Business Analysis Studies of Goat Breeding Integrated with
Agribusiness Tofu and Tempe in Kecamatan Candi
Kabupaten Sidoarjo
Mudhita Zikkrullah Ritonga, Andhika Putra, Ismail D., Najla Lubis and T. Gilang Pradana
Faculty of Veterinary Medicine, Universitas Syiah Kuala, Banda Aceh
Keywords: Business Analysis, Goat Breeding, Integrated Agribusiness.
Abstract: This study aimed to know about business analysis of goat breeding integrated with agribusiness tofu and
tempe in the form Break Event Point (BEP), Payback Period (PP) dan Return Cost Ratio (R/C ratio). A
survey method was used in this research. The location and respondents were selected by purposive sampling
from total breeders in three villages in which largest population of goat in Kecamatan Candi are higher than
other villages. The villages are Sumokali Village, Sepande Village and Sidodadi Village in Sidoarjo.
Questionnaires, interviewing techniques and direct observation by Focus Group Discussion (FGD) were the
instruments of data collection. Business analysis was calculated by BEP in rupiah Rp. 2.047.567., PP value
1,22 and RCR value 1,33. The result showed that fattening goat breeding in Kecamatan Candi Kabupaten
Sidoarjo was profitable and feasible to be raised.
1 INTRODUCTION
Indonesia is one of agrarian countries in a world rich
in natural resources. Indonesia as an agricultural
country has a great opportunity to accelerate the
pace of development and economic growth through
the agricultural sector. Livestock is part of the
agricultural sector that has a very important role.
Livestock development is part of the development of
the agricultural sector that supports the provision of
nutritious, highly competitive and creates
employment in the field of livestock agribusiness
(Pakage, 2008).
Goats are one of the ruminant animals that are
maintained by the people of Indonesia, because they
have several advantages, easily adapt to the
environment and can breed quickly, as a producer of
manure and as a producer of meat which is a source
of animal protein for the fulfillment of community
nutrition (Ritonga, 2018). Sutama (2004) states that
the existence of goat breeding
business not only can
create jobs and business fields, but also provide
income and income.
The population of goat livestock in Sidoarjo
Regency in 2012 was 297,300, which increased by
around 6% in 2012 and increased to 315,000,000 in
2014 (Performance Report of the Sidoarjo Regency
Government in 2014). Based on the number of
livestock, Sidoarjo regency is an area with a good
number of goats that are spread over sixteen sub-
districts and one of them is in the District of Candi.
Sidodadi Village. Sumokali Village and Sepande
Village are villages in Candi District which have
great potential to breed goats with agro-industry
businesses such as making tempe and tofu. Most of
the actors of tempe and tofu agro-industry also have
goat breeding.
Goat breeders in these three villages used agro-
industry waste as animal feed. Agricultural waste
and agro-industry have considerable potential as a
source of ruminants feed (beef, buffalo, goat and
sheep). (Sundari and Efendi, 2010) stated that the
feed material when processed or fermented with the
help of certain microorganisms produce high quality
fermented feed.
According to (Zulfanita, 2011), an assessment
effort on goat livestock business analysis is needed.
Although goat breeding is a side business but it is
expected to help increase the income of goat
breeding, so the welfare of breeders increase. Goat
breeding business is a side business of breeder’s
food crops in rural areas (Murtidjo, 1995). This
study is important to give a clear picture on goat
breeding business in Kecamatan Candi of Sidoarjo
194
Ritonga, M., Putra, A., D., I., Lubis, N. and Pradana, T.
Business Analysis Studies of Goat Breeding Integrated with Agribusiness Tofu and Tempe in Kecamatan Candi Kabupaten Sidoarjo.
DOI: 10.5220/0008887301940198
In Proceedings of the 7th International Conference on Multidisciplinary Research (ICMR 2018) - , pages 194-198
ISBN: 978-989-758-437-4
Copyright
c
2020 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
Regency as a pattern of commercial scale
commercial livestock business.
