JRSSEM 2023, Vol. 02, No. 7, 1341 – 1350
E-ISSN: 2807 - 6311, P-ISSN: 2807 - 6494
DOI : 10.36418/jrssem.v2i07.376 https://jrssem.publikasiindonesia.id/index.php/jrssem/index
THE EFFECT OF INSTITUTIONAL MANAGEMENT QUALITY
IMPROVEMENT OF LIVESTOCK GROUP ON THE WELFARE OF
PEOPLE'S FARMERS
Ferdi Fathurohman
Program Studi Agroindustri, Politeknik Negeri Subang, Indonesia
*
e-mail: ferdifathurohman@polsub.ac.id
*Correspondence: ferdifathurohman@polsub.ac.id
Submitted
: 09
th
January 2023
Revised
: 16
th
February 2023
Accepted
: 20
th
February 2023
Abstract: Farmers in Subang Regency, West Java Province, are still focused on conventional
farming and have not used group management. So that the level of welfare of farmers in Subang
Regency is still not optimal. This study aims to look at the institutional management problems of
smallholder livestock herds, increase the knowledge and skills of smallholder breeders in
institutional procedures and livestock management and see the effect of increasing the quality of
institutional management on the welfare of smallholder breeders. The method used in this
research is FGD, counseling and coaching related to institutional and governance procedures,
monitoring and evaluation by giving questionnaires to farmers through interviews and
descriptive analysis. The results of this study, first, the problem of farmers is the low management
of group institutions, especially regarding administration, feed and sales, breeders can
understand and practice the procedures and institutional governance of beef cattle groups as an
effort to increase additional income for the value of the cattle themselves, improve the quality of
management groups have a significant effect on increasing group welfare. The conclusion of this
study is that the problems that exist in smallholder farmer groups are the institutional problems
of the livestock group that are not good including administrative management, storage and
marketing. The training and assistance provided to farmers is able to understand and practice the
procedures and governance of institutional management of beef cattle. Improving the quality of
group institutional management has a positive and significant effect on improving the welfare of
smallholder breeders.
Keywords: Institutional Management; Welfare Improvement; Beef Cattle; Subang.
Ferdi Fathurohman | 1342
INTRODUCTION
Community development is a series of
continuous activities and is an effort to
develop community capacity so that they
are able to carry out productive businesses
in their respective fields independently.
Community development, especially
agricultural and livestock communities,
must be carried out from upstream to
downstream. According to (Fathurohman,
2018) In the future, community
development has a vision, namely to
create a society that is advanced, efficient,
and resilient, competitive, independent
and sustainable and able to empower the
people's economy (Yuliasari, Fauzi, & Ishak,
n.d.).
The Ministry of Agriculture has
determined that West Java, especially
Subang Regency, is one of the regencies in
West Java as a beef cattle commodity area
which is also a center for beef cattle
farming in West Java which is designed as
a test in order to show the effectiveness of
a program implementation, knowing the
impact of program implementation
(AMAM et al., 2021). and its economy.
Subang Regency was chosen as a beef
cattle commodity area because it has
natural resources and facilities and
infrastructure that support the
development of beef cattle. Subang
Regency is expected to be one of the
agricultural areas for beef cattle
commodities in Indonesia which can
contribute to the supply of national fruit
(Andriaty, Artati, & Juariah, 2016)
In connection with the above, the
Subang regency government focuses the
development of beef cattle on sectors that
have high added value. It is hoped that by
having high added value it can create
sovereign, just and independent beef
cattle breeders. One of the groups or
fostered that was used as a pilot is located
in Cipunagara District and Cibogo District,
Subang Regency, West Java (Harsita,
Rusdiana, & Luthfi, n.d.). These two sub-
districts have several livestock groups, but
the largest are the Bina Insani group in
Cipunagara District and the Mandiri Jaya
group in Cibogo District which consists of
more than 25 members. (Subang State
Polytechnic, 2015)
One of the most important factors in
the livestock business is institutional
governance or institutional management
and the livestock supply chain. However,
there are still many people who sell
livestock directly to collectors without
carrying out sales management and
measuring livestock weight. so that the
value of the livestock itself is determined
by collectors which makes the value of
livestock less than optimal. Many breeders
suffer losses due to production costs that
are higher than the selling price of
livestock (Fathurohman, Baharta, Purwasih,
et al., 2020). This is due to a lack of
understanding of livestock management
and lack of institutional management
within the breeder itself, this is because
80% of the price chain or supply chain of
beef cattle is influenced by factors outside
the breeder and 20% of internal factors
from the breeder (Fathurohman, Baharta,
No, & Lampung-Lampung, 2020), meaning
that prices are controlled by traders not by
farmers. (Mahaputra & Kurniadhi, n.d.).
