BUSINESS FEASIBILITY ANALYSIS OF FISH JELLY PROCESSING UNIT IN THE FISHERY PRODUCTS PROCESSING AND MARKETERS GROUP “TORANI SUMBER MAKMUR”, CIREBON CITY, WEST JAVA

Abstract

The Fishery Products Processing and Marketers Group “Torani Sumber Makmur (TSM)” established in 2013 is one of the Fish Processing Units engaged in the post-harvest processing subsystem of agribusiness (agroindustry) through the production of various variants of fish jelly.  Since its establishment in 2013, TSM perform its business manually, all records are still carried out manually, and the cost analysis is counted only based on the cost of procurement of raw materials, electricity, and labor without considering other cost components. Furthermore, TSM has never conducted a comprehensive feasibility and sensitivity analysis.  Thus, TSM has never had complete figures on how the business runs both financially and non-financially.  The purpose of this research is to analyze the business feasibility and sensitivity of the TSM based on non-financial analysis and financial analysis.  The data used in this research includes primary data (interviews) and secondary data, then processed with qualitative and quantitative descriptive methods. The results showed TSM has feasible because it meets all aspects of feasibility analysis, both non-financial and financial analysis.  Based on the non-financial analysis, market analysis shows an increasing trend in demand especially in West Java, Jakarta, Banten, Central Java, and Papua Province. The production aspect is controlled; business licensing and product feasibility certification are adequate. TSM empowers surrounding communities and manage the waste, so it does not pollute the environment.  Based on financial analysis, Net Present Value (NPV) > 0, Gross Benefit Cost Ratio > 1, Net Benefit Cost Ratio > 1, Internal Rate of Return (IRR) > Opportunity Cost of Capital (Discount Rate), and Break Event Point < Total Revenue.  Furthermore, sensitivity analysis shows that with an increase in input price prices by 31%, TSM can still survive.