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PAMBUDY / Tropical Animal Science Animal Science Journal, August 2018, 41(2):147-156
Journal 41(2):147-156
Accredited by Directorate General of Research and Development DOI: https://doi.org/10.5398/tasj.2018.41.2.147
Strengthening No: 36b/E/KPT/2016 Available online at http://journal.ipb.ac.id/index.php/tasj
R. Pambudy
Department of Agribusiness, Faculty of Management Economic, Bogor Agricultural University
Kampus IPB Darmaga, Bogor 16680, Indonesia
*Email of corresponding author: pambudy@hotmail.com
(Received 17-01-2018; Reviewed 02-03-2018; Accepted 21-06-2018)
ABSTRACT
Developing of Madura cattle should be focused on the base of Madura cattle, that is able to scale
up farmers’ profits. Expansion obstacle of livestock sub-sector closely related by adopting innovation.
Farmers require entrepreneurship skills in responding to technology development. This research
aimed to analyze factors affecting adopting innovation steps and how the adoption can be influenced
in forming entrepreneurship status of Madura cattle farmers. This research was conducted in Madura
Island. The data used is primary data obtained from respondents of 92 farmers of Madura cattle. The
data were analyzed descriptively and quantitatively using PLS-SEM analytical tools. The research
showed that characteristics of entrepreneurs and communication process affected adopting innova-
tion of Madura cattle farmers. Adopting innovation is able to be affected on shaping entrepreneur-
ship status of Madura cattle farmers namely socially responsible entrepreneurs.
Cattle farmers need entrepreneurship skills in persion in each variable. Data from questioners were
responding to technological development. According tabulated in table and analyzed descriptively.
to Onyebinama (2010), information dissemination of Analysis of affecting factors on adopting innovation
introducing new technology in agricultural develop- and farmers’ entrepreneurship status used Partial Least
ment programs needs entrepreneurship as a benchmark Square (PLS). The PLS is a part of Structural Equation
of technical controlling and farming management. Modelling (SEM) which is based on variance. Latent
The entrepreneurship positively affects the adoption variable is based on estimated indicator weight that
of technological innovation (Dahan et al., 2014). So, the maximizes explained variance for dependent variables.
successful in adopting technological innovation needs PLS is a powerful analytical tool due to it is not based
the characteristics of Madura cattle farmers. Mardikanto on many assumptions. Data should not be distributed
(2006) states that a successful of adopting innovation is normally multivariate (indicators with nominal scale,
influenced by characteristics of farmers. The characteris- ordinal, interval, ratio that are able to be utilized in the
tics of entrepreneurs is very decisive how the adoption same model). Required samples are not too much that
of innovation proceeds. start from 30 to 100 samples. PLS also specifies indicator
Media in delivering information is an impor- model reflectively and formatively (Ghozali 2008).
tant factor affecting the adoption of an innovation Ghozali (2008) states that analysis using PLS has
(Mardikanto, 2006; Sarwono & Hadi, 2013). Delivering some test steps such as:
information to the farmers can be conducted through an 1. Outer Model Analysis
appropriate communication process. Communication Outer model examination is a test conducted to
process throughout communication channel is a mes- seek a relationship between indicator block and other
saging toll that is aimed to convey messages from latent variables. The test was started by conducting va-
sources to recipients (Rogers 1983). The effectiveness lidity test such as using loading factor with 0.7 standard.
of communication channel is able to predispose how If there were any loading factors below 0.7, they must be
decisions of those farmers about adopting innovation expelled out from the model.
