Regional autonomy opens the possnot ibility to improve local potency. However, this may have been explored maximally. This research aim to study the performance of livestock industries in East java. It was shown that there was increase in production but the productivity was small. On other side, the prosperity of farmer (farming) was poor. The term of trade for farming index showed that its value was less from 100.
Altough the price of meat, milk, and egg was increased, but the price of consumption goods and production cost were increasing in higher level. There was marketing distortion that caused by local goverment policy, example: retribution. It is resulted in high cost economy