IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 9.Ver. VI (Sep. 2014), PP 40-43 www.iosrjournals.org www.iosrjournals.org 40 | Page Management Increasing competitiveness of local beef for the forest fringe communities Toni Herlambang¹, Teguh Hari Santosa², Nurul Qomariah³,Oktarina 4 1,3 Department of Management, Economic Faculty, Muhammadiyah University of Jember 2,4 Department of Agriculture, Agriculture Faculty, Muhammadiyah University of Jember Abstract: Competitiveness of local cattle forest fringe communities is generally low, which resulted in weak local economy. Efforts to improve the competitiveness of the local cows will strengthen the local economy through improved cultivation technology, market structure, industry structure and demand conditions of the local cows.. Specific target in this research is to formulate a model improving the competitiveness of local cattle in an attempt to strengthen the economy of forest fringe communities. The results showed that (1) cattle breeders in the study site in Jember District generally is a model “gaduhan “(the result is divided in two) Local cattle owners were actually better kind of cattle Bali and Madura cattle generally maintain beef cattle with an average tenure 2-8 tails. (2) the competitive and comparative competitiveness of local beef cattle types Bali is high as indicated by the PCR values 0.4261 and 0.4397 DRCR. Madura local beef cattle types also have high competitiveness competitive PCR value 0.3679, but the comparative competitiveness is quite high with DRCR 0.5135. (3) Average profit local cattle rancher (cattle types of Bali and Madura) with the scale 2-8 44.115.638/tail/year or tails of Rp Rp 3.676.303tailr/month or greater than the minimum wage on Jember (Rp 1,200,000), and contribute to the family income by 53.96%. (4) There are six production facilities required to enhance the competitiveness of local cattle, namely human resources, technology, capital, raw materials, machinery and markets. Key words: local beef cattle types of Bali and Madura cattle, high competitiveness I. Introduction Local cattle as one of the national commodity has the potential competitiveness can be improved through profitability and market share. Trigger factor consists of competitiveness are technology, productivity, and input costs, industry structure and demand conditions (Rahman et al., 2007). Efforts to improve the competitiveness of local cows will strengthen the national economy through the improvement of society as a cultivation technology (including improved productivity, quality, and cost of inputs), the management structure of the market, industry structure and demand conditions for local cattle. The main center for the production of beef cattle (including cattle locally) in Java accounted for 45% of national beef production (Mersyah, 2005). Local beef production potential and competitiveness could still be improved to catch Indonesian society needs meat consumption at 4.5 kg / capita / year (Safitri, 2012). The results of previous studies by Herlambang et al. (2007-2008) and Herlambang et al (2011-2012) found that the quality and productivity of local cattle is generally low, the causes include: (a) local cattle as a sideline business less attention to the cultivation of the right technology; (b) lack of fodder technologies; (c) lack of market structure and administration of local cattle; (d) lack of quality control at every stage of meat production to processing. This resulted in a weak economy local cattle rancher on the outskirts of the forest and threatening the conservation of forests, because it triggers their desire to explore the forest. The specific objective of this study is to formulate a model improving the competitiveness of local cattle in an attempt to strengthen the economy of forest fringe communities. II. Research methods The approach used in this study is a participatory approach. participatory approaches (qualitative) is more geared to deepening grounded interesting case is termed as a model supporting ICLC (Increased Competitiveness local cows) for forest fringe communities into research outcomes. Location research purposively in Jember because this area includes areas that generate enough local cattle (237,602 head) in East Java Province, and selected the District Sumberjambe (17,287 head), Silo (15 730 tail), Tempurejo (11,941 head) and Subdistrict Gumukmas (11 079 tail), because in this region as the biggest producer of local cattle (BPS, 2012). The samples (respondents) conducted by stratified random sampling or stratified random, given that households living in the outskirts of the forest as the population consists of a group is quite heterogeneous. Stages of selection of respondents is as follows: (1) hold a population stratification, which classifies the population into homogeneous groups seen from the types of jobs and economic activity; (2) the selection of