Technical and Financial Feasibility Analysis of Corn Tortilla Production (Case Study at UMK Trans Kapitan Meo, Laenmanen District, Malaka Regency)
Rizky Anggrio Alnov Ramadhan (1*), Panji Deoranto (2), Andan Linggar Rucitra (3)

Department of Agro-industrial Technology, Faculty of Agricultural Technology, Universitas Brawijaya
Jl. Veteran, Malang 65145, Indonesia
*rizkyanggrio[at]gmail.com

Abstract

Kapitan Meo Village, located in Laenmanen District, Malaka Regency, is an autonomous region designated as a strategic national transmigration area. Corn (Zea mays L.), the region^s leading commodity, is processed by UMK Trans Kapitan Meo into functional food products, with corn tortillas as the flagship item. The sustainability and feasibility of this enterprise are crucial to ensure its survival and growth amid market competition. This study aims to assess business feasibility in terms of technical and financial aspects. Findings indicate that the enterprise is viable. The location is strategically close to raw materials and markets, with adequate transportation access. Production capacity is systematically planned, raw materials are sufficient, and a batch production process is applied. Utility needs are fulfilled, raw material, equipment, and worker sanitation are maintained, and waste is properly managed. Equipment is functionally appropriate, the process layout follows a process layout type with a zig-zag flow, and a line organization structure is implemented. The cost of production is Rp5,197, selling price Rp8,000 (54% mark-up), BEP is 1,747 units or Rp13,971,128, The R/C ratio is 1.539 or greater than 1. The NPV is positive (Rp 10,527,083 > 0). The IRR exceeds the interest rate (46.54% > 12%). The Payback Period is 630 days.

Keywords: corn tortillas- feasibility study- financial analysis- technical analysis

Topic: Agro-industrial system management and regulation