Determinants Of Broiler Business Profit

Broiler chicken business prospects are currently considered to be a promising business. One of the reasons is because the business produces chicken meat that is needed by the wider community. But this broiler chicken business cannot be separated from the advantages and disadvantages during the maintenance period. Factors that determine the profit and loss of broiler chicken business can be seen from the data recording. Therefore, it is important that broiler chicken business actors have a record of maintenance (recording) during the maintenance of broiler chickens.

The obstacles faced by broiler chicken business people are unpredictable. These obstacles can arise in terms of production, including the environment and disease, in terms of prices, including feed prices and prices for harvested chickens, and in terms of social, including business competition. These obstacles can be overcome by implementing appropriate risk management. This article will discuss the scope of broiler chicken business ranging from prospects, constraints and risk management as well as determining factors for broiler chicken business profits based on data recording.

Broiler Chicken Farming Business Prospects

Broiler chicken farming is one of the fastest growing agro-industries in Indonesia. Agro-industry generally has a significant contribution to developing countries for three reasons, namely as a means of transforming agricultural production into ready-to-consume products, as a mainstay manufacturing factor for export commodities and as a provider of food sources of nutrients for improving people's welfare.

The development of broiler chicken business in Indonesia began in the mid-1970s and famous in the early 1980s. The pace of development of the broiler chicken business is in line with population growth, lifestyle shifts, income levels, the development of the economic and political situation, as well as security conditions.

According to the Department of Agriculture and Forestry (2005), poultry commodities have good market prospects because it is supported by the characteristics of poultry that can be accepted by the Indonesian people who are mostly Muslims, the price is relatively cheap with easy access because it is already a public good. Broiler farming is currently considered to be a promising business because the demand for chicken meat tends to increase every year, especially at certain times such as Ramadan, Eid al-Fitr and Eid al-Adha. In addition, the long – term maintenance of broiler chickens is shorter around 30-40 days, it is supported by genetic broiler chickens that are able to achieve high body weight in a relatively short period of time. This short production cycle is what makes it attractive to business actors because of its relatively faster capital turnover. Capital that has been issued will quickly return, so profits will be quickly obtained. These conditions affect the interest of business actors to plunge in the broiler chicken business.

Based on the table, broiler meat production in Indonesia tends to continue to increase. The increase is intended to balance market demand which also continues to increase. This is what makes broiler chicken farming business continues to grow and develop from year to year. Especially for 2017, broiler meat production decreased slightly. This may be due to weather factors and feed quality that directly affect the production of broiler chickens, so the production is not optimal.

Chicken Farming Business Constraints Broiler Management

Chicken farm business broiler it is inseparable from some of the obstacles faced. These obstacles are quite complex obstacles during the maintenance of chickens broiler. The obstacle in question is the high level of risk faced. Risks faced in poultry farming broiler this is broadly divided into 3 parts, namely production risk (caused by weather and climate and disease), price risk, and social risk. These risks are described as follows :

1. Production risk (genetic and disease)genetic development of chickens broiler which demands to achieve high body weight in a short time is one of the triggers for chickens are prone to stress and disease. Aside from the pet and management system, biosecurity and vaccination is important to fortify the chicken's immune system. Various diseases that often affect chickens broiler such as CRD must be overcome by giving antibiotics so as not to cause other secondary diseases into the chicken's body. Diseases caused by viruses have no cure. Therefore, farmers must be more agile in terms of prevention or prevention by vaccinating and isolating if there are chickens that have been exposed to diseases caused by viruses
2. Price risk (rising feed prices and chicken harvest) feed prices reach 80-90% of total maintenance costs. Feed becomes an important thing because the quality of feed becomes decisive in chicken productivity. The increase in feed prices is a very calculated problem because it will directly affect the quality of the feed obtained and the FCR of the chickens raised. For the price of chicken harvest, when the price of chicken soared in the market, it will result in decreased buyer interest. If the supply of chicken meat is less or lower than consumption, there will be an increase in prices. Conversely, if the supply of chicken meat exceeds the needs, the price will go down. This price increase also usually occurs in the time before Eid al-Fitr.
3. Social risk (the number of competitors)the proliferation of chicken farming broiler this resulted in a fairly tight competition between business actors. In order to gain consumer confidence, it is very important to show that the chicken products produced are of better quality than competing chickens.

