Financial Feasibility of Sweet Orange (Citrus sinensis) Farming in Dau District, Indonesia
Keywords:
Sweet orange, cashflow, financial, feasibility, sensitivity
Abstract
Sweet oranges are a horticultural commodity that offers health benefits and is affordable for consumers. However, the agribusiness faces many challenges in various countries, including Indonesia. This study aims to analyze financial feasibility of sweet orange farming and its sensitivity to changes in price and production. Data were collected from 77 farmers selected using a simple random sampling method. Feasibility analysis was based on Benefit Cost Ratio (B/C), Break Even Point (BEP) of production and price, Payback Period (PP), Net Present Value (NPV), and Internal Rate of Return (IRR). Sensitivity analysis was based on price and production fluctuations. The results showed that existing sweet orange farming is feasible because B/C > 0, BEP production < actual production, BEP price < actual price. Payback period of 6.12 years, NPV of 135.9493 million IDR and IRR of 48.3% strengthen feasibility of this farming. Even though orange prices and production have decreased by 10-15%, sweet orange farming remains feasible. If orange prices and production drop by 20%, the farming business is not feasible because IRR is ≤ 6%. Sustainability of sweet orange farming can be achieved if farmers can increase their yields and income by 1) implementing intercropping and rejuvenation, 2) obtaining facilitation from extension workers and the government to establish an integrated sweet orange tourism area, and assistance in rejuvenation.
References
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Hidayat, A. R. T., Hasyim, A. W., Prayitno, G., & Harisandy, J. D. (2021). Farm Owners’ Perception Toward Farmland Conversion: An Empirical Study From Indonesian Municipality. Environmental Research Engineering and Management, 77(1), 109–124. https://doi.org/10.5755/j01.erem.77.1.27471
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Kusumastuti, D., Wahyuni, D., & Sulistyaningsih, E. (2022). The Effect of Consumption Patterns and Sanitation of Vegetables and Fruits on Pesticide Residues in Mothers of Under-Two Years Short Toddlers in the City of Malang. Strada Jurnal Ilmiah Kesehatan, 11(2), 153–160. https://doi.org/10.30994/sjik.v11i2.917
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Priyanka, K. S., Imran, K., Singirikonda, S., & Kumar D, S. (2021). Citrus sinensis : A potential plant source for antimicrobial activity and value added products. International Journal of Botany Studies, 6(6), 1571–1575.
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Putra, O. A., Surni, & Abdi. (2023). The Financial Feasibility of Lime Farming ( C . aurantifolia) in Landono District South Konawe Regency. JIA (Jirnal Ilmiah Agribisnis), 8(3), 230–236. https://doi.org/10.37149/jia.v8i3.211
Saini, R. K., Ranjit, A., Sharma, K., Prasad, P. B. V., Shang, X., Gowda, K. G. M., & Keum, Y. (2022). Bioactive Compounds of Citrus Fruits: A Review of Composition and Health Benefits of Carotenoids, Flavonoids, Limonoids, and Terpenes. Antioxidants, 11(2), 239. https://doi.org/10.3390/antiox11020239
Sinaga, R., Noravika, M., Herawati, Widiastuti, M. M. D., Sukmaya, S. G., Sari, N. M. W., Noviana, R., Rizkiyah, N., Nurliah, Wijayati, Prasmila Dian, Putri, T. A., Fathin, S., Liana, L., & Zainuddin, A. (2024). Ilmu Usahatani (R. Sinaga (ed.); Pertama, Vol. 2). Widina Media Utama.
Sujarwo, S., & Laili, F. (2023). Price Forecasting of Strategic Food Commodities in Various Markets in Malang Regency: Implementation of the Arma-Garch Model. Agricultural Social Economic Journal, 23(2), 199–216. https://doi.org/10.21776/ub.agrise.2023.023.2.9
Wilson, R. T. (2023). Coping With Catastrophe: Crop Diversity and Crop Production in Tigray National Regional State in Northern Ethiopia. African Journal of Agricultural Research, 19(3), 321–336. https://doi.org/10.5897/ajar2022.16265
Anindita, R., Heryanto, Pudjiastuti, A. Q., & Rozi, F. (2015). Ekonomi Pertanian (1st ed.). Universitas Terbuka.