In general, agricultural business,
especially beef cattle, has several risks that
1343 | The Effect of Institutional Management Quality Improvement of Livestock Group on The
Welfare of People's Farmers
are often faced, namely price, feed,
disease, marketing, and the trade chain,
these risks vary depending on the
production center area (Fathurohman,
Sobari, & Safitri, 2017). Based on the
explanation above and the survey
conducted in Subang Regency, several
problems related to sales are still through
middlemen and the ineffectiveness of
group management (Rohman, 2016).
This research is intended as an effort
to overcome the above problems and
increase the knowledge of the community,
especially farmer families through
counseling, training and coaching
regarding simple herd management and
livestock sales procedures and at relatively
affordable costs. (Vernanda, Abdullah, &
Rohendi, 2018)The target to be achieved
from this research activity is to increase
the community's knowledge and skills in
the development of agricultural product
development, especially beef cattle
through increasing the selling value and
improving management of more efficient
group management (Susandy & Prasetyo,
2016). The output of this research activity
is scientific publication.
This research is to look at the
institutional management problems of
people's livestock groups, increase the
knowledge and skills of people's farmers in
the procedures and institutional
governance of livestock groups and see
the effect of increasing the quality of
livestock management on the welfare of
people's farmers.
MATERIALS AND METHODS
Research activities were carried out in
Cipunagara District and Cibogo District,
Subang Regency from July to November
2022. The methods used in carrying out
this research were carried out in three
stages, namely:
First, the Focus Group Discussion
(FGD) and counseling stages were carried
out using the lecture method, and
discussions related to community
problems and group management. The
second stage was training and mentoring,
carried out using the direct training
method with practice, namely by
improving the management of green
fodder storage with elephant grass raw
materials that are of poor or inadequate
quality (Widnyani, Astitiani, & Putri, 2021).
In addition, assistance is provided for
the formation of group management. The
three stages of monitoring, evaluation
(monev) and testing are carried out by
recording livestock productivity and
increasing income and monitoring the
development of the green feed storage
skills that have been given. Monev is also
carried out on group management in each
group for uniformity. Questionnaires are
given by way of interviews to find out
whether there is an effect of improving
group institutional management on
increasing livestock welfare.
This study uses descriptive analysis
using surveys. Collecting data with a
questionnaire which is a list of questions
given to breeders after training, group
management assistance and evaluation
monitoring. The variables used as
indicators are improving the quality of
group management (X) and increasing
welfare (Y). testing is done by Linear
Regression method.
Ferdi Fathurohman | 1344
Considering that data collection was
carried out through the use of a
questionnaire, the factor of the
seriousness of the respondents in
answering the questionnaire is very
important, therefore it is necessary to carry
out validity and reliability tests beforehand
to ensure that the measuring instruments
used in this study are valid and reliable.
Regression analysis is to measure
whether there is an effect of increasing the
quality of group management on
increasing welfare, with the analysis used
linear regression analysis using the SPSS
application, it can be formulated as
follows:
Y = a + b1 . x1 + e
Where :
Y = Welfare improvement
a = Constant number
b1 = Regression coefficient for improving
the quality of group management
x1 = Improved quality of group
management
e = Errors
A statistical T test was also carried out
to show how far the influence of one
explanatory variable individually explained
the variation of the dependent variable.
The t test statistical formula as follows is:
th=β1/(SE(β1))
Where :
th = calculated t value
𝛽1 = regression coefficient
SE (𝛽1)=Standard error in regression
coefficient
Hypothesis testing steps
H0 : ts < 0 : indicates that there is no
effect between improving the quality of
group management and increasing farmer
welfare.
H1 : ts > 0 : indicates that there is an
influence between improving the quality
of group management and increasing the
welfare of breeders.
The decision criteria are:
a. If t count > t table, and sig < 0.05 then
H0 is rejected and H1 is accepted;
b. If t count < t table, and sig > 0.05 then
H0 is accepted and H1 is rejected;
c. Significant level = 5%;
d. Degrees of freedom (df) = n – 3.
RESULTS AND DISCUSSION
The research was carried out in
Cibogo District, Subang Regency from July
to November 2022. This activity went
through 3 stages, namely the FGD and
counseling stages, training and mentoring,
as well as monitoring and evaluation by
giving farmers questionnaires to measure
whether there is an effect of increasing the
quality of institutional management on the
welfare of farmers.
