Open AccessBusiness development & feasibility study of small-scale powdered coffee agroindustry
Author(s) -
I Gusti Ngurah Agung Adi Wira Kesuma,
Rusdan,
M. Machrus,
Andi Thahir
Publication year - 2021
Publication title -
international journal of management, innovation and entrepreneurial research
Language(s) - English
Resource type - Journals
ISSN - 2395-7662
DOI - 10.18510/ijmier.2021.721
Subject(s) - scale (ratio) , production (economics) , agricultural science , business , payback period , attractiveness , government (linguistics) , marketing , agricultural economics , economics , geography , environmental science , psychology , linguistics , philosophy , cartography , psychoanalysis , macroeconomics
Purpose of Study: This study aims to analyze the level of visibility of low-scale ground coffee agro-industry and determine the role of the government in the development of low-scale ground coffee agro-industry.
Methodology: This research was conducted using a low-scale survey agro-industry method which was applied to a ground coffee centre in one of the provinces in Indonesia. The number of samples is seven low-scale coffee business units. Data analysis used is financial analysis (NPV, IRR, Net B/C ratio, and Payback Period), Break-Even Point analysis, and sensitivity analysis.
Results: The results showed that the low-scale ground coffee agro-industry was profitable and looked to be continued (IRR 99%, NPV 27,883,981.46 to 16,076,282,505.24 and Net B/C of 1.02 to 1.32), the sensitivity analysis showed that the cost of production to the scale of costs decreased, namely the decline in production below 20%.
Application: The creativity of producers in the marketing of processed coffee products and innovation of flavour variants is important for consumer attractiveness in maintaining the stability of agro-industry income.
Novelty: As for the role of the government, the seven production units have received guidance, counselling, and training.