Broiler Farming Study Finds Price Risk Is the Biggest Threat Under Partnership Systems

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FORMOSA NEWS - South Sulawesi - A 2026 study by Asti Octaviana and colleagues from the Agribusiness Study Program, Faculty of Agriculture, Universitas Muhammadiyah Makassar, has found that price risk is the most serious challenge facing broiler chicken farming under a partnership system. The study examined Risky Astiani’s broiler farm in Jawi-Jawi Village, Bulukumpa District, Bulukumba Regency, South Sulawesi, and identified production, price, and financial risks affecting the sustainability of the business. The findings matter because partnership systems can help farmers secure production inputs and market access, but farmers may remain vulnerable when they have limited influence over selling prices.

The article was published in the Indonesian Journal of Agriculture and Environmental Analytics (IJAEA), Volume 5, Number 2, in 2026. The paper was submitted on May 20, 2026, revised on June 22, and accepted on July 25, 2026. The research focused on a broiler farm that has operated since 2019 through a partnership with PT Ciomas Adisatwa Unit Sinjai.

Why Broiler Farmers Face Multiple Risks

Broiler chicken farming is attractive to farmers because chickens can reach market age within a relatively short production cycle of around 30–35 days. This allows capital to circulate faster than in many other livestock businesses. However, the short production cycle does not eliminate uncertainty.

Farmers can face disease outbreaks, changes in feed quality and prices, environmental stress, mortality, equipment problems, and fluctuations in chicken selling prices. If these risks are not properly managed, they can reduce income and threaten the continuity of the farming business.

A partnership system is often used to reduce some of these uncertainties. Under the system examined in the study, the partner company provides day-old chicks, feed, medicines and vaccines, technical assistance, and marketing support. The farmer provides the housing facilities, equipment, labor, and daily farm operations.

However, the arrangement also creates an important concern: farmers may become dependent on the partner company, particularly when the company has greater control over pricing.

How the Study Examined the Risks

The researchers used a mixed-method case study approach at Risky Astiani’s broiler farm. Data were collected through observation, structured interviews, and documentation.

Four informants participated in the study: one farm owner and three workers. The researchers assessed how frequently different risks occurred and how serious their consequences were. They then classified the risks using a probability-and-impact assessment to determine which risks required the greatest attention.

The farm itself has undergone significant operational development. It initially used an open-house housing system with a capacity of approximately 3,000 chickens per production cycle. In 2022, the farm moved to a closed-house system with a capacity of around 10,000 chickens per cycle as part of its modernization efforts.

Price Risk Emerges as the Highest Concern

The analysis identified three major categories of risk:

• Production risk: Moderate. The probability score was 4 and the impact score was 4.
• Price risk: High. The probability score was 4 and the impact score was 5.
• Financial risk: Moderate. The probability score was 3 and the impact score was 4.

Production risks include disease, changes in feed or chick quality, delays in receiving inputs, and environmental conditions inside the farm. Although classified as moderate, these risks require continuous control because poor management could cause them to become more severe.

Financial risks are also classified as moderate. They can arise from delayed payment for harvested chickens, unexpected increases in production costs, losses during a production cycle, and deductions or additional costs associated with the partnership arrangement.

The most serious issue, however, is price risk. The researchers found that changes in chicken prices, differences between prices expected by farmers and prices determined by partners, and declining prices at harvest can have a substantial effect on farm income.

The study particularly highlights the farmer’s limited bargaining position. When the partner company determines the selling price without meaningful negotiation, farmers have less control over their revenue. This can create uncertainty from one production cycle to another.

Stronger Management Can Reduce Operational Risks

The researchers identified several measures that can help farmers manage the risks they face. These include daily monitoring of chickens, tighter housing management, greater use of closed-house technology, closer coordination with partner companies, and more careful financial planning.

The partner company also plays an important role. Technical assistance can support farmers in managing housing conditions, feeding, and disease prevention. Marketing guarantees can also reduce uncertainty about where farmers will sell their production.

For the researchers from Universitas Muhammadiyah Makassar, however, technical support alone is not enough. The partnership also needs a more transparent and balanced pricing mechanism.

The findings indicate that stronger technical assistance and fairer price-setting mechanisms are important for creating a more balanced and sustainable partnership between broiler farmers and partner companies. This is the central practical implication of the study by Asti Octaviana, Reni Fatmasari Syafruddin, Nurdin, Sri Mardiyati, and Saleh Molla of Universitas Muhammadiyah Makassar.

Implications for Farmers and Agribusiness

The findings provide practical lessons for broiler farmers, agribusiness companies, and policymakers.

For farmers, consistent monitoring, improved housing management, disease prevention, and financial planning can help control production and financial risks. For partnership companies, the study points to the importance of responsive technical assistance and transparent pricing.

For policymakers and the wider agribusiness sector, the findings highlight the need to consider the balance of bargaining power within partnership arrangements. A partnership can reduce uncertainty over inputs and marketing, but its benefits may be limited if farmers have little influence over prices.

The researchers recommend that future studies examine larger numbers of farmers, broader geographical areas, and comparisons between partnership-based and independent broiler farming. Future research could also examine how feed prices, market conditions, biosecurity, housing technology, and financial management affect business risk.

Author Profile

Asti Octaviana is affiliated with the Agribusiness Study Program, Faculty of Agriculture, Universitas Muhammadiyah Makassar. Her research in this article focuses on agribusiness risk, particularly risk management in broiler chicken farming under partnership systems.

The article was co-authored by Reni Fatmasari Syafruddin, Nurdin, Sri Mardiyati, and Saleh Molla, who are also listed under the Agribusiness Study Program, Faculty of Agriculture, Universitas Muhammadiyah Makassar. The journal article does not provide the academic degrees or individual fields of expertise of the authors, so those details cannot be stated accurately from the source.

Research Source

Article title: Risk Analysis of Broiler Chicken Farming with a Partnership Model (Case Study of Risky Astiani's Business in Jawi-Jawi Village, Bulukumpa District, Bulukumba Regency)

Authors: Asti Octaviana, Reni Fatmasari Syafruddin, Nurdin, Sri Mardiyati, Saleh Molla

Journal: Indonesian Journal of Agriculture and Environmental Analytics (IJAEA)

Publication year: 2026

Volume and pages: Volume 5, Number 2, 2026, pp. 485–496

DOI: https://doi.org/10.55927/ijaea.v5i2.16243

Affiliation: Agribusiness Study Program, Faculty of Agriculture, Universitas Muhammadiyah Makassar, Indonesia.