Strategy for Developing Agribusiness of Roasted Murung Chicken Farming in Hulu Sungai Utara Regency

The purpose of the research is to analyze the strengths, weaknesses, opportunities and threats of the development of Ayam Murung Panggang farm agribusiness and how strategies can be applied to the development of Ayam Murung Panggang farm agribusiness in North Hulu Sungai Regency. The data collection methods used in this study include focus group discussion (FGD) and interview methods. In simple terms, the FGD method is a series of discussions that are carried out systematically and in a directed manner about a certain issue or problem. The data analysis used to achieve the research objectives is SWOT analysis, where this method shows performance by determining a combination of internal factors (strengths and weaknesses) and external factors (opportunities and threats). The main strength of roasted gloomy chicken breeders with a score is the source of human beings, ease of access in marketing chickens and experience of raising livestock with a score of 0.40, while the weakness of the highest score is the limitation of business capital with a score of 0.36, while the opportunity possessed by roasted gloomy chicken breeders is the existence of capital assistance from the government with a score of 0.43 while the highest threat of disease attacks in livestock with a score of 0.35. 

Introduction

Broiler agribusiness is growing because broilers are getting attention from the government. However, when the monetary crisis occurred (Mid-1997), chicken farming was difficult because the price of feed rose while chicken was marketed decreasing, therefore it was necessary to save chicken agribusiness. Livestock agribusiness began to be known and developed in Indonesia around the mid-1980s. Livestock agribusiness is an integrated and comprehensive livestock management system that includes all activities ranging from manufacturing and distribution of livestock production facilities (sapronak), production business activities (cultivation), storage and management, as well as distribution and marketing of livestock products supported by supporting institutions such as banking and government policies.

According to Government Regulation No. 16/1997 on livestock business, in Indonesia there are two types of livestock businesses, namely companies and people’s livestock. A livestock company is a business that is carried out regularly and continuously in a place and for a certain period of time for commercial purposes which includes the activity of producing livestock (livestock, seeds/cut livestock), eggs and milk as well as fattening a type of livestock including collecting, distributing and marketing it, which for each type of livestock exceeds the amount set for each type of livestock on the people’s farm. People’s livestock is a livestock business that is held as a side business whose maximum number of activities for each type of livestock is set by the Minister of Agriculture.

Based on the type of animals raised, livestock can be divided into three types, namely large animal farms, small animal farms, and poultry farms. Large animal farms are farms that cultivate large animals, such as cows, horses, and buffaloes. Chicken farming can actually be used to earn enough income to meet the daily needs of farmers or their maintenance. This means that the farm or chicken farming business is a field of work that can be used as a source of income or income to meet the life needs of the breeder or its keeper. Even more than that, this livestock business is also able to provide employment land for people who have not worked around the location of the farm or chicken rearing is located. Everything can be realized if the chicken farm is managed properly and professionally. The demand for chicken eggs is increasing every year. This increase is influenced by the growth of the middle class, changes in lifestyle, and consumption patterns in the community. Due to the high demand for eggs, there are business opportunities to start a laying hen farming business, one of which is laying breed chickens [1].

One of the livestock businesses in North Hulu Sungai Regency is the roasted murung chicken farming business. Ayam Murung Panggang is the result of a cross marriage between male broiler breed chickens and female Murung Panggang native chickens carried out by breeders from Murung Panggang Village, South Amuntai District and also referred to as broth chicken where the performance resembles a chicken kedu where the feathers are predominantly black. The uniqueness of this chicken is that it is more fleshy and has a faster age to consume, which ranges from only two to three months and the posture of this poultry is also larger than free-range chickens and purebred chickens [2].

