Analysis of Gayo wine-coffee processing facility development

Abstract

The Indonesian plantation sector plays an important role in the overall national economy. The development of coffee processing methods into a variety of products, including the relatively new product Gayo wine coffee, will provide added value for farmers. However, the main question that is often asked about relatively new ventures is how viable they are. Thus, a techno-economic analysis of Gayo wine-coffee processing facility development was aimed to answer how viable is the business to ensure sustainability. The results of this research are expected to add scientific information regarding the feasibility study of developing a sustainable Gayo wine-coffee processing facility. The research was conducted in Aceh Tengah District by conducting a comparative study to a micro-scale wine coffee producer in the location, the Syukran Kopi Wine processing facility. Analysis of the facility development was more focused on the technological and financial aspects. The research results considered that Aceh Tengah District is very suitable as a location for a wine coffee factory to minimize the purchasing costs. Moreover, the process of wine coffee production is more difficult than the process of common coffee production. However, the Gayo wine-coffee processing facility uses semi-modern technology like the common coffee processing facility. Besides, all financial indicators meet the financial feasibility criteria for five years economic life of the project. Sensitivity analysis also shows that in both scenarios, all financial indicators still meet the financial feasibility criteria, although decreasing the benefit make a higher impact on most values of the investment criteria than increasing the operational cost.