Profit and Capacity Analysis of Beef Cattle Business; Case Study

Abstract

This study aims to analyze the profitability and carrying
capacity of a beef cattle farm in Mapanget Village, Talawaan District,
North Minahasa. The respondent, Mr. Nicolaas Kandowangko, served
as the data source for this study and owned 54 cattle. This study
utilized a survey method through observation and in-depth interviews
with the sample farmers using a prepared questionnaire. The analysis
method used the profit analysis formula π = TR – TC, where π was the
farmer's profit (IDR/period), TR (Total Revenue) the value of revenue
obtained from sales, and TC (Total Cost) the total costs incurred,
consisting of fixed costs and variable costs. The study concluded that
Mr. Nicolaas Kandowangko's beef cattle farm generated a profit of
94,075,333 IDR. The research demonstrated that profitability
determination of a beef cattle business was not only based on total sales
revenue but also on the capacity to meet the livestock's feed needs.
Production costs per period were also taken into account. The R/C
ratio Mr. Nicholas beef cattle business result showed that the business
was worthy of further development.