Financial analysis in the farm is very necessary
because the determination of the feasibility of a
business must be done through business analysis that
is by calculating all elements of input costs and all
elements of income. Business feasibility study is a
study of whether or not a business (investment
project) implemented successfully. According to
Ibrahim (2003) the feasibility study is a matter of
consideration in taking a decision, whether to accept
or reject from a business idea or a planned project.
Another opinion says that the feasibility study is a
matter of consideration in taking a decision whether
to accept or reject from a planned idea (Soeharto,
2003).
1.1 Break Event Point (BEP)
Break Event Point (BEP) is a business measurement
tool where at a certain point in time with a certain
production value, there is a balance between the
overall businesses cost and business revenue. BEP is
an analytical technique to study the relationship
between fixed costs, variable costs, and profit and
activity volume.
BEP is also a business break-even point
(Soepranianondo et al. 2013). BEP value can be
known at the level of production and the price of
how a business does not provide profits and not also
suffered losses (Soepranianondo et al. 2013).
According to Hansen and Mowen (2007) in
Soepranianondo (2013), BEP can be calculated
using the formula:
BEPproduction
FC
PVC
(1)
FC
1- VC
P
(2)
Description:
FC = Fixed Cost
VC = Variable Cost (variable cost per unit)
P = Price (selling price per unit)
or by the following formula:
BEP
production
total costofproduction
sellingpriceperunit
(3)
BEP
price
total productioncost
total production
(4)
1.2 Payback Period (PP)
Payback Period (PP) is the time period required to
pay all expenses incurred in investing a project
(Nafarin, 2004). PP is the period required to recover
or recover the invested capital. This method takes
into account net cash inflows but does not take into
account the time value of money.
PPs show a simple relationship between annual
returns on investments invested. PP or payback
period is an investment valuation method that shows
how long investment can be recovered from net cash
flow. PP can be calculated using the formula:
PP = Total Investment (Business Capital) x
1 year Advantages
(5)
1.3 Return Cost Ratio (R/C Ratio)
According to Hansen and Mowen in
Soepranianondo et al. (2013) says R/C ratio is the
ratio between sales revenue and costs incurred
during the production process to produce the
product. Livestock business will be profitable if the
value of R/C ratio > 1. The greater the R/C ratio, the
greater the level of profit to be gained from the
business. R/C Ratio can be calculated using the
following formula:
Total ProductSalesReceipts
T
ota
lPr
oduct
i
o
n
Cost
(6)
This criterion provides guidance that the business
is selected or accepted by a decision if R/C Ratio> 1,
and vice versa if R/C < 1 will be rejected. In other
words if R/C Ratio> 1 then the business is feasible
to continue while R/C Ratio <1 then the business is
not worth continuing (Mulyadi, 2001).
2 MATERIALS AND METHODS
This research is a survey research. The purposive
sampling method was used in determining the
location and respondents. Data were collected using
questionnaire technique, interview technique and
Focus Group Discussion (FGD). The design of this
study is observation by conducting interview
techniques based on questionnaires. Kecamatan
Business Analysis Studies of Goat Breeding Integrated with Agribusiness Tofu and Tempe in Kecamatan Candi Kabupaten Sidoarjo
195
Candi was chosen as the location of the central
development of goat breeding in Sidoarjo.
Based on information, three villages selected
were Sepande Village, Sumokali Village and
Sidodadi Village. Each village selected respondents
are determined at random simple. The respondent
requirement is the respondent who has at least 25
goats at the time of research so that the overall total
was 25 respondents. The research variables observed
in this study were business analysis consisting of
BEP prices, BEP production/ units, R/C ratio and
PP.
Research was conducted in July and August
2015 to obtain primary and secondary data. Data
collection method used is observation method
(Marzuki, 2002). Primary data were obtained from
interviews with breeders based on a list of questions
that have been prepared. Secondary data are data
sourced from related government agencies and from
publications in the form of research results.
