FEASIBILITY STUDY OF BREEDING “GARUT” SHEEP IN AL - BAROKAH LIVESTOCK GROUP, RAWAMERTA, KARAWANG DISTRICT
Ina Ratnasari (a*), Dian Hakip Nurdiansyah (b)
Singaperbangsa karawang university
Karawang district is one area in West Java province which has a quite extensive farm for animal feed. It makes the region as a potential location for sheep breeding. This study aims to investigate the feasibility of breeding “Garut” sheep in Al-Barokah livestock group, Karawang. The feasibility study is conducted by considering the financial and non-financial aspects. The financial aspects are determined by the value of investments, analysis of business income, payback period, net present value, profitability index and internal rate of return, while the non-financial aspects are determined by market analysis, marketing, technical and operations, management and environmental condition. Based on the study, the value of the investment for breeding broodstock of 60 sheep is 316.66 million rupiah which will generate average annual operating revenues of 380.9 million rupiah with an average total cost per year of 77.27 million rupiah. The payback period is 1 year 10 months and 3 days. The net present value along the economic life of the projects is 406.5 million rupiah (positive). The profitability index is 2.20, and the IRR is greater than the interest rate (53.6% > 14%). It shows that breeding “Garut” sheep in the Al-Barokah is feasible based on the financial aspect. It similar to the non-financial aspects that market analysis, marketing, technical and operations, management, and environment condition are very feasible for breeding “Garut” sheep implemented.
Topic: Financial Management and Accounting