(Rushendi, 2016). AVE= ∑ Standardized loading2 / (∑ Standardized
Adopting innovation steps can determine local cat- loading2 + ∑ ej)
tle farmers entrepreneurship status. This status is impor-
tant to be analyzed about how far the entrepreneurship Therefore, analyzing about convergent validity
activities that have been undertaken by those farmers value was conducted that is noticed from an Average
based on applying innovation. Implementing innova-
tion of Madura cattle farmers specifies whether those
farmers are on economically oriented entrepreneurship Table 1. Characteristics of Madura cattle farmers
level, and/or the entrepreneurs who care about their
surrounding environment, and/or traditional entrepre- Percentage
Characteristics of farmers Frequency
neurs, and/or new entrepreneurs, and/or questionable (%)
entrepreneurs (Lauwere et al. 2002 in Mcelwee 2006). Age
The existence of entrepreneurship status is needed to ≤42 years old 33 34
decide the most suitable innovating strategy that can 43-61 years old 48 50
be referred to those farmers. Therefore, this research >61 years old 15 16
was aimed to analyze factors affecting the adopting in- Sex
novation steps and how the adoption can be influenced Female 20 21
in forming entrepreneurship status of Madura cattle Male 76 79
farmers HMT Ownership
Narrow (<12.67 m²) 20 21
METHODS Medium (12.67-25.336 m²) 10 10
Large (>25.36) 66 69
This research was conducted in the origin place
Ownership of Own Cattle
of Madura cattle namely Madura Islands which con-
Small (<6) heads 93 97
sists of three most populated cattle regencies such as
Medium (7-13) heads 2 2
Bangkalan, Pamekasan, and Sumenep. The type of data
Large (>13) heads 1 1
used was primary data derived from respondents of 92
Ownership of mixture cattle
farmers of Madura cattle (Table 1). Data were analyzed
system
quantitatively using Partial Least Square analysis (PLS)-
Don’t have any cattle 84 88
SEM (structural equation model) analytical tools.
Small (1-2) heads 10 10
Data analysis was carried out through two ana-
lytical methods, i.e. descriptively statistic analysis and Medium (3-4) heads 1 1
Partial Least Square analysis. Descriptive analysis is a Large (>4) heads 1 1
method in investigating group status, human, an object, Profession
a set condition, a thinking system, as well as a class of Civil Servants (PNS) 15 16
events recently (Nazir, 2005). This method explains Merchants 1 1
about distributing value of respondents’ description Stall owners 1 1
generally, respondents’ characteristics, and score dis- Others 79 82
Variance Extracted (AVE) value with its threshold in Research model in Figures 1 manifested variables
0.5. After no problems in convergent validity, the dis- and 4 latent variables. Latent variables can only be ex-
criminant is carried out. It can be verified by comparing plained through manifest variables. Manifest variables
CR square value of AVE and correlation value among can be obtained from respondents through data col-
constructs. lection methods. The data are ordinal data taken using
CR= (∑ Standardized loading)2 / [(∑ Standardized Likert scale.
loading)2 + ∑ ej] 1. Latent variable of entrepreneurship characteristics
(X1) consisted of 18 manifests such as Commitment
2. Inner Model Analysis (X11), Drive to achieve (X12), Opportunity orien-
Inner model analysis reflects correlations between a tation (X13), Initiative and responsibility (X14),
latent variable and other latent variables. These correla- Persistent problem solving (X15), Seeking Feedback
tions are either among exogenic variables or endogenic (X16), Internal locus of control (X17), Tolerance
and exogenic latent variables. The analysis is able to for ambiguity (X18), Calculate risk taking (X19),
be conducted by calculating GoF (Goodness of Fit). Tolerance for failure (X110), Integrity and reliability
According to Tenehau (2004), the GoF small = 0.1, GoF (X111), High energy level (X112), Creativity and in-
medium = 0.25, and GoF big = 0.38. novativeness (X113), Vision (X114), Self-confidence
and optimism (X115), Independence (X116),
Managerial Skill for Entrepreneurs (X117), and
Team building (X118).
2. Latent variable of Communication Process (X2)
had 5 manifested variables such as Communicating
3. Hypothesis Testing participation (X21), Message (X22), Communication
Hypothesis testing is the last step that has to be Channels (X23), Noise (X24), and Feedbacks (X25).
conducted in seeking how exogenic latent variables af- 3. Latent variable of Adopting Innovation (Y1) had
fect endogenic latent variables. Standard that is using 5 manifested variables such as Knowledge (Y11),
in this significant test is either T-value or P-value. If the Persuation (Y12), Decision (Y13), Implementation
T-value is bigger than T-table standard, meaning it is (Y14), and Confirmation (Y15).
significant. Conversely, P-value standard is using, when 4. Farmers’ Entrepreneurship Status Variable (Y2) had
the P-value is smaller than its significance level means 5 manifested variables namely Economic entrepre-
571 the latent variable is significant. Significance level value neurs (Y21), Socially responsible entrepreneur(Y22),
used in this research was 5%. Traditional grower (Y23), New grower (Y24), and
Doubting entrepreneur (Y25).
