Increases In Input Prices Research Articles

Different strategies of crop diversification between poor and non-poor farmers: Concepts and evidence from Tanzania

Crop diversification, or growing multiple crops in farmland, has received attention as a risk-reducing strategy for smallholders. This study attempts to show that poor and non-poor farmers adopt different strategies of crop diversification. We first conceptualize farmers’ heterogeneous motivations for crop diversification by introducing a subsistence constraint into a utility maximization problem under uncertainty. Using the Tanzanian National Panel Survey, we then examine whether past experiences of shocks affect the adoption of crop diversification differently between poor and non-poor farmers. We rely on a threshold model to estimate heterogeneous impacts between poor and non-poor farmers. We find that poor farmers adopt crop diversification for robust food securities in response to drought/flood and large increases in food prices for purchase. In contrast, non-poor farmers adopt crop diversification to stabilize market income in response to large increases in input prices and large declines in crop prices for sale.

Financial Analysis of The Anchovies Purse Seiner Vesel Bisuness Based in Larangan Coastal Fishing Port Tegal Regency

The Larangan Coastal Fishing Port (Larangan CFP) is the only fishing port in the administrative area of Tegal Regency, as a quite productive fish landing center and is the catch of fishermen operating in the coastal watiers of Tegal with anchovy main commodity. Because it is one of the fishing tools of the fishing community which is classified as productive and is based in the Larangan CFP. is the type of anchovies surrounding net (purse seine) In this study, 8 units of purse seiners were selected using light capture device (lamp) as samples, using case study and observation/interview metods and financial analysis which include; Profit and Loss, Payback Period, B/C Ratio, BEP, NPV, IRR and Swiching Value. From the calculation results of the economic (financial) analysis of fishing activities with purse seine anchovies based at the Larangan CFP, Tegal Regency is general can be categorized as feasible, because all business feasibility indicators are still above the required criteria as a feasible business activity to run. The avarage value of each of these indicators is; Paybac Period (4.4 years or 4 years 3 months), Break Even Point (Rp.202,168,749), B/C Ratio (1.24), NPV (Rp.325,474,008), and IRR (22%). Then the replacement value (Switching Value) also still sows a business that is feasible continuimg with an average B/C Ratio of 1.20 and a Payback Period of 5.2 years with the analysis of two scenarios of each situation; 3% for a decrease in production value, and 3.5% for an increase in input prices.

Assessing the impact of COVID-19 pandemic on hazelnut production

This study examines the effects of the coronavirus disease 2019 (COVID-19) pandemic on hazelnut cultivation. Data are obtained from 196 hazelnut farmers in Turkey. Farmers’ socioeconomic characteristics and satisfaction with COVID-19 precautions are compared by geographical region. Exploratory factor analysis is used to examine the impact of COVID-19, with comparisons made before and during the pandemic via a paired-samples t-test. The results indicate that, though farmers in Ordu and Sakarya have similar socioeconomics and farm assets, they were affected differently by the COVID-19 pandemic. Fertilization costs increased by 60.5%, pesticide costs by 64.4%, and labor wages by 19.1% during the COVID-19 pandemic, whereas hazelnut sales prices only increased by 5.2%. Overall, the impact of COVID-19 can be explained across four dimensions: timing issues, increase in input prices, inability to access financial resources, and logistics issues. To generalize the results, it may be appropriate to select similar farmers in different regions and compare monetary values in real terms. In particular, farmers’ increased interest in digital resources due to the pandemic should be considered an opportunity for digital transformation in agricultural extension.

