VALUE ADDED AND EFFICIENCY ANALYSIS OF BUSINESS MODEL INTEGRATED SHEEP FARMING SYSTEM (CASE STUDY : LIVESTOCK COMPANY PT MBA)

• Main Author: Nuryanto
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/65071
• Institution: Institut Teknologi Bandung

The opening of the sheep market but not accompanied by integration with the supply chain production system makes business instability, both in terms of price, continuity of supply quantity and quality of livestock production performance. The income obtained by the company has not been able to produce an optimal level of benefit after the implementation of the integrated farming system policy as a whole, the profit obtained in 2021 is only 47.15% of the targeted value. Production efficiency and problems in the value-added process at the stages of the production process are problems that have an impact on the level of profit. Based on this, it is necessary to conduct research to solve problems that will improve the production system of the integrated farming model applied. This study aims to determine the factors causing the inefficiency of the production process which has an impact on the level of profitability and provide solutions based on the root of the problem that occurs. Through the method of the five Porter forces, mapping conditions that occur is carried out and then value added and efficiency analysis is carried out. Based on the results of the proses analysis, value added from the provision of feed inputs did not occur or had a negative impact on the multiplication process, and post-harvest for ewes cross breeds. Meanwhile, efficiencies of the production process occur in the production process of Garut sheep breeding, multiplication process, rearing process, fattening process in ewes, and postharvest for qurban sheep. From the findings of the analysis, a problem analysis was carried out and five root causes of inefficiency in the value-added process were found. Furthermore, six solutions were made based on the root of the problem, namely: (1) increasing forage production, (2) setting feeding targets, (3) providing additional milk, (4) increasing the population through the procurement of broods Garut sheep, (5) accelerating the mating process and success pregnancy, (6) accelerating livestock sale and post-harvest transit time. The results of this study show that the alternative solutions applied have an impact in lowering the cost per productivity figure and increasing the profit ratio from the original negative to positive and some leads to improvements to minimize the level of risk of loss.