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587
588
589
590
591
592
593
594 Figure 1. Research Model Using PLS
595 Figure 1. Research Model Using PLS
596 August 2018 149
PAMBUDY / Tropical Animal Science Journal 41(2):147-156
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616
617
618
619
620
634
621
Figure 2. Initial Measurement Model. X11: Commitment; X12: Drive to achieve; X13: Opportunity orientation; X14: Initiative and
635
622 responsibility; X15: Persistent problem solving; X16: Seeking Feedback; X17: Internal locus of control; X18: Tolerance for
623
636 Figure 2.ambiguity; X19: Calculate risk
Initial Measurement taking;
Model. X110:
X11: Integrity and reliability
Commitment; X12: Drive; X111:
toTolerance
achieve; for failure;
X13: X112: High energy level;
Opportunity
X113: Creativity and innovativeness; X114: Vision; X115: Self-confidence and optimism; X116: Independence; X117: Team
624 orientation; X14: Initiative and responsibility; X15: Persistent problem solving; X16: Seeking
building; X118: Managerial Skill for Entrepreneurs; X21: Communicating participation; X22: Message; X23: Communication
625
637 Feedback;
Channels; X24:X17: Internal
Noise; locus of control;
X25: Feedbacks; X18: Tolerance
Y11: Knowledge; for ambiguity;
Y12: Persuation; X19: Calculate
Y13: Dicision; risk
Y14: Implementation; Y15:
626
638 taking; X110:
Confirmation; Y21:Integrity
Economicand reliability ; Y22:
entrepreneurs; X111: Tolerance
Socially for failure;
responsible X112: High
entrepreneur; energy level;
Y23: Traditional grower; Y24: New
627 grower,
X113:Y25: Doubtingand
Creativity entrepreneur.
innovativeness; X114: Vision; X115: Self-confidence and optimism;
639
628 X116: Independence; X117: Team building; X118: Managerial Skill for Entrepreneurs; X21:
640
629 Communicating participation; X22: Message; X23: Communication Channels; X24: Noise;
641
630 X25: Feedbacks; Y11: Knowledge; Y12: Persuation; Y13: Dicision; Y14: Implementation; Y15:
642
631 Confirmation; Y21: Economic entrepreneurs; Y22: Socially responsible entrepreneur; Y23:
632
643 Traditional grower; Y24: New grower, Y25: Doubting entrepreneur.
633
644
645
646
647
648
649
650
651
652
653
654
655
656
657
Figure 3. Final model of developing entrepreneurship of Madura cattle farmers. X110: Integrity and reliability; X117: Team build-
658 ing; X21: Communicating participation; X22: Message; X23: Communication Channels; X24: Noise; X25: Feedbacks; Y11:
659 Figure 3.Y12:
Knowledge; Final modelY14:
Persuation; ofImplementation;
developing entrepreneurship of Socially
Y15: Confirmation; Y22: Madura cattle farmers.
responsible entrepreneur.
660 X110: Integrity and reliability ; X117: Team building; X21: Communicating
661 participation; X22: Message; X23: Communication Channels; X24: Noise; X25:
662 Feedbacks; Y11: Knowledge; Y12: Persuation; Y14: Implementation; Y15:
663 Confirmation; Y22: Socially responsible entrepreneur;
August 2018 151
664
665
PAMBUDY / Tropical Animal Science Journal 41(2):147-156
big which meant the model was fit and reasonable to be innovation would be accepted by the farmers/farmers
utilized. quickly because of there was any entrepreneurship tal-
ent of farmers and assigns their entrepreneurships.
Testing hypothesis. Testing the hypothesis was under-
taken to analyze factors affecting thelatent variables. DISCUSSION
Based on the test, the characteristics of farmers entrepre-
neurship affected the adopting innovation with P-value General Description of Madura Cattle Farmers
0.00; Communication channel influenced the adopting
innovation with P-value 0.016; and the adopting inno- Madura cattle farmers in Madura island had major-
vation predisposed entrepreneurship status of Madura ity aged in the range of 43 to 61 years old about 50%.
cattle farmers with P-value 0.000 (Table 4). Age in ranged from 43 to 61 years old was a produc-
tive age to administer livestock business with medium
Effects of Entrepreneurship Characteristics and category. Farmer’ age ensures employment availability
Communication Process on Adopting Innovation which is has capability in conducting cattle business.
