E-ISSN: 2963-3699

P-ISSN: 2964-0121

Homepage: Homepage: https://return.publikasikupublisher.com

This work is licensed under CC BY-SA 4.0

STRATEGY TO IMPROVE COMMUNICATION BETWEEN FARMERS AND

COMPANIES IN THE BOILER CHICKEN SUPPLY CHAIN

Eileen Nathania

, Mirwan Surya Perdhana

Faculty of Economics and Business Diponegoro University, Semarang, Indonesia

1,2

[email protected]

, mirwan@live.undip.ac.id

ABSTRACT

Communication problems are still the main thing in carrying out the company's strategy. This is a

challenge for farmers to build good relationships and relationships with partners who are partners in

cooperation in the livestock sector. There is no research related to the relationship between companies

and companies in Central Java and qualitative research, so it is necessary to conduct this research So this

study also analyzes what is carried out where companies must have character, trust (with mutual trust),

open communication, be fair and dare to take risks. Therefore, this study aims to fill the gap / gap of

previous research related to the topics previously described. The research method used is qualitative

research method. This research approach uses phenomenological methods. The study was conducted in

the close farm area of broiler chickens spread across Central Java and samples of 7 chicken coops to

represent the Central Java area. Based on the experience of 7 Saorce Person, the majority of decisions to

cooperate with companies are due to direct interaction communication from the company (Interactive

Communication). Communication is carried out formally at the cooperation agreement stage at the

beginning before joining the partnership. When there is a problem during the cooperation period, the

majority of farmers understand and seek solutions together with the company. The beliefs of each

resource person vary based on each individual's experience. There are resource persons who believe in

the company because of the company's image, trust the company because of closeness or Personal Bound

with Area managers / Supervisors / Staff.

Keywords: Communication Improvement Strategies; Supply Chain; Boiler Chicken Farmer

INTRODUCTION

Based on the Central Bureau of Statistics (BPS, 2020) production of purebred chicken meat

in Central Java province amounted to 681,384 tons per year. The high production of purebred

chickens supports the attractiveness of partners who want to join a broiler yam flavored livestock

service provider company. With so many enthusiasts to establish a modern cage, the partner

carries out a contract farming system or animal husbandry that is carried out contractually within

a certain period of time. This system aims to prevent food safety risks to consumers. In developing

countries, of course, it has a high enough potential to develop a contract farm system. This system

will expand market share because it can produce a larger number of boiler chickens (Wang et al.,

2014).

The advantage of a contract farming system is that it can get leading services directly in

terms of technology. A good relationship between partners will improve the performance of the

alliance. The agricultural sector certainly collaborates a lot with farmers (Trebbin, 2014). The

close farm contract system for broiler chickens makes the farmer very dependent on the company.

To improve the harmony of relations between farmers and companies, good communication is

needed in the long term because basically the broiler chicken close farm business cannot be

separated from the risks that occur such as production selling prices, weather changes during

production which have an impact on decreasing production. Supply chains in livestock such as

meat farmers, egg farmers, feed and finished products / waste (Manning et al., 2007).

Communication problems are still the main thing in carrying out the company's strategy.

This is a challenge for farmers to build good relationships and relationships with partners who are

partners in cooperation in the livestock sector. The problem experienced between the two is

generally the level of trust and commitment. Organizational relationships are expected to run both

formally and informally (Cao & Lumineau, 2015). Therefore, the company is required to be able

to follow a good communication flow. This is due to the lack of views on the perspective from

the company's side with farmers in quantitative studies.

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

Return: Study of Management, Economic and Bussines, Vol. 2 (7), July 2023

685

There is no research related to the relationship between companies and companies in

Central Java and qualitative research, so this research needs to be carried out. Based on previous

research conducted by Ridwan (2015) about the pros and cons of Contract Farming partnerships

in broiler chicken agribusiness in South Sulawesi, from the results of his research it was found

that farmers only understand the limited procedures for enforcement before to after production,

the productivity of cultivation activities which is illustrated by one of the indicators, namely FCR

(Feed Conversion Ratio) as well as profit sharing that is highly dependent on partners. Here the

breeder has a very weak strength. So this study also analyzes what is carried out where companies

must have character, trust (with mutual trust), open communication, be fair and dare to take risks.

