Financial Feasibility Aspects

Oct 13, 2025 by magicalceylontours.com 106 views

Analysis of the Feasibility of Broiler Chicken Livestock Business on Community Farms in Panyabungan District, Mandailing Natal Regency

Introduction

The broiler chicken livestock business has become a significant contributor to the economy of many regions, including Panyabungan District in Mandailing Natal Regency. However, the feasibility of this business on community farms in the area has not been thoroughly evaluated. This study aims to assess the acceptance of farmers and analyze the business of broiler chickens on people's farms, focusing on financial, non-financial, and SWOT analysis aspects.

Methodology

The study was conducted in Panyabungan District, Mandailing Natal Regency in November-December 2021. A stratified sampling method was used to divide the sample into three business scales based on the number of livestock ownership: small business scale (1,500-2,000 head), medium business scale (2,500-3,000 head), and large business scale (3,500-3,800 head). A total of 20 farmers were involved in the study.

Data Analysis

The data obtained were analyzed using a qualitative and quantitative descriptive analysis approach, as well as through business feasibility analysis and SWOT analysis. The results of the analysis show that the average annual income per business scale is Rp. 343,601,644 for small scale, Rp. 490,856,650 for medium scale, and Rp. 661,772,667 for large scale. Financial analysis of broiler chicken business shows that the value of R/C is greater than 1, indicating the business is profitable.

Financial Feasibility Aspects

In other financial feasibility analysis, the net b/c value is greater than 1, the NPV (Net Present Value) value is positive, and the IRR (Internal Rate of Return) value is 2.16%, 24.68%, and 27.24%, all of which are higher than interest rates of 3.50%. In addition, the investment return period (PP) of each business scale is 46 months, 44 months, and 21 months, all of which are under the age of the project planned for 5 years. This shows that the business of broiler chicken livestock is financially feasible to run.

Non-financial Aspects

In terms of non-financial, the analysis shows that the business of broiler chickens meet the feasibility criteria of legal, technical, environmental, and marketing aspects. This is an important factor that shows that broiler chicken farms are not only financially profitable but also sustainable and can operate within the existing legal framework.

SWOT Analysis

Based on the results of the SWOT analysis, the development strategy obtained is the S-O Strategy (Strengths-Opportunities). This means that farmers can utilize existing strengths and opportunities in the market to develop broiler chicken livestock business. By maximizing existing potential, such as product quality and access to a wider market, people's livestock in Panyabungan District have the opportunity to develop further.

Conclusion

From the overall analysis, the business of broiler chickens on community farms in Panyabungan District, Mandailing Natal Regency, can be declared feasible to run. With a significant potential profit and non-financial aspects that support, this business can be a sustainable source of livelihood for local farmers. SWOT analysis also provides a clear picture of the strategic steps that need to be taken to ensure the development of business in the future.

Recommendations

Based on the findings of this study, the following recommendations are made:

Farmers in Panyabungan District should consider developing their broiler chicken livestock business, as it is financially feasible and sustainable.
The government and relevant stakeholders should provide support and resources to farmers to help them develop their business.
Farmers should focus on maximizing their existing potential, such as product quality and access to a wider market, to develop their business further.

Limitations

This study has several limitations, including:

The study was conducted in a specific region, and the findings may not be generalizable to other regions.
The study only focused on financial and non-financial aspects, and did not consider other factors that may affect the feasibility of the business.
The study only involved a small sample size, which may not be representative of the larger population.

Future Research Directions

Future research should focus on:

Conducting a more comprehensive study that considers other factors that may affect the feasibility of the business.
Conducting a study in other regions to determine the generalizability of the findings.
Developing a more detailed business plan that takes into account the specific needs and challenges of farmers in Panyabungan District.

References

[List of references cited in the study]

Appendix

[Appendix materials, such as additional tables and figures, that support the findings of the study]
Q&A: Analysis of the Feasibility of Broiler Chicken Livestock Business on Community Farms in Panyabungan District, Mandailing Natal Regency

Frequently Asked Questions

Q: What is the main objective of this study?

A: The main objective of this study is to evaluate the acceptance of farmers and analyze the business of broiler chickens on people's farms in Panyabungan District, Mandailing Natal Regency, focusing on financial, non-financial, and SWOT analysis aspects.

Q: What is the significance of this study?

A: This study is significant because it provides an in-depth analysis of the feasibility of broiler chicken livestock business on community farms in Panyabungan District, Mandailing Natal Regency. The findings of this study can help farmers, policymakers, and other stakeholders make informed decisions about the development of this business.

Q: What are the key findings of this study?

A: The key findings of this study include:

The average annual income per business scale is Rp. 343,601,644 for small scale, Rp. 490,856,650 for medium scale, and Rp. 661,772,667 for large scale.
Financial analysis of broiler chicken business shows that the value of R/C is greater than 1, indicating the business is profitable.
The net b/c value is greater than 1, the NPV (Net Present Value) value is positive, and the IRR (Internal Rate of Return) value is 2.16%, 24.68%, and 27.24%, all of which are higher than interest rates of 3.50%.
The investment return period (PP) of each business scale is 46 months, 44 months, and 21 months, all of which are under the age of the project planned for 5 years.

Q: What are the implications of this study?

A: The implications of this study are:

The business of broiler chickens on community farms in Panyabungan District, Mandailing Natal Regency, can be declared feasible to run.
With a significant potential profit and non-financial aspects that support, this business can be a sustainable source of livelihood for local farmers.
SWOT analysis also provides a clear picture of the strategic steps that need to be taken to ensure the development of business in the future.

Q: What are the limitations of this study?

A: The limitations of this study include:

The study was conducted in a specific region, and the findings may not be generalizable to other regions.
The study only focused on financial and non-financial aspects, and did not consider other factors that may affect the feasibility of the business.
The study only involved a small sample size, which may not be representative of the larger population.

Q: What are the recommendations of this study?

A: The recommendations of this study are:

Farmers in Panyabungan District should consider developing their broiler chicken livestock business, as it is financially feasible and sustainable.
The government and relevant stakeholders should provide support and resources to farmers to help them develop their business.
Farmers should focus on maximizing their existing potential, such as product quality and access to a wider market, to develop their business further.

Q: What are the future research directions of this study?

A: The future research directions of this study are:

Conducting a more comprehensive study that considers other factors that may affect the feasibility of the business.
Conducting a study in other regions to determine the generalizability of the findings.
Developing a more detailed business plan that takes into account the specific needs and challenges of farmers in Panyabungan District.

Q: What are the potential applications of this study?

A: The potential applications of this study are:

Providing a framework for farmers to develop their broiler chicken livestock business.
Informing policymakers and other stakeholders about the feasibility of this business.
Helping farmers and other stakeholders make informed decisions about the development of this business.

Q: What are the potential benefits of this study?

A: The potential benefits of this study are:

Providing a sustainable source of livelihood for local farmers.
Contributing to the development of the local economy.
Helping to improve the quality of life of farmers and their families.