Madura’s cattle farmers in Indonesia was 43 years old
The characteristics of entrepreneurship had effect (Idris et al., 2009; Siswijono et al., 2014; Jan, 2015).
on adopting innovation stages (Table 5). This results In relating to human resources and labors in
showed that absorption of innovation at farmers of Madura’s cattle sector, males were dominated this sec-
Madura cattle heavily depend on the characteristics of tor with percentage about 76%. Male farmer tends to do
the entrepreneurs. Based on the measurement results more this kind of business than women. Furthermore,
in the Table 5, the characteristics predisposes adopting women farmers in majority doing farm activities to help
innovation. their husbands. Spending of working hours by women
Based on result of PLS analysis showed that com- exceeded 25.24% or about 723.75 hours in a year to sup-
munication process influenced adopting innovation. port their husband’s cattle business and buttress their
Indicators of communication process that could clarify successful (Mastuti, 2016).
it variable latent such as participating communication Ownership of animal green feed (Hijauan Pakan
(X21), message (X22), communication channel (X23), Ternak, HMT) is a kind of investment that should be
noise (X24), and feedback (X25) (Table 5). Innovation of ascertained its ownership by farmers. It is also being a
communication process could happen between farmers proper reference or at least those farmers obtaining the
and farms instructor who gave information about in- program procurement assistance of Madura cow on
novation to be carried out. Moreover, communication Penyelamatan Sapi Betina Bunting Program. The HMT area
process among farmers as entrepreneurs about their that ought to be belonged to cattle farmers was large or
business also could happen. about more than 25.36 m2. Small ownership of HMT did
not affect the farmers spirit in looking for alternative
Effects of Adopting Innovation on Entrepreneurship feed that was able to be purchased or quested freely.
Status Characteristics of cattle farmers in rural areas were
formed by two ownership systems namely own owner-
The adopting innovation was hypothesized to af-
fect entrepreneurship status of Madura cattle farmers.
According to the result analysis in Table 6, the adopting Table 5. Entrepreneurship characteristics and communication
innovation had an effect on entrepreneurship status process on adopting innovation
of Madura cattle farmers with T-value was 5.158. The
Loading
Indicator Indicator name
factor
Table 3. Average extracted (AVE) value and composite reliability Entrepreneurship characteristics
X110 Tolerance for failure 0.88
Composite
Latent variables AVE X117 Managerial Skill 0.72
reliability
Communication process
Adopting innovation 0.5 0.8
X21 Participating communication 0.8
Characteristics of entrepreneurs 0.6 0.8
X22 Message 0.72
Communication channel 0.5 0.8
X23 Communication channel 0.64
Entrepreneurship status 1.0 1.0
X24 Noise 0.65
X25 Feedback 0.56
Table 4. Result of hypothesis test
ship and mixture. Majority of Madura cattle farmers in Effects of Communication Process on Adopting
rural areas had a small-scale unit which was under six Innovation
cattle of ownership. Average of Indonesian cattle farm-
ers was categorized into small farmers that only afford Participating communication needed an actor
farm activities in small amount of cattle (1-3 heads) in who participated on the participative communication
each farmers household. Just three farmers who raised process. Business actors of Madura cattle in absorbing
cattle in mixture system or only 10% in total of all farm- innovation to promote business needed selectively
ers. The mixture pattern is a very often used by farmers participating communication among business actors,
for looking after cattle of others and they receive pay- governments, and farms instructors. Result of this
ment of selling price of the cattle. According to Sonbait research about participating communication had load-
et al. (2011) sthat mixed raising cattle pattern is an ap- ing factor of 0.8 that meant the participation was the
propriate business to be conducted. The cattle beef pro- most indicator which defined communication process
gram offerwcd benefits in escalating cattle population, variables. Muchtar et al. (2014) states that farm-field
employment, and increasing farmers income. instructor (penyuluh) as a participant in participative
Majority of farmers regarded this profession a side- communication cycle is categorized high. This result
line for farming and savings which was not balanced denoted that the instructor was an important actor in
with capital and adequate management (Nipsih et al., participative communication. The important of this
2010 & Tumober et al., 2014). Madura’s cow farmers in instructor in promoting participation of Madura cattle
majority had other works such as civil servants, mer- farmers because of his/her contribution as field officer
chants, stall owners, and others. Majority respondents who was intensely corresponding with those farmers
have other side jobs with percentage about 82%. directly. Participative communication gives a positive
impact in improving knowledge and behavior of farm-
Effects of Entrepreneurship Characteristics on ers and also participation of farmers/farmers in arising
Adopting Innovation ideas (Cahyanto, 2008). Contribution of participatory
communication development does not only involve the
The characteristics of adopters affect the absorption farmers, but also implicates local government in absorb-
of innovation (Listiyati et al. 2013 and Harinta 2011). The ing the innovation.
