larger scale of business has a better level of efficiency, which is indicated by the optimization of production produced. According to Tohir (1991) the success in livestock business income is strongly influenced by the scale of business or the amount of livestock ownership by the farmer/breeder itself, where the more livestock they have, the greater the profit and increase in the farmer's/breeder's income.
The types of rabbits that are commonly raised by breeders are local type rabbits, angora, and lion. The feed is given in the form of complete feed and forage feed. The forage given to livestock is dominated by vegetable waste such as cabbage leaves and carrot leaves as well as several types of grass that was around the farm location. According to Sulistyaningsih, et.al (2013) the provision of agricultural waste as rabbit feed, has a residual content that is still below the prescribed limit so that rabbit meat remains safe for consumption by humans.
From the results of the study in the field, 80% of respondents did not calculate in detail the financial value of their livestock business. The sale of livestock for broiler purposes is carried out on rabbits that are unproductive (rejected) with unplanned and unscheduled sales times. The unplanned sale of rejected rabbits for broiler purposes at the farmer/breeder level will result in unplanned rabbit meat production in Batu City. According to Priyanti et al. (2012) the availability of rabbit meat with good quality, good and correct meat processing and competitive prices are the drivers of consumer demand for rabbit meat which can ultimately increase the growth of the rabbit meat market in the community.
Marketing of broiler rabbits through groups was found in one livestock group in Dusun Binangun, Bumiaji Village, Batu. This group focuses on the development of rabbits for broiler purposes. The type of rabbit that is cultivated is a type of New Zealand rabbit. The group here acts as a provider of seeds and also a place to market rabbits from members.
One-month-old rabbits (weaning) will be handed over to members to be raised and enlarged for 50 days. After three months of age with a minimum weight of 2 kg, rabbits will be resold to the group. Members will be taught the good maintenance procedures so that they can produce satisfactory production.
The feed given to livestock is a pellet which is the production of the group itself. The price received by the members has been determined from the start by the group, so members do not need to worry about having difficulty selling their livestock products and also know the selling price of livestock from the beginning.
At the time of the research, from 20 group members not all members had the opportunity to carry out rabbit enlargement. This is because there are not many livestock populations in the group, but for the long term it is planned that all members can enlarge rabbits and the results will be marketed through groups. At the present, the breeder group is only able to meet rabbit meat needs by 50% of the total demand of 100 kg per week.
In the commodity of rabbits for broiler purposes, supply chain players at the level of traders are divided into several levels namely wholesaler at subdistrict level, wholesaler at regency level and culinary traders based on rabbit meat. Wholesaler at subdistrict level usually will go around to breeders' cages which the location is scattered to look for rabbits that have been rejected, but now because telecommunication facilities are advancing, farmers/breeders often contact wholesaler if they have rejected rabbits and wholesaler will take livestock to cages.
The pricing system for rejected livestock is usually based on the estimated system. Wholesaler will see the condition of livestock before determining the purchase price. When the research took place, the average price of rejected rabbit at the breeder level was IDR 50,000 - 70,000/head, depending on the condition of the livestock with the minimum weight requested by the trader is 2 kg of live rabbits.
The rejected rabbits from wholesaler at subdistrict level will then be sold to wholesaler at regency level in Batu City. The cutting of rabbit's livestock is carried out at this stage. After cutting, rabbit meat will be handled according to consumer needs. Some are sold in filet form and some are in the form of carcasses. Furthermore, rabbit meat will be packed into clear plastic and packaged per 1 kg of meat.
Due to the limited supply of rabbit meat in Batu City, then wholesaler at regency level often have to cooperate with wholesaler from other districts/regency or regions such as Malang, Blitar, Tulungagung, Jember, Kediri and Banyuwangi. This is to ensure that the demand for rabbit meat in Batu City can be fulfilled.
The final point of marketing rabbit meat is on culinary traders based on rabbit meat, where rabbit satay is a typical culinary in this region. Generally processed from rabbit satay are found in this city ranging from roadside food stalls to food stalls or restaurants. . The demand for rabbit meat in the city follows the rhythm of tourist visits, this is due to the less interest in consumption of rabbit meat from Batu City residents. Most consumers of rabbit satay are tourists visiting Batu City. During the research, the price of one portion of rabbit satay at the trader level was Rp. 22,000 / 10 sticks. According to information from traders, the trend of increasing rabbit meat consumption continues to increase every year, even during the holiday season traders are overwhelmed in meeting consumer demand. Based on interviews with one culinary trader, the demand for rabbit meat during holidays and the big days can reach 5 times the demand on regular days.