Therefore, this study aims to fill the gap / gap of previous research related to the topics previously

described.

Broiler Chicken Industry With Closed House System

In the broiler farming industry, broiler chickens have 2 types of cages, namely cages that are open

/ open house and cages that are closed / closed house. A close house cage is a cage with a closed

system where the cage has a regulation of temperature, humidity, wind speed and light entering

the cage. In the close house cage, broiler chickens are designed with conditions as comfortable

as possible so that broiler chickens can develop optimally and avoid stress. This cage system is

set with a lower temperature inside the cage than outside the cage (Parkhurst et al., 1988). The

production of broilers otherwise known as broiler chickens involves rearing. Maintenance in the

form of feeding, drugs and vitamins. There are 3 important factors in running the broiler chicken

industry, namely timely feeding, good management and sanitation.

Broiler Chicken Partnership

Partnership is a business that is carried out in collaboration between farmers and companies

that act as service providers with the aim of developing and providing guidance to farmers.

Partnership has the principle that both parties can benefit each other according to Yuli an i, (2004)

in (Raharjo & Ir Herrukmi Septa Rinawati, 2019). The broiler chicken partnership or known as broiler

chicken has been implemented in Indonesia since 1984 and regulated in the Decree of the Minister

of Agriculture. Based on the Regulation of the Minister of Agriculture of the Republic of

Indonesia Number 13/Permentan/Pk.240/5/2017 that livestock business partnerships are

cooperation between livestock businesses based on the principles of mutual need, strengthening,

benefit, respect, responsibility, and dependence. Farmer is an individual Indonesian citizen /

corporation who conducts livestock business. A livestock company is an individual or corporation

in the form of a legal entity or not established and domiciled in the territory of the Unitary State

of the Republic of Indonesia that manages livestock businesses with certain criteria and scales.

Companies that cooperate with farmers are responsible for providing chicken breeds / DOC

(Day Old Chick), drugs, vaccines needed during the chicken rearing period and feed. In general,

farmers who run a close farm system use a plasma core pattern where the relationship between

livestock companies and / or companies in other fields as the core and breeders as plasma.

Business to Business / B2B

Business to business atau b2b adalah pasar bisnis telah didefinisikan untuk mencakup:

organisasi yang membeli produk dan jasa yang digunakan untuk memproduksi produk lain dan

jasa yang ditawarkan kepada pihak lain (Zimmerman & Blythe, 2017). The market share of this

business consists of all organizations that provide goods and services (Kotler & Keller, 2016). It

can be interpreted that all organizations produce goods and services that will later be traded to

business customers or retailers with the aim of being reused which will later be traded to

customers. This business can certainly run because of the partners who work together. The factors

that affect the course of B2B are as follows (Lostakova & Pecinova, 2014).

a. Organizational behavior that provides human resources to serve the partnership.

b. Supplier-Customer Relationship.

c. The existence of certain activities organized by organizations / companies with partnerships.

d. Supplier flexibility in serving customers.

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

686 Return: Study of Economic And Business Management, Vol 2 (7), July 2023

The business to business (b2b) transaction process involves partnerships, governments,

manufacturers (service providers) and institutions.

Factors Affecting Success In Corporate Alliances

Consumer satisfaction based on a psychological approach according to Oliver, (2010) in

(Aliman & Mohamad, 2016). Satisfaction is the response from consumers from the assessment of a

product / service offered. Consumers certainly have their own standards for a product / service.

Standards can come from previous experience and diverse sources of information. The breeder

trusts the company. To increase trust in consumers, of course, it is necessary to do relationship

management or known as relationship management. When a company cannot implement the right

strategy to get the hearts of consumers, then cooperation between the two parties is carried out.

