Business Development Strategy and Financial Feasibility Test of Agribusiness Commodity Shallots (Allium Cepa Var. Aggregatum L.) in Farmers' Groups in Muncar and Tegaldlimo Districts in Banyuwangi Regency

Suciati, Ari (2021) Business Development Strategy and Financial Feasibility Test of Agribusiness Commodity Shallots (Allium Cepa Var. Aggregatum L.) in Farmers' Groups in Muncar and Tegaldlimo Districts in Banyuwangi Regency. Diploma thesis, Politeknik Negeri Jember.

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Abstract

The shallot commodity is one of the prominent horticultural crops in Banyuwangi Regency. There are several factors that support shallot farming,namely suitable land and government support. This study aims to analyze the development strategy and financial feasibility test of shallot agribusiness in Banyuwangi Regency. The methods used are Strength, Weakness, Opportunity, and Threat (SWOT) to determine the internal and external factors of the shallot business, Quantitative Strategic Planning Matrix (QSPM) to determine the development strategy using strategic priorities generated from SWOT, NPV IRR and RC ratio for a financial feasibility test. The results showed that the shallot commodity agribusiness in Banyuwangi is feasible to develop, the priority of the resulting strategy is to increase the production and quality of shallots in Banyuwangi Regency to meet high market demand both inside and outside Banyuwangi Regency with the highest score of 7.23. The results of the financial feasibility test are positive NPV results of Rp. 16,365,456, IRR value is 14% greater than the interest rate (3,5%), and RC ratio is 1.04. (RC value > 1 (more than one). So that the shallot business in Banyuwangi Regency can be said to be feasible to continue.

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