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Household Economic Behavior of Traditional Cattle Farmers in Utilizing Artificial Insemination Technology

Household Economic Behavior of Traditional Cattle Farmers in Utilizing
Artificial Insemination Technology:  
A Case Study in Village of Kanonang III, Minahasa Regency of Indonesa

Erwin Wantasen,  Budi Hartono, Nuhfil Hanani,  Vicky.V.J. Panelewen

ABSTRACT

The aim of this research was to analyze interrelation between factors affecting the economic behavior of cattle farmers in the utilizing of artificial insemination technology as well as natural mating and the impact of changes in external factors on household economic. The measurement of artificial insemination technology used the cost of  inseminator approach. This research used survey method in order to gain and collect any information of 100 households randomly chosen. Simultaneous equation model and 2SLS method were employed in estimating all research parameters. The results, eventually,  showed that economic model of household established can well describe the interrelation between the utilization of artificial insemination technology and natural mating with the economic trait of household. Moreover, the artificial insemination technology and natural mating actually showed an impact on value added of cattle business and subsequently significantly affect the usage of family labor, the cost of forage crops, cattle health cost,  cost of stable, cattle selling value, production value of manure, rent out value of stud and value of unsold cattle. Farmer’s income significantly influence on food consumption, non-food consumption and family saving. Then, the simulation of increasing utilization of artificial insemination technology of 25% combined with the increasing of natural mating as well as cultivated land area of 25% was  the best impact toward the household economic of traditional cattle farmers.
Keywords: technology, inseminator cost, cost of natural mating, economic behavior of household

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