Key findings:

Pak Karlim's tempeh agribusiness in Sepande Village generates a profit of Rp. 388,353 per production process and has a profitability ratio of 1.26. The added value is Rp. 5,840/kg, with an added value index of 31.14%, categorizing it as moderate. The R/C ratio (>1) indicates potential for further development.

What is known and what is new?

Agribusiness profitability and added value are critical metrics for assessing the viability and potential growth of agricultural enterprises. This study reveals that Pak Karlim's tempeh agribusiness in Sepande Village is profitable, with a profitability ratio of 1.26 and a moderate added value of Rp. 5,840/kg. The R/C ratio (>1) suggests that this agribusiness has significant potential for further development and growth.

What is the implication, and what should change now?

Implication of the study profitability and moderate added value of Pak Karlim's tempeh agribusiness indicate a solid foundation for growth and development. Efforts should focus on scaling up production, optimizing processes to increase efficiency, and exploring new markets. Additional investments and strategic planning could further enhance profitability and added value, ensuring long-term sustainability and success.

The agricultural sector plays a role in the national economy by providing many useful benefits. These benefits include providing added value to the agricultural industry, for example by preserving agricultural products into processed products that are ready to use and durable because one of the characteristics of agricultural products is that they are easily damaged, so the role of agribusiness is urgently needed [1]. Agribusiness can be defined as the activity of processing raw materials into semi-raw materials (semi-finished products) or finished products into agricultural goods. Agricultural products which are still primary products are processed into secondary or tertiary products so that they can generate added value. Product added value plays an important role in increasing product selling prices [2].

One of the agricultural products that is often processed into new products is soybeans. According to Sirait et al . (2020) [3] , soybean is an important food crop because it is the main source of vegetable protein. Soybeans are generally consumed by people from all walks of life. Soybeans are usually processed into new products to increase the selling value of the soybeans themselves. One of the processed soybean products is tempeh. According to Jubaidah et al, (2017)  [4], tempeh is a traditional Indonesian food whose raw materials are made from fermented soybeans. Tempeh is very popular with the public because of its useful protein source, quite complete nutrition and affordable prices. Tempeh contains several nutrients that the body needs, such as protein, carbohydrates, fats and minerals. Tempeh contains 208 g of protein 88 g of fat 135 g of carbohydrates 0.19 mg of B vitamins and 155 mg of calcium per 100 g of tempehh but contains very little fiber.

Indonesian people's consumption of tempeh has increased over the last three years. From 2019 to 2021 the consumption of tempeh by Indonesians will increase every year. In 2019 Indonesian consumption of tempeh every week was 0.139 kilograms and has increased and in 2020 it is 0.140 kilograms and will continue to increase in 2021 by 0.146 grams [5]. With the increasing consumption of tempeh from year to year, it can open up opportunities for the development of the tempeh agro-industry. According to BPS (2018) [6], one of the regions in Indonesia that produces soybeans as the main raw material for making tempeh in high quantities is East Java. In 2018 soybean production in East Java reached 244,442 tonnes and is the largest province in Indonesia in producing soybeans, followed by West Java with soybean production of 132,099 tonnes.

Tempeh is a native Indonesian food. In general, soybeans are the main raw material for tempeh, but in western countries, tempeh is often made from vegetables or grains. In Indonesia, tempeh is traditionally made and usually takes about one to two days to cook [7]. Eating tempeh can affect the amount of iron folic acid and vitamin B12 in the body. Folic acid plays a role in the final maturation of red blood cells. The amount of iron and folic acid in the body plays an important role in the formation of human hemoglobin. Vitamin B12 also plays a role in the formation of red blood cells and hemoglobin. This makes tempehh a functional food that can increase hemoglobin levels in young people with anemia [8].

