{"title":"Gross Margin and Profitability Analyzes of Shallot Farming","authors":"","doi":"10.55057/ajafin.2023.5.3.5","DOIUrl":null,"url":null,"abstract":"The objective of this research was to examine the production costs, gross margin, and profitability of shallot farming in the Uluere District of Bantaeng Regency, Indonesia. The sample for the study respondents consisted 150 individuals engaged in shallot farming, selected randomly from a population of 1,500 individuals. The primary data utilized in this research were acquired through a structured interview procedure employing a pre-designed questionnaire. The data analysis method employed encompassed the examination of farm revenue, rate of return, capital turnover, and profitability index. Due to the findings, during the initial planting season of 2023, the production cost amounted to Rp26,613,747.00 per hectare, while the productivity reached 7,411.00 kg/ha. Subsequently, considering the prevailing average market value of Rp15,200.00/kg, the shallot farmers managed to attain a sales margin and net revenue of Rp86,334,561.00/ha and Rp59,720,815.00/ha, respectively. The rate of return for shallot farming was 3.28%. Additionally, the capital turnover was 374.11, indicating that a higher ratio of investment in shallot production can contribute to an advantageous financial situation and expedite the growing process of shallots. The profitability index was determined to be 0.77, indicating that farmers obtained an income of 0.77 shallots for each unit of production cost incurred. The research results clearly demonstrated that the shallots farming on the research site was a financially viable endeavour for the farmers. Nevertheless, it is important to acknowledge that our research has several limitations. Specifically, we were unable to offer any policy implications aimed at enhancing the productivity of shallot farming or reducing production costs, which could potentially result in increased agricultural income for farmers. It is recommended to conduct further study in the future to overcome the identified limitations","PeriodicalId":39488,"journal":{"name":"Afro-Asian Journal of Finance and Accounting","volume":"1 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2023-10-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Afro-Asian Journal of Finance and Accounting","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.55057/ajafin.2023.5.3.5","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
引用次数: 0
Abstract
The objective of this research was to examine the production costs, gross margin, and profitability of shallot farming in the Uluere District of Bantaeng Regency, Indonesia. The sample for the study respondents consisted 150 individuals engaged in shallot farming, selected randomly from a population of 1,500 individuals. The primary data utilized in this research were acquired through a structured interview procedure employing a pre-designed questionnaire. The data analysis method employed encompassed the examination of farm revenue, rate of return, capital turnover, and profitability index. Due to the findings, during the initial planting season of 2023, the production cost amounted to Rp26,613,747.00 per hectare, while the productivity reached 7,411.00 kg/ha. Subsequently, considering the prevailing average market value of Rp15,200.00/kg, the shallot farmers managed to attain a sales margin and net revenue of Rp86,334,561.00/ha and Rp59,720,815.00/ha, respectively. The rate of return for shallot farming was 3.28%. Additionally, the capital turnover was 374.11, indicating that a higher ratio of investment in shallot production can contribute to an advantageous financial situation and expedite the growing process of shallots. The profitability index was determined to be 0.77, indicating that farmers obtained an income of 0.77 shallots for each unit of production cost incurred. The research results clearly demonstrated that the shallots farming on the research site was a financially viable endeavour for the farmers. Nevertheless, it is important to acknowledge that our research has several limitations. Specifically, we were unable to offer any policy implications aimed at enhancing the productivity of shallot farming or reducing production costs, which could potentially result in increased agricultural income for farmers. It is recommended to conduct further study in the future to overcome the identified limitations
期刊介绍:
Finance and accounting are seen as essential components for the successful implementation of market-based development policies supporting economic liberalisation in the rapidly emerging economies in Africa, the Middle-East and Asia. AAJFA aims to foster greater discussion and research of the development of the finance and accounting disciplines in these regions. A major feature of the journal will be to emphasise the implications of this development and the effects on businesses, academics and professionals. Topics covered include: -Asset pricing, corporate finance, banking; market microstructure -Behavioural and experimental finance; law and finance -Emerging economies: finance, audit committees, corporate governance -Islamic finance, accounting and auditing -Equity analysis and valuation, venture capital and IPOs -National GAAP and IASs compliance, harmonisation and strategies -Financial measurement/disclosure, and the quality of information reported -Accountability and social/ethical/environmental measurement/reporting -Cultural, political, institutional impact on financial measurement/disclosure -Accounting practices for intellectual capital and other intangible assets -Provision of non-audit services and impairment to auditor independence -Audit quality and auditor skills; internal control/auditing -Management accounting, control and /use of key performance indicators -Accounting education and professional development, accounting history -Public sector and not-for-profit accounting