Business Feasibility and Development Strategy of Oyster Mushroom Farming in Pandowoharjo Village, Yogyakarta

This study aimed to determine the feasibility study of oyster mushroom farming in Pandowoharjo Village, Yogyakarta. The present study also seeks to identify a suitable business strategy for oyster mushroom business farming. Pandowoharjo is well-known for the location of Jejamuran Restaurant, a unique and famous eating place destination for travelers, as the menus are all made from fresh mushrooms. So far, the supply of mushrooms has to be imported from outside the region. The local community in the village has not yet been involved in fulfilling the mushroom needs. Therefore, the Pandowoharjo Village Government encourages a collaboration business between the oyster mushroom farmers and Jejamuran Restaurant to improve the economic welfare of residents through the triple helix model. Data were taken from the questionnaires and interviews with the farmers, owner, and manager of Jejamuran Restaurant, community leaders, and officials of Pandowoharjo Village. This research is a descriptive quantitative study that deploys feasibility analysis and quadrant analysis of strategy determination using strength weakness opportunity threat (SWOT) analysis. The feasibility study results reveal that oyster mushroom cultivation in the village can generate an income of Rp. 43,908,480.00 per year, including labour income of Rp. 11,640,000.00 per year. The business is financially feasible with the net present value of benefit and cost flows of Rp. 3,271,562.00 with an internal rate of return (IRR) is 26. 86%, gross benefit per cost ratio (Gross B/C) and net benefit per cost ratio (Net B/C) are 1.03 and 1.43, respectively. The SWOT analysis results show that the coordinates of the strategy in the first quadrant indicate an aggressive strategy is applied to ensure the growth of the mushroom business.