entrepreneurship characteristics of Madura cattle farm- Message in communication process forms symbol,
ers were indicated by those farmers had experienced tol- meaning, and expression either verbal or non-verbal.
erance for failures (X110) and managerial skills (X117). Message content is something that is delivered in com-
The tolerance was a very dominant factor that points the munication process. Furthermore, it is an important
entrepreneurship characteristics of Madura cattle farm- indicator in forming information. In this research, the
ers has the biggest loading factors value (0.88) than oth- message content had loading factor of 0.72 which meant
ers. Innovation needed incredible tolerance to fails due it was being an important indicator in communication
to its high risk traits and unpredictable. Hence, readi- process with the percentage about 72%. Effectiveness of
ness of Madura cattle farmers in facing failures should message in communication process is highly depended
be high. Majority of the farmers grazed their livestocks on knowledge and experiences in interpreting the
generation to generation traditionally in Madura Island. message (Kao, 2007). Field-instructors functioned as
Raising cattle could be said as a culture and conserv- conveyors of message content to farmers should have
ing original commodity of the Island. Forwardness of knowledge and understand the contents and purposes
the farmers in taking on failures is able to be doubted. of delivering messages. Those field-instructors play
However, fails in raising cattle such as cattle death still an important role positively to upgrade knowledge
attempt to be countered. Experiences will establish and management of cattle farmers (Saswita, 2013). The
knowledge and viewpoint on failures where the entre- message will improve competence of cattle farmers in
preneur distributes learning on each failure (Singh et al., managing their business.
2014). Adoption of communication channel is an instru-
Managerial skills become one of factor that is able ment or media to send information for mass or inter-
to explain characteristics of entrepreneurs aside from personal. The needs about communication channels is
tolerance on failure. It had loading factor as big as 0.72 felt crucial to deliver information relating to adopting
in this research which meant that characters of Madura innovation for farmers of Madura cattle in developing
cattle farmers in managing their business affected the their business. Analysis result in Table 6 indicated that
adopting innovation. The skills in managing cattle were communication channel had a loading factor as big
handled traditionally and passed as a local wisdom of as 0.64 which enlightened communication channel as
the island. This result was in line with a research con- an indicator that was able to declare communication
ducted by Shabbir (2016) that small scale entrepreneurs process. According to Sari et al. (2008), communication
required a good managerial skill in order to be survived. channel is very good to be used for adopting innovation
The skill belongs to the farmers or farmers also must specially to develop farming. The most often occurred
be accompanied by business competition and entrepre- communication channel at farmers of Madura cattle is
neurship for being success (Phelan & Sharpley, 2012). interpersonal communication. Adopting innovation lev-
el of farmers is quicker through interpersonal commu-
nication channel that has a strong influence on decision
making process of adopting innovation (Cheboi, 2014).
Interpersonal communication channel gives an effect on novation are based on an entrepreneur’s knowledge
farmers/farmers in considering their business prospects (Okpara 2017). Knowledge of Madura cattle farmers
(Sari et al., 2008). Intensive interpersonal communication are very supportive to the absorption rate of innovation
channel happens in the farmers group. Farmers group in their business. Madurese cattle farmers who were
is a medium to perform interpersonal communication Socially responsible entrepreneurs had an essential role
among farmers of Madura cattle. Knowledge level of in the adopting innovation. The knowledge of cow dung
farmers are mounted by multiple communication hap- processing could be a commercial source and could
pening in the groups. maintain the sustainability of agricultural land from the
Noise in communication process is absolutely hap- threat of chemical fertilizers.