Tempeh processing industry with soybean raw materials began to develop a lot. Tempeh agro-industry has been widely carried out in urban or rural areas, one of which is in Sidoarjo Regency. One area that has quite a lot of tempeh agro-industry in Sidoarjo Regency is Sepande Village. Sepande Village is the village with the highest number of tofu and tempeh entrepreneurs in Candi District, Sidoarjo Regency, with a total of 190 tofu and tempeh producers, of which 184 are tempeh entrepreneurs and 6 are tofu entrepreneurs. This became the basis for determining the selection of research locations in Sepande Village. One of the big tempeh agro-industries in Sepande Village is Karlim's tempeh agro-industry. Even though it is still relatively traditional, Karlim's tempeh agro-industry has been able to survive in the midst of competition with tempeh agro-industry in Sepande Village and in other areas. This is proven by tempehh production that reaches 100 kilograms per production. This was the basis for deciding Karlim tempeh agro-industry as a subject of study.

Tempeh agroindustry Karlim focuses on processing soybeans into tempeh with the aim of adding value to the soybeans themselves. Agro-industrial activities that change primary forms into new processed products generate greater economic value. Even though he produces tempeh in quite large quantities, Karlim's tempeh cultivation still has problems. Based on research conducted in the field, one of the problems of Karlim's tempeh agroindustry is the price of soybeans as raw material for tempeh which tends to fluctuate. Changes in soybean prices will affect the total production costs required in making tempeh. Changes in soybean prices also cause changes in added value and profits generated by Karlim's tempeh agroindustry.

This study was used to determine the amount of profit earned and the feasibility level of Karlim's tempeh agro-industry and the added value of processing soybeans into tempeh. It is important to analyze the added value of Karlim's tempeh agribusiness to determine the amount of added value generated from processing soybeans into tempeh in one production process.  Karlim's tempeh agroindustry can provide added value to soybean raw materials, besides that it can also take into account the profits earned and minimize losses in  Karlim's tempeh agroindustry. This is in accordance with the opinion of Sunarto & Priyanto, (2018)  [9] that added value analysis is important in the processing of agricultural products because it can add value to agricultural commodities, increase producer income, improve product quality, increase employment. After knowing the amount of added value obtained, it can be estimated the amount of compensation received by the production factors used in the processing of soybeans into tempeh. This can be used as material for consideration to increase added value and profit for the tempeh agro-industry.

Based on this description, it encouraged researchers to find out the added value of soybeans into tempeh by compiling a study "Analysis of Added Value of Tempeh Agroindustry (Case Study of Tempeh Agroindustry Karlim in Sepande Village, Sidoarjo Regency)". The purpose of this study was to analyze the amount of profit earned, the level of business feasibility and to analyze the value added to Karlim's tempeh agro-industry in Sepande Village, Sidoarjo Regency.

The research location was conducted in Sepande Village, Sidoarjo Regency. The location selection was carried out purposively or intentionally with the consideration that Sepande Village is an area that has the most tempeh agro-industry and the highest tempeh producer in Sidoarjo Regency. Karlim's tempeh agro-industry was chosen as the research location because this agro-industry produces tempeh continuously in a large enough quantity and is the highest among other tempeh agro-industry in Sepande Village.

The data used in this study is primary data and secondary data primary data is obtained through observation and interview with Karlim as owner of Tempeh Agroindustry. Secondary data was obtained from Sepande district data facility and included literature on research topics such as journal books and previous research. Data collection techniques in this study were interview and observation. Spoken conversation is a question and answer between two or more people directly for a specific purpose. A frequently used tool in interviews is a questionnaire [10]. A commonly used tool in interviews is a questionnaire. The study involved owner of an agricultural company in Tempeh. Quantitative data was obtained based on the research objectives by interviewing Karim. Both open-ended and closed-ended questionnaires were used in the interviews. Observation is a method of data collection which involves the subject in a state or through observation conducted directly to the research site in the action of the objective [11]. The researcher chose the direct observation technique, namely direct observation of the object being examined and the researcher was in the same place as the object being examined. Observations were made to find out the process of making tempeh and to get information about the added value and benefits of Karlim's tempeh agro-industry.

