Analysis of Sterilized Milk Production (Case : Sterilized Milk Product ‘Fresh Time’ from KPSBU Jawa Barat)

Abstract

Milk is one of agricultural commodity which have good prospect to be developed. It caused of national milk consumption doesn’t have fulfilled by the national milk production, increasing of income, population of Indonesia, the habitual changes of animal consumption, the realized of nutrition need, and the change of citizen lifestyle. But, the member’s income of cow farmer cooperation as supporter of national milk production has tend to stabile, while production cost (especially for concentrate food) has tend to increase by years. It cause milk quality doesn’t improve and bargaining position of farmer is getting weaker. One of cooperation which has biggest milk production is KPSBU Jawa Barat. In 2009, there is quota regulatory which cause some of milk from cooperation is dumped. One thing that do to prevent the dump of milk is make a production subcontract with PT ISAM. Whereas, if cooperation had their own milk factory, the cooperation would have more benefit for itself and the members. To compare which more feasible from sterilized milk production between make a production subcontract with PT ISAM with have own milk factory, so the business feasible analysis from nonfinancial and financial aspect is need to do. Nonfinancial aspect is consist of market, technical production, management, legal, social, economy and environmental aspect. Financial aspect are analyzed by using criteria such as NPV, IRR, Net B/C and payback period. The analysis was also conducted to determine the change of some variables. The result of nonfinancial aspect of the analysis states that the market, technical production, management, legal, social, economy and environmental aspect of all scenario is feasible. On the financial aspect criteria, there is two scenario which feasible (scenario I and III), while the scenario II is not feasible because it hasn’t fulfilled the criteria.