Improving Economic Welfare through Capital Development: Case Study of Smallholder Dairy Farmers in Pujon District

Abstract

Developing the economic welfare of smallholder dairy farmers is an important strategy for achieving the Sustainable Development Goals (SDGs) in regions such as Pujon District, a major dairy producer in the Malang Regency. Enhancing the economic stability of these farmers contributes to community welfare and promotes aspects of the SDGs such as “Good Health and Well-Being” and “No Poverty”. This study delves into the relationships among five types of capital—human, social, natural, physical, and financial—and their influence on the welfare of dairy farmers in Pujon District. A questionnaire was distributed to 110 respondents in January and February 2022 for the purpose of this research. After the data were collected, Smart-PLS was used to analyze the structural-equation model (SEM). According to the findings, these five types of capital have a significant and positive impact on the welfare of farmers. As a result, these five capitals provide a tangible framework for enhancing and measuring farmer welfare in Pujon District, thus providing a strategic path for optimizing community resources to boost economic welfare and contribute to the Sustainable Development Goals. The study findings provide valuable insights into the strategies that can be adopted to promote sustainable agriculture and enhance the well-being of farmers in Pujon District.