Agribusiness Performance of a Layer Chicken Farm in South Konawe, Indonesia

Andi Siti Fatimah Gani; La Ode Alwi; Normal Bivariant Padangaran; Haji Saediman

doi:10.59890/ijsas.v3i9.154

Authors

Andi Siti Fatimah Gani Halu Oleo University, Kendari
La Ode Alwi Halu Oleo University, Kendari
Normal Bivariant Padangaran Halu Oleo University, Kendari
Haji Saediman Halu Oleo University, Kendari

DOI:

https://doi.org/10.59890/ijsas.v3i9.154

Keywords:

Agribusiness, Layer Chicken, Performance, Profitability, Indonesia

Abstract

Layer chicken farming is a prominent agribusiness sector that provides affordable animal protein to communities and offers economic opportunities to farmers. This study examines the performance of a layer chicken agribusiness at a 7,000-hen commercial farm in Konda Subdistrict, South Konawe District, Indonesia. A qualitative case study approach was employed, with data collected through interviews, observations, and farm financial records from one full production cycle. Results indicate that the farm’s upstream subsystem functions well in securing feed, chicks, and other inputs according to industry standards, though housing capacity falls below recommended size. On-farm management is effective, evidenced by routine husbandry practices and a low mortality rate of 1%. Downstream marketing is efficient, with eggs sold directly to consumers and local retailers, ensuring smooth product flow. However, the supporting services subsystem is lacking; the farm receives little institutional support that could constrain future expansion. Financial analysis shows total production cost of Rp3.97 billion versus total revenue of Rp 4.76 billion per cycle, yielding a Revenue-Cost (R/C) ratio of 1.2. This R/C ratio (>1) confirms that the enterprise is profitable and feasible to sustain. We recommend strengthening supporting institutions and exploring cost-reduction strategies to further improve viability.

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