An Investigation of Production Risk, Marketing Risk, and Financial Risk on Broiler Farming in Regency of Minahasa Utara-Indonesia

Abstract

The purpose of this study was to investigate risks source, threat potency of risk and risk management strategy in managing risk production, marketing risk, and financial risk of broiler farm in Regency of Minahasa Utara. The research’s site was selected purposively in three Villages, representing three Districts as center of broiler production in Regency of Minahasa Utara. Those three Villages were Village of Dimembe, Village of Kauditan Satu and Village of Kolongan. In detail, 59 respondents of broiler’s breeders were selected by total of sampling. Data regarding on source of production risk, marketing risk, and financial risk of broiler farming was gained through in-depth interview addressed to breeders guided by a list of questions. Value of risks was then analyzed by using Failure Mode and Effect Analysis (FMEA), Results study showed sources of production risk on broiler farming on the study sites comprise of: inclination to utilize chemical medicine, disease outbreak, bad weather and utilization of conventional tools. Marketing risks dealt by broiler’s breeders consist of broiler’s mortality, sold broilers in lived condition, most price determined by partner and performance index target-based profit. Financial risks, then, faced by broiler’s breeders are minimal capital, fearsome to lend to bank and higher input price, Based on the value of Risk Priority Number (RPN), sources of primary risk becoming inhibiting factors on success of broiler farm in Regency of Minahasa Utara, consecutively, are performance index target-based profit, disease outbreak, broiler’s mortality, sold broilers in lived condition and risk of capital loan from banking sector.