Financial Analysis of Beef Cattle Business in People's Farms of Pulau Rakyat District Asahan Regency

Abstract

Beef  cattle are raised  with the main purpose of producing meat. This study aims to determine the financial aspects of breeders on raising beef cattle and whether  raising  beef  cattle can  help the financial of breeders.  The  research  was  conducted  in Pulau Rakyat subdistrict, Asahan Regency from  July until August 2020. The types of data used were primary data and secondary data. Determination  of  the sample by stratified sampling, namely  by dividing three groups  based  on beef cattle population,  namely  the  low  population  group (1-10 cattle), the medium population group (11-20 cattle) and the high population group (21-41 cattle), then by purposive sampling, namely took 9 farmers from each population group. The data analysis method used financial analysis. Parameters were R/C, BEP, Net B/C, Gross B/C, NPV, IRR and PP The results showed that the breeders' acceptance could meet the production costs so that the income was positive or profitable. Financial analysis of beef cattle raising were obtained R/C value >1, BEP value >0, Net B/C value and Gross B/C >1, NPV value  >0 or  positive  value,  IRR  value were 25.85%,  25.80%  and 26% which were higer  than interest rate of 16.75%  respectively. The PP value was 7, 7 and 5 months respectively before the project age (5 years).