Volume 9, Issue 4

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Volume 9, Issue 4

Feasibility Analysis of Broiler Farm with Partnership Pattern
Author’s Detail: (1)Saiful Amin (2) Agustin HP-Correspondence Email Adress: saiful@stie-mandala.ac.id (1) (2) Mandala College of Economics, Department of Management, Sumatera Road No 118-120 Jember Regency 68121, East Java, Indonesia
This study aimed to examine the potential for sustainability of broiler farms in terms of investment feasibility. The identification of techno-economic feasibility used four investment criteria namely Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (B / C), and Payback Period (PP). The population in this study were breeders in Jember Regency who used herbal ingredients as a substitution for antibiotic growth promoter drugs in their business activities. The number of samples was 4 respondents selected based on purposive sampling technique. The results showed that there was negative (-) NPV value on 1 breeder that was equal to Rp 562,878, while the NPV values on 3 other breeders were positive with the value Rp11,429,098; Rp.3,410,492; and Rp6,931,781. The IRR values ​​were 38%, 26.52%, and 28.41%, respectively, more than the expected profit of 25%. Each PI values were 1.38; 1.06 and 1.12. It indicated a number greater than 1, which means that investment in the broiler farm business was worth doing. The analysis also showed that the payback period was the fastest return in a period of 1 period 49 days or 109 days, and at the most 4 periods 13 days or 253 days. This showed the broiler farm business was considered feasible to be carried out due to the faster payback period than the economic life of the investment, which is 5 years.

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