Business finance and value-added evaluation of processing technology robusta coffee fermentation

Mouly Nurhaliza 1, Budi Santoso 2, * and Gatot Priyanto 2

1 Master Program of Agricultural Industrial Technology, Faculty of Agriculture, Sriwijaya University, South Sumatera, Indonesia.
2 Study Program of Agricultural Engineering, Department of Agricultural Technology, Faculty of Agriculture, Sriwijaya University, South Sumatera, Indonesia.
 
Research Article
World Journal of Advanced Research and Reviews, 2024, 24(03), 647–657
Article DOI10.30574/wjarr.2024.24.3.3484
 
Publication history: 
Received on 06 October 2024; revised on 16 November 2024; accepted on 19 November 2024
 
Abstract: 
This research aims to analyze the added value of robusta coffee beans produced through four fermentation methods: natural process, honey process, wine process, and full wash process. The added value is calculated using the Hayami method. This study serves as a case analysis of coffee processing SMEs in Pagaralam City, South Sumatra.The results indicate significant differences in the added value generated by each fermentation method. The added value ratios obtained are as follows: F1 (Natural): 75.62%, F2 (Honey): 79.67%, F3 (Wine): 85.50%, F4 (Full Washed): 79.17%.  All fermentation methods demonstrate a significant increase in added value. The calculations of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit-Cost (B/C) Ratio suggest that the coffee processing business in Pagaralam, South Sumatra, is viable for development and investment.The financial analysis and added value insights can serve as a guide for companies to determine production levels and enhance profits and added value in the processing of fermented robusta coffee beans.
 
Keywords: 
Added value; Coffee; Enterprise; Fermentation; Robusta
 
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