Production Characteristics and Risk Analysis of Dairy Farming Enterprise in Sleman District, Yogyakarta, Indonesia

The eruption of Mount Merapi led to a decline in milk production due to the loss of dairy cows, significantly affecting the local dairy farming industry. The study aimed to analyze various business risk factors in dairy cattle businesses in Sleman Regency, Yogyakarta. A purposive random sampling was used for this study to choose respondents. The risk of dairy cattle business was analyzed by fishbone diagrams and Failure Mode and Effect Analysis. The results show that the institutional conditions of dairy farmers and their management remain highly dependent on existing institutions, including village cooperatives and the milk processing industry, which continue to have a strong influence on the sector. In terms of livestock farming, the cattle population has increased; however, challenges remain in housing management, milk production, and breeding practices. The current distribution and marketing of milk still depend on cooperative units and the existing milk processing industry. There has been no increase in farmer participation in improving the value chain. Six key risk factors significantly impact the dairy cattle business in the area: input procurement, livestock management, milking practices, product sales, geographical/ environmental conditions, and social risks. Among the identified risk factors, input procurement (F1) has the greatest impact on the dairy cattle business, accounting for 48.51% based on factor weighting. Farmers believed that the aspects of geographical conditions have a significant effect on dairy cattle farming activities. Farmers also believed that running a dairy cattle farming business area was quite profitable. Keywords: Business risk, dairy cattle, disaster-prone area, milk production, market access, disease management.