Technical and financial feasibility analysis of grade A coconut shell-liquid smoke industries in Malang, Indonesia A W Putranto1, S L O Putri2 and Suprayogi2
1. Department of Agricultural Engineering, Faculty of Agricultural Technology, Universitas Brawijaya, Malang, ZIP 65145, Indonesia
2. Department of Agroindustrial Technology, Faculty of Agricultural Technology, Universitas Brawijaya, Malang, ZIP 65145, Indonesia
Abstract
Grade A liquid smoke is a smoke-condensed liquid produced by biomass pyrolysis which is widely applied as a natural preservative in food. However, the local industry of liquid smoke from the coconut shell processing in Indonesia has not developed much. This is evidenced by the lack of grade A liquid smoke production compared to other grades. In fact, there is a high market demand for grade A liquid smoke. In addition, the production of liquid smoke is managed by small-scale investment and simple technology due to limited capital and market information. In fact, the potential availability of raw materials and market opportunities can be used as the basis for the establishment of liquid smoke production units. This study aims is to analyse technical and financial of grade A coconut shell-liquid smoke (CS-LS) industry based on cyclone re-distillation in Malang Regency, Indonesia. The technical feasibility results obtained include the production capacity of 23,400 L/year, CS-LS yield was 2,17%, has a phenolic content of 80.39% and is suitable for food preservatives. While, the financial feasibility analysis in the form of HPP was IDR 132,633/L; BEP was IDR 1,882,562,538; NPV was IDR 2,859,139,874 and IRR of 369%. The financial analysis based on NPV and IRR results, indicate that the establishment of grade A CS-LS industry based on cyclone re-distillation method is feasible.
