Business development & feasibility study of small-scale powdered coffee agroindustry

Abstract

Purpose of Study: This study aims to analyze the level of visibility of low-scale ground coffee agro-industry and determine the role of the government in the development of low-scale ground coffee agro-industry. Methodology: This research was conducted using a low-scale survey agro-industry method which was applied to a ground coffee centre in one of the provinces in Indonesia. The number of samples is seven low-scale coffee business units. Data analysis used is financial analysis (NPV, IRR, Net B/C ratio, and Payback Period), Break-Even Point analysis, and sensitivity analysis. Results: The results showed that the low-scale ground coffee agro-industry was profitable and looked to be continued (IRR 99%, NPV 27,883,981.46 to 16,076,282,505.24 and Net B/C of 1.02 to 1.32), the sensitivity analysis showed that the cost of production to the scale of costs decreased, namely the decline in production below 20%. Application: The creativity of producers in the marketing of processed coffee products and innovation of flavour variants is important for consumer attractiveness in maintaining the stability of agro-industry income. Novelty: As for the role of the government, the seven production units have received guidance, counselling, and training.