Financial Performance of Broiler Partnership Farming: Evidence from Malang

This study assesses the income performance of closed-house broiler farms operating under a partnership scheme Malang Regency and identifies operational levers that shape profitability. A multiple-case, quantitative–descriptive approach was applied using one production period per unit, compiling technical indicators (FCR, depletion, PI), cost components (fixed and variable), and revenue items (live bird sales, performance incentives, by-products) from structured interviews and farm records. Results indicate positive but thin profitability for the observed period: revenue reached IDR 351,054,171, production cost were IDR 333,954,009, and net income was IDR 17,100,162 (margin 4.9%). The cost structure was dominated by variable costs (97.6%), with feed as the largest component (72%), while revenue was driven almost entirely by live bird sales (>99%); performance incentives and by-products were marginal. Technical performance was adequate yet improvable (FCR 1.60, depletion 3.6%, PI 347.73), suggesting headroom to raise income through better feed efficiency, lower mortality, and more uniform growth to achieve target weights on time. Given the single-period scope, multi-cycle evaluations are recommended to capture seasonal and market variability and to refine managerial recommendations for partnership-based closed-house operations.