Do Agricultural Supports Affect Production? A Panel ARDL Analysis of Turkey

One of the controversial issues in the trade negotiations carried out with the World Trade Organization deals with agricultural supports related to production, which is claimed to disrupt the market system by creating an imbalance in supply and demand in the domestic market and to cause world trade contraction. In this context, the aim of this study is to examine the production effect of the deficiency payments and land-based direct supports widely used in Turkey. The study conducts a panel autoregressive distributed lag analysis for 11 selected agricultural products (wheat, corn, sunflower, seed cotton, paddy, soybean, canola, safflower, tea, dried beans, and olives) for the 2002-2019 period. The findings from the study are as follows: i) Increases in deficiency payments and land-based direct supports increase short and long run production. However, land-based direct supports have less of an effect on production. ii) While increases in input prices have a negative short run effect on production, the long run effect is the opposite. iii) Agricultural product price is not an important indicator for producers. This finding can be explained by the fact that farmers accept agricultural supports as a complement to the price variable in their production decisions. iv) Increases in the minimum wage added to the model based on Turkey’s structural characteristics have a negative long run impact on production. v) No statistically significant relationship exists between the number of tractors used to represent agricultural mechanization and the amount of production.

The multifactorial aquaculture‐related COVID‐19 shock in Benin, West Africa: A socio‐economic perspective of mitigating the disruptive impacts on the small‐scale and subsistence producers

AbstractAquaculture development in Benin depends heavily on small‐scale and subsistence aquaculture producers (SSAPs), who are sustaining production activities. The aquaculture sector is vulnerable to market shocks because of its dependence on inputs and equipment, which are mainly imported from overseas. The recent outbreaks of global aquaculture diseases have also proven the sensitivity of the sector. The vulnerability of SSAPs is expected to increase as a subsequent result of the coronavirus disease 2019 (COVID‐19) pandemic. This is the reason why COVID‐19‐related difficulties affecting aquaculture production deserve to be evaluated in the country's aquaculture sector. We conducted an online survey to assess the impact of COVID‐19 and the resulting restrictive measures on the functioning of SSAPs farms. Data were collected from 98 SSAPs informants spread over the geographic area with high aquaculture production potential in the country. The rate of increase in input prices, linear discriminant and factorial correspondence analyses projected severe constraints in almost all the value chain. The rates of increase in the unit price of inputs increased from 14% to 188%, thus weakening aqua‐farmers’ purchasing capacity. COVID‐19 has led to a drop in the sales turnover of aqua‐farms, resulting in staff reductions and unemployment. Difficulties in accessing quality inputs have led to the disruption of fish growth and thus the production cycle. The sale of aquaculture products saw a 20%–30% drop in turnover in many farms. The critical challenges mentioned by both men and women SSAPs are mainly the high cost of fish feed, the rising input and transport costs, and the lack of financial resources. Therefore, short‐, medium‐, and long‐term mitigation measures are suggested and could help to alleviate these difficulties while sustaining the blue revolution already under way. This community of men and women SSAPs should adopt and strengthen their use of existing endogenous technologies as well as digital modern options for remote aquaculture sales, in order to cope with future disruptions. The scientific community should help to propose incentive‐based alternative options (e.g., affordable production systems, and efficient micro‐credit model) that can motivate SSAPs to continue with aquaculture, as a guarantee of the sustainability of their livelihoods.

Perceptions of COVID-19 shocks and adoption of sustainable agricultural practices in Ghana

Most studies on the novel COVID-19 pandemic have focused mainly on human health, food systems, and employment with limited studies on how farmers implement sustainable agricultural practices (SAPs) in response to the pandemic. This study examines how perceptions of COVID-19 shocks influence the adoption of SAPs among smallholder farmers in Ghana. We find that perceptions of COVID-19 shocks influence the probability and intensity of SAPs adoption. Secondly, households who anticipated COVID-19 shocks recorded heterogeneity effects in the combinations (complementarity and substitutability) of SAPs. Farmers who anticipated an increase in input prices and loss of income due to COVID-19 recorded the highest complementarity association between pesticide and zero tillage while farmers who expected limited market access reported the highest complementarity between mixed cropping and mulching. Farmers who projected a decrease in output prices complements pesticides with mixed cropping. The findings suggest that understanding the heterogeneity effects in the combinations of SAPs due to COVID-19 shocks is critical to effectively design, target and disseminate sustainable intensification programs in a post-pandemic period.