The marketing business of poultry generally consists of two channels, namely: (1) Traditional distribution channels, namely from cages to traditional markets, namely from cages to traditional markets or traditional slaughter. The chicken is sold in live form or cut at the market location or at home and sold in the form of fresh chicken. Until now, this route still dominates the Indonesian chicken trade, but its achievements are gradually declining; (2) Modern distribution channels, namely from cages, slaughter, frozen chicken storage, and frozen chicken sales. In contrast to consumers in developed countries, Indonesian consumers prefer to buy fresh chicken in traditional markets. They assume that frozen chicken is fresh chicken that does not sell well so it is frozen. The selling price of broilers will increase at certain times, such as ahead of holidays and other holidays, this is an opportunity for farmers to increase the amount of production at that time. As for the marketing of broiler chickens in Hulu Sungai Utrara Regency, there are three types, namely: (i) Direct consumers, chicken meat is sold directly to consumers or subscribers; (ii) Through collector traders, through agreements, traders and collectors always come to buy live chickens; (iii) Through wholesalers or thinners in the market, for example supermarkets or broiler slaughterhouses in North Hulu Sungai Regency.

Of the many strengths and weaknesses as well as opportunities and threats that exist, only some have been identified. For this reason, the researcher is interested in raising a study on various factors that are the strengths, weaknesses, opportunities, and threats of the laying breed chicken egg business which will produce a strategy for the development of agribusiness for roasted mourung chicken farms in North Hulu Sungai district. This research is expected to be able to find a business strategy agribusiness in chicken farming, especially roasted murung chickens in North Hulu Sungai Regency.

Research Objectives

The objectives of this research are:

1. analyze the strengths, weaknesses, opportunities and threats of agribusiness development of Ayam Murung Panggang farming in North Hulu Sungai Regency.

2. analyze how strategies can be applied to the development of Roasted Murung Chicken farm agribusiness in North Hulu Sungai Regency.

Research Methods

Place and Time of Research

This research was carried out in North Hulu Sungai Regency. This research was carried out from July to October 2024, starting from preparation in making research proposals, field data surveys, data collection, data collection to report writing.

Data Types and Sources

The types and sources of supporting data in the research area, interviews with stakeholders and documentation in the field, as well as secondary data include data on livestock populations in North Hulu Sungai Regency sourced from related agencies such as BPS (Central Statistics Agency), the Animal Husbandry Service, Food Crops and other institutions related to this research.

Data Collection Methods

The data collection methods used in this study include focus group discussion (FGD) and interview methods. In simple terms, the FGD method is a series of discussions that are carried out systematically and in a directed manner about a certain issue or problem. Interviews are conducted with the aim of uncovering and obtaining information related to certain problems.

Sample Withdrawal Method

Population is a combination of all elements in the form of events, things or people with similar characteristics that are the center of attention of a researcher, therefore it is seen as a research universe [3]. The population in the study of all breeders is 183 breeders. The sample determination in this study used purposive sampling with a total of 50 people then to determine the strategy for the development of the roasted mourung chicken farming business by conducting an FGD, in order to obtain the expected information, the researcher determines the participants who will be asked for information through several Informant. An informant is a person who is considered to master and understand data, information or facts from an object of research. The consideration of the subject in this study is the person who is considered the most knowledgeable and understandable so that it will make it easier for researchers to explore the situation or problem raised in the research. So that the informants in this study are farmers, the agriculture office in the field of livestock and extension workers, local chicken traders, and animal feed sellers in North Hulu Sungai. The following table of informants who can be interviewed in determining development strategies in this study can be seen in Table I.

Table I. Research Informant

Yes	Report	Sum
1	Chicken breeders or breeders’ groups	10
2	Agriculture office for animal husbandry or extension worker	2
3	Local chicken traders	1
4	Animal feed and saprodi sellers	1
	Sum	14

Data Analysis

The data analysis used to achieve the research objectives is SWOT analysis, where this method shows performance by determining a combination of internal factors (strengths and weaknesses) and external factors (opportunities and threats). Before the strategy is implemented, it must analyze the external environment (opportunities and threats) and the internal environment (strengths and weaknesses) to be included in the matrix, namely the external strategy factor matrix and the internal strategy factor matrix.

