Abstract

This study aims to assess the financial feasibility of Kefir fermentation for inferior robusta coffee. The research design employed data collection methods. The study was conducted at CV. Asmak Kopi from August to December 2022. The study utilized data as the subject of investigation. The data used in this research consisted of primary and secondary data. Primary data was sourced from the coffee business entity CV. Asmak Kopi, including labor data, production costs, production types, and coffee prices. Secondary data used in the study was obtained from various government institutions, organizations, research studies, survey results, and other sources. The obtained data was quantitative and analyzed to determine financial feasibility, including analysis of production costs, break-even analysis, Internal Rate of Return (IRR) analysis, Benefit Cost Ratio (B/C Ratio) analysis, Payback Period (PP) analysis, Return on Investment (ROI) analysis, and Net Present Value (NPV) analysis. This quantitative analysis was presented in tabulated form, grouping and classifying the data to facilitate data analysis. Data processing was performed using calculators and Microsoft Excel software. Based on the research findings, the business of improving the quality of inferior robusta coffee through kefir fermentation at CV. Asmak Kopi is financially feasible. This is supported by the results of the financial feasibility test, indicating an IRR of 82.88%, B/C Ratio of 3.08, Gross B/C Ratio of 1.8, positive NPV, and a payback period shorter than the production lifespan. The sensitivity analysis also showed that a 50% increase in inferior material prices had no significant impact, indicating that the business is still viable. However, a 20% decrease in selling prices has a significant impact, and the product should not experience a price decrease of more than 20%. At a price decrease of 30%, the business is not feasible as it would result in losses. The business of improving the quality of inferior robusta coffee through kefir fermentation at CV. Asmak Kopi is feasible.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call