INVESTMENT ANALYSIS FOR SMALL SCALE LAYER CHICKEN BUSINESS (Case Study in Triwidadi Village Pajangan Sub District Bantul Yogyakarta)

Rini Widiati(1*), Sudi Nurtini(2), Suci Paramitasari Syahlani(3), Bambang Ariyadi(4)

(1) Fakultas Peternakan, Universitas Gadjah Mada
(2) Fakultas Peternakan, Universitas Gadjah Mada
(3) Fakultas Peternakan, Universitas Gadjah Mada
(4) Fakultas Peternakan, Universitas Gadjah Mada
(*) Corresponding Author


Chicken eggs are the most popular and nutritious food in human dietary.The production activities require investments that should create benefit for the business holder, especially for small-scale entrepreneurs with capital constraint and risks. The purpose of this study was to determine investment feasibility and to set alternatives in dealing with the risks on the small scale layer business. Survey method was implemented using 73 respondents selected purposively of small scale layer chicken business in Triwidadi village of Bantul district, Yogyakarta as the sample. Data were collected by direct interview to respondents using questionnaires that related to the research problem. Analysis of investment financial feasibility criteria’s using Net Present Value, Benefit Cost Ratio and Internal Rate of Return, followed by sensitivity analysis in facing business risk.  The result revealed that the average number of birds raised was 1572 birds. The NPV was IDR 37,377,383 per 5 years of investment, B / C ratio more than 1 and IRR was 20.58%. Based on the existing production management, layer chicken investment by small-scale farmers was profitable, but farmers faced on the risk of losses due to increasing feed prices, decreasing egg prices, and increased mortality. In anticipating the risks, farmers should improve productivity so that the Hen Day Average of egg production at least was 77%, on the increase in feed prices and decrease in egg prices of 5%. Small scale layer businesses could provide employment and welfare for society of lower classes.


Chicken egg production; Investment analysis; Sensitivity analysis; Small-scale business

Full Text:



Anonim. 2014. Management Guide: Alternative Systems, Lohmann Tierzucht Products. Accessed 20 May 2017.

Ahmad, F., A. Haq, M. Ashraf, J. Hussain and M. Z. Siddiqui. 2009. Production performance of white leghorn hens different lighting regimes. Pakistan. Vet. J. 20: 21-24. 

Al-Qudah, A. A. and  M. A. M. Al-feef. 2015. The relationship between the investment in current assets and profitability and liquidity. Journal of Finance and Investment Analysis. 4: 11-22.

Aromolaran, A. K., I. O. Ademiluyi, and I. O. Jennifer. 2013. Challenges of small poultry farms in layer production in Ibadan Oyo State Nigeria. Global Journal.13: 2-10.

Badan Pusat Statistik. 2014. Statistik Daerah Istimewa Yogyakarta. Badan Pusat Statistik, Yogyakarta.

BPS. 2015. Statistik Indonesia 2015. Subdirektorat Publikasi dan Kompilasi Statistik, Badan Pusat Statistik Indonesia.

Brealey, R., S. Myers, and F. Allen. 2011. Principles of Corporate Finance. McGraw-Hill, New York.

Business News. 2011. Lonjakan harga Telur Menjelang Puasa dan Lebaran, Business News Indonesia, Juli 2011

Ditjen PKH. 2015. Statistik Peternakan dan Kesehatan Hewan Republik Indonesia. Kementrian Pertanian Republik Indonesia, Jakarta.

Duffy, P., R. Kay, and W. Edwards. 2015. Farm Management. 8th edn.  McGraw-Hill Education.

Ekunwe, P. A., O. Soniregun, and J. O. Oyedeji. 2006. Economics of small scale deep litter system of egg production in Oredo local government area of Edo State, Nigeria. Int. J. Poult. Sci. 5: 81-83.

Emokaro, C. O. and Erhabor. 2014. Comparative analysis of profitability of layers production in Esan North East andOvia North East Local Government Areas of Edo State, Nigeria. J. Appl. Sci. Environ. Manage. 18: 121-126.

Kingdom of the Netherland. 2016. The Poultry Sector in Thailand. Ministry of foreign affairs, Thailand Bangkok.

Maoba, S. 2016. Production performance and profitability analysis of small scale layer projects supported through CASP in Germiston Region, Gauteng Province. S Afr. J. Agric. Ext. 44: 42-49.

Matthews, W. A. and D. A. Sumner. 2015. Effects of housing system on the costs of commercial egg production. J. Poult. Sci. 94: 552-557.

Memon, I. N., S. Noonari, M. Asif, M. Pathan, R. Jamali, Z. Memon, D. Khan, and S. A. Sia. 2015. Economic analysis of poultry egg production in Quetta District Balochistan. J. Fisheries. Livest. Prod. 14: 5-12.

Mohamed, A., S, Hailemariam, G. Gebremedhin, and K. Gebeyew, 2016.Challenges and opportunities of small scale poultry production system in Jigjiga Zone, Somali Regional State, Ethiopia. Poult. Fish. Wild. Sci. 4: 1-6.

Nuryati, Y. and Y. H. Nur. 2012. The variability of price of ras chicken eggs in Indonesia. Buletin llmiah Litbang Perdagangan 6: 235-252.

Olawumi, S. O. 2014. Egg production of Isa Brown and Bovan Nera laying hens as affected by body weight during one year laying cycle. Int. J. Appl. Poult. Res. 3: 4-7.

Osti, R.,  D. Zhou, V. Singh, D. Bhattarai, and H. Chaudhary. 2016. An economic analysis of poultry egg production in Nepal. Pak. J. Nutr. 15: 715-724.

Setiawati, T., R. Afnan, and N. Ulupi. 2016. Productive performance and egg quality of layer in litter and cage system with different temperatures. J. Ilmu Produksi dan Teknologi Hasil Peternakan 4: 197-203.

Talukder, M. 2012. Factors affecting the adoption of technological innovation by individual employees: An Australian study. Procedia - Social and Behavioral Sciences. 40: 52-57.

Tarukallo, P. B., A. A. Unde, and Ladaha. 2014. Faktor yang mempengaruhi adopsi teknologi biopestisida oleh petani sayur di Sendana dan Purangi Kotapalopo. J. Kom. Kareba. 3: 125-132.

Uwonda, G. and N. Okello. 2013. Cash flow management and sustainability of small medium enterprises (SMEs) in Northern Uganda. Merit Res. J. Account. Audit. Econ. Financ. 1: 67-80.

Widyaningsih, W. dan F. Idayati. 2015. Analisis laporan arus kas sebagai alat ukur efektivitas kinerja arus kas perusahaan. Jurnal Ilmu dan Riset Akuntansi. 4: 1-21.



Article Metrics

Abstract views : 815 | views : 2199


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Buletin Peternakan (Bulletin of Animal Science) Indexed by:

 Harvard Library
Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.