Factors Influencing Beef Cattle Farmers’ Participation in Profit-Sharing System

Abstract

One type of livestock business in several of Indonesia's rural areas is the profit-sharing beef cattle farming system, where investors and livestock keepers share the profits. This profit-sharing scheme is known as the teseng system in South Sulawesi Province. This study aims to determine whether the availability of capital, land area, business scale, age, income, and the number of family dependents affect beef cattle farmers' utilization of the teseng profit-sharing system in Temmabarang Village, Penrang District, Wajo Regency, South Sulawesi Province of Indonesia. The type of research used was a descriptive and explanatory research method. Technique sampling was done by simple random sampling with 90 respondents. The data was obtained and analyzed using a well-structured questionnaire and a binary logistic regression model. The results showed that the factors that significantly affected farmers' participation in the teseng system were the availability of capital, business scale, age, and income. In contrast, the factors that had no effect were the variable perceptions of land area and the number of family dependents.

Keywords: beef cattle, capital, income, profit-sharing, teseng