Internal Resources of Dairy Cattle Farming Business and Their Effects on Institutional Performance and Business Development

The purpose of this study was to identify the area mapping and internal resources of dairy cattle farming business and to assess their effects on institutional performance of the business risk aspects. The research was carried out at the National Dairy Cattle Area (KPSPN), Malang District, East Java Province, involving all 174 dairy cattle farmers/members of the Tirtasari Kresna Gemilang Business Group (KUB). The data were subject to PLS (Partial Least Square) analysis. The results showed that internal resources had an effect on institutional performance by 23.4%, while business risk aspects were influenced by internal resources and institutional performance by 54.7%. The institutional performance of dairy farmers in KUB Tirtasari Kresna Gemilang was influenced by the internal resources of dairy cattle business (23.3%), while internal resources and institutional performance of dairy cattle farmers affected all together the development of livestock business by 54.6%. The development of dairy cattle farming business was conducted by harnessing all potential resources, including institutional carrying capacity of farmers. Farmers' potential resources must be considered as their accessibility to resources also affected the business development.