Financial Feasibility Analysis Of Household-Scale Catfish Farming

Abstract

This study aims to analyze the financial feasibility of household-scale catfish farming. Catfish farming has considerable potential for development because catfish have relatively high market demand, a relatively short production cycle, and can be cultivated on limited land. This study employed a descriptive quantitative approach, with data collected through observation and interviews with catfish farmers. The analysis focused on production costs, revenue, income, and financial feasibility using the Revenue Cost Ratio (R/C Ratio), Benefit Cost Ratio (B/C Ratio), Break Even Point (BEP), and Return on Investment (ROI) indicators. The results showed that the catfish farming business generated revenue of IDR 17,600,000 with total production costs of IDR 8,500,000 during one production cycle. The resulting profit was IDR 9,100,000. The R/C Ratio of 2.07 indicates that every IDR 1.00 spent on production generated IDR 2.07 in revenue. The B/C Ratio of 1.07 also indicates that the business generated economic benefits and was financially feasible. The BEP analysis showed that actual production was above the break-even point, indicating that the business was able to generate profit. Based on the overall financial analysis, household-scale catfish farming is financially feasible and has potential for further development. Efficient feed utilization, production cost control, water quality management, and improved marketing strategies are important factors in increasing profitability and ensuring business sustainability.