Performance analysis of milk processing units to support competitive improvement of the milk processing industry in Padang Panjang City, West Sumatera Province

Abstract

Dairy cattle productivity has plateaued; average milk production ranges between 8 and 12 liters per day, on a scale of 2-3 maintenance per family breeder breeding. Furthermore, small farms account for 90% of milk production. Permata Ibu’s Milk Processing Unit (UPS) in Padang Panjang is one of the business units that processes milk into other derivative products. It produces processed milk pasteurization, yogurt, and other products. The focus of this research was to analyze UPS Permata Ibu’s processing performance by calculating the amount of added value and profitability. As measured by the value-added method of performance measurement, the processing of fresh milk into pasteurized milk and yogurt at Permata Ibu milk processing unit generates a variety of added values. Pasteurized milk has better processing performance than yogurt processing, as evidenced by its high added value compared to other processed products, with added value ratios of 22,45 percent and 12,50 percent for pasteurized milk and yogurt, respectively. Based on profitability analysis, it is known that pasteurized milk is still better than yogurt because it has a higher profitability value of 30,30% compared to yogurt, which is only 6,50%. Pasteurized milk processing results in higher profitability and added value than yogurt.