Analisis Kelayakan Finansial Budidaya Melon pada Rumah Kaca di Kota Denpasar

Financial Feasibility Analysis of Greenhouse Melon Cultivation in Denpasar. Hydroponic melon cultivation in greenhouses is one of the cultivation techniques that has a great potential. The increasing demand of melons has not been accompanied by an increase in product availability. The purposes of this research are: 1) identifying the financial feasibility of hydroponic melon greenhouse cultivation in Denpasar City and (2) identifying the sensitivity level of hydroponic melon greenhouse cultivation in Denpasar City when there is an increase in input prices and a decrease in selling prices. The location was determined purposely. Primary data were obtained through interviews and secondary data were obtained through various literatures and several related agencies. The research was carried out between April and August 2020. The analysis techniques used were NPV, IRR, Net B /C, PP, and sensitivity analysis. The results of this study are: (1) the value of NPV, Net B/C, and IRR of hydroponic melon cultivation is Rp. 93.239.925, 1,97 and 24%, which means that the farming method is financially feasible because NPV> 0, IRR> interest rate and Net B/C> 1. The sensitivity of hydroponic melon cultivation occurs when the operational cost increases and the selling price decreases. It is still feasible at 15% increase of operational cost with the same selling price as well as at 15% decrease of selling price with the same operational cost, although there is a decrease of NPV value and Net B/C.

Extent and Determinants of Rural Poverty in Ethiopia: A Review

This review work was conducted with the objectives of reviewing recent findings on status and determinants of rural poverty in Ethiopia. Accordingly, recent research articles dealing with both extent and determinants of poverty in many rural areas of the country were reviewed. The descriptive part of the review reveals that poverty head count (p 0 ) ranged from 27.71% to 68.5%, poverty gap index (p 1 ) ranged from 7.77% to 27.9% and poverty gap index squared that indicates severity of poverty ranged from 0.042 % to 32.8%. The econometric models based analyses of the reviewed articles reveal that large family size, female headship, high dependency ratio, method of planting (broadcasting), incidences of shocks and increase in input prices had significant positive correlation with the probability of falling in to poverty. On the contrary, literacy of the household head, access to extension services, asset ownership, participation in irrigation, participation in non- farm activities, use of improved seeds, farmer training, livestock ownership (TLU), assets owned, access to credit, access to off- farm/non-farm income, vicinity to the nearest market, employment in formal sector, access to modern inputs, membership in social institutions, engagement of households in petty trading, number of oxen owned and remittance showed significant negative correlation with poverty. Improving literacy status and asset ownership of household, addressing productivity related bottle necks through the use of improved agricultural technologies as well as promoting rural non-farm businesses are the important policy instruments to opt for. Keywords: Descriptive Analysis, Determinants; Econometric Analysis, Extent, Rural poverty DOI: 10.7176/RJFA/13-5-03 Publication date: March 31 st 2022

Profitability of Gliricidia-Maize System in Selected Dryland Areas of Dodoma Region, Tanzania

