Comparative Analysis of Mixed Farming Business Performance at Several Levels of Compost Fertilizer Use

Ardi Novra, Fatati, Mairizal

Abstract

This study aims to analyze the added value of compost use in mixed farming to diversify the compost industry's target market. The research survey was conducted in the village of Dataran Kempas on three groups of business actors in the processing plant waste and processing industry of oil palm and solid waste from cattle housing. The research uses historical data collection, interviews, and direct field observations. The Hayami method is used for added value analysis, while institutional analysis is carried out through a descriptive analysis approach. The results showed that the mixed cultivation cultivated by the three groups of farmers was not fully organic. This can be seen from using chemical fertilizers but with different levels and ratios between compost and chemical fertilizers. Nevertheless, the positive impact of the use of compost can be seen in the performance of each group's farming business. Using compost and a higher ratio of chemical fertilizers can increase cost efficiency, business profits, and the added value of better compost. The sequence of the performance of mixed farming from the highest to the lowest was MJFG, followed by KTMFG, and the lowest was SISFG, with the added value of compost at 58.79%, 37.15%, and 2.85%, respectively. Based on the study's results, it can be concluded that using compost in mixed farming will be more profitable. However, because of its slow release nature, replacing chemical fertilizers with compost must be done gradually or avoid full replacement.

 

Keywords: compost, mixed farming, performance, added value.


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