3 RESULTS AND DISCUSSION
This study aimed to know about business analysis of
goat breeding integrated with agribusiness tofu and
tempe in the form Break Event Point (BEP),
Payback Period (PP) and Return Cost Ratio (R/C
ratio). The results of the analysis of goat breeding
business in Kecamatan Candi Kabupaten Sidoarjo
can be seen in Table 1.
3.1 Break Event Point (BEP)
BEP is a business analysis technique to study the
relationship between fixed costs, variable costs,
profit and volume of activities (Ritonga. 2017). The
value of BEP can describe the level of production
and the price of how much a business does not profit
and does not losses (Soepranianondo, 2013). BEP
value of the lowest production is 19 heads that is
Breeder 1 and BEP value of highest production is 43
heads that is Breeder 5.
Table 1: Business Analysis Goat Breeding Integrated
Agribusiness Tofu and Tempe.
Breeders
BEP Unit
(head)
BEP Price
(Rp)
R/C
Ratio
Payback
Period (PP)
Breeder 1
18,58 1.932.602,74 1,35 1,00
Breeder 2
35,61 2.431.871,03 1,15 1,66
Breeder 3
26,04 2.237.791,10 1,23 1,17
Breeder 4
35,28 2.032.683,14 1,30 1,00
Breeder 5
42,16 2.152.126,14 1,14 2,10
Breeder 6
31,21 1.872.602,74 1,60 0,51
Breeder 7
18,64 1.677.506,85 1,61 0,70
Breeder 8
32,85 1.999.583,09 1,40 0,85
Breeder 9
20,71 1.932.534,25 1,45 0,81
Breeder
10
18,95 1.968.045,31 1,37 0,83
Breeder
11
24,87 1.828.706,69 1,37 0,92
Breeder
12
25,10 2.275.085,62 1,27 1,15
Breeder
13
37,81 2.301.352,00 1,22 1,40
Breeder
14
39,11 2.327.821,27 1,07 3,80
Breeder
15
22,91 2.127.005,87 1,22 1,28
Breeder
16
20,51 1.845.570,78 1,46 0,84
Breeder
17
30,86 2.160.171,23 1,28 1,05
Breeder
18
23,07 1.874.315,07 1,30 1,14
Breeder
19
29,24 2.030.821,92 1,39 1,48
Breeder
20
22,81 2.118.444,23 1,23 1,56
Breeder
21
22,70 1.844.456,34 1,41 1,00
Breeder
22
26,62 2.192.083,00 1,28 1,04
Breeder
23
34,80 2.349.315,07 1,15 1,82
Breeder
24
22,78 1.829.306,77 1,45 0,79
Breeder
25
20,47 1.791.404,20 1,56 0,68
Average
27,35 2.045.328,26
1,33 1,22
The BEP value of production depends on the
total cost of production and the selling price of the
goat in one period. The cost of production is all the
expenditure required to produce a product that is
valued by money or in other words the cost of
production is the value of the expenditure
(Suherman. 1991). Boediono (2000) states that
acceptance is the value derived from the sale of
production. Production costs are divided into fixed
and variable costs.
Low production BEPs in Breeder 1 are caused
by low production costs and low goat sale prices.
High BEP production value of Breeder 5 is due to
high production cost and high goat sale price. The
average value of BEP production is 27.35 heads.
BEP value of production 27.35 heads means goat
farm business in District Candi Sidoarjo regency in
running its business does not lose and do not get
advantage when have goat counted 27 heads.
The BEP value of the lowest price is Rp.
1,760,356, - is Breeder 7 and the highest BEP value
is Rp. 2.461.941, - the Breeder 2. The value of BEP
price depends on the total cost of production and
total production. The BEP value of Breeder 7 low
price is due to the total production cost and the low
goat population. The high BEP value of the Breeder
2 is due to the high total production cost and the
large goat population.
ICMR 2018 - International Conference on Multidisciplinary Research
196
BEP value average price is Rp. 2,082,078, -
which means goat breeding business in Kecamatan
Candi Kabupaten Sidoarjo in running its business
does not lose and do not get profit when sell goat
with price Rp. 2,082,078,-. Soepranianondo (2013)
states that the fixed cost is a small cost not
dependent on the size of the production while the
variable cost is the cost required at the time of
production.
