The research was carried out during 2023 using survey data from 35 cattle farmers selected from a population of 159 farming households. The findings provide valuable insights into how traditional cattle farming contributes to household welfare and why improving productivity could significantly strengthen rural incomes across Indonesia.
For many Indonesian farmers, cattle are more than livestock. They serve as savings that can be converted into cash whenever families face urgent expenses such as education fees, medical costs, or agricultural investment. This role has made beef cattle an important component of mixed farming systems, especially in rural areas where income sources are often seasonal.
According to Haji Saediman, Indonesia's beef industry is still dominated by smallholder farmers, with more than 90 percent of national beef production originating from family-owned farms. Most households raise only a few cattle while simultaneously cultivating rice, vegetables, or other crops.
In Southeast Sulawesi, South Konawe Regency has become one of the province's leading cattle-producing regions. Lambusa Village was selected for the study because it has the highest cattle population in Konda Subdistrict, making it an ideal location to evaluate the economic performance of traditional cattle farming.
Traditional Management with Low Production Costs
The study reveals that cattle farming in Lambusa Village remains highly traditional. Most farmers own between two and ten cattle, with an average herd size of four to five animals. Nearly 86 percent of respondents rely on extensive grazing systems, allowing cattle to feed on communal grasslands during the day before returning to simple shelters at night.
Farmers supplement natural forage with affordable local feed such as tofu waste (ampas tahu), rice bran, and mineral supplements. This feeding strategy helps maintain animal growth while keeping operational expenses relatively low.
The analysis found that the average annual production cost reached IDR 10.89 million per farmer. Feed represented the overwhelming majority of expenses, accounting for approximately 94 percent of total production costs. Veterinary care and medicine contributed only around two percent, while housing and equipment depreciation represented less than three percent.
Because nearly all labor comes from family members, labor costs were not included as monetary expenses. Farmers generally care for cattle alongside their crop farming activities, allowing livestock production to fit naturally within their daily routines.
Strong Profitability Despite Small Scale
Although herd sizes remain relatively small, the financial performance of cattle farming proved encouraging.
Average annual revenue reached IDR 24.86 million per farmer. Approximately 79 percent of this income came directly from cattle sales, while the remaining 21 percent reflected increases in herd value through calf births and animal growth.
After subtracting production costs, the average net annual income amounted to IDR 13,966,900.
Financial analysis also showed an R/C ratio of approximately 2.28, meaning every IDR 1 invested in cattle production generated around IDR 2.28 in revenue. The study also reported a profit margin of about 56 percent, indicating that traditional cattle farming remains economically viable despite its modest scale.
However, the researchers emphasize that profitability does not necessarily translate into high household earnings. Monthly income from cattle averages only around IDR 1.16 million, making it insufficient as the sole source of family income.
Cattle Contribute More Than One-Third of Household Income
The survey found that the average total household income among respondents reached IDR 39.49 million annually from all economic activities.
Beef cattle farming contributed approximately 35.4 percent of total household income, placing it firmly as a secondary income source rather than the primary livelihood.
The remaining income originated mainly from rice cultivation, vegetable farming, small businesses, and various non-farm occupations.
Even so, researchers argue that the economic importance of cattle extends beyond simple income calculations.
Many respondents described their cattle as a "living savings account." Instead of selling animals regularly, farmers typically wait until they need substantial cash for important family expenses or when market prices become especially attractive, such as during the Eid al-Adha season.
This strategy provides financial security while allowing households to diversify income sources and reduce economic risks associated with agriculture.
Opportunities for Higher Rural Income
The study suggests that beef cattle farming could play a much larger role in rural economic development if several constraints are addressed.
Researchers recommend improving feeding practices, strengthening herd management, expanding access to quality breeding programs, and increasing farmers' connections to reliable livestock markets.
Additional institutional support, including extension services, farmer training, and access to financing, could also help households gradually expand herd sizes without increasing financial risks.
The research notes that if farmers were able to double their herd sizes while maintaining similar production efficiency, cattle farming could potentially become the primary source of household income for many rural families.
However, land availability, limited capital, and farmers' preference for gradual expansion remain significant challenges that require long-term policy support.
Supporting Sustainable Rural Livelihoods
The findings reinforce the important role of smallholder livestock systems in Indonesia's rural economy.
Rather than replacing crop farming, cattle production complements agricultural activities by providing flexible cash reserves, improving household resilience, and creating opportunities for additional income throughout the year.
According to Haji Saediman, strengthening productivity through better management and institutional support offers one of the most practical pathways for increasing rural household welfare while contributing to Indonesia's domestic beef production.
As demand for beef continues to rise nationally, improving the performance of smallholder cattle farming could become an increasingly important strategy for supporting food security and sustainable rural development.
Author Profile
Dr. Haji Saediman is a researcher and academic at Halu Oleo University, Kendari, Indonesia. His research focuses on agricultural economics, rural development, agribusiness, livestock economics, household income analysis, and sustainable farming systems, with numerous publications on agricultural productivity and rural livelihoods in Southeast Sulawesi.
Source of Research
Title: Income Analysis of Smallholder Beef Cattle Farming in South Konawe District, Southeast Sulawesi
Author: Haji Saediman
Affiliation: Halu Oleo University, Kendari, Indonesia
Journal: International Journal of Applied Science and Research (IJASR), Volume 4, Issue 7 (2026)
DOI: https://doi.org/10.59890/ijasr.v4i7.281
Journal Website: https://nvlmultitechpublisher.my.id/index.php/ijasr/index
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