The company is required to maintain a good name during the cooperation period. The goal is not

to have an unpleasant experience and be felt by consumers. Consumers who enter into a certain

transaction against the company certainly have an assumption that consumers will get something

from the company that offers products / services (Ghafouri & Weber, 2020). The key to movement

and maintaining relationships with consumers is that companies see consumers as human beings

who have minds, hearts and spirits.

Constumer Satification

In running a business, consumers are the main key. Consumer satisfaction / customer

satification is described as an overall evaluation of total purchases and customer experience in

consuming a good or service (Khadka & Maharjan, 2017). Consumer satisfaction can be said to be

an important component in business strategy and the repetition by consumers of the purchase of

goods or services. In analyzing consumer satisfaction, there are several stages of analysis models

that are adjusted by Tao (2014), The law of the management triangle describes customer

relationships where customer satisfaction correlates negatively with customer expectations.

Customer satisfaction does not only depend on the quality of service provided by the company

but also based on the perception of each different consumer. This difference in perception is

compared between individuals with each other so that companies can find a certain assessment

(Tao, 2014).

Trust

Trust is a belief from a second/third party to what the first party can rely on (Arnott, 2007).

Trust can be built in the form of relationships between suppliers and consumers in terms of

business transactions. In addition, there is honesty and openness between the two parties so that

it will affect the development of the level of trust of people in other people / organizations (Dowell

et al., 2013). It can be said that trust is a very broad concept because it will have an impact on the

micro (individual) and macro (company) levels (Dowell et al., 2013). Trust can be said to be the

glue that holds together relationships that are collaborative and as a determinant in the success of

a relationship. So the farmer can trust the company because the company is able to build trust that

can be accounted for (Salam, 2017).

RESEARCH METHOD

The method to be used in this research based on the formulation of existing problems in

the research question is qualitative research method. This research approach uses

phenomenological methods. This method is part of qualitative research. This research will focus

on the deserted resource persons, namely farmers who run partnerships with the closefarm system

in Central Java. With this phenomenological approach, it will direct the resource person to events

that occur in the environment where the source is located so that the researcher will know the

opinions expressed by the source. In addition, it also allows researchers to find out the perceptions

of the sources studied without interfering with previous opinions so that it will make it easier for

researchers to focus on perceptions of the sources.

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

Return: Study of Management, Economic and Bussines, Vol. 2 (7), July 2023

687

The study was conducted in a broiler chicken coop with a close farm system in Central

Java. Before the research was carried out with prior permits for farmers who carried out a close

farm contract system with broiler chicken rearing service providers in the Central Java area. The

sample used was between 7 samples to represent the population in Central Java. In this study,

researchers will involve 3 farmer partners and 1 manager from service provider companies. The

purpose of data triangulation is to strengthen qualitative research. In this study using interviews

to resource persons directly (face-to-face) or indirectly (via telephone or video call). The research

was conducted by visiting resource persons (broiler chicken farmer business owners or broiler

chicken coop heads) in accordance with a mutually agreed time or conducting interviews outside

the work area. The interview process is carried out with a tool, namely a questionnaire. The study

was conducted in the close farm area of broiler chickens spread across Central Java and samples

of 7 chicken coops to represent the Central Java area. The questionnaire serves as a list of

questions asked to the interviewee. After the interview, data will be obtained in the form of video

or audio. The recording results will be given a uniform format with the aim of preventing data

errors.

RESULT AND DISCUSSION

Communication

Saorce Person (NP 01)

According to NP 01 that to choose a partnership it will be easier if you know in advance

with people who can be trusted and can hold responsibility if there are certain obstacles during

the cooperation period. However, due to the fairly smooth communication between the Central

Java Area Manager and the Supervisor of PT. Unggas Baik that makes NP 01 feel comfortable

and continues to this day. From questions related to communication, researchers summarized the

results of the interview with several keywords.