Declining soil fertility and climatic extremes are among major problems for agricultural production in most dryland agro-ecologies of sub-Saharan Africa. In response, the agroforestry technology intercropping of Gliricidia (Gliricidia sepium (Jacq.)) and Maize (Zea mays L.) was developed to complement conventional soil fertility management technologies. However, diversified information on the profitability of Gliricidia-Maize intercropping system in dryland areas is scanty. Using data from the Gliricidia and maize models of the Next Generation version of the Agriculture Production Systems sIMulator (APSIM), this study estimates the profitability of the Gliricidia-Maize system relative to an unfertilized sole maize system. Results show significant heterogeneity in profitability indicators both in absolute and relative economic terms. Aggregated over a 20-year cycle, Gliricidia-Maize intercropping exhibited a higher Net Present Value (NPV = Tsh 19,238,798.43) and Benefit Cost Ratio (BCR = 4.27) than the unfertilized sole maize system. The NPV and BCR of the latter were Tsh 10,934,669.90 and 3.59, respectively. Moreover, the returns to labour per person day in the Gliricidia-Maize system was 1.5 times those of the unfertilized sole maize system. Sensitivity analysis revealed that the profitability of the Gliricidia-Maize system is more negatively affected by the decrease in output prices than the increase in input prices. A 30% decrease in the former leads to a decrease in NPV and BCR by 38% and 30%, respectively. Despite the higher initial costs of the agroforestry establishment, the 30% increase in input prices affects more disproportionally unfertilized sole maize than the Gliricidia-Maize system in absolute economic terms, i.e., 11.1% versus 8.8% decrease in NPV. In relative economic terms, an equal magnitude of change in input prices exerts the same effect on the unfertilized sole maize and the Gliricidia-maize systems. This result implies that the monetary benefits accrued after the first year of agroforestry establishment offset the initial investment costs. The Gliricidia-Maize intercropping technology therefore is profitable with time, and it can contribute to increased household income and food security. Helping farmers to overcome initial investment costs and manage agroforestry technologies well to generate additional benefits is critical for the successful scaling of the Gliricidia-Maize intercropping technology in dryland areas of Dodoma, Tanzania.

Using space-time scan statistic for studying the effects of COVID-19 in Punjab, Pakistan: a guideline for policy measures in regional agriculture.

Pakistan is included in top 50 countries which are estimated to face serious agriculture and food deficiency related challenges due to the worldwide pandemic coronavirus 2019 (COVID-19). The aim of this study was to evaluate the effects of COVID-19 on food supply chain and agriculture in Punjab, Pakistan, by using space–time scan statistic (STSS). A survey was conducted at 720 points in different districts of the province. The STSS detected “active” and emerging clusters that are current at the end of our study area—particularly, 17 clusters were formed while adding the updated case data. Software ArcGIS 10.3 was used to find relative risk (RR) values; the maximum RR value was found to be 42.19 and maximum observed cases 53,265 during June 15–July 1, 2020. It was not always necessary that if the number of active cases in Punjab increased, there should be higher relative risk for more number of districts and vice versa. Due to the highest number of cases of COVID-19 and RR values during July, mostly farmers faced many difficulties during the cultivation of cotton and rice. Mostly farmers (72%) observed increase in prices of inputs (fertilizers and pesticides) during lockdown. If the supply chain of agriculture related inputs is disturbed, farmers may find it quite difficult to access markets, which could result in a decline in production and sales of crops and livestock in study area. It is suggested that to protect the food security and to decrease the effect of the lockdown, Punjab government needs to review food policy and analyse how market forces will respond to the imbalanced storage facilities and capacity, supply and demand and price control of products. The findings of this study can also help policy-makers to formulate an effective food security and agriculture adaptation strategy.

PERCEPTION OF FARMERS ABOUT COVID-19 PANDEMIC IMPACT ON THEIR LIVELIHOODS

The COVID-19 pandemic and the associated lockdown for an extended period must created a signicant adverse impact on different sectors, including that of the agriculture. Enforcement of curfew as a control measure caused adverse effect in both rural and urban people live and livelihood. Nationwide lockdown against the novel coronavirus disease, the agricultural system and farmers heavily endured a period of deterioration. The present study aimed to depict intricacies of COVID 19's inuence on farmer livelihood. For the purpose 200 farmers in Tamil Nadu had identied and state their opinion through digital mode. The ndings of the study indicated that signicant decrease in agricultural output, consumption, and marketing, as well as a signicant increase in input prices and the country's labour shortage.It also emphasize the epidemic has impacted farmers' earnings and standard of living.