The data analysis used in this study is a quantitative descriptive analysis. Descriptive analysis is used to describe the processing of soybeans into tempehh. Quantitative analysis was carried out to achieve the first and second objectives. The objective is to analyze the level of profit to be obtained and the feasibility level, as well as to analyze the level of added value to be obtained. Quantitative analysis methods used in this study are:

1. Profit Analysis and R/C Analysis
2. Cost Analysis

Total costs are all costs incurred in a business consisting of fixed costs and variable costs [12]. Fixed costs are costs that are incurred from the use of fixed resources in a fixed production process, even If volume production capricious. Meanwhile, variable costs are the total production costs that vary depending on of the output produced [13] . Total costs can be calculated using the formula:

TC : TFC + TVC

Where:

TC = Total Cost) (Rp)

TFC = Total Fixed Cost (Rp)

TVC = Total Variable Cost (Rp)

1. Acceptance Analysis

Receptionis the product of the selling price of the product and product quantity produced. To gain profits, producers always compare production costs with revenues from selling their products in Maulidah, 2012) [13]. Acceptance can be calculated using the formula:

TR = P x Q

Where:

TR = Total Revenue (Rp)

P = Price (Rp)

Q = Amount of production (Kg)

1. Profit Analysis

According to Prasetiyo et al, (2018) [14] the amount of profit can be calculated by subtracting the total revenue and total costs incurred. The higher the revenue obtained from product sales, the higher the profit earned by the business. Profit is total revenue from the selling price of tempeh minus the total production costs incurred in producing tempeh. Profit can be calculated using the formula:

π = TR – TC

Where:

π = Profit (Rp)

TR = Total Revenue (Rp)

TC = Total Cost (Rp)

1. R/C analysis

Farming feasibility analysis is an effort that aims to determine the feasibility level of the farming, by looking at certain criteria or parameters. Thus, a farm can be said to be feasible if the profits obtained can cover the total production costs incurred.

According to Soekartawi (2006) in Asnidar & Asrida, (2017) [15] the calculation of the R/C formula is as follows:

R/C = TR/TC

Information:

R/C = Total Revenue Cost Ratio (Rp)

TR = Total Revenue (Rp)

TC = Total Cost (Rp)

The feasibility assessment criteria based on R/C are as follows:

R/C > 1: then the business can be developed and profitable. 

R/C <1: then the firm does not grow and suffers losses. 

R/C = 1: then the company is at the break-even point, which means no profit or loss.

1. Value Added Analysis

Value added is defined as an increase the value/value that occurs in a commodity as due to these commodities being further processed in the production process [13]. The analysis of the calculation of added value in this research used the Hayami method. The Hayami method is a method for analyzing the added value of a product or commodity. The measurement of surplus value according to Hayamis method is carried out by differentiating components such as the ratio of input use output production cost of raw materials production cost selling price labor cost and other inputs. [16]. According to Hayami et al. (1987) in [17] A commonly used value added analysis is the Hayami method. The advantage of using the Hayami method is that it is more applicable to the processing of agricultural products. Value added outside of the processing subsystem. A systematic method for calculating value added using the Hayami method is shown in the table below. Table 1

Table 1. Calculation of Value Added by the Hayami Method

Source: (Hayami et al. (1987) in (Hidayat & Abdul Muttalib, 2020) [18]

Information:

A = Outputs

B = Inputs

C = Labor

D = Outputs/Inputs

E = Labor/Input

F = Price of output

G = Labor wages

H = Price of raw materials

I = Prices of other inputs

J = Conversion factor x output price

K = Value of output - price of raw materials - price of other inputs

L% = Value added/output value

M = labor coefficient x labor wage

N% = Labor benefits/Value added x 100%

O = Value added – labor income

P% = Profit/Output value x 100%

Q = Value of output – price of raw materials

R% = Labor income/Margin x 100%

S% = Prices of other inputs / Margin x 100%

T% = Profit/Margin x 100%

According to (Hubeis, 1997 in Epaga et al , 2019) [19] the categories for calculating the added value ratio (%) are as follows:

1) If the value added ratio is <15%, then the value added is categorized as low value added.

2) If the value added ratio is 15% - 40%, then the value added is categorized as moderate value added.

3) If the added value ratio is > 15%, then the added value is categorized as high added value.

