RESPONSE OF FEEDLOT BUSINESS TO THE BEEF MARKET MECHANISM CHANGED IN WEST JAVA, INDONESIA

Rochadi Tawaf, Dadi Suryadi

Abstract
Population growth, incomes increasing and the awareness upon nutritious food resulted in creating a gap between beef demand and its supply. After economic crisis, market mechanism on beef trade was changed as well as supporting regional resources and the government policies. The objective of this study was to analyze the response of cattle feedlot business toward the changes of beef market mechanism in West Java Indonesia. The study was carried out in the districts od Ciamis, Tasikmalaya, Garut, sumedang, Bandung and Sukabumi of West Java. A survey was applied to 180 small holder feedlot farmers as respondents, which had been sorted out through a simple random sampling, and three other feedlot companies (50% from the member of Indonesian Beef Producer and Feedlot Association in West Java) which were purposively selected. The data were analyzed using McNemar, Logistic Regression, Cobb Douglass and policy Analysis Matrix (PAM). The results of this study indicated that: (1) the changes in beef market mechanism generated response from the feedlot companies through the development of their business scale; however, the small holder feedlot business has comparative as well as competitive advantages upon the existing companies business had not been efficient, but as the financial analysis it's efficient.

Key words: response, cattle feedlot, government policy