maggot-business-cultivation analysis

Analysis of the business of cultivating odorless maggots

Analysis of Odorless Maggot Cultivation - In making an analysis of maggot odorless cultivation, the first important factor to consider is related to the raw materials used. In the analysis of BSF cultivation or analysis of cattle, this is the raw material used is organic waste, factory waste and manure. Some important factors are the analysis of BSF cultivation, namely

1. Raw material

The first factor analyzing BSF cultivation is choosing raw materials. and what we choose is organic waste, generally organic waste does not have important economic value and is more often thrown away. In addition, at present its existence tends to mix with inorganic waste.

Therefore, in order to obtain raw materials for production of raw materials, it is necessary to try to sort organic waste. The question is, can farmers do it themselves?

Sorting organic waste should be done systematically, both with community organizations and with the local government. If this step is difficult to achieve, farmers can work together with food industries that have large amounts of food waste.

Generally, the presence of their waste is well separated. Cultivators should calculate the potential of organic waste that can be managed continuously so that the business wheel can run well.

2. Consumer Segmentation

The second factor in the analysis of BSF cultivation is consumer segmentation. This magot production industry is engaged in an effort to provide alternative protein sources of fish and livestock feed at a low cost due to bioconversion of organic waste.

If the production effort is directed at substituting small quantities of fish meal in the fish or livestock feed industry, it will have a major impact on this industry.

Because the price of fish meal from year to year has increased. Besides that, the existence of magot also has a direct impact on fish and livestock farmers. They are able to produce these alternative proteins independently so they can reduce production costs.

Other parties who will also enjoy the product from this bioconversion process are vegetable and fruit farmers, due to the provision of quality fertilizers.

maggot-business-cultivation analysis

3. Business Type

The third factor analysis of BSF cultivation is the type of business that will be carried out. There are two types of magot production businesses that have been developing.

  • The first type is independent businesses, namely farmers or fish farmers producing magot to meet their own needs
  • The second type is the type of business with a plasma core partnership pattern. Plasma nucleus partnership pattern is an industrial form that is very suitable for the production of magots where the core position (core) will act as a BSF egg producer.
  • The position of plasma has a role in magot enlargement (conversion of organic waste) which can be done in waste treatment units, housing, and so on.
  • The resulting magot is then reclaimed by the core to be further processed into magot flour or commercial pellets.

4. Scale enterprises

Maggot cultivation is differentiated into three business scales, namely

  • Early Scale Maggot Cultivation
  • Small Scale Maggot Cultivation
  • Medium Scale Maggot Cultivation
  • Large-scale Maggot Cultivation

Assume analysis of maggot cattle as fish and poultry feed. This maggot livestock analysis is to assess the benefits obtained in maggot cultivation activities. The results of this analysis are certainly the basis for consideration before starting a business

maggot-business-cultivation analysis

Types of Production Business

Independent types of egg and magot production are subsequently sold as fish and livestock feed, without the effort of producing pellets or maggot shading. A technology is said to be successfully adopted by the community if it fulfills the following three components

  • Biological aspects and bioreproduction of animals have been well mastered
  • Technically, technology can be applied
  • Economically it can provide benefits

Business Analysis

Business analysis is a form of financial calculation to determine the value of capital or investment needed in carrying out a business, and to determine the feasibility of the business. Some of the calculations needed in business analysis are

  • Gross income
  • Operational benefits
  • Net profit
  • Acceptance and ratio
  • Cost (r / c ratio)
  • Break-even point / bep) and
  • Payback period
  • If the R / C ratio is greater than 1, the business is feasible to run, and vice versa.

The feasibility of this type of business can be assessed from the five investment criteria as follows.

  • Net present value (NPV)
  • Net benefit cost ratio (Net B / C)
  • Internal rate of return (IRR)
  • Payback period (PBP)
  • Break even point (BEP)

The investment needed in the production of magot includes buildings for insectarium, larvarium, organic waste counting machines, press machines, and trolleys. The variable in non-fixed costs is

  • Transportation costs for shipping organic waste,
  • Electricity cost,
  • Prices of palm oil cake, and
  • Labor wages.

A. Assumption of Initial Scale Business Analysis

  • In analyzing this maggot cattle, it is assumed that the insectarium is built on an area of ​​2 m2 and larvarium covering an area of ​​3 m2
  • The amount of organic waste used is 200kg / day
  • Magot produced by 10% of raw material. That is, the production of magot is 20 kg / day
  • The magot obtained is used for the production of pupa or insects as much as 15%, while the other 85% is sold to the aquaculture industry
  • The selling price of the magot is Rp7.000 / kg
  • The selling value of organic fertilizer from the bioconversion process is Rp1.000 / kg.