Assessment of Domestic Terms of Trade on Oilseed Crops Supply and Demand by Parity Index in Rajasthan: An Analysis

In this paper, the terms of trade between the input and output prices of selected major oilseeds i.e. groundnut, rapeseed & mustard and soybean have been estimated for selected districts of Rajasthan for the period 1996-97 to 2015-16. The indices of terms of trade for groundnut has shown mixed trend whereas for rapeseed & mustard trend remained favourable from 1996-97 to 2010-11. The ratio of index of procurement prices to index of input prices for rapeseed & mustard was more than one during this period reached to as high as of 165 in 2003-04 over the base of 100 in 1996-97. Like rapeseed & mustard, terms of trade for soybean cultivation in Baran was found favourable for about a decade (1996-97 to 2008-09) and afterward had shown mixed trend of ups and downs. The decline in indices can be attributed to relatively higher rate of increase in prices of inputs than of output prices. Based on the study it was suggested to conduct regular studies for better understanding the trend in prices of farm inputs and outputs that will help in revising the existing policies with confidence. To remove the disparity between ‘prices received and paid’, concerted efforts should be made to maintain the parity, which will help farmers in buying inputs and other items of household consumption.

ANALISIS KEUNGGULAN KOMPARATIF DAN KOMPETITIF USAHATANI UBI KAYU DI KECAMATAN BLAMBANGAN PAGAR KABUPATEN LAMPUNG UTARA

This study aims to analyze the comparative and competitive advantages of two varieties of cassava, and determine the sensitivity due to changes in output prices, production volumes, and input prices to the comparative and competitive advantages of cassava farming in Blambangan Pagar Sub-district of North Lampung Regency. This research is a survey research involving 50 cassava farmers who were selected intentionally consisting of 25 farmers of Cassesart varieties and 25 farmers of Thailand varieties. To answer these objectives, the study uses PAM analysis (Policy Analysis Matrix). The results showed that Cassesart variety (UJ-5) cassava farming had a DRCR value of 0,15 and PCR of 0,46 so it was more competitive than Thailand variety (UJ-3) cassava farming which had a DRCR value 0f 0,18 and PCR of 0,57. If there is a decrease in the output price for Cassesart variety (UJ-5) cassava by 4,93% and Thailand variety (UJ-3) cassava by 5,32%, a decrease in production volume is 4,70%, and an increase in input prices (Urea fertilizer 21,32%, SP-36 fertilizer 34,40%, and NPK Phonska fertilizer 54,01%) due to the removal of fertilizer subsidies by the government, cassava farming is insensitive, therefore, despite changes in output prices, production volume, and the price of these inputs, cassava farming still has a competitive edge. Keywords : cassava, comparative, competitive, PAM

Wood-based textile fibre market as part of the global forest-based bioeconomy

Wood-based cellulose fibres for textiles, hygiene and health products have been in the market for long time, but competition with other materials has kept their market share modest. The shortage of land for the expansion of cotton production, environmental concerns related to cotton and the oil-based textile materials, changes in fashion, and new technologies for extracting fibres from wood are changing the market setting in the favour of wood-based fibres. The increase in global population and welfare drives the growth of demand for textiles. If the demand for wood-based textile pulps would grow in the same pace as earlier in this century, their annual production would be 15 Mt higher in 2035 than in 2018. Growing at the pace of the global GDP in selected illustrative Shared Socioeconomic Pathway projections, the respective increase would range from 6 to 11 Mt/yr. The demand scenarios were assessed with a global forest sector model integrating the textile fibre market to the rest of the forest sector. The demand for wood-based textile fibres can largely be covered by converting paper pulp mills to textile pulps but also investments into new mills are projected. This will reduce the supply of other forest products made of pulpwood and chips and possibly give a small increase in the supply volumes of industries producing chips as by-products (sawnwood, plywood). Due to increasing roundwood harvests and wood prices, the investors should factor in an increase in input prices when making their decisions.