Research activities in Cibogo District
have known indicators of increasing the
selling value of livestock and the quality of
feed which is getting better with
increasing ability of breeders to store
green fodder, improving group
management by recording all transactions.
The target of this research activity is
achieved by increasing the knowledge and
skills of breeders in managing breeder
institutions and groups and improving
1345 | The Effect of Institutional Management Quality Improvement of Livestock Group on The
Welfare of People's Farmers
institutional governance so that they can
increase the selling price and of course
increase the income and welfare of
breeders, besides that there are
management standards in the group.
The results achieved in each stage of
the research are. In the FGD and
counseling stages, it was recorded that
there were problems with the breeders,
increasing the knowledge of livestock
management and group management,
increasing the standards of group
management and mainly regarding
increasing the value of livestock business
as an effort to develop the welfare of
livestock breeders. Farmers understand
and understand effective and efficient
group management.
The results of the training and
mentoring phase were to increase the
knowledge and skills of farmers in
managing the management of poor
quality forage storage, increasing the skills
of breeders in group administration. The
training phase ends with standard setting
of good group management.
In the monitoring and evaluation phase
and testing, the results of monitoring and
evaluation showed an increase in
knowledge and skills of farmers in storing
green fodder, increasing administration
order and increasing the selling value of
livestock. besides that there is uniformity
in group management which is more
efficient and effective than before. The
results of the distribution of
questionnaires to see the effect of
increasing institutional quality on
improving the welfare of people's livestock
are obtained as follows.
a. Instrument Validity Test
Testing the validity of each item is used
item analysis, which correlates the score
of each item with a total score which is
the number of item scores. According to
(Sugiyono & Peneliti, 2008) that an
instrument is said to be valid if the
correlation coefficient between
items/items is positive and the
magnitude is 0.3 and above with an error
rate (alpha) of 0.05. The following can be
shown in Table 1, the results of the
validity test of each item in each variable
in the questionnaire.
Table 1. Validity Test Results
Variable
VariableName
No
Indicator
Coefficient
Correlation
Information
Independent (X)
Institutionalquality
improvement
1
0,646
Valid
2
0,620
Valid
3
0,823
Valid
4
0,764
Valid
5
0,614
Valid
6
0,611
Valid
7
0,734
Valid
8
0,662
Valid
9
0,769
Valid
10
0,769
Valid
Dependent (Y)
welfare improvement
11
0,791
Valid
Ferdi Fathurohman | 1346
12
0,701
Valid
13
0,748
Valid
14
0,697
Valid
15
0,775
Valid
16
0,724
Valid
Based on Table 1, all item correlation
coefficients for each of the variables studied
were above 0.3 and the correlation
coefficient showed significance or was less
than 0.05, so that the items used in this study
were said to be valid and appropriate for all
targeted respondents. Instrument Reliability
TestThis reliability test is used to measure the
internal consistency of the indicators of a
construct which indicate the degree to which
each indicator indicates a general construct.
In other words, how specific things help each
other in explaining a general phenomenon
(Sugiyono & Peneliti, 2008). Testing the
reliability test of the instrument in this study
used the SPSS program, in which this test
was carried out by means of a oneshot or
one-time measurement. A variable is said to
be reliable if it gives a value of Cronbach
Alpha (α)> 0.6. The results of the reliability
test for each variable used in this study can
be seen in Table 2.
Table 2.
Reliability Test Results for Each Variable Used in Research.
Table 2 shows that all the variables
used in the study have a correlation
coefficient of Cronbach alpha above 0.6.
This means that all variables in this study
are declared reliable, and the instrument
can be continued to be used for all
targeted respondents.
The data analysis method used is linear
regression with the use of least squares
equations in model estimation. Linear
regression is used to determine the
functional relationship between the
dependent variable (Y) and the
independent variable X. A linear regression
model with one independent variable can
be formulated as follows:
Y=a+b_ X_
Where :
Y = The dependent variable (tied) in this case
the increase in welfare
a = Intercept, shows the value of Y when X =
0
b = Regression coefficient, which is the
magnitude of the change in variable Y due to
changes in each unit of variable X.
X = Independent variable 1 (free) in this case
increasing institutional quality
Variable
VariableName
Cronbach Alpha coefficient
Independent (X)
institutional quality
improvement
0,905
Dependend (Y)
welfare improvement
0,829
1347 | The Effect of Institutional Management Quality Improvement of Livestock Group on The
Welfare of People's Farmers
The results obtained after the data were
processed with the help of the SPSS
program are presented in Table 3.
Table 3.