Chicken Business Risk Management Broiler Management

Risk management is very important for all parties involved in the business broiler. Indirectly, the risks faced by chicken businesses broiler affect the income earned each period. The risk management that can be applied by chicken business actors broiler as follows:

1.Production risk management (disease). Production risk management applied by animal husbandry broiler aims to overcome and minimize the mortality rate due to changes in weather and climate are uncertain and due to the disease.The management to minimize the risk of chicken disease is to implement the program biosecurity tight. In addition, it is also necessary to consider the vaccination program in farm broiler. Because for health programs, both vaccination and medication in each farm will be different in application, depending on the field challenges in the farm.

2.Price risk management (feed and chicken). Risk management applied by chicken business actors broiler to overcome the price risk of which is to harvest at the right time. Harvesting at the right time is harvesting that is done after carefully calculating the amount of feed that has been used, what is the average weight of the chicken, what is the FCR value produced, and what is the range of market selling prices applicable at the time of harvesting. Price risk can also be overcome by making efficient use of feed. The use of efficient feed can result in high chicken weight and will increase the amount of crop yield.

3.Social risk management (competitors). The rise of chicken business broiler as a result, every manufacturer experiences competition in marketing. The social risk management of competition can be minimized by looking at the market situation. Fluctuations in market prices will also affect the high competition. Therefore, it is important to establish a market pricing strategy to deal with competition. In addition, businesses can also choose the right product distribution location to avoid the risk of high operational costs, and always maintain the quality of the chicken that will be sold.

Determinants Of Operating Income Based On Data Recording

A good recording system will provide an overview of the condition of the farm real. Preferably the system involves the role of all employees in the farm.

The main component of the recording system is the recording table (recording) which contains parameters that can be used as an evaluation benchmark. Technically, creating a table of records is not difficult.

According to the evaluation function in management, the parameters in recording intended to supervise and control to ensure the running of the farm has been running according to initial planning. Beriku main factors that must exist in recording:

1. The number of chickens during maintenance can be controlled by daily recording. In addition, the presence of rejected chickens and chickens that have died during rearing can be evaluated immediately for the cause. If chicken depletion is low, then the final result in the form of chicken harvest will be more, and it will affect the profits to be obtained by farmers.
2. Feedtypes of feed used in one period of chicken rearing broiler adjusted to the phase / age and type / strain of chicken in the pet. In the diary or recording, the type and amount of feed consumed will be recorded. Recording of feed consumption is seen from the rest of the feed per day and then weighed. The importance of knowing feed intake/the consumption of chicken feed during rearing serves to balance the nutritional needs needed. The higher feed intake, then the feed protein is lower, and vice versa. This is intended to strike a balance between feed intake and nutritional needs can be balanced.
3. Body weightthe final result (harvest) of chickens broiler is a kg of meat produced. The importance of recording body weight per week is used as an evaluation of whether body weight per week is achieved or not. If the body weight is not reached in the early weeks of maintenance, then immediately do the handling in the form of increasing the amount of feed and increased frequency of feeding. In addition, if the body weight in one cage is not uniform, the chickens whose body weight does not match the standard are immediately separated in order to focus on handling and feed consumed more evenly. If in one cage there are chickens with different body weights, then the feed consumed will not be evenly distributed. That's because chickens with larger body weights will eat more than chickens with smaller body weights. This weight recording is also used as a benchmark for chicken harvest time.
4. Chicken farm vaccination and medication program broiler will be different between farm. The existence of records about this health program can be a benchmark and evaluation of chicken resistance to disease and an evaluation if the chicken experienced outbreak or get a disease.

Based on these explanations, The Daily Record or recording become an important thing as an evaluation and benchmark the success of livestock farming.

Livestock Business Profit Broiler Management

Farmers ' income is very influential for the sustainability of a livestock business, the greater the income obtained, the greater the ability of farmers to finance all expenses and activities that will be carried out by the farmer. In addition, income also affects the profit and loss of livestock.