pened among farmers of Madura cattle. Based on analy- Second step, persuasion in adopting innovation,
sis result showed that noise was an important indicator contributed the highest loading factor than the others
in communication process with its loading factor of 0.65. namely on nominal 0.80. This result pointed that persua-
Noise in innovation communication process certainly sion was a dominant step of adopting communication
will inhibit the adopting innovation. Field-instructor as to form Madura cattle farmers that were on the status
an agent of conveying information absolutely has any of socially responsible entrepreneurs. Confidence aris-
noises in their activities to deliver information for farm- ing within farmers in absorbing information would
ers/farmers because of their education level which is rel- make adopting innovation easier to be happened. Pillis
atively low (Rasyid, 2012). Any noise that was faced by and Reardon (2007) proposes that a strong intention in
farmers of Madura cattle was a failure to try an innova- entrepreneurship is not separated from trusting which
tion as an impact of limited information. Uncompleted they have. Level of trust on innovation ease forming
information about innovation also obstructs the farmers entrepreneurship status of Madura cattle farmers. As
in adopting innovation to their business. Furthermore, socially responsible entrepreneurs, Madura farmers
the low level of internet usage of the farmers was a have responsibilities to their surrounding environments.
reason of limited capital to purchase an internet based One of output produced by Madura cattle is dung that
telecommunication device and knowledge in utilizing is utilized for fertilizers. The dung has an economical
the device too. According to Mulatmi (2016), the effec- value which is able to be used by farmers themselves
tiveness of the Internet as a transmitter of information or selling to others as fertilizers. A strong confidence in
has not been understood by the farmers. adopting innovation boots making either liquid or solid
Feedback in communication process becomes an fertilizers.
important indicator for perceiving the effectiveness of Third step, decision was regarded becoming an
communication. It appears as an impact of two-way invalid indicator for the model of adopting innovation
communication between receiver and transmitter of development. Hence, the decision-making step was not
message. The important of feedback in communication being a factor taken into account at the entrepreneurship
process yielded loading factor as 0.56 meaning that it status of farmers.
could explain adopting innovation of communication Forth step was impelementation where applying
process on farmers of Madura cattle. The needs of farm- innovation will affect the entrepreneurship status of
ers in innovation should be the basis of development farmers and be able to define this step as an explana-
strategies, and farm instructor played a role as com- tion factor with a loading factor of 0.72. Farmers as
munication facilitator between farmers and the govern- socially responsible entrepreneurs are required having
ment. In adopting an innovation, the farmers of Madura decision in adopting innovation where the decision is
cattle would confirm to the innovation source namely precisely taken. Innovating decision is more considered
the farm-instructor before trying something new. Trust from the capability of cattle reproduction, innovation
of those farmers on field-instructor is high enough. appropriateness, and environmental impact on the in-
Moreover, when they want to derive innovation further- novation development. The effect of innovation is huge
more, the instructor is the first officer who will provide to entrepreneurship (Hadiyati 2011), then a decision to
information to them. adopt innovation becomes a determining stage on in-
novation sustainability. Field-instructor also plays huge
Effects of Adopting Innovation on Entrepreneurship roles in decision step of farmers in adopting innovation.
Status Communicatively interpersonal communication on
innovation between field-instructor and Madura cattle
Based on analyzing data, entrepreneurship status farmers has significant effects (Indrianingsih 2011).
of Madura cattle farmers was classified as social-preneur The last step was confirmation. This step had load-
which meant that those farmers were business actors ing factor of 0.78. This step functioned to re-confirm
who payed attention to their surrounding environments. whether the previous decision would be executed or
Social capital was created as an impact of relationships not. Based on the research conducted by Herdiawan et
among farmers of Madura cattle. Adopting innovation al. (2014) states that innovating application of biogas at
was very effective to be carried out into farmers groups farmers is established when the farmers ensure or con-
that became a social capital for Madura cattle farmers. firm their decision for utilizing biogas as their income
The firs step, knowledge on an innovation that source. Herdiawan et al. (2014) also states that farmers
would be implemented had a loading factor of 0.63. indeed undergo obstacles to use the biogas for environ-
This stage is the earliest stage in absorbing innovation mental-friendly innovation to their business activities.
for farmers of Madura cattle. Ideas of establishing in- .
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