This analysis is carried out in the following stages:

1. Data collection includes internal data (strengths and weaknesses) and external data (opportunities and threats)

2. Preparation of Internal Strategy Factors and External Strategy Factors matrix

3. Determination of the weight of each variable

4. Rating

5. IFE and EFE calculations

6. Determination of business development position according to the quadrant in the SWOT diagram

Results and Discussion

Strategy Factors

The formulation of the strategy was carried out by reviewing the factors inside (internal) and outside (external) the agribusiness development of roasted mourung chicken farms in North Hulu Sungai Regency. Deep factor analysis is used to analyze deep factors which will certainly affect the development of roasted mourning chicken farm agribusiness. Meanwhile, external factors are carried out by looking at factors outside the agribusiness development of roasted mourning chicken farms, to identify and evaluate out-of-control tendencies.

Internal Factors

The internal factors in this study were sourced from farmers, related institutions, chicken traders and sellers of animal feed and saprodi in North Hulu Sungai Regency.

Strength factors include:

• Human resources, based on the results of a score of 0.37 human resources in the business of roasting mourung chickens in strong condition.

• Labor in the family, based on the score from the results of the preparation of the IFE mantric with a score of 0.34 with a rating of 3.42, is included in a strong condition.

• Ease of access in marketing chicken, from the score results shows a value of 0.37 with a rating of 3.46 including in strong condition.

• Farmers’ experience, the score results showed a value of 0.40 and a rating value of 3.58 were included in strong conditions.

• The quality of meat production is quite good, the score results show a figure of 0.31 and a rating value of 3.16 including in strong condition.

Weakness factors include:

• Farmers’ capital is still low, the score results show a value of −0.29 and a rating of −3.08 for farmers’ capital which is still in a strong condition.

• Farmers’ knowledge of technology is still low, the score results with a value of −0.29 and a rating of −3.08 are included in strong conditions.

• In the absence of a farmer group that shelters, the rating results show a value of −3.08 and a score with a value of 0.26 is included in a strong condition.

• High Production Cost, the rating results show a value of −3.42 with a score of 0.36 including in strong condition.

• The quality of the seeds is not good, the rating results show a value of −2.88 with a score of 0.26, including in strong conditions.

External Factors

External factors in this study are sourced from related institutions, which are in North Hulu Sungai Regency.

Opportunity factors include:

• There is capital assistance from the government or agencies, the rating results show a value of 3.90 with a score of 0.43, including in high conditions.

• The needs of the community continue to increase, the rating results show a value of 3.78 with a score of 0.40, including in high conditions.

• Wide market reach, the rating results show a value of 3.78 with a score of 0.40 including in high conditions.

• Increasing consumer appetite for chicken meat, the rating results show a value of 3.72 with a score of 0.39, including in high conditions.

• The implementation of the sustainable farming system, the rating results showed a value of 3.52 with a score of 0.35 including in high conditions.

Threat factors include

• Livestock disease attacks, the rating results showed a value of −3.52 with a score of −0.35 including in high conditions.

The market selling price is uncertain, the rating results show a value of −3.34 with a score of −0.31 including in high conditions.

• Feed prices are high, rating results show value

• −3.34 with a score of −0.31 included in high conditions.

• The provision of production facilities such as seeds, the rating results showed a value of −3.24 with a score of −0.30 including in high conditions.

• Chicken meat products from outside other than grilled chicken moody, the rating results show a value of −3.32 with a score of −0.31 including in high condition.

Alternative Strategies for the Development of Roasted Chicken Farms

Internal Strategy Factor Matrix (IFE)

Giving weights and twigs to formulate internal strategy factors. The score is obtained from the result of weight multiplication and ratings that have been given. The results of weighting and rating can be seen in Table II.

Table II. Matriks IFE (Internal Factor Evaluation)

Internal strategy factors	Weight (b)	Rating (r)	Score (b × r)
Strength (S)
1. Human resources available	0.11	3.44	0.37
2. Workforce in the family	0.10	3.32	0.34
3. Ease of access in Marketing  Chicken	0.11	3.46	0.37
4. Mentoring and coaching  peternak	0.11	3.58	0.40
5. The production quality is  quite good peternak	0.10	3.16	0.31
Disadvantages (W)
1. Farmers’ capital is still low	0.10	−3.08	−0.29
2. Knowledge Farmers against  technology are still low	0.10	−3.08	−0.29
3. There is no farmer group  that oversees	0.09	−2.90	−0.26
4. High production costs	0.11	−3.42	−0.36
5. Poor quality of seeds	0.09	−2.88	−0.26
Total	1.00		0.32

