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All Journal Golden Ratio of Mapping Idea and Literature Format
Fachmy Rum, Hafidzh
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Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Library & Information Science Social Sciences

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Optimizing Milling Margins: Implementing Sell-or-Continue Decisions in Paddy Production in Moncongloe Lappara Village, Indonesia Rum, Muh; Fachmy Rum, Hafidzh
Golden Ratio of Mapping Idea and Literature Format Vol. 6 No. 2 (2025): February - April
Publisher : Manunggal Halim Jaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52970/grmilf.v6i2.1952

Abstract

This study aims to optimize profit margins for farming businesses in Moncongloe Lappara Village through a "Sell or Process Further" tactical decision analysis. Farmers often sell raw grain for liquidity, disregarding potential lost added value. Using a quantitative descriptive approach and Differential Cost Analysis, this research compares the profitability of selling Dry Harvested Grain (GKG) versus processing it into rice. Field data simulations based on a 1-ton input indicate that further processing yields an additional net benefit of IDR 942,000 per ton, equivalent to a 12.5% margin increase compared to direct selling. Another significant finding is that by-product sales (bran) cover 82% of incremental processing costs, thereby minimizing operational risk. Consequently, the further processing strategy is shown to be feasible and recommended to enhance the economic welfare of local business owners.
Co-Authors Rum, Muh