SMALL SCALE DAIRYING IN THREE FARMING SYSTEMS IN EAST JAVA I. FARMER'S INCOME AND HOUSEHOLD CHARACTERISTICS

The annual income (gross margin) in 1989/90 of a sample of 274 farmers in seven milk cooperatives was analyzed in the sugar cane, cassava, and horticulture areas in East Java. On average dairying contributed 42%, crops 29% and off-farm revenue 29%. Dairy income was highest in the cassava area, where it compensated for the low crop income, and lowest in the sugar cane area. Farm area and average milk yield per day per cow correlated positively with farmer's income, whereas crop income increase significantly with farm area and with the number of cows. The level of total cost per cow had a negative impact on dairy and with the number of cows. The level of total cost per cow had a negative impact on dairy and on total income. Government officials and other professionals engaged in dairying had a significantly higher total income than those with their main occupation in dairying, cropping or working as farm labourers. Uneducated farmers obtained a significantly larger income through crops, whereas farmers with tertiary education obtained more income through off-farm work, This study suggests that more attention must be paid to the actual use of labour and the improvement of the dairy output/cost ratio.