Ecology, Environment and Conservation Paper

COBB-DOUGLAS PRODUCTION FUNCTION FOR ANALYZING DAIRY MILK PRODUCTION FACTORS

Kustopo Budiraharjo, Sunarno, Solikhin, Nugroho SBM, Edy Yusuf Agung Gunanto and Darwanto

Abstract

The development of dairy cattle business by increasing dairy milk production is a supporting effort to the development of food security, especially in the fulfillment of domestic fresh milk availability (SSDN). Boyolali Regency is one of the districts with the largest population of dairy cattle in Indonesia. However, the dairy cattle population has decreased and resulted in the reduction of dairy milk production. This study aims to identify and analyze factors that are influential in the dairy milk production in Boyolali Regency. Multiple linear regression is used in this study to determine the influential factors in the dairy milk production, as a cattle upstream business, using Cobb-Douglas production function model. Research data are primary and secondary data. Primary data are obtained from the results of observations and direct interviews with dairy farmers in Boyolali Regency who are the respondents of this research. While the secondary data needed are collected from relevant Government institutions including the Department of Animal Husbandry of Central Java Province and Central Bureau of Statistics (BPS) of Boyolali Regency. The research results indicate that factors having simultaneous significant influence on milk production of dairy cattle are the number of cattle, the number of lactating cattle, forage, concentrates and manpower. However, only the numbers of cattle, forage, and concentrates which have significant influence, while manpower variable is a unique finding in this study because of its negative coefficient.