Table 1

Codes Communication Dimension of Resource Person 01

Dimension 1 : Communication

Quick response

Internal relations

Relationship

Total codes = 3

Saorce Person 02 (NP 02)

In communication, PT. Partnering Together rarely visits his kennel and only exchanges

information via phone / whatsapp. However, this is not a problem for NP 02. Because all

operations in the cage must be mastered by the owner. According to NP 02, during the cooperation

process, there has been no obstacle. The delivery of information such as DOC (Day Old Chic)

shipments, medicines and vaccines is always informed. Some of the findings of the research

results from NP 02 are as follows

Table 2

Codes Communication Dimension Resource Person 02

Dimension 1: Communication

Recommendations of relatives

Quick response

Total codes = 2

Saorce Person 03 (NP 03)

According to NP 03, communication will be smoother if you get to know the

Manager/Supervisor / Staff of a company. By exchanging information with PT. Sumber Jaya is

very good. With PT. Bermitra Bersama resource persons feels comfortable because there are

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

688 Return: Study of Economic And Business Management, Vol 2 (7), July 2023

frequent field visits carried out approximately 2-3 times a week. The openness of NP 03 makes

this study successful in answering the questions asked by researchers.

Table 3

Codes Communication Dimensions of Resource Persons 03

Dimension 1 : Communication

Openness

Honesty

Internal Relationship

Company reputation

Total codes = 4

Saorce Person 04 (NP 04)

Until now the Supervisor of PT. Bermitra Bersama always visits NP 04's kennel and

exchanges information quite often. After running the cooperation for 2 years, finally NP 04

ventured to expand again by adding 1 cage in the same city and not far away. However, PT.

Bermitra Bersama communication has a major impact on NP 04 in terms of performance and

revenue. PT. Sumber Jaya never makes periodic visits and rarely communicates with NP 04.

Table 4

Codes Communication Dimensions of Resource Persons 04

Dimension 1 : Communication

Communication frequency

Openness

Internal Relationship

Total codes = 3

Saorce Person 05 (NP 05)

If NP 05 asks about the disbursement of harvest funds, it is always responded well and

payments are always on time. If the Supervisor / Staff has difficulty coming to the cage owned

by NP 05, communication is made via telephone / whatsapp and asks to send a report in the form

of photos and videos. Although initially cooperating with PT. Unggas Baik did not know its

employees at all, but according to NP 05, communication continued well and experienced

closeness during the cooperation period.

Table 5 Codes Communication Dimensions of Resource Persons 05

Dimension 1 : Communication

Kedekatan

Customer response

Total codes = 2

Saorce Person 06 (NP 06)

Communication with PT. Unggas Baik runs smoothly compared to PT. Bermitra Bersama.

According to NP 06, the comparison is in stark contrast in terms of periodic cage visits,

Surpervisor & staff responses to kennel owners.

Table 6

Codes Communication Dimensions of Resource Persons 06

Dimension 1 : Communication

Speed of responding to breeders

Respon terhadap pelanggan

Total codes = 2

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

Return: Study of Management, Economic and Bussines, Vol. 2 (7), July 2023

689

Saorce Person 07 (NP 07)

Based on the experience of NP 04, communication is quite good and smooth. In terms of

shipping goods, medicines, vaccines, the harvest time is also very smooth. So far there are no

problems with PT. Bermitra Bersama. From the results of the interview, the researcher got

answers according to the questions asked.

Table 7

Codes Dimensions of Resource Person Communication 07

Dimension 1 : Communication

Friendly

Customer response

Total codes = 2

Farmer's Positive Response to Communication

NP 01 resource person, he never moved for 4.5 years because before building the cage he

was quite close to the Central Java Area Manager. NP 01 says as follows :

“From the beginning, it has chosen PT. Unggas Baik because it was inspired by the Central Java

area manager so we were encouraged to join. For 4.5 years this has never moved. Survive because

in my opinion and the owner. It is true that other partners are better when compared to PT. Poultry

is good. But if you follow other places, the result is also the same”

The same thing was also felt by the NP 07 source that he said that the owner of the cage

still joined PT. Unggas Baik and stayed with the company because it was too comfortable with

the company.

