Farmers’ Motivation in Partnership Farming System of Broiler Industry in GERBANGKERTASUSILA, East Java, Indonesia

Abstract

A study was done to study the motivation of broiler farmers to join contract farming system and to examine the internal factors which influenced the successful of their broiler industry. The study was done by survey method in 7 districts of East Java, Indonesia which are well none as GERBANGKERTASUSILA (acronym from Gresik, Bangkalan, Mojokerto, Surabaya, Sidoarjo and Lamongan). Eighty nine (89) plasma farmers who experienced with at least 2 contract systems were taken from 810 population members with simple random sampling method. The data collected included the farmer’s characteristics, farmer’s involvement in contract farming system, and farmer’s motivation. The results showed that most of plasma farmers at Gerbangkertasusila joined the contract farming as the main source of income either as entrepreneurs or farmers, they are  at productive age, well educated (at least graduated from high school). They were 4 contract systems practiced, namely: management, poultry shop, labor and profit sharing  contract systems.  Most of  plasma famers (60%) in Gerbangkertasulia experienced with 2 contract systems, only 10% experienced with 4 contract system.  The most preferred contract system was the management contract system with the motivation for decreasing business risk and incentive criteria.

Key words: contract farming, poultry industry, plasma farmers, Analytical Hierarchy Process