Open AccessFeasibility Analysis of Establishment of Euphorbia hirta Extract-Fortified Honey Industry
Author(s) -
Agung Nugroho,
Heryani Hesty,
Wiwin Tyas Istikowati
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/757/1/012073
Subject(s) - net present value , business , cost leadership , health benefits , internal rate of return , functional food , euphorbia , marketing , medicine , food science , production (economics) , traditional medicine , economics , biology , competitive advantage , macroeconomics
During this last decade, the highest death rate in Indonesia was caused by degenerative diseases, such as heart disease, hypertension, and diabetes. Life style, including consumption pattern with lacks of vitamins, minerals, fiber, and antioxidants is suspected as one of the main causes. Modern functional food is designed to accommodate the practical uses and its main function to supply some deficient nutrients. Honey fortified with extract of Euphorbia hirta was designed as functional food to comply the practical uses and as health beneficial food, especially for its special function as strong antioxidant. This works analyzed the feasibility of establishing a functional food industry for honey fortified with E. hirta based on local resources. The aspects observed included marketing aspects, technical aspects, legal aspects, management aspects, and also financial aspects. From the measurement of financial aspects, we obtained that net present value of the business was Rp197, 535, 270.00, net benefit and cost ratio was 1.72, internal rate of return value was 48.27% with payback period for 2.1 years. The business will reach break-even point by selling 18, 509 bottles of products. Considering the values of the analyzed financial parameters, the business is declared feasible to be implemented.