Causes of panic selling in broiler farms in Malang raya

Broiler farmers in Malang Raya are not only faced with chicken performance targets
that must be achieved. However, farmers are more faced with the powerlessness to determine
prices and unpredictable market conditions. It was found that many intermediary traders were
speculating to reduce the price of chicken at the farmer level, especially during a pandemic.
Farmers experience panic selling by choosing to sell chickens below the Cost of Production
(HPP) rather than delaying the harvest schedule. The imbalance between the production price
and the sales price causes the farmers to suffer losses. An analysis of the factors causing panic
selling was carried out to find out the root of the problem in order to create a solution for chicken
price stability at the farmer level. This study used a descriptive research design through filling
out questionnaires by 30 respondents. Data analysis used quantitative descriptive and Partial
Least Square (PLS-SEM). The results showed that the factors causing panic selling in broiler
farms in Malang Raya were internal factors (38.9%), demography (29.9%), the Covid-19
pandemic (15.3%) and external factors (0.6%). External factors were confirmed to significantly
strengthen the influence of the Covid-19 pandemic on panic selling with a p-value of 0.035 and
a path coefficient of 29.6%. In addition, internal factors were confirmed to significantly
strengthen the influence of demography on panic selling with a p-value of 0.083 and a path
coefficient of 23.2%. The biggest cause of panic selling is internal factor so that the selection of
sapronak used and maintenance management determines the mortality rate of the chickens and
the performance of the chickens produced. Because both of them determine the income earned
by farmers as a motivation to remain wise in raising livestock.