Beside consumed as satay, rabbit meat is also processed into several other processed forms, namely rabbit meatballs, shredded meat, nuggets and sossis. However, these processed forms have not been very popular and are only limited when there are exhibitions. So it needs continuous efforts to introduce rabbit products to the public, especially the people of Batu City.
The results of the study in the field show that the flow of rabbit meat commodity products of Batu City from producers to end consumers is shown in Figure 1. According to Janvier (2012) the integration of relationships among the parts in supply chain management has a role in the value of transporting goods, where relationships that do not work well can disrupt the overall effectiveness of the supply chain. The application of supply chain management requires livestock industry players to meet customer satisfaction, develop timely products, low cost of procurement and product delivery, as well as careful and flexible industrial management ( ilham & saptana, 2017).
Figure 1 - The flow of commodity products of rabbit livestock for broilers in Batu City
In the existing supply chain institutions in research locations, it shows that breeders play a role as producers which responsible for the rabbit production process. For farmers/breeders who are members of a group, then 100% of their livestock are sold to
group. Whereas for non-member farmers in Batu City, sell the rejected livestock for broiler purposes by 30% to wholesaler at subdistrict level, 50 % to wholesaler at regency level and the remaining 20% to be sold directly to culinary traders. The difference in the purpose of this sale is more due to the mutual relationship that is woven by breeder with each trader.
Wholesaler at subdistrict level, play a role in collecting rejected rabbits from the location of scattered breeders' cages and the numbers tend to be small. Rabbits livestock from wholesaler will be sold 100% to wholesaler at regency level. Wholesaler at regency level play a role in livestock purchasing activities, rabbit livestock cutting and handling until rabbit meat is ready to be marketed to culinary traders. Wholesaler at regency level will sell 100% rabbit meat to culinary traders, while for the by-products such as feathers, will be collected by wholesaler at regency level which will be sold at a price of Rp. 2,000 - Rp. 10,000 per piece according to the condition of the feathers.
The rules of the game that apply in the supply chain institution of rabbit meat commodity in Batu City are general trading patterns. General trading patterns grow naturally in accordance with the development and needs of the actors. All farmer/breeder respondents stated that they were not tied to any trader in selling rejected livestock, so the prevailing rules were general trading patterns in accordance with the market mechanism. Breeders tend to sell relatively limited amounts of rejected livestock to the destinations they want, this is usually based on a relationship of mutual recognition and often the transactions are carried out in the breeder's cage so that the breeder does not need transportation costs for his livestock.
Wholesaler are generally a breeder, wholesaler at subdistrict level collectors are cooperating with breeders and wholesaler at regency level. In the research location, only a small number of wholesalers of rejected livestock can be found for broiler purposes, most rabbit wholesaler in this region are as rabbit wholesaler for decorative/ornamental purposes. The institutional pattern built by all actors in the supply chain is based on mutual trust and personal interaction; there is no written agreement between the parties included in the supply chain. Nowadays, with the development of technology, interactions began a lot of to be done with the pattern of business contact interactions through mobile phones regarding the demand and availability of rabbit meat.
CONCLUSION
Based on the research findings, it can be concluded that the supply chain of rabbit meat commodities in Batu City consists of breeders as producers, breeders group, wholesaler at subdistrict level, wholesaler at regency level, as well as culinary traders based on rabbit meat. Breeders act as rabbit producers who are responsible for rabbit cultivation. Wholesaler at subdistrict level acting as collectors and buyers of rabbit livestock from breeders whose locations are scattered. Wholesaler at regency level play a role in purchasing livestock, cutting, packaging and storing rabbit meat before being sold to culinary traders. The strategic role is owned by Wholesaler at regency level because they have access to breeders and Wholesaler inside and outside Batu city and have access to market destinations. By implementing supply chain management in an integrated manner, it is expected that consumers will obtain better quality products and services as well as affordable prices. Government policy in developing Rabbit agribusiness in this area is still considered to be partial and lacking so that further efforts are needed to increase the interest of breeders in cultivating rabbits for broiler purposes.
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