Changes in the total costs of the English and Welsh water and sewerage industry: The decomposed effect of price and quantity inputs on efficiency

Understanding what drives changes in regulated water companies' costs is of great relevance to water regulators. This study decomposes and estimates the change in total costs for a sample of ten water and sewerage companies in England and Wales from 1993 to 2016. The results demonstrate that companies' total costs increased over time due to increases in input prices and input quantity. Any gains obtained from the efficient allocation of resources and technical progress were lost due to mergers and technical inefficiency. Finally, we link our results with the regulatory cycle to evaluate the impact of the regulatory regime on companies' costs and discuss some policy implications.

Vertical Mergers and Bargaining Models: Simultaneous Versus Sequential Pricing

We consider an upstream firm U that supplies a key input to two symmetric downstream firms, A and B, that sell differentiated products. U negotiates bilaterally with A and B over a linear input price, and A and B set output prices. We assume Nash-in-Nash bargaining for input prices, and Bertrand competition for output prices. We compare two models. The simultaneous pricing model assumes that each price is determined holding all other prices constant (e.g., Crawford et al., 2018). The sequential pricing model assumes that input prices are determined first, and then output prices are determined given the input prices (e.g., Rey and Verge, 2019). We compare the equilibria of the two models as well as their predictions for the effects of a vertical merger of U and A. For simplicity, we assume linear demand and no production costs. We show that input prices are lower, and hence the double marginalization problem is smaller, in the sequential pricing model than in the simultaneous pricing model. In both models, a merger of U and A leads to an input price increase to B (raising rival's cost) but the price increase is small in the simultaneous pricing model, while it can be very substantial in the sequential pricing model. We also show that, in the simultaneous pricing model, the merger leads to an output price reduction for both A and B, while in the sequential pricing model it leads to an increase in the output price of B (and also in the output price of A if the two products are relatively close substitutes). We then show that the bargaining model with simultaneous pricing actually produces merger effects that are similar to the effects obtained using a sequential pricing model without bargaining where U sets input prices by making take-it-or-leave-it offers to A and B.

ANALISIS KELAYAKAN USAHA AGROINDUSTRI MIE SAGU DI KECAMATAN TEBING TINGGI KABUPATEN KEPULAUAN MERANTI

Sago is the potential agricultural product in Kapulauan Meranti Regency and can be processed into various food product, including sago noodles. This study aims to find the sago noodles business profile, feasibility level viewed from financial and non financial aspect the sago noodles agroindustry in Tebing Tinggi District Kepulauan Meranti Regency. This research used survey method. Data were analyzed descriptively qualitative and quantitative. The non-financial aspects of the study consist of market, technical and legal aspects, while the financial aspects are analyzed by investment criteria. The results showed that sago noodles agroindustry entrepreneur including productive age with the average age of 46 years, education is still low that is 9 years (SMP) and experienced in trying sago noodle processing that is for 16 years. Sago noodle business is included in small-scale business and home industrial, processing of sago noodles using semi-modern and traditional technology. Non-financial feasibility of sago noodles on the market aspect and technical aspects is feasible to cultivate but the legal aspect is not yet feasible. Finally, sago noodles are feasible to be cultivated because they meet the investment feasibility criteria, with NPV value Rp 444,589,796,57, Net B / C 1,32, IRR 47%, PB (payback period) 2 years 2 months. Based on switching value analysis, the business of sago noodle agroindustry is more sensitive to the 10% output price decrease compared to 10% input price increase.

The Effect of Price Increases on Fresh Meat Consumption in Turkey

The rapid increase of the red meat price in Turkey in the recent years negatively affects its consumption. Consumers are seeking to compensate for the need for animal protein with cheaper substitution products. In this study, the effects of consumer attitudes, product prices and some other variables on the factors affecting consumption of fresh red meat are examined. A 58-item questionnaire measuring Behavior and Behavioral Intention was applied to 455 consumers in the Eastern Mediterranean Region of Turkey based on the Theory of Planned Behavior. In the study, participants' consumption of fresh red meat and white meat was examined together. In the analysis of the data, correlation, independent samples' t-test and One Way Anova was used together with Path Analysis which is a Structural Equation Model technique. Price increases have a negative impact on fresh meat consumption and the effect on consumption of red meat is much higher. The Structural Model explains 80 % of the Behavioral Intention variance and 87 % of the Behavioral variance. In consumers' Behavior and Behavioral Intention in meat consumption Attitude, Perceived Behavioral Control and Price variable have a significant influence, while the effect of Subjective Norms on a lower level. Socioeconomic and demographic variables cause significant differences in fresh meat consumption. Reducing the increases in input prices, which is the most important source of the increase in red meat prices in Turkey, in the short and medium terms, and supporting the supply increases by sustaining its implementation in the medium and long terms should be adopted as basic policies.