Barasa, P. M., Botai, C. M., Botai, J. O., & Mabhaudhi, T. (2021). A Review of Climate-Smart Agriculture Research and Applications in Africa. Agronomy, 11(6), 1255. https://doi.org/10.3390/agronomy11061255.
Dhakal, N., Kunwar, B., Subedi, K., & Adhikari, D. (2023). Financial Feasibility Analysis of Sweet Orang Production in Shindhuli, Nepal. Food & Agribusiness Management (FABM), 4(2), 100–103. https://doi.org/10.26480/fabm.02.2023.100.103
Dongre, P., Doifode, C., Choudhary, S., & Sharma, N. (2023). Botanical description , chemical composition , traditional uses and pharmacology of Citrus sinensis : An updated review. Pharmacological Research - Modern Chinese Medicine, 8(May), 100272. https://doi.org/10.1016/j.prmcm.2023.100272
Etebu, E., & Nwauzoma, A. B. (2014). A Review on Sweet Orange (Citrus sinensis L Osbeck): Health , Diseases and Management. American Journal of Research Communication, 2(2), 33–70.
Girdžiūtė, L. (2012). Risks in agriculture and opportunities of their integrated evaluation. Procedia - Social and Behavioral Sciences, 62(2012), 783–790.
Gittinger, J. P. (1982). Economic analysis of agricultural projects (2nd ed.). Baltimore: Johns Hopkins University Press
Hidayat, A. R. T., Hasyim, A. W., Prayitno, G., & Harisandy, J. D. (2021). Farm Owners’ Perception Toward Farmland Conversion: An Empirical Study From Indonesian Municipality. Environmental Research Engineering and Management, 77(1), 109–124. https://doi.org/10.5755/j01.erem.77.1.27471
Hidayat, R., Pudjiastuti, A. Q., & Sumarno. (2022). Feasibility study of tangerines and siamese in Dau District , Malang Regency , Indonesia. International Journal of Management, Accounting and Economics, 9(3), 155–165.
Irawan, A., & Yuristia, R. (2021). The economic feasibility of Gerga’s orange (Citrus sp.) agribusiness as a new source of economic growth in Bengkulu, Indonesia. Economía Agraria y Recursos Naturales, 21(2), 29–45. https://doi.org/10.7201/earn.2021.02.02
Jiang, L., Chen, Y., Wang, X., Guo, W., Bi, Y.-Q., Zhang, C., Wang, J., & Li, M.-H. (2022). New Insights Explain That Organic Agriculture as Sustainable Agriculture Enhances the Sustainable Development of Medicinal Plants. Frontiers in Plant Science, 13. https://doi.org/10.3389/fpls.2022.959810
Juliana, Suryadi, & Sinta, I. (2023). Factors Affecting Farmers ’ Decisions in Transfer of Siam Orange Land Functions to Arabica Coffee in Parbuluan District, Dairi Regency, North Sumatra Province. Agribusiness Student Scientific Journal, 1(2), 105–113. https://doi.org/10.29103/jma.v1i2.10388
Kahan, D. (2008). Farm management Extension Guide: Managing Risk in Farming (ISBN 978-9). FAO.
Kusmawan, A., Pudjiastuti, A. Q., & Iriani, N. I. (2022). Marketing Efficiency of Orange in Gadingkulon Village , Dau District , Malang Regency , Indonesia. 9(3), 131–143.
