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Analysis of Gayo wine-coffee processing business development
Juanda Juanda

Last modified: 2021-10-12

Abstract


The Indonesian plantation sector plays an important role in the overall national economy. The development of coffee processing methods into a variety of products, including the relatively new product Gayo wine coffee, will provide added value for farmers. However, the main question that is often asked about relatively new ventures is how viable they are. Thus, a techno-economic analysis of Gayo wine-coffee processing business development was aimed to answer how viable is the business to ensure sustainability. The results of this research are expected to add scientific information regarding the feasibility study of developing a sustainable wine-coffee processing business. The research was conducted in Aceh Tengah District by conducting a comparative study to a micro-scale wine coffee producer in the location, the Syukran Kopi Wine processing facility. Analysis of the business development was more focused on the technological and financial aspects. The research results considered that Aceh Tengah District is very suitable as a location for a coffee wine factory to minimize the purchasing costs. Moreover, the process of wine coffee production is more difficult than the process of common coffee production. However, the Gayo wine-coffee processing business uses semi-modern technology like the common coffee processing business. Besides, all financial indicators meet the business feasibility criteria, where the Net Present Value is IDR 154,149,583, internal rate of return is 83.14%, payback period is 1 year 11 months 12 days, and break-even point is102.0 kg/month for five years economic life of the project. Sensitivity analysis also shows that in both scenarios, all financial indicators still meet the business feasibility criteria, although decreasing the benefit make a higher impact on most values of the investment criteria than increasing the operational cost.

Keywords


Arabica; feasibility; Gayo; wine-coffe