The NP 02 resource person said as follows :

“There are obstacles because we are on a long contract because there is help, so we are

contracted for 15 years. So this is what makes us unable to move around. There are obstacles

because we are on a long contract because there is help, so we are contracted for 15 years. So

this is what makes us unable to move around.”

Negative Response of Farmers to Communication

Of the 7 speakers interviewed by researchers, there were 3 speakers who moved to other

companies, namely NP 03, NP 04 and NP 06.

NP 03 always communicates directly or by telephone with the area manager of the company PT

Sido Jaya. Here is the experience experienced by NP 03:

“First time same PT. Healthy broilers. Same PT. Healthy broilers almost 1 year (5 – 6 periods).

This covid condition made me want to move to PT. Bermitra Bersama. At that time PT. Healthy

Broilers are a bit rocking funding, prices are also falling. After that, there was also a change of

some employees and superiors, so I started to feel something strange. After that, I quickly

searched for information and finally moved to PT. Bermitra Bersama”.

According to NP 04, he moved because during joining 1 period (approximately 2 months)

did not get any benefits at all. This made NP 04 to change to another partnership. After running

for several years with the company concerned, he finally added 1 more cage that initially wanted

to return with PT. Unggas Baik with the hope of having 2 cages with the same partnership.

Breeder's Perception of Communication

An interesting fact was put forward by NP 04. NP 04 resource persons collaborated with 2

different partnerships, namely PT. Unggas Baik and PT. Bermitra Bersama. According to NP 04

that he survived because there were striking differences in characteristics and became their

respective characteristics. NP 04 says that:

“The reason I want to work with these two partners is because these 2 partnerships have different

characteristics. I describe them one by one, mba. First, I am with PT. Unggas Baik first. PT.

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

690 Return: Study of Economic And Business Management, Vol 2 (7), July 2023

Unggas Baik directly PPL always comes at least 1 week to see my cage. Even though I have

changed PPL personnel several times, it doesn't matter to me because until now the

communication has been smooth. But so far also with PT. Bermitra Bersama is no problem. But

if the chicken is sick, we immediately contact PT. Partner Together and the doctor came right

away. Communication is also smooth. They come usually 1x per period and the rest reports are

based on calls and groups on whatsapp.”

Farmer's Positive Response to Satisfaction

Farmer satisfaction is one of the important things in establishing cooperation between

companies and breeders. There is an interesting quote from NP 02 that to join one of the

companies, as a cage owner / breeder must realize that the owner will focus on visiting the cage

or just come several times in one period. Because according to NP 02 will affect the selection of

companies. Each company has its own characteristics. NP 02 says as follows :

“In terms of giving recommendations to friends who like to make a chicken coop with a

partnership system, in my opinion, what should be considered is that you focus / not on the cage.

It means this, focusing in the sense that you as the owner really – really knowing from beginning

to end means you can join the partnership PT. Bermitra Bersama. Especially in the area where I

am, such a remote place. Maybe the feed in the cage can be sold, the chicken can be removed by

our own employees and then sold to them. But if you don't focus on the cage, I think it's more

suitable at PT. Poultry is good. Because Suja helps in supervision. Because it's useless if you

have a cage that doesn't take care of it”

In the resource persons NP 01 and 05 who joined the partnership of PT. Unggas Baik will also

recommend against such companies. This is because PT. Unggas Baik provides good service and

satisfies farmers in terms of visits to cages, good sapronak quality and timeliness in the delivery

of feed, vaccines and vitamins to support broiler chicken production.

Negative Response of Farmers to Satisfaction

The experience experienced by NP 03 who was forced to move from PT Sido Jaya due to

drastic changes to the company such as changes in the Company's Operating Standards, the

number of permanent employees who were terminated. Due to the changing condition of PT Sido

Jaya, NP 03 moved to PT. Partner together. But after moving to PT. Bermitra Bersama makes NP

03 feel that there is a significant improvement. NP 06 says as follows :

“PT was previously PT. Partner together. When the cooperation was filled 9000 per cage, but

once it was also filled with 8000 heads. But to be honest to perform very, very lacking. The

performance was good in my cage when it was filled with 7000 heads. So for PT. Bermitra

Bersama I less recommend”

In the next question, the researcher asked the resource person things that need to be improved by

the company to farmers.

