Analysis of Gayo wine-coffee processing facility development

The Indonesian plantation sector plays an important role in the overall national economy. The development of coffee processing methods into a variety of products, including the relatively new product Gayo wine coffee, will provide added value for farmers. However, the main question that is often asked about relatively new ventures is how viable they are. Thus, a techno-economic analysis of Gayo wine-coffee processing facility development was aimed to answer how viable is the business to ensure sustainability. The results of this research are expected to add scientific information regarding the feasibility study of developing a sustainable Gayo wine-coffee processing facility. The research was conducted in Aceh Tengah District by conducting a comparative study to a micro-scale wine coffee producer in the location, the Syukran Kopi Wine processing facility. Analysis of the facility development was more focused on the technological and financial aspects. The research results considered that Aceh Tengah District is very suitable as a location for a wine coffee factory to minimize the purchasing costs. Moreover, the process of wine coffee production is more difficult than the process of common coffee production. However, the Gayo wine-coffee processing facility uses semi-modern technology like the common coffee processing facility. Besides, all financial indicators meet the financial feasibility criteria for five years economic life of the project. Sensitivity analysis also shows that in both scenarios, all financial indicators still meet the financial feasibility criteria, although decreasing the benefit make a higher impact on most values of the investment criteria than increasing the operational cost.

Implication of Budgeting on Contemporary Project Management

It is the total sum of money allocated for the specific project for a specific period of time. The goal of the project budget is to cost control. The objective of this chapter is to give the implication of budgeting on contemporary project management. The main focus of this chapter is to discuss the introduction, history, agile approach, etc. It has a direct impact on the company's financial feasibility. The research would discuss the approaches for the projects budget estimation and various steps for cost control. There are two types of reserves against risks: one is the contingency reserve for identified risk, and the other is the management reserve for unidentified risks. The project manager needs to be aware of existing resources acquisition policies, guidelines, and procedures. The author discusses the procedures for project budgeting and methods for evaluation of project budgeting.

Kelayakan finansial teknologi produksi benih bawang merah asal biji botani (True Seed of Shallot = TSS) (Financial feasibility of True Seed of Shallot seed production technology)

<p>Penelitian dilaksanakan di Kebun Percobaan Margahayu, Balai Penelitian Tanaman Sayuran pada Maret-November 2018. Tujuan penelitian adalah mengestimasi kelayakan finansial teknologi produksi benih bawang merah TSS (True Seed of Shallot). Percobaan lapangan produksi benih dilakukan untuk luasan 1.500 m2. Keragaan usahatani dievaluasi melalui analisis anggaran usaha berdasarkan pencatatan usahatani. Sementara itu, kelayakan finansial dianalisis menggunakan NPV (Net Present Value), IRR (Internal Rate of Return), B/C ratio (Benefit Cost Ratio) dan PBP (Pay Back Period). Hasil analisis anggaran menghasilkan indikator keragaan produksi benih sebagai berikut: (a) biaya produksi Rp. 255.320.280/hektar, (b) rasio penerimaan-biaya 1,49, (c) titik impas produksi 102 kg/hektar, dan (d) titik impas harga Rp. 1.789.628/kg. Analisis finansial berdasarkan parameter: periode proyeksi 3 tahun; aliran kas 12 bulan; suku bunga 18%/tahun; proporsi modal 40% (sendiri) dan 60% (kredit); luas lahan 1 hektar; produktivitas 150 kg/ha; dan harga output Rp. 2.500.000/kg menghasilkan NPV = Rp. -108.564.638 (&lt;0), IRR = sampai tingkat bunga 2% masih menunjukkan besaran NPV yang negatif (&lt;18%), Net B/C Ratio = 0,62 (&lt; 1), dan PBP = 1,5 tahun (&lt; 3 tahun). Berbagai kriteria tersebut mengindikasikan bahwa usahatani produksi benih TSS belum dapat dikategorikan layak secara finansial. Analisis sensitivitas menunjuk-kan bahwa kelayakan finansial baru tercapai jika terjadi pengurangan biaya produksi minimal 22%. Kelayakan finansial juga dapat dicapai jika terjadi minimal 15% peningkatan produktivitas atau 15% peningkatan harga benih. Penelitian ini menyarankan studi lebih lanjut untuk mengidentifikasi agroekosistem produksi paling ideal berpotensi produktivitas optimal, serta memperbaiki teknologi produksi benih TSS berorientasi peningkatan produktivitas dan efisiensi penggunaan input. </p><p><strong>Keywords</strong></p><p>produksi benih; benih biji botani bawang; analisis anggaran; kelayakan finansial</p><p><strong>Abstract</strong></p><p>A trial of 1,500 m2 seed production was conducted in the Indonesian Vegetable Research Institute during March-November 2018. The objective was to assess the financial feasibility of True Seed of Shallot (TSS) seed production technology. Farm performance was assessed by using enterprise budget, NPV (Net Present Value), IRR (Internal Rate of Return), B/C ratio (Benefit Cost Ratio), and PBP (Pay Back Period). Budget analysis results in (a) production costs of IDR 255,320,280/ ha, (b) revenue-cost ratio of 1.49, (c) 102 kg/ha yield break-even-point, and (d) IDR 1,789,628/kg price break-even-point. Meanwhile, financial analysis based on some predetermined parameters has provided NPV = IDR -108,564,638 (&lt;0), IRR = up to 2% interest rate still shows negative NPV value (&lt;18%), Net B/C Ratio = 0.62 (&lt;1), and PBP = 1.5 years (&lt;3 years). Those criteria suggest that TSS seed production business is not yet categorized as financially feasible. Sensitivity analysis shows that financial feasibility may be achieved if there is minimally 22% reduced cost of production, or 15% increased yield, or 15% increased seed price. Further studies on identifying the most ideal agro-ecosystem with optimal yield potential, and improving TSS technology with an orientation to increasing yield and input-use efficiency are recommended.</p>

