Feasibility Study of Coffee Monoculture Farming and Jackfruit Intercropping In Emera District of East Timor
Journal Title: Scholars Journal of Agriculture and Veterinary Sciences - Year 2017, Vol 4, Issue 12
Abstract
Abstract:This study aims to: 1) describe the pattern of coffee planting conducted by farmers in the research area; 2) evaluate the feasibility level of coffee monoculture and jackfruit seedlings based on NPV, IRR, Net B / C and payback period and 3) analyze the sensitivity of coffee monoculture farming and intercropping of jackfruit to changes in production costs and changes in production prices. The result of the research shows that: (1) the community in the research area which the majority of the people are farmers certainly expects the central and local government to be able play a role in the framework of fostering to increase knowledge and expertise of the community about coffee farming management. (2) The average production cost of the coffee monoculture system is US $ 592.45 and the production cost of intercropping of jackfruit is US $ 620.25 ha / year; reception of coffee monoculture farming is the average of US $ 1311.49 and the average of intercropping farms is US $ 1243.06 ha / year; the average income earned by monoculture farmers is US $ 719.04 ha / year; and the average income earned by jackfruit farmers is US $ 622.81 ha / year. With the bank interest rate of 12%, it is possible to develop a coffee monoculture and intercropping system, with a NPV value of US $ 2781.73, and NPV of US $ 2298.02, IRR of 30% and 29%; Net B / C of 3.79 and 3:00; payback period of monoculture farming of coffee for four years should be developed as a shorter payback period and the intercropping farming for 11 years and 3 months is not worth developing, because the payback period is longer, therefore the project was rejected. (3) the comparison of sensitivity analysis with the 65% increase of production costs resulted in change of NPV value of US $ -57.51; and US $ -343.93, IRR of 11% and 5%; Net B / C of 0.96 and 0.85; and payback period -1.12 and -0.91, it shows that the business is not worth developing. With the decrease in the production price, 40% of coffee monoculture and intercropping systems are not feasible to develop, with an NPV value of US $ -78.19 and US $ -258.77; IRR of 10% and by 3%; Net B / C of 0.91 and 0.82; and payback period from -1.47 years and -1.81 years. These results indicate that coffee monoculture and jackfruit intercropping systems are feasible if production costs fall by 60% and production prices fall by 35%. Keywords:Coffee monoculture, jackfruit intercropping, cost, revenue, income, financial feasibility, sensitivity analysis
Authors and Affiliations
Tomas dos Santos, Djoko Koestiono, A. Wahib Muhaimin
Keywords
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