General Circumstances

Sidoarjo Regency is a regency in East Java with an area of ​​714.24 km2. Geographically Sidoarjo Regency borders the city of Surabaya to the north the Greek Regency to the south the Pasuruan Regency and Madura Straits to the east and the Mojokarta Governorate to the west. Astronomically Sidorjo Province lies between 112,5° to 112,9° East Longitude (WW) and 73,° to 7,5° South Latitude (South Latitude). Sidorjo Province has 18 sub-districts with Sidorjo Province as the capital. [20]

The spatial scope of this research is in Sepande Village, which is located in Candi District. The area of Candi sub-district is 4,066.73 ha, while the area of Sepande village itself is 173.11 ha [21]. Sepande Village is a village located at the northern tip of Kandi District. To the north of Sepande village is bordered by Banjar Bendo village and to the south by Sumokali village. West of Sepande village is bordered by Sidodad village and east of Sepande village is bordered by Sidokare village. The distance between Sepande village and Sidoarjo City Hall is about 2.5 km, and the distance between Sepande village and public facilities is about 1.5 km. Sepande is a village that is the center of the tempeh industry. One of the largest tempeh processing industries in Sepande village is  Karlim's tempeh farming industry. Pak Karlim's Tempeh Farming Industry is located near KOPTI (Indonesian Tofu and Tempeh Cooperative) Karya Mulya which is about 1 km away. Kopti Karya Mulya delivers soybeans to tempeh producers in Sepande village.

General Description of Tempeh Agroindustry Karlim

 Karlim's tempeh agroindustry is a soybean processing industry to become tempeh. This agricultural industry was founded in 1977 and has been operating for 46 years. Karlim owner of the Tempeh agro-industry is 63 years old and graduated from elementary school. The story behind the creation of this agro-industry stems from  Karims habit of surveying his surroundings to prepare temph. Out of curiosity Kalim eventually joined the tempehh production team and started working in a tempehh processing factory in Sepande village. Seeing that the tempehh processing industry was very promising Karlim decided to start his own tempehh processing industry. Initially  Kalim cultivated tempehh at home with the help of his wife. Kalimi now has its own tempehh production facility and is supported by three workers.

Soybean raw materials for making tempeh were obtained by  Karlim from Kopti Karya Mulya. Kopti Karya Mulya is a cooperative providing soybean raw materials for tempeh producers in Sepande Village.  Karlim decided to buy soybean raw materials from the cooperative because the quality of the soybeans used was quite good and the price offered was also relatively cheap.  Karlim's tempeh agro-industry operates every day and processes as much as 100 kg of soybeans to produce tempeh. Tempeh produced by  Karlim's agro-industry is sold and distributed in Krian District, Sidoarjo Regency.

Profit Analysis and R/C Analysis

Cost Analysis

1. Fixed cost

Costs that are included in the category of fixed costs are the depreciation of production equipment and land and building taxes. The cost of depreciation of production equipment can be determined by calculating the difference between the initial purchase price of the production equipment minus the residual value of the production equipment and then dividing it by the economic life of the production equipment. The fixed costs required by  Karlim's agro-industry in one production process can be seen in the following table: Table 2

Table 2. Fixed Costs of  Karlim's Tempeh Agroindustry per One Production Process

Source: Primary data processed, 2023.

Based on the table, it can be seen that the cost of Karlim's tempeh agro-industry includes depreciation costs and land and building tax costs. The highest fixed cost incurred is the cost of depreciation of production equipment, while the lowest fixed cost incurred is the cost of land and building tax. Based on the table, the cost of depreciation of production equipment needed in one production process is Rp. 5.171 and the cost of land and building taxes required in one production process is Rp. 416. The total fixed cost required in one tempeh production process is Rp. 5.587.

1. Variable Cost

Variable costs are costs that vary according to the amount of output produced. The higher the output produced in the processing process, the higher the variable costs. Conversely, the smaller the quantity produced in the tempeh production process, the lower the variable costs. The variable costs required in the tempeh processing process consist of raw material costs in the form of soybeans, supporting material costs including yeast and starch, fuel costs, tempeh packaging costs, electricity and water costs, and labor costs. The variable costs needed by the agricultural industry in the Karim industry are listed in the table below. Table 3

Table 3. Variable Cost of  Karlim's Tempeh Agroindustry per One Production Process

Source: Primary data processed, 2023.

