Abstract
This study was carried out to examine profitability of and value addition from cassava processing into kaopi based on the type of graters being used. A two-stage random sampling technique was employed to obtain primary data from 53 respondents selected for this study. Data were analyzed using cost and return analysis, R/C ratio, Break Even Point, and production structure. The study revealed that cassava processing into kaopi is profitable and a significant value adding process, but the level of profitability and value addition is higher for processors using mechanized grater than those using manual one because the former can reduce processing costs, process higher volume of raw materials, and produce more output with greater efficiency. In view of its potential for attainment of food security, and income and employment generation, it is recommended that processors who currently use manual grater shift to mechanized grater since the time and money saved can be put into other economic use and family welfare.
Highlights
Cassava is a major calorie source, especially for poor people, and is a staple food for many in Indonesia
The study revealed that cassava processing into kaopi is profitable and a significant value adding process, but the level of profitability and value addition is higher for processors using mechanized grater than those using manual one because the former can reduce processing costs, process higher volume of raw materials, and produce more output with greater efficiency
A large family size tends to suggest that more family labour could be made available for cassava processing, reducing the amount spent on hired labour
Summary
Cassava is a major calorie source, especially for poor people, and is a staple food for many in Indonesia. It is grown in all provinces in Indonesia with the main producing areas being in Java and Sumatera. At the same time, considering the likely reduced rice supplies in the long run due to leveling off of rice production and productivity in the face of high population number of 260 million people, the government of Indonesia has taken measures to reduce dependence on rice through a food diversification program focusing on non-rice staples, especially cassava. Despite the low performance of food diversification program (Widyanti, Sunaryo, & Kumalasari, 2014), the implementation of the program itself has basically acknowledged the significant role of cassava in promoting food security in the country, in areas where it has been planted and consumed for a long time
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