Feasibility Study Of Organic Fertilizer Processing To Improve The Community's Economy (Case study in organic fertilizer business group in Yogyakarta)

Abstract

Organic fertilizer processing has been done to the community for a long time, but until
now the organic fertilizer processing industry is still under developed. This is because the
processing process used today still requires a relatively expensive cost and a long fermentation
time. The purpose of this research is the feasibility of processing organic fertilizers to improve
the community's economy. This research was conducted in the Special Region of Yogyakarta
from May to August 2021. The research method used was a mixed/mixed method approach
with data collection through observation, production processes, interviews, effort, and
literature study. The results showed that organic fertilizer processing using bioactivator from
cow bile was able to reduce costs by 25%, and fermentation time by 10%. Based on the results
of the analysis of investment in organic fertilizer processing, it is profitable and financially
feasible with the right Net Present Value (NPV), Internal Rate of Return (IRR) 36.7%, R/C
Ratio (BCR) 1.67 and Payback period 2, 9 years.