Techno-economy Analysis of Shallot Seedling Production form TSS (True Shallot Seed) with LCAC (Low Cost Aeroponic Chamber) Technology

Abstract

The decline in the productivity of shallots occurred in almost all areas of shallot production centres in Indonesia. One of the factors in the decline in productivity is that farmers are still dependent on tuber seeds that are produced by themselves from generation to generation without any risk of carrying degenerative diseases from previous shallots. Another problem is that the cost of providing seeds is quite high, reaching 40% of the total production cost, with an average requirement of 1-1.5 tons/hectare. Planting shallots using TSS (True Shallot Seed) is an alternative solution, in terms of seed requirements, only 3-5 kg/ha is needed. However, an initial activity is needed in the form of the production of shallot planting material before it is transferred to the land. This study aims to conduct a technoeconomic analysis of shallot planting material production from TSS with LCAC (Low Cost Aeroponic Chamber) technology. Techno-economic analysis is carried out by calculating the basic costs for producing shallot seeds, and economic analysis related to NPV, IRR, Net BC Ratio and Payback Period. This study uses a scenario design of production scales of 200, 500, 1000 trays, and 1 million seeds on a production schedule of 3 cycles per year and 6 cycles per year. The NPV calculation yields profits ranging from 4,750,650 - 822,448,953 IDR, IRR 9.87 - 65.40% above the discount rate used of 6%. Net B/C ratio 1.12 - 2.24 and initial investment will return to investors in the range of 5.23 to 1.28 years after production starts.

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