Abstract
This study is entitled "Analysis of the added value of sugar cane agro-industry in Kerinci Regency". This study aims to analyze the added value of sugar cane agro-industry and the factors that influence it.The research method is a survey, namely by conducting field observations of a number of samples of what has been done by sugar cane farmers and sugar cane agro-industry craftsmen. The data analysis method is economometricsand statistical testing.The results showed that on average every 1 kg of sugar cane would produce 0.15 kg of brown sugar. A sugar cane farmer harvests an average of 600 kg of sugar cane, equivalent to 90 kg of brown sugar. For one time the production process will take 10 hours. The average price of brown sugar is Rp.750,000, and the average price of sugar cane is Rp.700 per kg and other inputs Rp.100 per kg of brown sugar so that once the production process produces an output value put of Rp.1,125, - with an added value of Rp.325, or 28.88%. The workforce will receive a reward of Rp. 250, - amounting to 76.92% of the added value. A craftsman will get a profit of Rp.75, - for each kg or 23.07% of the added value. In each production process a margin will be obtained as compensation for an owner, which is a margin of Rp.425, - consisting of labor income of 58.82%, contribution of other inputs of 23.53%, and manager's profit of 17, 65%. The analysis shows the factors of capital, raw materials, labor, and the price of brown sugar cane have a positive and significant effect on the added value of brown sugar.
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