Based on the table, the cost required by Karlim to buy 100 kg of soybeans in one production process is Rp. 1.200.000. The highest variable cost to be incurred is the cost of raw materials, namely soybeans. This is because soybeans are the main raw material needed in the processing of tempeh. The high cost of raw materials is directly proportional to the price of the output produced, meaning that the higher the cost of raw materials issued, the higher the output price produced.

Complementary materials used in the processing of tempeh are yeast and starch. Complementary materials used in one production process are not required in large quantities. This is because yeast is used for the fermentation process which aims to turn soybeans into tempeh while starch aims to condense tempeh so that tempeh is not easily crushed. Based on this table, the cost incurred to buy yeast in one tempeh production process is Rp. 1.960 while the costs incurred to buy starch in one tempeh production process are Rp. 1.100.

The fuel used in the tempeh production process is 3 kg of LPG. Based on this table, the costs incurred to buy fuel in one tempeh production process are Rp. 18.000. The packaging used for packing tempeh is in the form of plastic. The plastic packaging used is in the form of plastic rolls and it takes approximately 5 meters of plastic in one tempeh production process. The use of plastic packaging in tempeh aims to make tempeh more durable and not easily rot. Based on the table, the costs incurred to buy plastic packaging in one tempeh production process are Rp. 25.000.

The cost of electricity and water incurred in one tempeh production process is Rp. 35.000. The water used is PDAM water which aims to wash and boil soybean raw materials. The cost of labor wages incurred in one production process is Rp. 150.000 for three workers. The cost of labor wages is the second largest variable cost after raw materials. This is because the workforce needed in one production process is 3 workers. The workforce in  Karlim's agro-industry comes from family workers and outside workers. The family workforce is  Karlim himself as the owner of the tempeh agro-industry, while outside workers come from neighbors. Only men are employed so that the wage rate for labor is the same. The wage system provided is in the form of a daily wage of Rp. 50,000/day.

1. Total cost

The total cost or total cost is the sum of all costs incurred by  Karlim's tempeh agroindustry which includes fixed costs and variable costs. The amount of the total costs incurred by  Karlim's tempeh agroindustry can be seen in the following table.

Table 4. Total Cost of  Karlim's Tempeh Agroindustry per One Production Process

Source: Primary data processed, 2023.

Based on the table, the calculation results show that the total cost incurred by  Karlim's tempeh agroindustry in one production process is Rp. 1.486.647. The following is the calculation of the total cost in one tempeh production process:

TC   = TFC + TVC

= Rp. 5.587 + Rp. 1.481.060

        = Rp. 1.486.647

Acceptance Analysis

Receipt or Total Revenue is the result of multiplying the selling price of the output in the form of tempeh with the amount of tempeh production that has been produced. The calculation of receipts or total revenue in one tempeh production process can be seen as follows:

TR   = P x Q

= Rp. 12.500 x 150 kg

= Rp. 1.875.000

Based on these calculations, it can be seen that  Karlim's tempeh agroindustry received Rp. 1.875.000 in one tempeh production process.

Profit Analysis

Profit is the difference between the total revenue ( total revenue ) obtained in one tempeh production process and the total cost incurred in one tempeh production process. Calculation of the profit earned on  Karlim's tempeh agroindustry can be seen as follows.

π             = TR – TC

                = Rp. 1.875.000 - Rp. 1.486.647

                = Rp. 388.353

Based on these calculations, it can be seen that the profit received by  Karlim's tempeh agroindustry is Rp. 388.353 in one tempeh production process.

R/C analysis

R/C analysis (Revenue Cost Ratio) is a comparison between total revenue and total costs. In this case, R/C can be obtained through a comparison between the total revenue obtained in one tempeh production process and the total production costs incurred in one tempeh production process.

