Profit analysis of native chicken farming business in Kakas District, Regency of Minahasa, Indonesia

Abstract

Abstract The study aims to determine the profit of farmers from native chicken farming businesses and some influencing factors in Kakas District, Minahasa Regency, North Sulawesi Province. The research site was in Kayuwatu Village and Tounelet Village, Kakas District. The sample of this research was selected purposively, while the data collection technique was conducted in April – May 2023. Further, the study employed a survey method with interview techniques for 60 farmers, using a list of questions. The obtained data was tabulated and analyzed to obtain the total profit. Then, the data were analyzed using the unit output price of profit function (UOP-PF) technique with a regression analysis model. The results of the study show that the total profit from selling native chickens which was an average of 68 chickens per farmer was IDR 2,742,127.60 per year. Based on multiple regression analysis, the coefficient of determination was 0.583, which meant that native chickens’ business profits could be explained by the cost variable of chicken purchasing, corn feed, bran, drug and vitamin, labor, and electricity of 58.3%. Meanwhile, the remaining 41.7% was caused by other factors that were not included in the regression model. The partial test analysis demonstrated that the variable cost of chicken purchasing, electricity, and corn feed had significantly affected the profit of native chicken business (p<0.05), while the factors of bran feed, medicine or vitamin, and labor costs had not a significant effect on the profit of native chickens