Keunggulan Komparatif dan Kompetitif Komoditi Kopi Arabika (Coffea arabica) di Desa Ulian, Kecamatan Kintamani, Kabupaten Bangli

The Comparative and Competitive Advantages of Arabica Coffee (Coffea arabica) Commodity in Ulian Village, Kintamani Sub-District of Bangli Regency
 The study aimed to analyze the comparative and competitive advantages and the divergence of input and output of arabica coffee commodity, to find out the government protection policy against inputs and outputs; and to investigate the impact of changes in input and output prices on profits, comparative advantages, competitive advantages, divergence, and government protection against inputs and outputs. Methods of data collection was interview and observation. The respondents were 38 farmers in Ulian Village, Kintamani, Bangli and selected by random sampling. Data analysis used Policy Analysis Matrix and sensitivity analysis. The result of analysis by using Policy Analysis Matrix showed that the social profit was Rp 47.953.373 and private profit of Rp 33.202.446. The superiority of arabica coffee commodity in Ulian Village consists of comparative and competitive advantages expressed in DRC ratio of 0.23 and PCR ratio of 0.29. The divergence of input and output consists of divergence of revenue of Rp15,734,996, tradable input divergence was Rp 0, domestic factor divergence was Rp. 994,070, and divergence of net profit of Rp 14,750,927. Government protection was expressed in NPCO ratio of 0.75, EPC ratio of 0.75, PC ratio of 0.69, and SRP ratio of -0.24. These ratios indicate that arabica coffee farmers in Ulian Village, Kintamani, Bangli have no protection from the government. Changes in input and output prices during inflation were at 3.02 percent, an increase in input prices by 10 percent and a fall in the price of output by 50 percent resulted in arabica coffee commodities in Ulian Village, Kintamani, Bangli to have comparative and competitive advantages. There is no government protection on arabica coffee farmers in Ulian Village, Kintamani Sub-District of Bangli Regency when input and output prices changed.

ANALISIS KELAYAKAN USAHA AGROINDUSTRI MIE SAGU DI KECAMATAN TEBING TINGGI KABUPATEN KEPULAUAN MERANTI

Sago is the potential agricultural product in Kapulauan Meranti Regency and can be processed into various food product, including sago noodles. This study aims to find the sago noodles business profile, feasibility level viewed from financial and non financial aspect the sago noodles agroindustry in Tebing Tinggi District Kepulauan Meranti Regency. This research used survey method. Data were analyzed descriptively qualitative and quantitative. The non-financial aspects of the study consist of market, technical and legal aspects, while the financial aspects are analyzed by investment criteria. The results showed that sago noodles agroindustry entrepreneur including productive age with the average age of 46 years, education is still low that is 9 years (SMP) and experienced in trying sago noodle processing that is for 16 years. Sago noodle business is included in small-scale business and home industrial, processing of sago noodles using semi-modern and traditional technology. Non-financial feasibility of sago noodles on the market aspect and technical aspects is feasible to cultivate but the legal aspect is not yet feasible. Finally, sago noodles are feasible to be cultivated because they meet the investment feasibility criteria, with NPV value Rp 444,589,796,57, Net B / C 1,32, IRR 47%, PB (payback period) 2 years 2 months. Based on switching value analysis, the business of sago noodle agroindustry is more sensitive to the 10% output price decrease compared to 10% input price increase.