Farmer's perception of satisfaction

For company recommendations, the majority of resource persons gave recommendations

to PT. Good Poultry which is included in the category of actively visiting the cage owned by the

resource person. In contrast to the opinion expressed by NP 02 that what needs to be improved by

the company is communication and openness of the company to farmers. According to NP 02, the

company does not accompany farmers. This is what causes farmers to have to learn self-taught

and lack of assistance from the company. The NP 02 resource person said as follows:

In terms of communication, there have been many breeders of PT. Partnering together is a lot so

automatically there is less communication. Second, PT. Bermitra Bersama makes old breeders to

"let's learn quickly" so once you get DOC whose grade is grade 2 / 3 (down) you can still exist.

Learning for breeders both for new and old breeders must have mutual openness and PT.

Partnering Together teaches lessons to farmers and provides information in subtle ways. Because

with PT. Bermitra Bersama urges farmers to learn quickly. Because the breeder's mindset is so

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

Return: Study of Management, Economic and Bussines, Vol. 2 (7), July 2023

691

bad that he immediately feels "you know how come I get ugly, while other places can get good".

So the learning is more like being taught first before it is actually released and still exists. Yes,

back again that the characteristics of PT. Bermitra Bersama are farmers who are entirely running

and lack supervision .

Trust

The beliefs of each resource person vary based on their respective experiences. In uncertain

conditions such as the Covid pandemic where all aspects are affected.

NP 01: During pandemic conditions, there was 1 crop failure. This is due to restrictions on heavy

vehicle mobility during the PPKM period. As a result, the company found it difficult to carry out

the chicken harvesting process and was delayed.

NP 02: In a pandemic situation, NP 02 gets very good benefits because the production process is

carried out for 7 periods in 1 year (generally 5 periods).

NP 03: Early cooperation with PT. Sido Jaya continues to entrust the company. But by being

forced to move. This was realized by NP 03 because several times experienced setbacks in DOC

entry schedules and slow payments.

NP 04: PT. Unggas Baik has been a trust since the beginning of NP 04 joining. This is seen because

they want to add business in the same field with the same partnership but are rejected.

NP 05: The experience experienced by NP 05 during pandemic conditions was that the slow

chicken harvest was not in accordance with the predetermined schedule.

NP 06: The experience expressed by NP 06 during the pandemic is that his cage can operate as

usual despite a reduction in the population of broiler chicken production.

NP 07: Since 2016 until now it has not moved with other partnerships. NP 07 as the Head Manager

of the Cage stated that PT. Unggas Baik is one of the good partnerships and highly recommended.

Farmer's Positive Response to Trust

The covid pandemic was not a problem for the four speakers because during the covid pandemic

conditions it was felt that all parties were disadvantaged. The four sources said the same thing

that during the pandemic, farmers were supported by the company by still being allowed to

produce broiler chickens as before, which was quite helpful.

Negative Farmer Response to Trust

But behind all the good experiences and bad experiences, farmers from resource persons 03, 04

and 06 decided to move to a predetermined company. Speakers 01, 03, 04, 05, 06 and 07

experienced a reduction in the chicken population. This certainly has an impact on reducing

income.

Farmer's perception of trust

Overall, from the experience of NP 01 and 05 resource persons who suffered considerable

losses. According to NP 01, during the covid pandemic, the company was constrained in the

process of harvesting chickens. Trust can be held if the company is still responsible and willing

to accept the risks that exist in the field.

Discussion

Farms offered by companies with a contract system make farmers free to choose to

cooperate with companies that provide services. In Central Java, of course, there are widespread

broiler chicken farms with closed farms and contract systems. The condition of the chicken DOC

is alive and once lived. The development of broiler chicken population in Indonesia in the last 5

years is quite fructuative when compared to other livestock populations such as cattle, buffalo and

dairy cattle.

