Financial Aanalysis of Dairy Cattle Farming (Case Study in Pujon District, Malang Regency, Indonesia)

Dairy cattle farming in Malang Regency is spread over almost all districts, but the largest
population is in Pujon District with 24,097 heads. The purpose of this study was to determine the financial
analysis of dairy cattle farming. Sample obtained as many as 56 farmers by using proportional sampling
method. The method of analysis used is business feasibility analysis with four criteria, namely Net Present
Value (NPV), Internal Rate of Return (IRR), Net B/C Ratio and payback period (PP). The results of the study
showed (1) NPV value in group I of Rp16,756,907 and group II Rp47,415,007; (2) Obtained IRR in group I
of 4.42% and group II amounted to 8.19% greater than the stipulated interest rate of 0.58%; (3) Value of the
Net B/C ratio group I of 1.28 and group II of 1.64. So that the business of dairy cattle in Sukomulyo village
deserves to be run; (4) the payback period of group I is for 38 months 6 days or 3 years 2 months 6 days. In
the group II a period of return on investment for 18 monts 6 days or 1 years 6 monts 6 days.