Abstract
Animal protein is a protein that is good for the growth of the human body. Broiler chicken is one source of protein that is often consumed. Broiler production in Madiun Regency is not sufficient, so it is necessary to increase production through broiler farming. This study aims to identify the feasibility of broiler business investment. The location of the research was Madiun Regency and the research was conducted in May-June 2023. Respondents were taken by purposive sampling by taking 30 respondents from closed and open house systems. The non-financial feasibility analysis used market aspects, technical aspects, management and legal aspects, social, economic and cultural aspects, and environmental aspects. Based on non-financial aspects, the closed house system does not fulfill the environmental aspects and the location of the cage is too close to residential areas. Financial analysis using NPV, Net BC, IRR, PP and switching value sensitivity analysis. The results of the financial feasibility study with an interest rate of 6% and a business life of 10 years, the closed house and open house cage systems are feasible. The closed house has higher NPV, IRR, Net B/C and PP values than the open house, so the closed house system is more profitable than the open house. The results of the switching value sensitivity analysis of both types of cages have the most sensitive changes to the business in the form of decreased production, decreased prices and increased feed costs. Partnership system broiler farmers are unable to regulate selling prices and feed prices, so the only way to keep the business viable is to maintain the resulting production. Therefore, farmers must be able to master good production management and cage management to produce maximum broiler production.
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