Cost of Production and Feasibility Study of Organic Sitronela Agribusiness

Artikel Serai Wangi Berita Perkebunan Highlight

ESTATE CROPS INFO – The cost production and business feasibility is useful in determining the price cost, and decision making for future business development of organic citonella. The research was conducted at the PT. Pemalang Agro Wangi in Jonggol – Bogor Regency in April 2019.  Analysis of the cost of production was carried out by the full costing method. The feasibility test was carried out with several investment feasibility criteria, namely B/C ratio, NPV and IRR.Data collection was done by interviewing key informants, namely: producers and farmers of organic citronella using snowball sampling. The results showed that price cost of seeds, herbs and oil of organic  sitronela were Rp.103,00/cuttings, Rp662,00/kg and Rp205.757,00/kg. The Organic sitronela nursery and herbs were feasible, at 7% / year interest rates,  each  produced Net B/C ratio were 4,7% and NPV Rp289.386.802,00 per ha, and B/C ratio of 1.05, NPV of Rp49.024.781,00 and IRR 17,92% for eleven ha Organic citronella cultivation produced essential oil content of 0.35% to 0.7% lower than inorganic cultivation >1%, thus impact on higher cost of product. In order for the cultivation of organic citronella to develop, the selling price of oil should be more expensive than inorganic citronella oil.

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