Analysis Of The Feasibility Of Developing Beef Cattle Farm (case Studies On The Cattle Farm CV. Pak Gito In Sidomulyo Village, Binjai District, Langkat Regency

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Analysis of the Feasibility of Developing Beef Cattle Farm: Case Studies on the Cattle Farm CV. Pak Gito in Sidomulyo Village, Binjai District, Langkat Regency

The beef cattle farm business has been gaining significant attention in recent years due to its immense potential for growth and development. As one of the largest meat commodities from ruminant groups, beef cattle farming contributes significantly to national meat production. However, for livestock businesses to survive and thrive, profits must be greater than the costs incurred. In this context, this study aims to analyze the feasibility of the development of beef cattle business in CV. Pak Gito, located in Sidomulyo Village, Langkat Regency, considering financial, technical, economic, and management aspects.

Research Methodology

The data collected in this study were obtained through direct observation and interviews with respondents related to the management of cattle farm businesses. The analysis process includes both financial and non-financial aspects, providing a comprehensive picture of the feasibility of the business. In financial analysis, several indicators were used, including the C/B ratio value (Benefit-Cost Ratio), Break Point (BEP), Current Net Value (NPV), Internal Rate of Return (IRR), and Payback Period (Payback Period).

Financial Analysis Results

The results of financial analysis show that the beef cattle farm business in CV. Pak Gito is worthy of being continued. The C/B ratio obtained is 1.1, indicating that every one rupiah costs incurred can generate revenues of Rp 1.10. The break-even price calculated is Rp 11,795,695 per head, lower than the selling price received, demonstrating the potential for good profits.

In production analysis, the break-even point (BEP) in production was recorded at 408 head of cattle. The positive NPV value of Rp. 769,925,360 indicates that the investment made can provide greater profits than costs. The IRR obtained is also at 21%, higher than the specified interest rate, indicating a high investment appeal. In addition, the return period is recorded within 2 years and 2 months, which is a relatively short time for a livestock business.

Non-Financial Analysis Results

In terms of non-financial aspects, especially in the management aspect, the results show that the manager has managed the cattle farm business well to produce quality products. Good management is expected to improve operational efficiency and productivity, which is very important in maintaining competitiveness and business sustainability.

Conclusion

Based on the results of the analysis conducted, the beef cattle farm business in CV. Pak Gito in Sidomulyo Village is considered feasible to be developed. With profitable financial analysis and good management, this business can not only provide adequate benefits but also contribute to the availability of beef in the local market. Therefore, for business people and investors, beef cattle farm businesses in this area offer promising opportunities to be invested.

Recommendations

Based on the findings of this study, the following recommendations are made:

  • Investment Opportunities: The beef cattle farm business in CV. Pak Gito offers promising opportunities for investment, considering its profitable financial analysis and good management.
  • Business Development: The business can be developed further by improving operational efficiency and productivity, which can lead to increased competitiveness and business sustainability.
  • Capacity Building: The manager and staff of the cattle farm business should undergo training and capacity building to improve their skills and knowledge in managing the business.
  • Market Expansion: The business can expand its market by increasing its production and sales, which can lead to increased revenue and profitability.

Limitations of the Study

This study has several limitations, including:

  • Limited Data: The data collected in this study were limited to the cattle farm business in CV. Pak Gito, and may not be representative of other beef cattle farm businesses in the area.
  • Methodological Limitations: The study used a case study approach, which may have limitations in terms of generalizability and validity.
  • Time Constraints: The study was conducted within a limited time frame, which may have limited the scope and depth of the analysis.

Future Research Directions

Future research can build on the findings of this study by:

  • Conducting a Comparative Study: Conducting a comparative study of beef cattle farm businesses in different locations can provide insights into the factors that influence the feasibility of the business.
  • Analyzing the Impact of External Factors: Analyzing the impact of external factors, such as market trends and government policies, on the beef cattle farm business can provide insights into the factors that influence the business.
  • Developing a Business Model: Developing a business model for the beef cattle farm business can provide insights into the factors that influence the business and can help to identify opportunities for improvement.

