Production Risk Analysis of Dairy Production Cooperative, Bogor, West Java

Abstract

Abstract Bogor Dairy Production Cooperative (KPS Bogor) is one of the largest dairy cooperatives in Indonesia. Consisting of 127 active members, KPS Bogor produces an average of 78.8 liters of milk per farmer daily. However, the quantity and quality of milk produced fluctuate significantly, leading to income fluctuations for dairy farmers. This situation might indicate production risks faced by dairy farmers. This research aims to analyze the production risk KPS Bogor dairy farmers face. The study analyzes the variance level, coefficient of variation (CV), and the lower limit of dairy farming in KPS Bogor. The results showed that the production risk faced by dairy farmers was categorized as the “very high” category, with a CV value of 0.27 or 27 percent. Sensitivity analysis shows that dairy farmers at KPS Bogor faced the highest risk when the milk price reached the highest price, about 43 percent. Meanwhile, the lowest risk might occur from the production risk.