REGULATION OF THE MINISTER OF AGRICULTURE NUMBER 26/2016 : PROTECTION BUSINESS OF THE BENEFITS OF MARKETING BREEDERS OF BROILER TO DISPARITY OF HIGH PRICES

Siti Naviah 1 , Z. Fanani 2 , B.A. Nugroho 2 , IH.Djunaidi 2 . 1. Postgraduate student of animal science, brawijaya university. 2. Postgraduate lecturer of animal science, brawijaya university. ...................................................................................................................... Manuscript Info Abstract ......................... ........................................................................ Manuscript History Received: 08 April 2019 Final Accepted: 10 May 2019 Published: June 2019

379 the form of processed broiler to Japan and the Middle East (Tobing, 2015). While in Lamongan, East Java, the broiler population has increased by 44,915,486 (East Java Province Animal Husbandry Service, 2010-2014). This agribusiness is carried out in partnership with poultry (Nucleus Company) companies, the position of farmers as plasma only provides land, cages, equipment, and labor, while DOC (Day Old Chick), feed, medicine, etc. are provided by the company as the point. The problem is price volatility at the level of consumers and breeders, which is why the government sets broiler price standards in the market through Minister of Agriculture Regulation No. 26/2016 on Provision, Circulation and Monitoring of broiler which came into force since 9 December 2016 with the aim of reducing disparity high price. In this regulation the basic price for broiler (day old chicken) is Rp. 4,800 per chick, the price of broiler in the cage is Rp. 18,000, and the market price is Rp. 32,000 per kilogram, whereas the price of chicken at the producer level is at around Rp. 5,000-6,000 per chick, the price of chicken is Rp. 13,000 -Rp. 14,300 per kg, while the Cost of Production (HPP) is Rp. 17,000 per kg (TROBOS edition 198/2016). In focus of this affect the sustainability of the production business at the farmer level due to the high production price disparity with the enactment of Minister of Agriculture Regulation No. 26/2016, this is the starting point for the next step to mainly increase product competitiveness. An analysis is carried out to what extent this regulation policy provides protection to farmers in terms of guaranteed benefits, competitive advantage and comparability, this problem approach is carried out by survey and descriptive methods with the Policy Analysis Matrix (PAM) tool.

Research Purpose:-
Based on the formulation of the problem above, the objectives of this study are as follows: 1. Analyzing the Private and Social Benefits of Broiler Production Business at the Farmer Level. 2. Analyzing the increase in profits of broilers at the breeders level. 3. Analyzing the increase in the competitiveness of broilers at the breeders level.

Research Methods:-
This study uses a combination of surveys and quantitative descriptive methods based on the application of the Policy Analysis Matrix (PAM) analysis tool used to know "private returns" and "social returns", comparative advantage (economic analysis) with indicators Domestic Resource Cost Ratio ( DRCR) and competitive advantage (financial analysis) use the indicator of Private Cost Ratio (PCR). Financial analysis is calculated based on market prices which include costs tradable inputs and domestic factors (differentiated into foreign and domestic components), revenues and profits, while economic analysis is based on social prices in the presence of Minister of Agriculture Regulation No. 26/2016. When the value is obtained: DRCR >1, means broiler agribusiness is not economically efficient or does not have a comparative advantage. DRCR <1, means broiler agribusiness is efficient and economically has a comparative advantage. DRCR =1 means broiler agribusiness in balance The competitive advantage of using formulas: PCR: DRC/ NTR Where : PCR: the ratio of domestic resource costs or actual price (%) DRC: domestic resource costs based on the actual price (Rp) NTR : middle value of rupiah (IDR / US $) If the value is obtained: PCR > 1, means that broiler agribusiness is financially inefficient or does not have a competitive advantage. PCR <1, means broiler agribusiness is efficient and financially has a competitive advantage. PCR = 1, means broiler agribusiness in balance Determination of the location of the study was conducted purposively in Lamongan District on the basis of having the prospect of 44,915,845 poultry population 24.979% from the East Java population 179,830,682, where East Java alone 12.135% of the national population and constituted the number two broiler population center after West Java in Indonesia. The study sample consisted of plasma breeder as many as 200 breeders (88.49%) with a business scale of under 5000 birds and over 5000 as many as 26 breeders (11.50%) with 12 partner companies.

