Analysis of the Farmer Exchange Rate for Dairy Cow Milk in Kemiri Village, Puspo District, Pasuruan Regency

Abstract

The dairy cattle farming sector is an important subsector in supporting food security and providing nutrition for the Indonesian people. The analysis of the Farmers' Terms of Trade (NTPT) in the livestock sector is believed to be able to determine the purchasing power of farmers in the livestock sector, reflecting the balance between income and expenses incurred for production needs and household consumption of farmers. This research aims to determine the farmer-to-livestock exchange rate (NTPT) for dairy cows in Kemiri Village, Puspo District, Pasuruan Regency, in order to assess the level of welfare and the effectiveness of livestock farming in the area. Sampling was conducted using the simple random sampling method with 80 respondents. The data analysis method is quantitative descriptive, analyzing the income and expenses of dairy farmers and the exchange rate of farm households. The research results show that the average total income from milk earned by farmers is Rp 36,902,513 per year. Meanwhile, the average household expenditure of farmers reaches Rp 21,497,438 per year. Therefore, farmers still earn a net income of Rp 15,405,075 per year. The Terms of Trade for Livestock Farmers (NTPT) in Kemiri Village ranged from 86–231% with an average of 137%, indicating that the majority of dairy farmers were prosperous (NTPT > 100). Out of 80 farmers. Thus, it can be concluded that most dairy farms in Kemiri Village are considered prosperous.