Kusumastuti, D., Wahyuni, D., & Sulistyaningsih, E. (2022). The Effect of Consumption Patterns and Sanitation of Vegetables and Fruits on Pesticide Residues in Mothers of Under-Two Years Short Toddlers in the City of Malang. Strada Jurnal Ilmiah Kesehatan, 11(2), 153–160. https://doi.org/10.30994/sjik.v11i2.917
Mogole, L., Omwoyo, W., Viljoen, E., & Moloto, M. (2021). Green synthesis of silver nanoparticles using aqueous extract of Citrus sinensis peels and evaluation of their antibacterial e ffi cacy. 851–859.
Mohamed, A. A. A., Esmail, A. A. M., & Abdelaty, E. F. (2024). Can the Small-Scale Producers of Navel Orange Resist the Stability of the Farm Gate Prices and the Soar of the Input Prices Within the Biophysical Factors ? Agricultural Socio-Economics Journal, 24(1), 39–47. https://doi.org/10.21776/ub.agrise.2024.
Mumakinah, T., Setiawan, M., & Irawanto, D. W. (2020). Improved Performance of Agricultural Extension Agents With Infrastructural Facilities and Training Through Job Satisfaction. Jurnal Aplikasi Manajemen, 18(4), 721–729. https://doi.org/10.21776/ub.jam.2020.018.04.11
Pineda-lozano, J. E., Fonseca-bustos, V., Martinez-moreno, A. G., & Virgen-carrillo, C. A. (2022). The biological e ect of orange ( Citrus sinensis L .) by-products on metabolic biomarkers : A systematic review.
Priyanka, K. S., Imran, K., Singirikonda, S., & Kumar D, S. (2021). Citrus sinensis : A potential plant source for antimicrobial activity and value added products. International Journal of Botany Studies, 6(6), 1571–1575.
Pudjiastuti, A.Q.; Suhendri, H.& Indah, S. (2024). Kelayakan Usaha Mikro Budidaya Ikan Lele. Penerbit Literasi Nusantara Abadi. Malang.
Putra, O. A., Surni, & Abdi. (2023). The Financial Feasibility of Lime Farming ( C . aurantifolia) in Landono District South Konawe Regency. JIA (Jirnal Ilmiah Agribisnis), 8(3), 230–236. https://doi.org/10.37149/jia.v8i3.211
Saini, R. K., Ranjit, A., Sharma, K., Prasad, P. B. V., Shang, X., Gowda, K. G. M., & Keum, Y. (2022). Bioactive Compounds of Citrus Fruits: A Review of Composition and Health Benefits of Carotenoids, Flavonoids, Limonoids, and Terpenes. Antioxidants, 11(2), 239. https://doi.org/10.3390/antiox11020239
Sinaga, R., Noravika, M., Herawati, Widiastuti, M. M. D., Sukmaya, S. G., Sari, N. M. W., Noviana, R., Rizkiyah, N., Nurliah, Wijayati, Prasmila Dian, Putri, T. A., Fathin, S., Liana, L., & Zainuddin, A. (2024). Ilmu Usahatani (R. Sinaga (ed.); Pertama, Vol. 2). Widina Media Utama.
Sujarwo, S., & Laili, F. (2023). Price Forecasting of Strategic Food Commodities in Various Markets in Malang Regency: Implementation of the Arma-Garch Model. Agricultural Social Economic Journal, 23(2), 199–216. https://doi.org/10.21776/ub.agrise.2023.023.2.9
Wilson, R. T. (2023). Coping With Catastrophe: Crop Diversity and Crop Production in Tigray National Regional State in Northern Ethiopia. African Journal of Agricultural Research, 19(3), 321–336. https://doi.org/10.5897/ajar2022.16265
Published
2026-06-18
How to Cite
Ady Hadi Utomo, Agnes Quartina Pudjiastuti, & Setiaji, J. (2026). Financial Feasibility of Sweet Orange (Citrus sinensis) Farming in Dau District, Indonesia. International Journal of Business and Quality Research, 4(02), 949-966. https://doi.org/10.63922/ijbqr.v4i02.3651
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