The results of the assessment in Table II on the internal factors of the agribusiness development of roasted mourung chicken farms in North Hulu Sungai Regency with a total rating of 1 to 4 obtained a total score of 0.32 which shows that the roasted mourung chicken farm is in a strong internal condition. So that roasted gloomy chicken breeders must make the best use of their strengths and overcome the weaknesses that exist in the brooch chicken farm roast. The main strengths of roasted gloomy chicken farmers with a score are human resources, ease of access in marketing chickens and experience of raising livestock with a score of 0.40, while the highest score weakness is limited business capital with a score of 0.36.

External Strategy Factor Matrix (EFE)

Weighting and rating to formulate factors strategy external agribusiness development of roasted gloomy chicken farming. The score results from weighting and rating can be seen in Table III.

Table III. EFE (External Factor Evaluation) Matrix

Strategy factors external	Weight (b)	Rating (r)	Shoes (b × r)
Odds (O)
1. The existence of capital assistance from the Government or the agency	0.11	3.90	0.43
2. The increasing needs of the community	0.11	3.78	0.40
3. Wide market reach	0.11	3.78	0.40
4. Increasing Consumer Appetite for Chicken	0.10	3.72	0.39
5. Implementation of the livestock system Sustainable	0.10	3.52	0.35
Threat (T)
1. Livestock disease attacks	0.10	−3.52	−0.35
2. Market selling prices are uncertain	0.09	−3.34	−0.31
3. High feed prices	0.09	−3.34	−0.31
4. The provision of production facilities such as seeds, feed and medicines still depends on outside the region	0.09	−3.24	−0.30
5. Chicken meat products from outside other than roasted moody chicken	0.09	−3.32	−0.31
Total	1.00		0.39

The results of the assessment in Table III on the external factors of the agribusiness development of roasted mourung chicken farms in North Hulu Sungai Regency with a total score of 0.39. Based on this total, the external factors of the roasted mourful chicken farming strategy are in high external conditions. So that roasted gloomy chicken farmers must take advantage of the opportunities that exist and overcome threats. The opportunity for roasted gloomy chicken farmers is the existence of capital assistance from the government with a score of 0.43 while the highest threat of disease attacks in livestock with a score of 0.35.

SWOT Analysis

The results of the calculation of IFE score and 0.32 and EFE of 0.39, then guidance will be carried out between internal and external factors including strengths, weaknesses, opportunities and threats using a SWOT matrix. The goal is to determine alternative strategies to be chosen in the development of livestock agribusiness Grilled Chicken Moody. The SWOT matrix for the development of roasted mourung chicken farming agribusiness in North Hulu Sungai Regency can be seen in Table IV.

Table IV. Matrix SWOT

INTERNAL	STRENGTHS (S) 1. Human resources available 2. Workforce in the family 3. Ease of access in marketing chickens 4. Mentoring and coaching of farmers 5. The production quality is quite good	WEAKNESSES (W) 1. Farmers’ capital is still low 2. Farmers’ knowledge of technology is still low 3. There is no farmer group that oversees 4. Limited business capital 5. Poor quality of seeds
EXTERNAL
OPPORTUNITY (O) 1. The existence of capital assistance from the Government or the agency 2. The increasing needs of the community 3. Wide market reach 4. Increasing consumer appetite for chicken meat 5. Implementation of the livestock system sustainable	S-O STRATEGY 1. Optimizing the use of capital assistance from the government 2. Strengthen existing marketing access 3. Expanding market reach 4. Improve product branding and competitiveness	W-O STRATEGY 1. Encouraging the Formation of Farmer Groups 2. Develop a structured and sustainable exchange mechanism for superior seeds 3. Implementing sustainable farming practices collectively
THREATS (T) 1. Livestock disease attacks 2. Market selling prices are uncertain 3. High feed prices 4. The provision of production facilities such as seeds, feed and medicines still depends from outside the region 5. Chicken meat products from outside other than roasted moody chicken	S-T STRATEGY 1. Improving production quality through the implementation of livestock health standards 2. Optimizing the coaching and mentoring of farmers to increase knowledge about biosecurity and disease prevention	T-W STRATEGY 1. Reducing dependence on external supplies by encouraging the strengthening of farmer groups 2. Developing alternative feed based on local resources 3. Increasing cooperation between farmers in the procurement of production facilities

The exchange of superior seeds in a structured and sustainable manner will improve the quality of livestock collectively. Application of animal husbandry practices.

