Analysis of Value-Added and Calculation of Production Cost in the Production of Processed Coconut Product

Hermiza, Mardesci (2021) Analysis of Value-Added and Calculation of Production Cost in the Production of Processed Coconut Product. International Journal on Advanced Science, Engineering and Information Technology, 11 (2). pp. 776-782. ISSN 2088-5334

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Abstract

Coconut is a potential commodity to be developed. The development of coconut agro-industry can increase product added value. Value-added analysis needs to be carried out to find out how much the added value of processed coconut product is. The calculation of basic costs also needs to be done to find out how much it costs to produce 1 unit or 1 kg of product. This research is beneficial as decision support through useful information for coconut farmers in increasing their income. Value-added analysis in this study used the Hayami method, while the calculation of the cost of processing involves fixed costs, variable costs, working hours, and production capacity. The study was conducted in Indragiri Hilir Regency, Riau. Product selection is based on previous research, which shows that prospective products developed are coconut oil, coconut sugar, and shell charcoal. Data collection was carried out in three districts, namely Mandah, Reteh, and Enok. The results showed that each product's added value was IDR 1,037.79 per kg in coconut sugar processing, IDR 760 per kg in coconut oil processing, and IDR. 249.98 per kg in shell charcoal processing. The results of the calculation of the cost of processing, the results obtained the production cost of charcoal processing is IDR 472.92 per kg, for coconut oil processing is IDR 14,939.13 per kg, and for processing of coconut sugar, it is IDR 8,535.07 per kg. The three products' production cost is far less than the selling price, so the business is quite profitable

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