Financial feasibility of livestock feed business from palm oil plantation wastes

Abstract

There are three types of livestock feed as palm oil by-product, namely feed for fattening, feed for breeding and concentrates. This study aims to analyze the finansial feasibility of producing feed from palm oil waste and to analyze the added value of product from bio-industrial agricultural based on palm oil-cattle. This study was conducted in farmer group of bio-industrial agriculture in Sumber Makmur, Parenggean, Kotawaringin, Central Kalimantan, in December 2019. Data collection was carried out through Focus Group Discussion. To analyze the finansial feasibility, used investment criteria: net benefit-cost ratio, break even point, and payback period, while to determine the added value of the product, used the Hayami method. The result showed that from net B/C ratio, BEP (rupiah and unit), and payback period, the business of animal feed for fattening, breeding, and concentrates are profitable. Among the three business of feed, business feed for fattening is more profitable than others. The ratio of the added value of each livestock feed business between 0,89-0.94. The result of the study showed that the three of feed business were feasible to develop. It can be considered by other farmer groups and investors to develop livestock feed business from oil palm cultivation waste.