ECONOMIC EFFICIENCY ANALYSIS OF SALTED ANCHOVY PROCESSING AGROINDUSTRY ON PASARAN ISLAND, BANDAR LAMPUNG CITY
Keywords:
Agroindustry, economic efficiency, salted anchovyAbstract
Salted anchovy processing is an important coastal agroindustry in Pasaran Island, Bandar Lampung City, generating economic value through the processing of anchovy into products with higher market value and longer shelf life. However, the economic performance of the industry is affected by production costs, particularly the cost of raw materials. This study aimed to analyze the economic efficiency of the salted anchovy processing agroindustry on Pasaran Island, Bandar Lampung City. The study employed a quantitative descriptive approach. Primary data were collected through structured interviews, field observations, and documentation involving 35 salted anchovy processors selected using purposive sampling. The data were analyzed by calculating production costs, revenue, income, and the Revenue-Cost Ratio (R/C Ratio). The results showed that the average monthly revenue was IDR 461,477,250.00, while total production costs reached IDR 438,572,262.35 per month. The average monthly income was therefore IDR 22,904,987.65. The direct raw material cost constituted the largest share of production costs, accounting for approximately 80.15%. The resulting R/C Ratio was 1.05, indicating that the salted anchovy processing agroindustry was economically efficient because the revenue generated exceeded the production costs. However, the relatively low R/C Ratio indicates a narrow profit margin and highlights the importance of controlling production costs, particularly raw material costs, to improve the economic efficiency of the industry.
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