Feasibility and development strategy of milkfish (Chanos chanos) processing at small industries in Pangkep District

Abstract

The milkfish business has the potential to be developed; therefore, it is not only be sold in fresh condition but also processed into other products with additional value. This study aims to analyze the prospect of developed milkfish processing in Pangkep district. The research was conducted in August 2018 until August 2019 in Bungoro, Labakkang, Pangkajene, Segeri, Mandalle dan Marang districts. The sampling method was taken by purposive sampling. The analysis of economic value was used to estimate the total economic value of the milkfish processing business. The feasibility analysis was used to determine whether the type of milkfish processing business was feasible or not to run. Analytical Hierarchy Process (AHP) was used to determine the priority strategy for the development of the milkfish processing business. The results show that there are five types of milkfish products developing in Pangkep district, including shredded milkfish, thornless milkfish, presto milkfish, bale kambu, and amplang milkfish. The analytical feasibility is conducted to show that the milkfish processing business in Pangkep district is feasible to be developed; however, the five types of processed products, milkfish shredded are more profitable to run. It shows the NPV, Net B/C, and IRR values, which are higher than other milkfish processed products. The development strategy of the milkfish processing business becomes the priority on the modality and marketing criteria. Improving the quality of human resources and developing distribution channels become a priority strategy in the development of milkfish processing businesses in Pangkep district.