Feasibility of ATC (Alkali Treated Cottonii) Agroindustry in Southeast Sulawesi

Abstract

Seaweed produced in Southeast Sulawesi Province is generally still marketed in the form of dried seaweed or has not been processed into finished products or semi-finished products in agroindustry. This condition makes the price of seaweed at the level of farmers is very unstable so that the increase in welfare for farmers and regional income is not realized. This study aims to analyze the feasibility of seaweed agroindustry investment that produces a carrageenan type of ATC (Alkali Treated Cottonii) in Southeast Sulawesi Province and design a feasibility development scenario. The feasibility of ATC agroindustry investment is analyzed by Net Present Value (NPV) Analysis, Net Benefit-Cost Ratio (NBCR), Internal Rate of Return (IRR), Pay Back Period (PBP), Break-Even Point (BEP) and sensitivity analysis in various scenarios. The results showed that: (1) Seaweed Agroindustry in Southeast Sulawesi Province, which produces carrageenan type of ATC, is feasible to be developed because it has an NPV value of Rp.25,860,430,430,- NBCR 4.46, IRR 50.04 and PBP 1.90. Based on the results of sensitivity analysis on several scenarios of changes in agroindustry conditions, it is suggested that agroindustries must be able to maintain the stability of the selling price of ATC and the amount of production due to the changes that occur in these aspects have the most significant impact on agroindustry profits.