Broiler farmers preferences for partnership contract attributes in Indonesia: A study using the choice experiment method

Abstract

Abstract Farmers preferences need to be considered in the preparation of contract design attribute in broiler partnerships for the existence of smallholder broiler farmers’ businesses. This study aimed to explore the preferences of farmers on the attributes of contract in broiler partnerships. This study used the choice experiment method on 180 broiler farmers in Banten Province. The results of this study found that the attributes of a partnership contract that can increase the utility of farmers were the price of live bird, the form of written contract, harvest age of 29-35 days, input quality of grade A for DOC and feed, payment time of one week after harvest and technical assistance from the company core. Furthermore, the willingness to pay (WTP) values were positive to all contract attributes indicated that willingness of farmers to pay additional production costs to participate in broiler partnership contracts. The results of this study imply that the willingness of the core company to include contract design attributes that were in accordance with the preferences of farmers will determine the continuity of implementation on broiler partnership in the long term.