SOCA: Jurnal Sosial Ekonomi Pertanian
Vol 14 No 2 (2020): Vol.14.No 2, 2020

Sensitivity and Feasibility Analysis of Citronella Oil Business

Mohammad Prasanto Bimantio (Agricultural Product Technology Department, Agricultural Technology Faculty, STIPER Agricultural Institute, Sleman, D.I. Yogyakarta Province)
Anthonius Dhinar Hasto Wardoyo (System Engineering Master Program, Engineering Faculty, Gadjah Mada University, Sleman, D.I. Yogyakarta Province)



Article Info

Publish Date
31 May 2020

Abstract

Today, citronella essential oil business in Indonesia is fronting two major problems: a diverse range of product quality and fluctuated price. Meanwhile, the global market demand keeps increasing until 3–5% per year. This fact indicated that the citronella essential oil business was having a high chance of participating in the global market. This study aimed to analyze the citronella essential oil business feasibility as a “people-oriented-economy” activity and determine variables that affected the feasibility in implementing this business. Citronella essential oil is produced by a steam distillation process with a production capacity of 2,400 kg/year. The number of citronella essential oil international product sales was reaching 76% with the selling price of IDR 360,000/kg and reaching 24% on the local market with the selling price of IDR 180,000/kg, therefore the total of sales in 300 days/year was IDR 7,360,320,000. Based on this calculation the total of profit obtained in a year was IDR 99,463,383. An effort through managing the material and selling price sensitivity already done to maintain the BEP and B/C values. The increasing price was anticipated by managing the product selling price fraction, while the decreasing of the selling price anticipated by managing the market fraction.

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Journal Info

Abbrev

soca

Publisher

Subject

Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance

Description

SOCA merupakan jurnal ilmiah yang diterbitkan berkala di bidang social-ekonomi pertanian dan agribisnis, diterbitkan dua kali setahun (Januari-Juni & Juli-Desember). Jurnal SOCA merupakan media untuk penyebarluasan hasil penelitian bagi dosen, peneliti, praktisi maupun masyarakat umum yang yang ...