After identifying internal and external factors that are strengths and weaknesses as well as opportunities and threats in improving, several alternative strategies that can be considered in Table IV are obtained, including:

1. SO Strategy: This strategy is a combination of the internal strengths of roasted mourning chicken farmers, such as easy access to marketing and sustainable mentoring, with external opportunities in the form of government capital assistance and wide market potential. This strategy focuses on optimizing the use of capital assistance to strengthen business infrastructure, strengthen existing marketing access, and expand market reach to new regions. In addition, increasing the branding and competitiveness of the product is carried out to ensure that roasted murung chicken products are increasingly known and in demand, so that they are able to compete sustainably in a wider market.

2. WO Strategy: This strategy focuses on efforts to take advantage of existing opportunities by overcoming the internal weaknesses of roasted chicken farmers. Through the encouragement of the formation of farmer groups, farmers can collaborate with each other to increase the capacity and efficiency of their businesses. In addition, the development of mechanisms sustainable together is also sought to preserve resources and increase business productivity, so that wide market opportunities can be utilized optimally and sustainably.

3. ST Strategy: This strategy is focused on improving production quality by implementing strict livestock health standards to reduce the risk of disease attacks that can threaten the sustainability of the business. In addition, the optimization of coaching and assistance for farmers is carried out to increase their knowledge of biosecurity and effective disease prevention measures. With this approach, farmers are able to better maintain the health of livestock, minimize losses due to disease, and maintain production stability in the midst of external challenges.

4. WT Strategy: This strategy aims to address the threat of dependence on supply from outside the region by addressing existing internal weaknesses. Efforts are made by encouraging the strengthening of farmer groups so that farmers can collaborate effectively in producing and managing production facilities independently. In addition, the development of alternative feed based on local resources is sought to reduce production costs and increase feed availability that is sustainable. Increasing cooperation between farmers in the procurement of production facilities is also a focus so that the procurement of seeds, feed, and medicines can be carried out collectively and efficiently, so that livestock businesses are more resistant to price fluctuations and supply disruptions from outside the region.

Conclusions and Suggestions

Conclusion

Based on the study of the Agribusiness Development Strategy of Roasted Murung Chicken Farm in North Hulu Sungai Regency, conclusions can be drawn based on the SWOT matrix analysis, the following strategies were obtained:

1. SO (Strength-Opportunities): Optimizing the use of capital assistance from the government to strengthen and expand market access that is already easily accessible, so that Murung Grilled chicken products can penetrate a wider market.

2. WO (Weeknes-Opportunities): Encourage the formation of farmer groups so that farmers can exchange superior seeds and implement sustainable farming practices collectively, in order to overcome limited capital and technological knowledge.

3. ST (Strength-Threats): improving production quality through the implementation of good livestock health standards to reduce the risk of disease attacks and maintain the sustainability of livestock businesses.

4. WT (Weeknes-Threats): Reducing dependence on external supplies by encouraging the strengthening of farmer groups to produce seeds and feed locally and strengthening cooperation between farmers in the provision of production facilities.

Suggestion

During this research, there are several suggestions that the researcher wants to convey to roasted mourung chicken farmers in North Hulu Sungai Regency, namely:

1. The selling price of roasted gloomy chicken livestock always decreases during certain seasons and months so that many breeders lose money, therefore it is necessary to form a KEP or cooperative that can overcome this.

2. Farmers’ capital is limited, so it is necessary to form livestock groups to make it easier to apply for KUR loans to banks or other parties.