Financial feasibility of traditional processing industry: study of processing dry salted fish of Tatah Mina Group, South Kalimantan, Indonesia

Abstract

The research is aimed to determined the financial feasibility of the dry salted fish processing industry of Tatah Mina Group, South Kalimantan. The production of dry salted fish need salt which fucntion as natural preservative and gave flavour to the product. Changes in the purchase price of salt would give an impact on production costs and affect the selling price. Result showed that the processing of dry salted fish is still feasible to continue for the next 5 years until the interest rate of 9% with absolute profit value is Rp. Rp 46,594,359.63, Net BCR of 1,64 and IRR of 31,633%. The advantages of dry salted fish processing business are not sensitive to increase of salt prices, but sensitive enough to decrease a product prices of 3%. The suggest of this research that need diversification of fish species for processing dry salted fish, efficient use of salt, and need to maintain the quality of dry salted fish to prevent a decline in selling prices.