Multiple Linear Regression Analysis Results
Coefficients
a
Model
Unstandardized
Coefficients
Standardized
Coefficients
t
Sig.
B
Std. Error
Beta
1
(Constant)
1.722
3.146
.547
.588
institutional
quality
improvement (X)
.179
.086
.357
2.079
.046
a. Dependent Variable: increase in welfare (Y)
The regression equation is Y = 1.722 +
0.179X
- Constant of 1.722; meaning that if the
value of increasing institutional quality is 0,
then the value of increasing welfare is
1.722.
- The variable regression coefficient for
increasing the quality of group
management (X) is 0.179; meaning that for
every increase in institutional quality by 1
unit, it will increase welfare by 0.179 units.
A. Estimator Parameter Accuracy Test Results
(T Test)
The t test on multiple linear regression
is used to find out whether there is a partial
effect between the independent variables
on the dependent variable. In this study
using the SPSS program. The results of the t
test obtained are presented in Table 4.
Table 4.
T test results (partial test)
Coefficients
a
Model
t
Sig.
Decision
1
(Constant)
.547
.588
institutional management quality
improvement (X)
2.079
.046
There is influence
a. Dependent Variable: increase in welfare (Y)
Testing the variable coefficients for
increasing institutional quality
Testing steps as follows:
1. Determine the null hypothesis and
alternative hypotheses.
Ho : b = 0 (increasing the quality of
institutional management has no effect on
increasing welfare)
Ha : b ¹ 0 (increasing the quality of
institutional management affects the
increase in welfare).
2. Determine t arithmetic
Based on the table above, a t count of
2.079 is obtained
Ferdi Fathurohman | 1348
3. Determine t table by using a = 0.05
Table t can be seen in the appendix at a =
0.05 : 2 = 0.025 (2-tailed test) with degrees
of freedom (df) n-k-1 or 36-3-1 = 32. With
2-sided testing, the results obtained for the
table are +2.037 / -2.037.
4. Testing criteria
a. Ho is accepted if -t count³ -t table or t
count ≤ t table
b. Ho is rejected if -t count < -t table or t
count> t table
5. Compare the count with the table
count > table (2.079 > 2.037), then Ho is
rejected
6. An image of the effect of increasing the
quality of institutional management on
increasing welfare can be seen in Figure 1.
Ho Determination Area
X's influence on Y
- 2,037 + 2,0372,079
Figure 1.
The effect of increasing the quality of institutional management on increasing
welfare.
CONCLUSIONS
t count > t table (2.079 > 2.037), then
Ho is rejected, meaning that the increase in
the quality of institutional management
leads to an increase in the welfare of
members of the most populous groups. A
positive t-count value means that it has a
positive effect; if the quality of institutional
management increases, the welfare of
people's farmers will also increase.
The results of statistical data analysis
prove that there is a positive and significant
influence between improving the quality of
institutional management on enhancing
people's livestock welfare, as indicated by a
significance value of 0.046 which means
less than 0.05. This study found a positive
and significant effect of increasing the
quality of institutional management on
growing people's livestock welfare. This
means that the better the quality of
institutional control in a group of people's
livestock, the higher the increase in the
interest of people's livestock in that group
of animals and vice versa; if the quality of
institutional management is low, it will lead
to a decrease in the welfare of farmers.
To improve the welfare of people's
farmers in a group, interested parties such
as the government and NGOs must always
pay attention to factors that encourage
productive welfare improvement, one of
which is to improve the quality of group
management. By paying attention to the
quality factor of group management,
farmers in carrying out their livestock
production functions will always be
accompanied by feelings of pleasure and
not forced and have high morale. This is
Howasreject
ed
Ho accepted
Howasreject
ed
1349 | The Effect of Institutional Management Quality Improvement of Livestock Group on The
Welfare of People's Farmers
relevant to opinion (Handoko, 2011). When
an employee feels satisfied at work, the
employee will make every effort to
complete his work, resulting in high service
quality. This is in line with previous research
by (Andy et al., 2016).
Testing the variable coefficient of
increasing the quality of institutional
management (b) answers one of the
objectives of this study is to analyze the
effect of increasing the quality of
institutional management on the welfare of
people's livestock farmers. In this case,
there is a positive and significant influence
between improving the quality of
institutional management and the welfare
of people's farmers.
Even so, some obstacles were found
during a research series, and hopefully, this
will become an evaluation and
improvement for future research activities.
These obstacles were changes to the
schedule that had previously been agreed
upon by the Implementation Team and
breeders, resulting in delays and merging
of previously planned activities and a lack
of enthusiasm for breeders to participate in
the research series, so the material
presented was uneven.
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