Intangible costs resulting from inefficient feeding and water usage in smallholder dairy farm in Indonesia

Background and Objective: In terms of the environment, dairy cattle production uses input resources such as forage feed and water sources and if not used optimally will lead to inefficiencies that affect the productivity of the business. This study aimed to identify current condition of management of dairy cattle based on the business scale and calculate the efficiency of resources input utilization based on feed and water requirement and availability. Methodology: Respondents were dairy smallholder located in Sleman Regency, Yogyakarta-Indonesia. At least 100 respondents of dairy smallholder were selected as samples using purposive sampling method based on the number of cattle ownership low scale (1-2 head), moderate scale (3-4 head) and high scale (>5 head). Identification of the maintenance condition of dairy cows by the scale of business and eco-efficiency assessment were analyzed with quantitative and descriptive using tables. Results: The results showed that the bigger scale of business has inefficiency of the unutilized feed remains would increase the amount of cost by IDR 22,185.00 day–1 in the group pens (colony) and IDR 74,145.00 day–1 in individual pens. The use of water in dry season was more emphasized for watering forage plants instead for cattle raising. In order to reduce the cost of feed during dry season. Conclusion: Inefficiencies in the use of feed input and providing water sources by farmers in the colony pens and individual pens have an impact on the decrease in economic value. Therefore, it is necessary to conduct a more in-depth study on the calculation of feed inefficiency views of the environment and its effect on the production of which the provision of feed as seen from the N/C balance ratio. In addition, during dry season, it is necessary to provide forage through the silage-making technology. Further study is needed in accordance with the need for maintenance of cattle per day, especially for the needs of drinking water if the drinking delivery system was inefficient causing milk production to be low.