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Journal : Agro Ekonomi

Factors Affecting Profitability on Animal Feed Companies in Indonesia Mercky Haryo; Amzul Rifin; Bunasor Sanim
Agro Ekonomi Vol 28, No 2 (2017): DECEMBER 2017
Publisher : Department of Agricultural Socio-Economics Faculty of Agriculture Universitas Gadjah Mada

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (546.772 KB) | DOI: 10.22146/jae.26034

Abstract

The animal feed industry is essential as it supports livestock industry in meeting the need of protein of a country. Feed contribution reaching at 70 percent of livestock production cost makes feed becomes an pivotal factor which could boost its sales. Unfortunately net income of animal feed companies for the last five years tent to decrease and emerged problems. The aim of this study were to examine internal and external factors affecting profitability represented by ROA and formulate recommendations in improving them. The results showed that internal factors affecting ROA significantly are Sales, COGS, and TATO, while for the external factor is exchange rate. DAR, inflation and international corn prices do not influence ROA significantly. The implications for companies and animal feed industries in improving profitability generally is by increasing sales and TATO value. Also, the company must be able to press COGS especially raw material cost which is more sensitive to profitability when its price is higher. Companies have to conduct risk management in order to anticipate exchange rate volatility followed by government’s action as regulator in maintaining macroeconomic and trade stability.
Co-Authors . Erwidodo . Kuntjoro Aang Munawar Abdul Kohar Mudzakir Ade Supandi Adler Hayman Manurung Agus Maulana Agus Wahyudi Ahmad Saifi Athoillah Ahmad Saifi Athoillah Aida Ratna Zulaiha Aisa Rurkinantia Amri Jahi Amril Aman Amzul Rifin Ana Yuliana Jasuni Anak Agung Ketut Sudharmawan Ardianto, Luky Arief Daryanto Arief Daryanto Arief Daryanto Arkeman, Yandra Asep Kurnia Hidayat ASEP SAEFUDDIN Bambang S. Kusmuljono Bambang Trenggono Bimahri Qaulan Tsaqiela Bonar M Sinaga Bonar M. Sinaga Budi Suharjo DADANG DADANG Deden Kurniawan Dedi Budiman Hakim Dewayany Sutrisno, Dewayany Djati Kerami Djoni Hartono Dominicus Savio Priyarsono Dudi S. Hendrawan Dwi Rachmina Dwi Widodo Primantoro Dyan Vidyatmoko Dyan Vidyatmoko Eddi Wahyudi Eddi Wahyudi, Eddi Eriyatno . Ernan Rustiadi Ervina Mela Dewi, Yandra Arkeman, Erliza Noor, Noer Azam Achsani Etty Riani Gendut Suprayitno Gunawan Sumodiningrat Harianto Harianto Hendra Wijaya Heny K Daryanto Hermanto Siregar Hermanto Siregar Iik Yani Hidayati Irawadi Jamaran Jaka Suyana Jaka Suyana Joko Sutrisno JOKO SUTRISNO Kukuh Murtilaksono La Baco S Latifa Hanum Lilik Noor Yuliati Lukman M Baga Luky Adrianto Luluk Sulistiyono M Parulian Hutagaol M Yanuar J Purwanto M. Parulian Hutagaol M. Said Didu Mahruddin Harahap Marimin . Mawardi Ps Bagindo Mawardi, Muhammad Ikhwanuddin Mercky Haryo Muhammad Fahrudin Muhammad Firdaus muhammad Firdaus Muhammad Firdaus Muhammad Firdaus Mulyono S. Baskoro Muryani Muryani Naik Sinukaban Naik Sinukaban Naik Sinukaban Nunung Nuryartono Primasti Ramadhani Rahmat Ingkadijaya Rina Oktaviani Rina Oktaviani Rita Nurmalina Rita Nurmalis Riza Rahmanu Rudi C. Tarumingkeng Rui Andriano Safril Kemala Sampor Ali SANTUN R.P. SITORUS Santun R.P. Sitorus Setiadi Djohar Shally Alpriany Aisyah Slamet Budi Yuwono Slamet Hariadi Soekmana Soma Soepanto Soemokaryo Soesilo Hadimartono Sri Haryati Sugeng H. Wisudo Sumardjo Sumardjo Suria Darma Tarigan Surjono H. Sutjahjo Sutopo, Muhammad Fauzi Sutrisno Ali Teguh Saptono Tobing, Adil Ujang Sumarwan Vidyatmoko, Dyan Widadi W. Widayat Wiwiek Rindayati Yadi Suryadi Yandra Arkeman Yudha Adityawarman Yusman Saukat, Yusman Yusman Syaukat Yuwono Minto Zaim Uchrowi