This document discusses value added analysis of sweet potatoes and cassava. It aims to help participants understand and be competent in analyzing value added in agro-industry. It explains concepts like consumer equilibrium, value added calculation, and shifting consumer balance due to agro-industry products. An example calculation shows value added from processed fruit products. It finds that value added was 91.55% of production value, with labor share being 3.55% and profit rate of 88.3%. Finally, it discusses distribution of agro-industrial outputs and marketing margins.

1. PRODUCT ADDEDPRODUCT ADDED
VALUE ANALYSIS SWEETVALUE ANALYSIS SWEET
POTATOES ANDPOTATOES AND
CASSAVACASSAVA
TRI HANDAJANI
KAREL D.I. SIR
BALAI BESAR PELATIHAN PERTANIAN KETINDAN
BADAN PENYULUHAN DAN PENGEMBANGAN SDM
PERTANIAN
KEMENTERIAN PERTANIAN
MALANG APRIL, 2013

2. COMPETENCY COMPETENCY BASEDBASED

HOPED ABLE PARTICIPAN
T
CAN TO ANALYSE
SWEET POTATO AND
CASSAVA
INCREASE ADDED VALUE

3. SUCCES INDICATORSUCCES INDICATOR
 THE PARTICIPANT CAN BE
UNDERSTAND AND COMPETENCE
IN:
 THE EXISTENCE OF CONSUMEN
EQUILIBRIUM NEED CAUSED THAT
CONSEQUENTLY AGRICULTURAL
FROM PRECESSING COMMODITIES
ACTIVITY
 CONCEPT AND ABLE CALCULATE
ADDED VALUE IN AGRO INDUSTRY
 ANALYSIS AGROINDUSTRIAL PEMASA
RAN PRODUCT

6. There are four errors
In the following picture.
CAN FIND IT?

8. SHIFTING BALANCE DUE TO CONSUMERSHIFTING BALANCE DUE TO CONSUMER
AGROINDUSTRYAGROINDUSTRY
quantity
price
TR1
TR2
TR3
IC1
IC2

9. EXPLANATION OF CURVEEXPLANATION OF CURVE
• Suppose A SWEET POTATO / CASSAVA
(PRODUCTS A) consumers want RELATIVELY
EXPENSIVE COMPARED WITH PRODUCT B
USING CERTAIN INCOME AND PRICES
APPLICABLE IN THE MARKET, THE
CONSUMER HAS EARLY FRONTIER
EFFICIENCY AND BALANCE TR1 OCCUR IN A
POINT OF SATISFACTION WITH IC1.
IF SWEET POTATO / PROCESSED CASSAVA,
THE ATTRIBUTES OF COMFORT RATING
THAT COULD INCREASE EFFICIENCY
FRONTIER shifted to TR2 "
BY USING THE FRONTIER EFIENSI TR2 "THIS
WILL HAPPEN IN THE BALANCE POINT B"
OF SATISFACTION WITH IC2
ON THIS SUCH CONDITIONS, CONSUMER
PRODUCTS SWEET POTATO WILLING TO
PAY THE PRICE HIGHER THAN THE LEVEL
OF SATISFACTION WITH TR3.

10. HOW TO CALCULATE VALUE ADDEDHOW TO CALCULATE VALUE ADDED????
 THERE ARE TWO WAYS FOR COMPUTING
VALUE ADDED;
I. VALUE ADDED FOR PROCESSING
technical
. Production capacity,
. The amount of raw materials that are used
. labor
market
. Price out put
. Wage Labor
. Raw material prices and
. Other input values, in addition to fuel and labor​​
II. VALUE ADDED FOR MARKETING
The value added for processing obtained from:
Reduction in the cost of raw materials and other
inputs to the value of the products, not including
labor, capital and management.

11. THE MATEMATTIS ANALYSTHE MATEMATTIS ANALYS
 ADDED VALUE = f (C,M,P,L,P,p,V)
 Explanation :
C = Product Capacity
M = Material on used
P = Man/Women Power on used
L = Labour
P = Out Put Price
p = Raw Material Price
V = The other Input Value (value
and all the sacrifices that occurred
during the treatment process to add
value)

12. BENEFITS OF RESULTS OBTAINED INBENEFITS OF RESULTS OBTAINED IN
THE CALCULATION OFTHE CALCULATION OF
VALUE ADDEDVALUE ADDED
1. Estimated value (in dollars)
2. The ratio of value added to the value of
the resulting product (in%)
3. Remuneration for labor (in dollars)
4. Return for capital and management
(the profits earned in dollars)
THIS IS USEFUL FOR:
1. Because it is known Entrepreneur to
remuneration and reward factors of
production in use.
2. Show the amount of employment that
is added as additional usability
activities

13. Example calculation of value-Example calculation of value-
added processedadded processed fruitfruit productsproducts
atat SSwaruwaru, Malang city, Malang city
No Input-Output and Price Porridge of
Salacca (X1000,-)
1 Output ( pack/week) 82
2 Input , Raw Material ( Kg/week ) 16,2
3 Input, Man Power (hour/ week ) 5,8
4 Conversion Factor, (1)/(2) 5,06
5 Man Power ,koefisien (3)/ (2) 0,36
6 Product Price ( Rp/pack) 2,250
7 Labour ( Rp/ hour) 1.029
Return and fee ( Rp/ kg Salacca)
8 Input , Raw Material ( Kg/week ) 470
9 Input, the other 492
10 Production (4) X (6) 11,385
11 Added Value (10)-(8)-(9) 10,423
Added Value Ratio % (11/(10) (91,55 %)
12 Man Power Income, (5) X (7) 370
Pangsa tenaga kerja % (12)/(11) (3,55 %)
13 Profit (11) – (12) 10,053
Profit rate % (13)/(10) (88,3 %)

14. EXPLANATIONEXPLANATION
 Raw materials 16.2 kg of the fresh
fruit Salacca
 The porridge Salacca produced by
82 pack.Able to absorb the labor
force of 5.8 hours / week. So that
the flow of labor into porridge 1
kg of fresh Salacca give koefisien
factors as much as 0.36 hours.
 If the price of Rp.2250/pack
output and conversion factor of
5.06,
 the value of production for
Rp11.385, - value is allocated to
the production of raw materials in
the form of fresh Salacca of
Rp.470, -

15. be continuebe continue
 and other inputs including
equipment depreciation
amounting to Rp492, -
 so that there is added value on 1
kg of Salacca Rp.10.423 or 91.55%
of the workforce Income per kg of
fresh Salacca is Rp 370, -
 Although small labor share is
equal to 3.55% but the rate of
profit amounted to 88.3%. This
means that per 100 units of
production obtained a profit of 88
units

16. DISTRIBUDISTRIBUTTIIONON OUT PUTOUT PUT
FORFOR AGROAGRO--INDUSTRINDUSTRYY
 In the agroindustrial system
be happen distribution of the
out put businesses must
accepted to end consumer .
 The difference between the
price that consumers pay a
price which is acceptable final
businessman are
"MARKETING MARGIN."
Component Margin:
1. cost Functional
2. Profit (Profit) marketing
agency.

17. Thank youThank you