Operating costs

Maggot Livestock Analysis - Details of Investment Costs and Magot Production Operations

maggot-BSF cultivation analysis

Total Production Costs

Total production costs incurred in the production of magot production in one year

Total Production Costs = Fixed Costs + Non-Fixed Costs

Rp120.000 + Rp1.850.000 = Rp1.920.000

Total Income Per Year

Total income per year = Total production of magot (kg) X sale value of magot (Rp)

= (20kg / day X Rp7.000) X 85% X (365 days - 52 weeks) = Rp43.435.000

Profit Loss

The value of the profits obtained in the production business can be calculated using the following formula.

Profit (Rp) = Total Income (Rp) - Total Production Cost (Rp)

Rp43.435.000 - Rp1.920.000 = Rp41.515.000

Feasibility of Medium-Scale Enterprises

Based on the business analysis data above, the feasibility of the magot production business can be determined as follows:

1. BEP (Break Even Point)

Break Even Point (BEP) in Units

formula-bep

Information :

  • BEP: Break Even Point
  • FC: Fixed Cost
  • VC: Variable Cost
  • P: Price per unit
  • S: Sales Volume

Break Even Point (BEP) in Rupiah

formula-bep-rp

Fixed Costs and Non-Permanent Costs Per kg

  • Fixed Cost = Fixed Cost / Production Unit = 120.000 / 6.205 = 19 Kg
  • Non-fixed Costs = Non-fixed Costs / Production Capacities = 1.850.000 / 6.205 = 298 Kg

BEP In Kg

  • Fixed Cost / (Selling Price Per Kg - Fixed Cost Per Kg) = 120.000 / (Rp7.000 - 298Kg) = 18 Kg

BEP in Rupiah

  • Fixed Cost / 1- (Fixed Cost / Sales) = 120.000 / 1- (1.850.000 / 43.435.000) = Rp125.338

Information:

  • The break-even point in kg is 18kg. This means that in these numbers it is not profitable and does not lose.
  • The break-even point in rupiah is Rp125.338

2. Return of Investment (ROI)

ROI = (Profit / Total Production Cost) x100% = Rp43.435.000 / 1.920.000 = 2.262,24%.

3. Revenue Cost Ratio (R / C)

The feasibility of medium scale scale production business can be assessed by the following formulations,

R / C = Income (Rp) / Total Production Cost (Rp) = Rp43.435.000 / Rp1.920.000 = 22,62

The R / C value obtained is 22,62 or more than 1. This figure indicates that the medium scale magot production business is very feasible to run.

4. Payback Period (PBP)

The payback period calculation is expected to be able to analyze the investment return time of medium sakla magot production business with the following formulations:

PBP (month) = Total investment (Rp) / Operating Profit (Rp) x 1 year = (1.100.000 / 41.515.000) x 12 month = 0,3 month.

The results of this analysis illustrate that all investment capital of medium-scale magot production businesses will return within a period of 0,3 months.

maggot-business-cultivation analysis

B. Assumption of Small Scale Business Analysis

  • In analyzing this maggot cattle, it is assumed that the insectarium is built on an area of ​​100 m2 and larvarium covering an area of ​​100 m2
  • The amount of organic waste used is 500kg / day
  • Magot produced by 10% of raw material. That is, the production of magot is 50 kg / day
  • The magot obtained is used for the production of pupa or insects as much as 15%, while the other 85% is sold to the aquaculture industry
  • The selling price of the magot is Rp7.000 / kg
  • The selling value of organic fertilizer from the bioconversion process is Rp1.000 / kg.

Operating costs

Maggot Livestock Analysis - Details of Investment Costs and Magot Production Operations

maggot-BSF cultivation analysis

Total Production Costs

Total production costs incurred in the production of magot production in one year

Total Production Costs = Fixed Costs + Non-Fixed Costs

Rp32.050.000 + Rp9.900.000 = Rp40.450.000

Total Income Per Year

Total income per year = Total production of magot (kg) X sale value of magot (Rp)

= (50kg / day X Rp7.000) X 85% X (365 days - 52 weeks) = Rp108.587.500

Profit Loss

The value of the profits obtained in the production business can be calculated using the following formula.

Profit (Rp) = Total Income (Rp) - Total Production Cost (Rp)

Rp108.587.500 - Rp40.450.000 = Rp68.137.500

Feasibility of Medium-Scale Enterprises

Based on the business analysis data above, the feasibility of the magot production business can be determined as follows:

1. BEP (Break Even Point)

Break Even Point (BEP) in Units

formula-bep

Information :

  • BEP: Break Even Point
  • FC: Fixed Cost
  • VC: Variable Cost
  • P: Price per unit
  • S: Sales Volume

Break Even Point (BEP) in Rupiah

formula-bep-rp

Fixed Costs and Non-Permanent Costs Per kg

  • Fixed Cost = Fixed Cost / Production Unit = 32.050.000 / 15.513 = 2.066 Kg
  • Non-fixed Costs = Non-fixed Costs / Production Capacities = 9.900.000 / 15.513 = 638 Kg

BEP In Kg

  • Fixed Cost / (Selling Price Per Kg - Fixed Cost Per Kg) = 32.050.000 / (Rp7.000 - 638 Kg) = 5.038 Kg

BEP in Rupiah

  • Fixed Cost / 1- (Fixed Cost / Sales) = 32.050.000 / 1- (9.900.000 / 108.587.500) = Rp35.265.149

Information:

  • Break-even point in kg is 5.038 kg. This means that in these numbers it is not profitable and does not lose.
  • The break-even point in rupiah is Rp35.265.149

2. Return of Investment (ROI)

ROI = (Profit / Total Production Cost) x100% = Rp108.587.500 / 40.450.000 = 268,45%.