Financial feasibility assessment of adopting active controlled atmosphere containers for exporting highly perishable fruits during COVID-19: case of Taiwanese atemoya

PurposeThis study deals with attenuating the risk of relying on a single export market, which was heightened by the outbreak of the COVID-19 pandemic. It focuses on Taiwanese atemoya (a fruit with short storage life) and the adoption of active controlled atmosphere (CA) containers, a new technology which lengthens storage time for other export markets. This study looks at the financial feasibility of the technology's first ever use in atemoya exports.Design/methodology/approachApart from the standard financial assessment tools—like net present value (NPV), internal rate of return (IRR), benefit-cost ratio (BCR) and payback period (PBP)—this study calibrated five different scenarios based on data gathered from relevant market agents including suppliers, exporters, customs brokers and technology developer.FindingsDue to the high profit margin and low investment cost, the use of active CA containers for long-haul exports of this highly perishable fruit is found both technically and financially feasible, despite the generally higher operational cost during the pandemic.Research limitations/implicationsThis study looked at three specific export markets: Malaysia, Dubai and Canada. Results here may lack generalizability in other markets, although it is believed that slight deviations would not invalidate the conclusions of this research because short, medium and long distances were all covered therein.Originality/valueThis paper studies the first time that active CA is used for export of atemoyas to expand existing markets.

Biological, Technical, and Financial Feasibilities Study of Spirulina sp. Biomass Production with Modified Commercial Medium in Indonesia

Spirulina sp. is the most common cyanobacteria commodity used in the bioindustry for functional food, source of protein, bioactive compounds, and biopigment. Production of Spirulina sp. still facing several problems such as high cost of culture medium with the less effective result, especially in developing countries. The medium was modified with commercial chemicals and fertilizers locally available in Indonesia to reduce the production cost. This study aimed to assess the biological, technical, and financial feasibility of Spirulina sp. biomass production using a modified commercial medium. Based on the biological feasibility study, the modified commercial medium (ZK1 and ZK2) gives a similar result to the standard medium, equal for growth rate and protein content. However, the result contains lower fat, carbohydrates, and biopigment. The financial feasibility analysis suggested that the system is feasible starting from 1.2-1.5 kg biomass production in a month. The best result gained on the production capacity of 5 kg biomass using ZK2 medium, with NPV of IDR 183,208,962 (US$12,769), IRR of 73%, B/C ratio of 7.8, and payback period in 7 months. It can be concluded that modified commercial medium was biologically, technically, and financially feasible to be applied in industrial biomass production of Spirulina sp.

Coco-Power: Exploring Copra-Derived Biodiesel for Grid Connected Electricity in Vanuatu

<p>This research assesses the financial feasibility of a large scale copra-based biodiesel refinery in Vanuatu and whether any carbon finance could be sought to improve the viability of the project. The research cannot be perfectly predictive of the next fifteen years of financial situation, however, the research can quite accurately replicate the feasibility assessment that potential investors would make. The research finds that the project is not financially viable under current projections without carbon finance. The research also shows that carbon finance could be sought from a number of sources in order to make the project feasible. Under current projections the research finds that utilising the clean development mechanism would add approximately 2.9 million United States Dollars (USD) to the present value of the project. The conclusion from these results is that the proposed biodiesel project is sufficiently profitable to attract investors. The primary recommendation resulting from the research is that the stakeholders to the proposed biodiesel project begin an open discourse to work through any issues in order to develop a sustainable copra-based biodiesel refinery in Vanuatu to produce a substitute for the import of fossil diesel used for electricity generation in Port Vila. The secondary recommendation is that international climate change policy negotiators should keep in mind the full set of barriers when addressing the uptake of clean technology in developing countries; often it may not only be the financial feasibility that is preventing climate change mitigation activities.</p>

