Factors Affecting Profitability on Animal Feed Companies in Indonesia

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

Les stéphanofilarioses bovines, synthèse bibliographique

La stéphanofilariose est une maladie cutanée parasitaire causée par la présence de nématodes du genre Stephanofilaria dans la peau des bovins. Le genre Stephanofilaria regroupe des petites filaires de 2 à 13 mm de long caractérisées par la présence d'un anneau de petites dents articulaires entourant la bouche et d'une couronne d'épines céphaliques. Les lésions de stéphanofilariose sont des plaies arrondies de quelques cm de diamètre (1 à 20), exsudatives, ulcératives et prurigineuses en phase active ou sèches et croûteuses lorsque la pression d'infection est moindre et qui cicatrisent très difficilement. Le diagnostic de certitude consiste en l'observation des nématodes dans les produits de raclage ou les biopsies des lésions après dépôt dans du NaCI 0,9 % pendant quelques heures ou après préparation histologique classique. L'application locale de trichlorphon ainsi que l'administration parentérale de lévamisole ou d'ivermectine permet de traiter efficacement les bovins mais un contrôle des populations d'hôtes intermédiaires est nécessaire pour éviter les récidives

Pengaruh faktor inernal dan eksternal terhadap profitabilitas perusahaan pakan ternak di indonesia

The animal feed industry supports livestock industry by produced animal feed. Feed contributions were reach 70 percent of livestock farm production cost makes feed as an important factor. In Indonesia there are four companies with the largest production of animal feed and market share which has good ability in marketing their products, it shows that net sales increase every year but unfortunetly the net profit of companies tend to decrease over the last five years. The purpose of this study was to determine the factors of internal and external effect on profitability as well as projecting company's profitability over the next five years and to formulate recommendations to improved animal feed company profitability. The study was conducted within the scope of finance at the four biggest companies in the animal feed production and market share in Indonesia 2010-2015. Internal and external factors in the company that supposed to have alleged effect on profitability Return on Assets (ROA). Internal factors namely are Sales, Cost of Goods Sold (COGS), Debt to Asset Ratio (DAR), and Total Asset Turnover (TATO) derived from secondary data in the published financial statements of the four animal feed companies which is CPIN, JPFA, MAIN, and SIPD. External factors used are exchange rate, rate of inflation, and international corn prices. Data-processing techniques used are quantitative panel data regression analysis with software EViews 9. The results showed internal factors that significantly affect ROA are sales, COGS, TATO and from the external factor is exchange rate. Variable of DAR, inflation, and international corn prices does not influence significantly. ROA projection results show an increase in 2016 compared to 2015 but this increase is not able to match the achievement of ROA in 2010, by 2017 ROA has decreased trend until 2020. Companies with highest ROA projection is CPIN and JPFA, MAIN is still stable above SIPD without negative earnings and SIPD showed an increase in profit but still below the three competitors. The implications for companies and animal feed industries in general to improve profitability is to increase sales and TATO by implementing a marketing mix strategy. Companies must also be able to reduce COGS costs where the increase is sensitive to profitability, as well as to manage exchange rate risk to anticipate exchange rate fluctuations followed by the government's active role in maintaining macroeconomic stability