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

DOI

10.2991/absr.k.210609.071How to use a DOI?

Keywords

Candlenut Oil, Profitability, Efficiency, Agro-industry

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.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - S. Jumiyati
AU  - Haeruddin
AU  - A. Rauf
PY  - 2021
DA  - 2021/06/11
TI  - Profitability and Efficiency: Determination of the Sustainable Development Strategy for Candlenut Oil Processing Business
BT  - Proceedings of the International Seminar on Promoting Local Resources for Sustainable Agriculture and Development (ISPLRSAD 2020)
PB  - Atlantis Press
SP  - 465
EP  - 472
SN  - 2468-5747
UR  - https://doi.org/10.2991/absr.k.210609.071
DO  - 10.2991/absr.k.210609.071
ID  - Jumiyati2021
ER  -