Economic analysis of traditional coconut oil production in Aceh Besar, Indonesia

The purpose of this study was to analyse the rentability and profit of traditional coconut oil production.Primary data was obtained by using survey method. Data collection techniques are conducted by census.The processing of oil is done by 6 respondents fermentation and 6 respondents cooking coconut milk. Theresults show that coconut oil production cooking coconut milk is more advantageous in terms of rentabilityand profit. The recommendation given is that the rural mothers switch from fermentation to cooking ofcoconut milk.


Introduction
Efforts to improve the quantity and quality of coconut oil with traditional systems required profit calculations. Proper coconut oil processing, cost, and pricing can increase the benefits of rural mothers. Traditional oil processing through the cooking of coconut milk takes 2 days, through 4 stages of production process, not affected by weather condition while fermentation process takes 2 weeks, through 6 stages of production process, influenced by weather condition Although rural mothers in Aceh Besar to produce coconut oil have carried out the process, they have not yet found a problem solving the profit analysisis. Technical treatment, and quality of raw materials affect against coconut oil. Starting from the above problems should the rural mothers have to take into account the cost of production without ignoring the quality of the coconut oil. So it can compete with palm oil factory production. Therefore, to know which is more advantageous between fermentation system with cooking system of coconut milk from rentability and profit needed a research.

2.Research of Previous and hypothesis 2.1.Previous research
Cost-profit has been studied by Manajit N (2011). Costs and Economies of Scale ever studied by Mourão P et al (2017). The optimality of full-cost pricing was studied by Coller C et al (2015). Capital maintenance and depreciation has been studied by Albonico. A et al (2014). Profit maximization has been studied by Levin EJ et al (2004), Dierker E and Grodal B (1996). Joint decision making for production and marketing was investigated by Ulusoy G and Yazgac T (1995). Cost-Benefit Analysis was studied by Khoshgoftaar TM et al (2001). Balancing expected profit and conditional value-at-risk have been studied by Xu M et al (2010). Profit sharing increase has been studied by Kim S (1998). Profit functions have been studied by Khumbhakar SC (2006). Maximizes the rate of profit ever studied by Nekipelov AD Profit maximization has been studied by Dierker E and Grodal B (1996). The impacts of product market competition have been studied by Li X (2010). Economic profitability has been studied by Yuan et al (2017).

2.2.Hypothesis
Hypothesis of this research are: It is estimated that the traditional processing coconut oil of cooking system of coconut milk is more advantageous than fermentation system.

3.Methods and Model 3.1. Methods a. Location, Object and Scope of Research
This research was conducted in Aceh Besar District. The determination of Aceh Besar District as the location of the research is purposive (Purposive Sampling) based on the consideration that there are rural ladies of fermented coconut oil processing and cooking of coconut milk The object of this research was rural mothers who processed coconut oil traditional by fermentation and cooking of coconut milk. The scope of this study is limited to the analysis of profit of processing coconut oil with traditional systems.

b.Sampling Technique
The population of this study were rural mothers who processed fermented oil and cooking of coconut milk. The method of determining sample farmers from the population of each village is done by using the complete counting method, because the number of respondents is only 12 people, 6 people are fermented and 6 respondents are cooking coconut milk.

4.Result and Discussion
The research results obtained an average of 100 pieces of coconut that is produced by the process of fermentation oil processing of 9.6 kg and cooking of coconut milk of 10.42 kg. The average profit of fermented respondents is Rp.22.075.60 and cooking of coconut milk is Rp.33.465,90 The first benchmark testing of the processing profits above is based on profitability. The profitability of fermentation processing is 11%. This means every cost incurred Rp.1000.00 will increase profit Rp.111.00. Result of calculation rentability of coconut milk obtained Rp.140,00. This means that any cost incurred Rp.1000.00 will add profit Rp.140.00. In this study, the fermentation rentability is denoted by Y 1 and the rentability of coconut milk with Y 2 . The profitability benchmark states that if Y 1 > Y 2 means Y 1 is more appealing than Y 2 and if Y 2 > Y 1 means Y 2 is more advantageous than Y 1 , Since Y 2 > Y1 then a benchmark representing Y 2 is more advantageous than Y 1 received. The second benchmark of profit processing testing is based on the profit per day. Based on the above research obtained profit per day of fermentation of Rp.1.471.70. This means that from 15 days of processing with fermentation got profit per day equal to Rp.1.471,70 although total profit obtained during one processing process equal to Rp.22.075,70, The profit per day from cooking of coconut milk is Rp. 16.733,0 although the total profit obtained during the processing once is Rp.33.465, 9. In this study, the profit per day of fermentation is denoted by K 1 and the profit per day of cooking of coconut milk is denoted by K 2 . The benchmark per day profit indicates that if K 1 > K 2 means K 1 is more advantageous than K 1 . Because K 2 > K 1 then benchmark profit per day stating that K 2 is more profitable than K 1 accepted. From the above description shows that the processing process with the cooking of coconut milk is more advantageous than the fermentation both in the test of profitability and profit per day.

5.Conclusion
In an effort to increase the profits of rural mothers for the future, it is recommended that they switch the traditional processing coconut oil of system fermentation to cooking coconut milk system.