Conclusion

In conclusion, this study has provided insights into the feasibility of developing a beef cattle farm business in CV. Pak Gito, located in Sidomulyo Village, Langkat Regency. The study has shown that the business is feasible to be developed, considering its profitable financial analysis and good management. The study has also identified several recommendations for business development, capacity building, and market expansion. Future research can build on the findings of this study by conducting a comparative study, analyzing the impact of external factors, and developing a business model.
Q&A: Analysis of the Feasibility of Developing Beef Cattle Farm: Case Studies on the Cattle Farm CV. Pak Gito in Sidomulyo Village, Binjai District, Langkat Regency

Q: What is the purpose of this study?

A: The purpose of this study is to analyze the feasibility of developing a beef cattle farm business in CV. Pak Gito, located in Sidomulyo Village, Langkat Regency, considering financial, technical, economic, and management aspects.

Q: What are the key indicators used in financial analysis?

A: The key indicators used in financial analysis include the C/B ratio value (Benefit-Cost Ratio), Break Point (BEP), Current Net Value (NPV), Internal Rate of Return (IRR), and Payback Period (Payback Period).

Q: What are the results of financial analysis?

A: The results of financial analysis show that the beef cattle farm business in CV. Pak Gito is worthy of being continued. The C/B ratio obtained is 1.1, indicating that every one rupiah costs incurred can generate revenues of Rp 1.10. The break-even price calculated is Rp 11,795,695 per head, lower than the selling price received, demonstrating the potential for good profits.

Q: What are the results of production analysis?

A: In production analysis, the break-even point (BEP) in production was recorded at 408 head of cattle. The positive NPV value of Rp. 769,925,360 indicates that the investment made can provide greater profits than costs. The IRR obtained is also at 21%, higher than the specified interest rate, indicating a high investment appeal. In addition, the return period is recorded within 2 years and 2 months, which is a relatively short time for a livestock business.

Q: What are the results of non-financial analysis?

A: In terms of non-financial aspects, especially in the management aspect, the results show that the manager has managed the cattle farm business well to produce quality products. Good management is expected to improve operational efficiency and productivity, which is very important in maintaining competitiveness and business sustainability.

Q: What are the recommendations for business development?

A: Based on the findings of this study, the following recommendations are made:

  • Investment Opportunities: The beef cattle farm business in CV. Pak Gito offers promising opportunities for investment, considering its profitable financial analysis and good management.
  • Business Development: The business can be developed further by improving operational efficiency and productivity, which can lead to increased competitiveness and business sustainability.
  • Capacity Building: The manager and staff of the cattle farm business should undergo training and capacity building to improve their skills and knowledge in managing the business.
  • Market Expansion: The business can expand its market by increasing its production and sales, which can lead to increased revenue and profitability.

Q: What are the limitations of this study?

A: This study has several limitations, including:

  • Limited Data: The data collected in this study were limited to the cattle farm business in CV. Pak Gito, and may not be representative of other beef cattle farm businesses in the area.
  • Methodological Limitations: The study used a case study approach, which may have limitations in terms of generalizability and validity.
  • Time Constraints: The study was conducted within a limited time frame, which may have limited the scope and depth of the analysis.

Q: What are the future research directions?

A: Future research can build on the findings of this study by:

  • Conducting a Comparative Study: Conducting a comparative study of beef cattle farm businesses in different locations can provide insights into the factors that influence the feasibility of the business.
  • Analyzing the Impact of External Factors: Analyzing the impact of external factors, such as market trends and government policies, on the beef cattle farm business can provide insights into the factors that influence the business.
  • Developing a Business Model: Developing a business model for the beef cattle farm business can provide insights into the factors that influence the business and can help to identify opportunities for improvement.

Q: What are the implications of this study?

A: The implications of this study are that the beef cattle farm business in CV. Pak Gito is considered feasible to be developed, considering its profitable financial analysis and good management. The study also highlights the importance of good management in maintaining competitiveness and business sustainability.