FACTORS AFFECTING AGROINDUSTRY DEVELOPMENT ETTAWA (PE) BREEDING GOAT MILK IN DAERAH ISTIMEWA YOGYAKARTA

The demand for animal food product in Daerah Istimewa Yogyakarta (DIY), the Special Region in Java, over the last ten years has shown a significant increase. This is in line with the increase in the population of DIY and also the increase in the income per capita of the people in DIY in meeting the adequacy of food sources of higher quality protein. One of the requests for animal food products other than meat is milk. The milk that is currently starting to develop apart from cow’s milk is goat’s milk, especially the type of goat’s milk from Ettawa Crossbreed (PE). This paper is the result of a research that aimed at analyzing the factors that influence the development of PE goat milk business in DIY, viewed from the supply and demand side. The analytical method used is descriptive with a simultaneous equation modeling approach. The results showed that simultaneously the variables of the population of PE goats, the amount of milk production of PE goats, the amount of milk production of PE goats in the year prior had an effect on the supply side. Meanwhile, on the demand side, simultaneously, the factors that influence the demand for PE goat milk are the population of DIY, income per capita, the price of PE goat milk and consumption of PE goat milk in the year prior. The study on the development of PE goat’s milk business was carried out with a simple descriptive analysis showing that in the future the demand for PE goat’s milk will increase, it is necessary to make efforts to strengthen the potential of PE goat’s milk in DIY, especially in terms of milk products processing business and their derivative products. It is hoped that in the future PE goat’s milk can play more role as a substitute product for cow’s milk in DIY.