BEP unit value during one period of goat farm
business in Kecamatan Candi Kabupaten Sidoarjo
varies depending on the total cost of production and
selling price of goat in one period. The average
value of BEP production from all breeders is 27
tails. BEP value of the lowest production is 19 heads
that is Breeder 1 and BEP value of highest
production is 43 heads that is Breeder 5.
BEP value of price during a period of goat
breeding business in Kecamatan Candi Kabupaten
Sidoarjo varies depending on the total cost of
production and the number of goats sold in one
period. BEP value of the average price of all
breeders is Rp. 2,082,078, -. The BEP value of the
lowest price is Rp. 1.760.356, - that is breeder 7 and
BEP value of highest price is Rp. 2,461,941 -
Breeders 2. If the proceeds of sales obtained are
reduced by the cost of a positive value then the
profit (Sadono. 2002). Profit can be achieved if the
amount of income earned from the business is
greater than the amount of expenditure. If
3.2 Payback Period (PP)
The lowest PP value is 0,51 is Breeder 6 is caused
by the amount of investment value which is issued
efficiently with high profit. Investment is also called
capital in the business which is the initial fund to
start a business (Prawirokusumo, 1990 in
Soepranianondo, 2013).
The highest PP value is 3.80 that is Breeder 14
due to the amount of investment value spent big
inefficient with low profit. Benefits of low Breeder
14 are due to high total production costs due to
length of goat goats and relatively low goat selling
prices. (Sjahrial, 2006) states that payback period is
the length of time required by benefit and
depreciation to return investment. So it shows the
time period needed to recover the issued investment
(Soepranianondo, 2013).
The average payback period (PP) on goat
breeding business analysis in Kecamatan Candi
Kabupaten Sidoarjo is 1.22 which means that the
time period needed to recover the invested capital is
one and two and a half months. According Sutrisno
(2000), funds used for the business can be met from
the owner of the capital itself or from other party
loans or debt. Capital calculated here is business
capital which is a combination of fixed
capital/investment and working capital. Fixed capital
is capital that is not used up in one production period
and can experience depreciation by type and time
like land and building. Working capital is capital out
of use in one production period such as cash and
seed (Hernanto, 1991).
Kasmir (2014) states that investment purposes
are used to finance long-term fixed assets and can be
used repeatedly such as the purchase of land,
buildings, machinery, vehicles and others. While
working capital is defined as capital used to finance
day-to-day operations, especially short-term ones
such as feed materials, seeds, salaries and
operational costs. The greater the investment of goat
breeding business, the greater the capital that must
be spent.
3.3 Return Cost Ratio (R/C Ratio)
The highest R/C ratio is owned by Breeder 7 is 1.61
and the lowest R/C ratio is 1.07 that is Breeder 14.
Breeder 7 has high R/C Ratio due to the high price
of goat livestock is balanced with the efficiency
production cost. Breeder 14 has a low R/C Ratio due
to high production cost due to large population and
long maintenance time.
The average R/C ratio obtained by goat breeders
in Kecamatan Candi of Sidoarjo regency is 1,33
means that every cost incurred is Rp. 1,000,- then
the breeder gets Rp. 1,300,-. Soepranianondo (2013)
states that, the high he R/C Ratio the greater the
level of profit to be gained from the business.
4 CONCLUSION
The conclusion from the result of the research shows
that goat breeding business analysis integrated with
agribusiness tofu and tempe Kecamatan Candi of
Sidoarjo Regency is a feasible effort to be
implemented with average value of BEP Production
27 heads, average BEP Price Rp. Rp. 2,082,078, -,
the average value of PP 1.22 and the average value
R/C ratio of 1.33.
Business Analysis Studies of Goat Breeding Integrated with Agribusiness Tofu and Tempe in Kecamatan Candi Kabupaten Sidoarjo
197
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