3. Revenue Cost Ratio (R / C)

The feasibility of medium scale scale production business can be assessed by the following formulations,

R / C = Income (Rp) / Total Production Cost (Rp) = Rp108.587.500 / Rp40.450.000 = 2,68

The R / C value obtained is 2,68 or more than 1. This figure indicates that the medium scale magot production business is very feasible to run.

4. Payback Period (PBP)

The payback period calculation is expected to be able to analyze the investment return time of medium sakla magot production business with the following formulations:

PBP (month) = Total investment (Rp) / Operating Profit (Rp) x 1 year = (17.750.000 / 68.137.500) x 12 month = 3.1 month.

The results of this analysis illustrate that all investment capital of medium-scale magot production businesses will return within a period of 3.1 months.

maggot-business-cultivation analysis

B. Assumption of Medium Scale Business Analysis

  • In the analysis of this maggot cattle, it is assumed that the insectarium was built on an area of ​​400 m2 and larvarium covering an area of ​​400 M2
  • The amount of organic waste used is 3 tons / day
  • Magot produced by 10% of raw material. That is, the production of magot is 300 kg / day
  • The magot obtained is used for the production of pupa or insects as much as 15%, while the other 85% is sold to the aquaculture industry
  • The selling price of the magot is Rp7.000 / kg
  • The selling value of organic fertilizer from the bioconversion process is Rp1.000 / kg.

Operating costs

Maggot Livestock Analysis - Details of Investment Costs and Magot Production Operations

maggot-BSF cultivation analysis

Total Production Costs

Total production costs incurred in the production of magot production in one year

Total Production Costs = Fixed Costs + Non-Fixed Costs

Rp120.300.000 + Rp26.700.000 = Rp139.500.000

Total Income Per Year

Total income per year = Total production of magot (kg) X sale value of magot (Rp)

= (300kg / day X Rp7.000) X 85% X (365 days - 52 weeks) = Rp651.525.000

Profit Loss

The value of the profits obtained in the production business can be calculated using the following formula.

Profit (Rp) = Total Income (Rp) - Total Production Cost (Rp)

Rp651.525.000 - Rp139.500.000 = Rp512.025.000

Feasibility of Medium-Scale Enterprises

Based on the business analysis data above, the feasibility of the magot production business can be determined as follows:

1. BEP (Break Even Point)

Break Even Point (BEP) in Units

formula-bep

Information :

  • BEP: Break Even Point
  • FC: Fixed Cost
  • VC: Variable Cost
  • P: Price per unit
  • S: Sales Volume

Break Even Point (BEP) in Rupiah

formula-bep-rp

Fixed Costs and Non-Permanent Costs Per kg

  • Fixed Costs = Fixed Costs / Production Staff = 120.300.000 / 93.075 = 1.293Kg
  • Non-fixed Costs = Non-fixed Costs / Production Capacities = 26.700.000 / 93.075 = 287 Kg

BEP In Kg

  • Fixed Cost / (Selling Price Per Kg - Fixed Cost Per Kg) = 120.300.000 / (Rp7.000 - 287Kg) = 17.920 Kg

BEP in Rupiah

  • Fixed Cost / 1- (Fixed Cost / Sales) = 120.300.000 / 1- (26.700.000 / 651.525.000) = Rp125.440.655

Information:

  • The break-even point in kg is 17.290kg. This means that in these numbers it is not profitable and does not lose.
  • The break-even point in rupiah is Rp125.440.655

2. Return of Investment (ROI)

ROI = (Profit / Total Production Cost) x100% = Rp651.525.000.000 / Rp139.500.000 = 467,04%

3. Revenue Cost Ratio (R / C)

The feasibility of medium scale scale production business can be assessed by the following formulations,

R / C = Income (Rp) / Total Production Cost (Rp) = Rp651.525.000 / Rp139.500.000 = 4,67

The R / C value obtained is 4,67 or more than 1. This figure indicates that the medium scale magot production business is very feasible to run.

4. Payback Period (PBP)

The payback period calculation is expected to be able to analyze the investment return time of medium sakla magot production business with the following formulations:

PBP (month) = Total investment (Rp) / Operating Profit (Rp) x 1 year = (246.500.000 / 512.025.000) x 12 month = 5,8 month.

The results of this analysis illustrate that all investment capital of medium-scale magot production businesses will return within a period of 5,8 months.

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