Profitability and Efficiency: Determination of the Sustainable Development Strategy for Candlenut Oil Processing Business

Abstract

The Industrial Revolution era 4.0 directed the development of Non-timber Forest Products (NTFPs) based on development strategies related to aspects of production efficiency and business profitability through rural agro-industry. This research aimed at analysing the profitability and efficiency of the business and determining a sustainable business development strategy. The location of the research was chosen purposive, namely in KPH Kulawi as the location for the pilot project, Central Sulawesi Province. The location of the research was chosen purposively, namely in KPH Kulawi as the location for the pilot project, Central Sulawesi Province. Collecting data related to profitability and production efficiency through interviews using a questionnaire. While the business strategy is determined using a SWOT analysis based on Focus Group Discussion (FGD) data involving stakeholders, namely FMUs, target farmers (farmers who produce raw materials and processing farmers) village government and academics total 10 participants. Based on the research results, it concluded that the relatively high business profitability is associated with an increase in production efficiency. A sustainable business development strategy includes aspects of resource optimization, efficiency of production costs, improvement of product quality at competitive prices and support for market policies and partnerships.