Profitability and Value Addition in Cassava Processing in Buton District of Southeast Sulawesi Province, Indonesia

Haji Saediman, Asmiati Amini, Rosmawaty Basiru and La Ode Nafiu

Journal of Sustainable Development, 2015, vol. 8, issue 1, 226

Abstract: This study was carried out to examine profitability of and value addition from cassava processing into kaopi based on the type of graters being used. A two-stage random sampling technique was employed to obtain primary data from 53 respondents selected for this study. Data were analyzed using cost and return analysis, R/C ratio, Break Even Point, and production structure. The study revealed that cassava processing into kaopi is profitable and a significant value adding process, but the level of profitability and value addition is higher for processors using mechanized grater than those using manual one because the former can reduce processing costs, process higher volume of raw materials, and produce more output with greater efficiency. In view of its potential for attainment of food security, and income and employment generation, it is recommended that processors who currently use manual grater shift to mechanized grater since the time and money saved can be put into other economic use and family welfare.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:jsd123:v:8:y:2015:i:1:p:226

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