Coco-Power: Exploring Copra-Derived Biodiesel for Grid Connected Electricity in Vanuatu

<p>This research assesses the financial feasibility of a large scale copra-based biodiesel refinery in Vanuatu and whether any carbon finance could be sought to improve the viability of the project. The research cannot be perfectly predictive of the next fifteen years of financial situation, however, the research can quite accurately replicate the feasibility assessment that potential investors would make. The research finds that the project is not financially viable under current projections without carbon finance. The research also shows that carbon finance could be sought from a number of sources in order to make the project feasible. Under current projections the research finds that utilising the clean development mechanism would add approximately 2.9 million United States Dollars (USD) to the present value of the project. The conclusion from these results is that the proposed biodiesel project is sufficiently profitable to attract investors. The primary recommendation resulting from the research is that the stakeholders to the proposed biodiesel project begin an open discourse to work through any issues in order to develop a sustainable copra-based biodiesel refinery in Vanuatu to produce a substitute for the import of fossil diesel used for electricity generation in Port Vila. The secondary recommendation is that international climate change policy negotiators should keep in mind the full set of barriers when addressing the uptake of clean technology in developing countries; often it may not only be the financial feasibility that is preventing climate change mitigation activities.</p>

Potensi Reduksi Emisi GRK dan Kelayakan Finansial dari Teknologi Hidrotermal untuk Pengolahan Sampah di Kabupaten Tangerang

Peningkatan konsentrasi gas rumah kaca (GRK) di atmosfer telah menimbulkan efek pemanasan global. Salah satu kontributor emisi GRK adalah penumpukan sampah di TPA tanpa pengolahan lebih lanjut. TPA Jatiwaringin di Kabupaten Tangerang diprediksi akan mengalami overcapacity, sehingga diperlukan mitigasi untuk mengurangi sampah di TPA, salah satunya dengan teknologi hidrotermal. Namun dalam penerapan teknologi hidrotermal membutuhkan biaya yang tinggi. Penelitian ini bertujuan untuk mengestimasi potensi emisi GRK sebelum adanya proyek hidrotermal, mengestimasi potensi reduksi emisi GRK setelah adanya proyek hidrotermal, menganalisis kelayakan finansial dari proyek hidrotermal. Penelitian ini menggunakan metode Clean Development Mechanism (CDM) AMS-III.E untuk mengestimasi potensi reduksi emisi GRK proyek hidrotermal dan analisis cashflow untuk mengevaluasi kelayakan finansialnya. Hasil penelitian ini menunjukkan emisi baseline pada tahun 2021 diestimasi sebesar 18.766 t CO2 e dan akan meningkat menjadi 21.865 t CO2 e (16,5%) pada tahun 2030. Emisi proyek diestimasi sebesar 5883 t CO2 e per tahun. Rata-rata persentase potensi reduksi emisi GRK dari proyek hidrotermal tahun 2021-2030 sebesar 70,94% (Skenario 2 putaran per hari) dan 68,26% (Skenario 3 putaran per hari). Proyek hidrotermal juga layak secara finansial, dengan syarat produk hidrotermal yaitu Refused Derived Fuel (RDF) dapat terjual setidaknya 72% dan jumlah iuran masyarakat yang terkumpul minimal 50% dari target penerimaan iuran. ABSTRACTAn increase in the atmospheric concentrations of greenhouse gases (GHGs) produces global warming effect. One of GHGs emissions contributors is waste accumulation of in the landfill. Jatiwaringin landfill in Tangerang Regency is predicted to reach overcapacity. Therefore, mitigation measures are required to reduce such waste. One of potential measures is hydrothermal treatment technology for urban scale, but its implementation is costly. This study aims to: estimate the potential GHGs emissions prior the hydrothermal project, estimate the potential GHGs emission reduction after the project, and analyze the financial feasibility of the project. This study employs Clean Development Mechanism (CDM) method i.e., AMS-III.E to estimate the GHGs emissions reduction potential of hydrothermal projects and cashflow analysis to evaluate the project financial feasibility. The results show that the baseline emissions in 2021 are estimated at 18,766 t CO2 e and would increase to 21,865 t CO2 e (16.5%) in 2030. The potential project emissions are estimated at 5883 t CO2 e per year. The GHGs emission reductions could reach 70.94% (2 batches per day) and 68.26% (3 batches per day) within 2021-2030. Furthermore, the hydrothermal project would be financially feasible, if the hydrothermal product i.e., Refused Derived Fuel (RDF) are sold at least 72% and the cumulative households-contribution is at least 50% of the target.