Communication

Based on the results of observations and interviews conducted by researchers, it was found

that each breeder has a different background. Some initially started working with companies

because it began by leasing land and equipment to the company. There are also those who directly

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

692 Return: Study of Economic And Business Management, Vol 2 (7), July 2023

build and choose with the company. But there are also those who move to other companies after

cooperating. Various kinds of decisions are made by farmers because to improve / maintain

performance and income. The relationship between companies and farmers is included in the

category of relationships between business and business or known as B2B (Business-to-Business).

Based on the experience of 7 speakers, the majority of decisions to cooperate with companies are

due to direct interaction communication from the company (Interactive Communication).

Farmer Satisfaction

From the results of interviews with 7 speakers, companies that will be recommended

include PT. Good Poultry and PT. Partner together. These two companies are the most superior

and recommended by many sources. In addition, breeders are satisfied because of the company's

service to breeders. The conclusion that I can draw from the interview results is that both

companies are partnership companies with reliable data. Based on the experience of resource

persons when there are unpleasant cooperation experiences such as falling prices, unstable feed

quality and late harvest schedules, as long as the company is still responsible, farmers will

continue to survive with the partnership.

Belief

Of the 7 interviewees. On average, they have been working with partnerships for more than

5 years. Cooperation takes place both those who remain with the partnership and some who move

with other partnerships. Based on observations, PT. Unggas Baik is a reliable partnership. Then

followed by PT. Partner together. Both companies have a good enough reputation that breeders

who work together from the beginning feel confident in the company.

The findings of this study are that even though farmers have experienced losses, they still

trust the company as long as the company is still responsible and does not deviate from the

agreement that has been determined.

Table 8

Farmer Response to the Company

Narasumber

Respon

Decision

Communication

Trust

Satisfaction

Have joined for approximately

5 years and so on will be with

PT. Unggas Baik

Long contract for 15 years and

extend the contract by

expanding the partnership

with PT. Bermitra Bersama

The beginning with PT. Sido

Jaya for approximately 2 years

then moved to PT. Bermitra

Bersama

04 (1)

With PT. Unggas baik for 7

years and does not move

04 (2)

After 1.5 months with PT.

Sumber Jaya then moved with

PT. Bermitra Bersama

7 years together and remain

with PT. Unggas Baik

1.5 years joined PT Bermitra

Bersama and finally moved to

PT. Unggas Baik

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

Return: Study of Management, Economic and Bussines, Vol. 2 (7), July 2023

693

Stay together with PT. Unggas

Baik and has been working

together for 7 years

CONCLUSION

Based on research conducted by researchers, it aims to determine farmers' perceptions of

communication between partnerships and companies that have been running and improve the

relationship that runs between the two parties. Communication between farmers and companies

will certainly have an impact on decision making and achieving certain goals. The following are

the conclusions obtained by researchers in this study as follows : 1) Based on the experience of 7

speakers, the majority of decisions to cooperate with the company are due to direct interaction

communication from the company (Interactive Communication). Communication is carried out

formally at the cooperation agreement stage at the beginning before joining the partnership. Then

during the cooperation process, farmers and the company carry out communication with a

personal approach (Development of Personal Bonds). 2) The level of farmer satisfaction based on

experience during the cooperation period. When there is a problem during the cooperation period,

the majority of farmers understand and seek solutions together with the company. However, if it

has harmed the farmer in terms of performance and opinion continuously, the farmer chooses to

move to another company. 3) The beliefs of each resource person vary based on each individual's

experience. There are resource persons who believe in the company because of the company's

image, trust the company because of closeness or Personal Bound with Area managers /

Supervisors / Staff. There is also derived from the company's work performance in the form of

service quality. 4) The level of trust of farmers in the company based on trust ex ante and ad hoc.

Farmers believe based on the company's reputation and recommendations from fellow partnership

partners who have carried out cooperation.