Research Result And Discussion:-
Lamongan Regency has the largest population prospect of poultry in East Java, geographically located at 651'54 "-723'06" South Latitude and 11233'45 "-11233'45" East Longitude, with an area of 1,812.8 km2 or + 3.78% of the total area of East Java Province. The coastline length of 47 km, the area of sea waters of 902.4 km2, is calculated 12 miles from sea level. The number of business scale under 5000 heads is around 200 breeders (88.49%), while over 5000 breeders are 26 breeders (11.50%), while the area of cages owned by farmers is between 200-2000 m 2 , with an average density of 8 broilers/ m 2 . The results of a study conducted by Majid, et al (2014) in Perak Malaysia showed that the variable broiler price, feed conversion rate (FCR), average body age and mortality rate, the maintenance system significantly affected farmer profits, except for farm size. The study (Khairisat, 2013) in the Jordan district concluded that groups of small farmers (5,000-10,000 broiler) lost money, depending on credit facilities, financially, the variation in high input-output prices resulted in stabilized income, although it had managed to maintain mortality under normal circumstances. But the marginal efficiency of capital is not obtained due to the high cost of production, this is consistent with the study (Abdallah et al., 2013) large-scale broiler breeders are more profitable than the small scale, while labor factors significantly reduce profits (Tuffour et al, 2013). So it is recommended the certainty of the availability of day-old chickens (DOC) at lower prices to reduce production costs, and the selling price can be fixed weekly or two weeks in coordination with producers, this is in accordance with the aim of the Minister of Agriculture Regulation No. 26/2016.

Use of production factors:-
In broiler agribusiness factors that influence production and include Tradable input goods include: a. Chicken Seedlings (Day Old Chik / DOC). In the study location according to the period of cage capacity used for breeders with a scale of <5000 each per production period (4 periods) DOC (strain type Hubbard, Arbor Acres) which was maintained as many as 16,242 tails or average period of 4060 tails, while for breeders scale> 5000 DOC which is maintained as many as 30,993 tails or each period has an average of 7748 tails, with a mortality rate of 4.17-4.67 percent while the standard mortality value is 4.5 percent, and harvest weight is 1.47kg-2.08 kg / head, selection of Arbor Acres strains this is in accordance with the research (Yakubu, et al., 2010), the determination of broiler strain lines in Indonesia is appropriate (Nath, et al 2007). Regarding the scale of the business, it differs from the research conducted by Elsedig 381 et al (2015) in Johor Malaysia where the scale was divided into three categories, namely large scale more than 150,000 tails, medium scale 30,000-150,000 head, while the small scale is less than 30,000 head. The results of the Khairisat (2013) study concluded that smallholder farmers in Jordan (5,000-10,000 broiler) lost money, depending on credit facilities. High input-output price fluctuations cause stabilization of livestock breeders income, although they have managed to maintain mortality, but the marginal efficiency of capital is not obtained due to high production costs, this is in line with the objective of stipulating Minister of Agriculture Regulation No. 26/2016 to reduce factor price disparity production with the provisions of the basic price of chicken (day old chicken) of Rp. 4,800 per chick. for a scale of ≤ 5000 tails, this is the same as the price on a scale of> 5000. The condition of the DOC prices before the fluctuating ministerial regulation (PUSDATIN, 2015), these price fluctuations were influenced by demand and supply which were often inappropriate, this supply was determined by the nursery company when the company imported the Grand Parent chicken which would produce a Parent Stock and finally the Stock in DOC. While Fatimah's research in Johor (2015) states that in general, all scales have shown comparative advantage (less than one DRC), this reflects technological progress in the utilization of broiler chicken production resources. .00 / kg) for a scale of ≥ 5000 tails. Private costs are greater than the social costs, this is due to the price of feed of Rp. 6,611.00 -6,604.00 / kg, which is more expensive than the price of social feed-borne by breeders. Clearer costs, revenues, and profits (years) and (Kg) illustrated in Figure 1 and 2 below:

Conclusions:-
The results of this study draw the following conclusions: 1. Based on the calculation of positive Private Profit value, it means being able to compete (competitively) at the actual price level. Likewise, Social benefits are also positive, meaning being able to compete (comparative) at the international price level without the existence of a policy with an efficient and effective management system based on the value of the Index of Achievement in accordance with the standard.