Opportunity Analysis of Cow Livestock Investment in Gorontalo

Abstract

High unemployment rate has encouraged the growth of various business units as job providers for productive age. This study aims to examine the business opportunities of cow farming in Gorontalo region. It uses combination of qualitative and quantitative method. The qualitative method is done by observation and interview. The quantitative analysis is done by calculating cash flow, net present value (NPV), internal rate of return (IRR), benefit cost ratio, and gross margin. The results showed that traditional system of cow farming business by self-management and profit sharing has profitable cash flow, NPV, IRR, BC ratios, and gross margin and worthy for selected.  The Cash flow and NPV are positive and IRR level is greater than the required profit level. A semi-modern cow cage system for fattening produces lower cash flow, NPV, IRR, BC ratios, and gross margin. The cages cow breeding produces more attractive cash flow, NPV, IRR, BC ratios and gross margin.

Keywords: investment, cow, fattening, breeding, cash flow, NPV, IRR.

DOI: 10.7176/RJFA/12-22-13

Publication date: November 30th 2021