REFERENCES

Aliman, N. K., & Mohamad, W. N. (2016). Linking Service Quality, Patients’ Satisfaction and

Behavioral Intentions: An Investigation on Private Healthcare in Malaysia. Procedia -

Social and Behavioral Sciences, 224, 141–148.

https://doi.org/10.1016/j.sbspro.2016.05.419 Google Scholar

Arnott, D. C. (2007). Trust – current thinking and future research. European Journal of

Marketing, 41(9/10), 981–987. https://doi.org/10.1108/03090560710773291 Google

Scholar

BPS. (2020). Produksi Daging Ayam Ras Pedaging menurut Provinsi (Ton), 2020-2022. Badan

Pusat Statistik (BPS - Statistics Indonesia).

https://www.bps.go.id/indicator/24/488/1/produksi-daging-ayam-ras-pedaging-menurut-

provinsi.html Google Scholar

Cao, Z., & Lumineau, F. (2015). Revisiting the interplay between contractual and relational

governance: A qualitative and meta-analytic investigation. Journal of Operations

Management, 33–34(1), 15–42. https://doi.org/10.1016/j.jom.2014.09.009 Google Scholar

Dowell, D., Heffernan, T., & Morrison, M. (2013). Trust formation at the growth stage of a

business‐to‐business relationship. Qualitative Market Research: An International Journal,

16(4), 436–451. https://doi.org/10.1108/QMR-06-2011-0006 Google Scholar

Ghafouri, A., & Weber, C. (2020). Multifunctional urban spaces a solution to increase the quality

of urban life in dense cities. Manzar, The Iranian Academic Open Access Journal of

Landscape, 12(51), 34–45. Google Scholar

Strategy To Improve Communication Between Farmers And Companies In The Boiler Chicken Supply

Chain

694 Return: Study of Economic And Business Management, Vol 2 (7), July 2023

Khadka, K., & Maharjan, S. (2017). Customer Satisfaction and Customer Loyalty [Thesis].

Centria University of Applied Sciences. Google Scholar

Kotler, P., & Keller, K. L. (2016). Marketing Managemet: Vol. 15th Edition. Pearson Education,

Inc. Google Scholar

Lostakova, H., & Pecinova, Z. (2014). The Role of Partnership and Flexibility in Strengthening

Customer Relationships in the B2B Market. Procedia - Social and Behavioral Sciences,

150, 563–575. https://doi.org/10.1016/j.sbspro.2014.09.076 Google Scholar

Manning, L., Baines, R. N., & Chadd, S. A. (2007). Trends in the global poultry meat supply

chain. British Food Journal, 109(5), 332–342. Google Scholar

Parkhurst, S. M., Harrison, D. A., Remington, M. P., Spana, C., Kelley, R. L., Coyne, R. S., &

Corces, V. G. (1988). The Drosophila su (Hw) gene, which controls the phenotypic effect

of the gypsy transposable element, encodes a putative DNA-binding protein. Genes &

Development, 2(10), 1205–1215. Google Scholar

Raharjo, T. W., & Ir Herrukmi Septa Rinawati, M. M. (2019). Penguatan Strategi Pemasaran

dan Daya Saing UMKM Berbasis Kemitraan Desa Wisata. Jakad Media Publishing. Google

Scholar

Salam, M. A. (2017). The mediating role of supply chain collaboration on the relationship

between technology, trust and operational performance. Benchmarking: An International

Journal, 24(2), 298–317. https://doi.org/10.1108/BIJ-07-2015-0075 Google Scholar

Tao, F. (2014). Customer relationship management based on increasing customer satisfaction.

International Journal of Business and Social Science, 5(5). Google Scholar

Trebbin, A. (2014). Linking small farmers to modern retail through producer organizations –

Experiences with producer companies in India. Food Policy, 45, 35–44.

https://doi.org/10.1016/j.foodpol.2013.12.007 Google Scholar

Wang, L., Liu, Q., Zheng, H. E., Wu, J., & Li, X. (2014). Development of poultry production

clusters in China: A Policy Review. International Journal of Poultry Science, 13(5), 292.

Google Scholar

Zimmerman, A., & Blythe, J. (2017). Business to business marketing management: A global

perspective. Routledge. Google Scholar