Sustainable development of traditional processed fishery products: A feasibility and risk analysis of small-scale businesses in West Kalimantan

Abstract

This study was conducted to determine the profitability, risk, and financial feasibility of traditional processed fishery products for sustainable development in Sambas, West Kalimantan. The primary aim of the study is to determine the business opportunity and to integrate poor households into markets. Profit analysis and coefficient variance were used for profitability and risk analysis; meanwhile, net present value (NPV), internal rate of return (IRR), benefits to costs ratio (B/C), and payback period (PP) were used for financial feasibility analysis. The results of the study show that all the indicators for financial feasibility analysis are positive and accepted, but they have high to very high risks commonly associated with raw materials, production process, prices, and markets. This analysis shows the potential for adding values to the small-scale fishery businesses through processed fishery products. Thus, the government and private industry should find the best technologies, practices, regulation, and management. They should coordinate institutional development strategies and local initiatives to ensure that the growth is sustainable. Public interventions should provide adequate extensions and advisory services for supporting the governance and development of small-scale fishery processed products. Sharing experience, in this regard, can help to speed the development of this sector.