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Improving Economic Welfare through Capital Development: Case Study of Smallholder Dairy Farmers in Pujon District

Author

Listed:
  • Nanang Dwi Wahyono

    (Department of Agribusiness Management, State Polytechnic of Jember, Jember 68121, Indonesia)

  • Niswatin Hasanah

    (Department of Animal Science, State Polytechnic of Jember, Jember 68121, Indonesia)

  • Rita Parmawati

    (Postgraduate School, Brawijaya University, Malang 65145, Indonesia
    Department of Socio-Economics, Faculty of Agriculture, Brawijaya University, Malang 65145, Indonesia)

  • Wing-Keung Wong

    (Department of Finance, Fintech & Blockchain Research Center, Big Data Research Center, Asia University, Taichung City 41354, Taiwan
    Department of Medical Research, China Medical University Hospital, Taichung City 40447, Taiwan
    Department of Economics and Finance, The Hang Seng University of Hong Kong, Hong Kong, China)

Abstract

Developing the economic welfare of smallholder dairy farmers is an important strategy for achieving the Sustainable Development Goals (SDGs) in regions such as Pujon District, a major dairy producer in the Malang Regency. Enhancing the economic stability of these farmers contributes to community welfare and promotes aspects of the SDGs such as “Good Health and Well-Being” and “No Poverty”. This study delves into the relationships among five types of capital—human, social, natural, physical, and financial—and their influence on the welfare of dairy farmers in Pujon District. A questionnaire was distributed to 110 respondents in January and February 2022 for the purpose of this research. After the data were collected, Smart-PLS was used to analyze the structural-equation model (SEM). According to the findings, these five types of capital have a significant and positive impact on the welfare of farmers. As a result, these five capitals provide a tangible framework for enhancing and measuring farmer welfare in Pujon District, thus providing a strategic path for optimizing community resources to boost economic welfare and contribute to the Sustainable Development Goals. The study findings provide valuable insights into the strategies that can be adopted to promote sustainable agriculture and enhance the well-being of farmers in Pujon District.

Suggested Citation

  • Nanang Dwi Wahyono & Niswatin Hasanah & Rita Parmawati & Wing-Keung Wong, 2023. "Improving Economic Welfare through Capital Development: Case Study of Smallholder Dairy Farmers in Pujon District," Sustainability, MDPI, vol. 15(11), pages 1-13, May.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:11:p:8453-:d:1153440
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