Income Analysis, Added Value and Sustainability Strategy of Fish Processing Units (Case: "SMEs 88 Marijo", in Pinrang Regency, South Sulawesi)

Abstract

This study aims to analyze the income, added value and business sustainability strategy of boneless milkfish processing. The method used in this research is a case study. The research location was chosen purposively at “SMEs 88 Marijo”, Pinrang Regency, South Sulawesi Province. The consideration is that “SMEs 88 Marijo” has been operating for more than 10 years and is one of the milk processing businesses that have SNI certificates. Data were collected in December 2018 - April 2019 and analyzed descriptively qualitatively and quantitatively. The results showed that revenue from “SMEs 88 Marijo” in 2018 amounted to Rp 343,341,626. The highest income received came from boneless milkfish products amounting to Rp.299,537,126. The highest added value is obtained from “milkfish amplang” products, while the lowest value-added is boneless milkfish products. The ratio between total revenue and total costs (R/C ratio) is 1.22. R/C > 1 means that the fish processing business is profitable, so it is feasible to be developed. The priority of sustainability strategy is: (1) Utilizing the potential of raw materials and waste through production diversification to create added value and increase revenue. (2) Increase competitiveness by applying GMP and SSOP to maintain the quality standard of SNI standard products. (3) Implement financial management effectively and manage business administration in a disciplined and accountable manner. (4) Building good relations and coordination with stakeholders; and (5) Disseminating information, promoting products, and providing the best service to its customers.