Agribusiness development strategy farms dairy cattle in efforts to improve milk productivity in Central Java

The productivity of dairy cattle farming has been low and it has an impact on the supply of domestic milk. Milk imports continue to increase reaching 75% and the remaining 25% was met from domestic production. The study’s aim was to analyze local resource development strategies of dairy cattle farming in Central Java. The study was conducted by survey and observational methods. The determination of location was taken by purposive sampling in Semarang and Boyolali District. Samples of farmers were taken by simple random sampling from 10 dairy farmers groups. There were 120 respondents. In addition, this study had 15 key Informants to add validity to the data. Data collection was done by interview and focus group discussion (FGD). Meanwhile, the data analysis methods used were descriptive quantitative and qualitative. Analytical Hierarchy Process (AHP) was used to formulate strategies for developing dairy cattle farming. The results showed development strategy needs to be considered were human resources, local resources and capital of priority scale. Furthermore, the main actors who need attention were the Village Unit Cooperation (KUD), Government, and The Indonesian Association of Milk Processors (IPS).


Introduction
The current state of dairy cattle farming is developing slowly. This condition is caused by various factors, both internal and external, resulting in low productivity and farmers' income. At present, the average level of milk production for dairy cattle is only 7-10 liters/head/cattle/day. In general, the management of smallholder dairy cattle farming does not pay attention to technical aspects and proper management farming system the level of milk production and milk quality is still low, resulting in low farming productivity. This dairy cattle farming situation has an impact on low productivity, efficiency and in turn, has an effect on the low income of farmers [1].
Indonesia has a comparative and competitive advantage of natural and human resources to develop the dairy industry based on the smallholder dairy cattle farming system. However, these potential have not succeeded in strengthening the competitiveness of the dairy industry, hence Indonesia is in the position of a large milk importing country. Milk imports currently reach 75% of the national milk demand and the remaining 25% is met by domestic production [2]. A large number of milk imports carried out by The Indonesian Association of Milk Processors (IPS). It has consequences, such as: 1) dairy farmers can lose the domestic consumer market, and in turn, reduce their income, and 2) milk prices tend to be cheaper, hence can affect marketing milk and cause narrow down Business opportunities. The low domestic milk production was due to the feeding of poor quality feed, cleanliness of cage, post-harvest handling, which results in the products are being unable to compete in the market. [3]. This condition has an impact on low investment, productivity, efficiency and income as well as business competitiveness. On the other hand, the potential of local resources such as natural resources, human resources, institutions, and technology if managed properly is very promising for the development of dairy cattle farming.
In order to increase the productivity and efficiency of dairy cattle business and its competitiveness, need to pay attention to technology In order to increase the productivity and efficiency of dairy cattle farming and its competitiveness, need to pay attention to technology, the sustainability of breeding programs and the preservation of genetic resources, and business management for dairy cattle farming [4]. Based on the background and problems above mention, it is necessary to conduct research with the aim of analyzing the development factors of smallholder dairy cattle agribusiness based on local resource potential using AHP (analytical hierarchy process) techniques in Central Java. These results were expected to identify various priority resource factors as the basis for the development of dairy cattle agribusiness in Central Java.

Material and Methods
Research on local resource-based dairy cattle agribusiness development strategies to increase milk productivity was carried out using a survey method. The research location took two regencies, namely Semarang Regency and Boyolali Regency which were determined using purposive sampling. The location were chosen due to their promising potential and number of dairy cattle out of all the regencies in Central Java. Each district was taken based on consideration of the largest population of dairy cattle. Each sub-district selected 3 farmer groups purposively based on farmer'population and the largest milk production. The respondent was taken by simple random of 10 dairy farmers for each farmer group. There were 120 farmers in total. Primary data collection was carried out by interviewing dairy farmers based on structured questionnaires and focus group discussions (FGD) with various stakeholders related to the dairy business. Meanwhile, secondary data were taken from government instituations and other agencies related to research problems. The measurement of local resource variables used a Likert scale with 5 levels, namely: very good (5), good (4), moderate (3), not good (2) and very poor (1) [5].
Analytical Hierarchy Process (AHP) analysis was used to formulate the right strategy in the development of a dairy cattle agribusiness. There are 5 levels of criteria in the AHP structure which are started from focus, factors, actors, objectives, and alternative strategies [6]. The use of the Analytical Hierarchy Process (AHP) technique was used to create a functional hierarchy with the main input being the perceptions of the stakeholders. With a hierarchy, a complex problem regarding the development of dairy cattle in Central Java that has not been structured can be broken down into parts in a hierarchy. The stages of preparing AHP were a) compiling the AHP hierarchy diagram, b) making a questionnaire based on the AHP diagram, c) conducting interviews based on a questionnaire, d) processing the interview data hence the weight of each alternative strategy was obtained.

Local Resource Profile for Dairy Cattle Agribusiness Development
Based on the aggregate profile of local resources, it was still in a sufficient level. This condition can affect the performance of the dairy cattle business, especially on milk production and milk quality. The average milk production was 9.76 liters/head/day, still below the target for the revitalization of the dairy which is expected to be able to produce as much as 15 liters/head/day [7].

Dairy Cattle Business Development Strategy in Central Java
The development of smallholder dairy cattle businesses requires better strategy and direction hence the goal of increasing and developing dairy cattle farming system would have an positive impact. Based on existing local resources, a development strategy using process hierarchy analysis (AHP) resulted in the following steps: a. Analysis of the position of local resource factors for the development of a dairy business: Analysis of the position and role of local resources for the development of a dairy business shows that the human resource factor ranks with a weight of 0.219, followed by natural resources 0.201, and 0.178 capital resources.