Feasibility Analysis in Smallholder Coffee Farming in Jember District
Apriyanto Dwi Laksono, Joni Murti Mulyo Aji, Julian Adam Ridjal
District Jember is one district that has high production of coffee in the Province of East Java. Coffee farming many sought by governments , private and smallholder. Smallholder coffee farming still used traditional method, it needs more research according Financial analysis needs to be performed to know the financial viability of smallholder coffee farming. Cost of coffee farming was influenced by kinds of farming activities, therefore it needs to observe the technic viability. This research is conducted in Sidomulyo Subdistrict and Kemiri Subdistrict , Jember District based on purposive method. Purposive sampling has been used to determinate target group including Sidomulyo Farmer Group I and LMDH Taman Putri and continued with total sampling methods, in this research’s samples used 45 farmers . This investigation used descriptive and analitic analysis and using primary and secondary data. ARR value is higher than discount rate around 187.35%. Smallholder coffee in Jember District has NPV approximately Rp 12,177,566.27. IRR value from smallholder coffee in Jember District was 13.54%, this value is higher than discount rate in the research period. Smallholder coffee in Jember District has net B/C value 1.24 and gross B/C value 1.17 (those value is more than one). Payback period from smallholder coffee in Jember District, if it use NPV value is 11 years 1 month and 8 days and if it use net benefit value is 7 years 5 months 2 days, this period is faster than coffee productive period. Based on that description, can be said that smallholder coffee in Jember District is viable in terms of financial sector. In terms of technical viability depand on some factor including location, total production area, technology used, production layout, and on farm in smallholder coffee farming. In an average, those factors has completed minimum standards of smallholder coffee farming.
Keywords: viability, financial, technical
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