Effect of Business Scale on Total Production Costs Per Kilogram

Oct 13, 2025 by vinooalluri.com 34 views

Effect of Business Scale on Salted Fish Processing Revenue (Case Study: Hajoran Village, Kec. Pandan, Central Tapanuli Regency)

Introduction

The salted fish industry is a significant contributor to the economy of Central Tapanuli Regency, with Hajoran Village being one of the largest producers of salted fish in the region. The village's salted fish production has been a vital source of income for many farmers, making it an ideal location to study the impact of business scale on salted fish processing revenue. This study aims to investigate the effect of business scale on total production costs per kilogram, labor output, value added per kilogram, and income of salted fish farmers in Hajoran Village.

Business Scale and Salted Fish Farmers Income in Hajoran Village

This study was conducted in Hajoran Village, Pandan District, Central Tapanuli Regency, known for its large fish producing regions. The village has a significant salted fish production, making it an ideal location to study the influence of business scale on salted fish farming. The research focuses on four main aspects:

1. Effect of Business Scale on Total Production Costs Per Kilogram

The results showed that the average total production cost per kilogram of salted fish in one month differed based on the business scale. Small business scale had an average cost of Rp. 12,378,626, medium scale of Rp. 10,732,693, and a large scale of Rp. 10,038,329. This indicates that larger business scales have lower production costs per kilogram, which can lead to increased profits.

2. The Effect of Business Scale on Labor Output

Data showed that the use of labor in one month did not differ significantly between the scale of small businesses (45.7 hours), medium (45.7 hours), and large (45.22 hours). This suggests that labor output is not significantly affected by business scale, and other factors such as production efficiency and technology adoption may play a more significant role.

3. Differences in Value Added per Kilogram

Small business scale had an average added value per kilogram of Rp. 11,443, medium scale Rp. 10,747, and a large scale of Rp. 10,454. This indicates that larger business scales have higher value added per kilogram, which can lead to increased profits.

4. Income of Salted Fish Farmers

Small business scale had an average income of Rp. 9,868, medium scale Rp. 9,720, and a large scale of Rp. 9,616. This suggests that larger business scales have higher income, which can be attributed to increased production efficiency, better market access, and the use of technology.

Additional Analysis and Explanation

The results of this study show that business scale has a significant impact on total production costs and value added per kilogram of salted fish. Larger business scales tend to have lower production costs per kilogram and higher value added, although the differences are not too significant. Several factors can explain this, including:

Efficiency of Production: Larger business scales can take advantage of resources and production processes more efficiently, resulting in lower production costs per unit.
Access to Market: Larger business scales tend to have better access to markets and can sell their products at higher prices.
Use of Technology: Larger business scales have a greater opportunity to adopt more advanced salted fish processing technology, which can increase efficiency and product quality.

Conclusion

This study shows that business scale has a positive impact on the income of salted fish farmers, although the impact is not always linear. A larger business scale has the potential to increase profits through production efficiency, better market access, and the use of technology.

Suggestions

Increasing production efficiency through training and adoption of more advanced salted fish processing technology can help increase the income of salted fish farming.
Increasing access to the market through marketing and partnership programs with salted fish processing institutions or companies can help increase the selling value of products and increase the income of business actors.
The government and related institutions can provide support and assistance to salted fish processing farmers to increase business scale and increase their income.

Limitations of the Study

It is essential to remember that the results of this study only apply to the study area and further research needs to be carried out to generalize these findings to other regions.

Future Research Directions

Future studies can explore the impact of business scale on other aspects of salted fish processing, such as product quality, market demand, and environmental sustainability. Additionally, research can investigate the role of government policies and support programs in promoting salted fish processing and increasing the income of farmers.
Frequently Asked Questions (FAQs) on the Effect of Business Scale on Salted Fish Processing Revenue

Q: What is the significance of studying the effect of business scale on salted fish processing revenue?

A: The salted fish industry is a significant contributor to the economy of Central Tapanuli Regency, and understanding the impact of business scale on revenue can help identify opportunities for growth and development.

Q: What are the main aspects of the study?

A: The study focuses on four main aspects: the effect of business scale on total production costs per kilogram, labor output, value added per kilogram, and income of salted fish farmers.

Q: What are the findings of the study?

A: The study found that larger business scales have lower production costs per kilogram, higher value added per kilogram, and higher income. However, the differences are not too significant.

Q: What factors contribute to the differences in business scale?

A: Several factors contribute to the differences in business scale, including efficiency of production, access to market, and use of technology.

Q: How can salted fish farmers increase their income?

A: Salted fish farmers can increase their income by increasing production efficiency, improving access to market, and adopting more advanced salted fish processing technology.

Q: What role can the government play in promoting salted fish processing?

A: The government can provide support and assistance to salted fish processing farmers to increase business scale and increase their income.

Q: What are the limitations of the study?

A: The study only applies to the study area and further research needs to be carried out to generalize these findings to other regions.

Q: What are the future research directions?

A: Future studies can explore the impact of business scale on other aspects of salted fish processing, such as product quality, market demand, and environmental sustainability.

Q: What are the implications of the study for policymakers and stakeholders?

A: The study highlights the importance of supporting salted fish processing farmers to increase their income and promote economic growth in the region.

Q: What are the potential benefits of increasing business scale in salted fish processing?

A: Increasing business scale in salted fish processing can lead to increased efficiency, improved product quality, and higher income for farmers.

Q: What are the potential challenges of increasing business scale in salted fish processing?

A: Increasing business scale in salted fish processing can also lead to increased competition, market fluctuations, and environmental concerns.

Q: How can salted fish farmers overcome the challenges of increasing business scale?

A: Salted fish farmers can overcome the challenges of increasing business scale by adopting more advanced technology, improving their marketing and sales strategies, and seeking support from government and other stakeholders.

Q: What are the potential opportunities for salted fish processing in the future?

A: The potential opportunities for salted fish processing in the future include increasing demand for sustainable and high-quality products, improving access to markets, and adopting more advanced technology.

Q: What are the potential risks of salted fish processing in the future?

A: The potential risks of salted fish processing in the future include market fluctuations, environmental concerns, and competition from other industries.

Q: How can salted fish farmers mitigate the risks of salted fish processing?

A: Salted fish farmers can mitigate the risks of salted fish processing by adopting more sustainable and efficient practices, improving their marketing and sales strategies, and seeking support from government and other stakeholders.