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Business Feasibility of Mocaf Flour Products, Cassava Starch, Purple Sweet Potato and Yellow Yams

Author

Listed:
  • Etty Soesilowati*

    (Faculty of Economics, Semarang State University, Indonesia)

  • Nana Kariada Tri Martuti

    (Faculty of Mathematics and Science, Semarang State University, Indonesia)

  • Octavianti Paramita

    (Faculty of Technics, Semarang State University, Indonesia)

Abstract

Feasibility analysis of tuber flour production business aims to determine its profitability. The study used a quantitative approach with a sample of SME UD. Berkah, Semarang. The variables include investment costs, working capital, and profits. Data were analyzed using Cost & Benefit Ratios, Payback Period, Net Present Value, and International Rate of Return. The results show that to produce 4,000 kg/month of tuber into flour requires an investment cost of IDR. 120,800,000. With depreciation of IDR. 671,083,- per year, the income of IDR. 9,150,000 per month can be earned or 23.8% per year. The payback period is estimated to be 1.1 years with an internal rate of return of 84.28%. Hence, it can be concluded that the business of producing mocaf flour, cassava starch, cassava, purple yam flour and yams is feasible. Flour producers should increase the production capacity by building business networks ranging from tuber farmers to the users.

Suggested Citation

  • Etty Soesilowati* & Nana Kariada Tri Martuti & Octavianti Paramita, 2020. "Business Feasibility of Mocaf Flour Products, Cassava Starch, Purple Sweet Potato and Yellow Yams," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 6(2), pages 167-172, 02-2020.
    • Handle: RePEc:arp:tjssrr:2020:p:167-172
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