Financial analysis of red chili farming business with green cultivation technology in South Sulawesi

Abstract

The demand for chili production continues to increase in Indonesia and South Sulawesi in particular, both for local, inter-island demand and the potential for export. On the other hand, chili production is still low. Chili productivity in 2010 was only 5.6 t/ha, although the potential productivity can reach 12 t/ha. Therefore, an assessment of chili technology innovation according to GAP in South Sulawesi was carried out through the application of efficient chili technology innovation, appreciation of local wisdom and environmental insight. The assessment was carried out in a participatory manner in the chili development center area in Maros Regency, South Sulawesi involving 4 cooperative farmers in an area of 1.0 ha. The data used are production, inputs used, output prices, input prices. To determine the farming use R/R (Return Cost Ratio) analysis, and to determine the optimal level of use of production inputs obtained from the application of chili technology is to calculate MBCR (marginal benefit cost ratio) or IBCR (incrementel benefit cost ratio). The results of the study showed 1) The application of GAP in red chili cultivation resulted in higher chili production and a smaller number of anthracnose attacks than the farmers’ treatment. 2) Chili productivity achieved in P1 treatment reached 24.64 t/ha, significantly different from P2 treatment which reached 27.52 t/h, but not significantly different from P3 treatment reached 25.92 t/ha. 3) The application of GAP can increase farmers’ income from Rp. 173.14 million to Rp. 194.25 million or an increase in revenue of 10.86% with an IBCR of 2.05.