Livestock business analysis is highly dependent on the calculation of production costs, market prices and sales revenue, as well as the calculation of business bonuses. The following is explained about livestock business analysis broiler:

1. Calculation of the cost of productionthe cost of chicken production broiler commercial life in a farm, in a country, or at a season varies greatly. Many factors affect the cost of production. But the biggest factor that affects the cost of production is feed, so the size of production costs incurred, depending on the cost of feed issued. The cost per head or per kilogram of live weight of chickens will be higher if the maintenance performance is not good. Performance can be measured from the level of mortality and feed use.
2. The price of chicken when sold is determined by the prevailing market price at that time. Applicable price information is usually obtained from the Market Information Center Broiler Management (PINSAR) or from the post price formed by the chicken brokers. Chicken prices broiler varies over time depending on production supply, people's purchasing power, variations in the weight of 28 chickens, and the health condition of the chickens. The price of chicken is also greatly influenced by the commemoration of the holidays.
3. Profit and loss calculationsome factors that affect the profit and loss of a chicken business broiler commercial are as follows:a. Production achievementsThe higher the performance value, the lower the production cost. High and low achievement will affect the size of the profit and loss to be obtained. Poor performance, closely related to the problems in the farm concerned, such as sick chickens, low DOC quality, bad feed, or mismanagement.In a partnership effort, the production achievements of each chicken rearing broiler expressed by IP (Performance Index). The calculation method is as follows:

Ket :

Life force = percentage of live chickens

terpenes (%)

Body weight = weight of harvested crop (kg)

FCR = amount of feed spent

to produce one kg

live chicken weight

Harvest age = average harvest age

(day)

To calculate the IP needed four other parameters, namely:

• Average body weightThis formula is used to measure body weight both during weight control and during harvesting. Here's the formula:

Compare the results of the above calculations with data from breeder. Ideally, the average body weight of the cage is greater than or equal to the standard. If the average body weight is smaller than the standard, make some improvements, for example, in feeding procedures and cage density settings.

• The ratio of feed consumption to increased body weight or Feed Conversion Ratio (FCR)The formula for calculating the FCR is:

In other words, the FCR is defined what number of kilograms of feed is needed to produce one kilogram of body weight. Ideally one kilogram of feed can result in a body weight of 1 kg or even more (FCR ⑧ 1). Unfortunately, such conditions do not always occur. On broiler usually the maximum FCR = 1 target can be achieved before the chicken is 2 weeks old (two-week FCR ± 1.047-1.071. After that, the FCR will increase according to the age of the chicken.

3. Average age of chickens at harvest (A / U)This Parameter calculates the average age of the harvested chickens. Harvesting included in this parameter is the harvesting of healthy chickens at a certain body weight. So, chicken refuse does not enter into this calculation. For example, there is a demand for 600 chickens broiler weight 1 kg to the breeder broiler which has a population of 3,000. So the farmers decided to harvest 600 chickens that have reached a weight of 1 kg while others (2400 heads,red) no. The formula for calculating A/U is:

4. Population depletion rate

There are two ways to reduce the amount of fat in your body and reduce the number of calories in your diet (culling chicken). The formula for calculating the depletion rate (D) is as follows:

b. Selling price when harvest

Selling price above the cost of production indicates the business yam broiler commercially profitable. The higher the difference in sales and production costs, the greater the profit will be obtained. But if the selling price below the cost of production, then the chicken business broiler trade will be lost. Meanwhile, currently the core companies that buy chickens from plasma farmers use more Agreement prices (contract system) so that the income of plasma farmers is relatively stable and not too affected by market prices.

c. Price of livestock facilities (Sapronak)

High and low purchase prices directly affect the size of production costs, especially the purchase price of feed. The reason, feed is the largest component in the chicken business. Although other profit and loss determinants are stable, such as good maintenance performance, or stable selling prices, it is not necessarily a chicken farming business that makes a big profit, if the price of sapronak is high. The high and low price of sapronak directly affects the high and low cost of production and will automatically affect the profit and loss to be obtained

d. Other factors

Another factor that affects the amount of profit and loss is the difference in production cost calculation policy, which will automatically affect the calculation of the amount of profit and loss to be obtained. The policy includes the calculation of the rental cage, management fee, and employee bonuses or incentives that are included in the calculation of production costs

From all the above discussion we can conclude that the chicken farming business broiler has a promising prospect in terms of demand for meat that continues to increase from year to year. Business actors broiler it is mandatory to pay attention to the balance of maintenance management in order to achieve optimal profits. Greetings.