R/C         = TR/TC

                = (Rp. 1.875.000)/(Rp. 1.486.647)

                = 1.26

Revenue Cost Ratio Analysis, is a comparison between the total revenue received with the total production costs incurred. Revenue Cost Ratio is an analysis used to find out whether  Karlim's tempeh agroindustry is feasible or not. With the provision that if the R/C value > 1 then the business can and is feasible to run, otherwise if the R/C <1 then the business cannot and is not feasible to run, and if R/C = 1 then the business is not profitable and also no loss or at a breakeven point (Soekartawi, 2006 in Asnidar and Asrida, 2017). The value of the Revenue Cost Ratio (R/C - Ratio) in  Karlim's tempeh agroindustry was 1.26 indicating that R/C > 1,  Karlim's tempeh agroindustry was feasible to run. This means that every one rupiah of costs incurred will get revenue of 1.26.

Value Added Analysis

 Karlim value added to the tempeh agricultural industry can be analyzed by calculating the value added per kilogram of raw material in the production process. The additional cost of heat treatment is shown in the table below.

Table 5. Added Value of  Karlim's Tempeh Agroindustry per One Production Process

Source: Primary data processed, 2023.

1. Input, Output, and Price

The input used in the processing of tempeh is soybeans. Based on table 3, the amount of input used in the processing of tempeh is 100 kg of soybeans to produce 150 kg of tempeh in one production process. This happens because in the process of processing tempeh there is a fermentation stage which will grow the mold and unite the soybean seeds into tempeh. The soybean raw material used comes from Kopti Karya Mulya, which is about 1 km from the tempeh processing location. The use of soybeans in the tempeh agro-industry  Karlim uses good quality soybeans. Soybeans with good quality have the characteristics of being round and solid and have an even yellow color and not black.

The calculated workforce is all workers who play a direct role in the tempeh processing process. The processing of tempeh requires a workforce of three people, namely one worker to boil the soybeans, one worker to process soybeans into tempeh to packaging, and one worker to distribute tempeh to Krian Market. The number of working days (HOK) in the tempeh processing process is 3 in one production process. In one production process, tempeh processing takes up to 2 days from the soybean washing process to the tempeh packaging process. Based on the calculation of added value in table 4.6, the conversion factor is obtained through a comparison between the number of outputs produced and the number of inputs used. The results of the calculation of the tempeh processing conversion factor were obtained at 1.5, which means that every 1 kg of soybeans used will produce 1.5 kg of tempeh.

The labor coefficient is the result of a comparison between labor (HOK/day) and the input (kg/one production process) used during one production process. The result of calculating the labor coefficient is 0.03, which means that 0.03 labor is required to process 1 kg of raw material. If the tempeh processing requires 100 kg of soybean raw material, then the workforce needed is 3 people.

The tempeh output price sold by  Karlim's tempeh agroindustry is Rp. 12.500/kg. The selling price is determined by the agro-industry owner by adjusting the market price which is also agreed upon by the retailer. Tempeh is only sold to market retailers, precisely at Pasar Krian.  Karlim usually cuts the tempeh according to the order from the retailer, but the selling price is still calculated per kg.

The labor wage for  Karlim's tempeh agroindustry is Rp. 50.000/HOK. Each worker is not distinguished in the wages he receives. This is because the workforce is all male and the work performed is considered equal. 

1. Revenue and Value Added

Prices for raw materials are obtained based on prices determined by Kopti Karya Mulya. The price of soybean raw materials is Rp. 12.000/kg. Raw material prices can fluctuate depending on the season. Agro-industry owners prefer to buy from Kopti Karya Mulya because the price offered is still relatively normal in the market and the soybeans from Kopti Karya Mulya are of good quality.

Prices for other inputs are obtained from the total production costs incurred in addition to the costs of raw materials and labor used in the tempeh processing process. The price of other inputs in the processing of tempeh is Rp. 1.180/kg. Components calculated in the prices of other inputs include costs incurred for the purchase of yeast, starch, fuel, plastic packaging, electricity and water costs, and transportation costs.

The output value is obtained by multiplying the product price by the conversion factor, the result is Rp. 18.750/kg, meaning that every 1 kg of soybean production generates Rp. 18.750/kg from the sale of tempeh. The output value is the gross revenue received by the agribusiness owner for each input (soybean) used in the production process.

The added value by processing soybeans into tempeh is Rp. 5.840/kg. Value added is obtained from the difference between output value, raw material prices, and other input prices.  Karlim's tempeh agroindustry has a value added ratio of 31,14% which means an output value of Rp. 5.840/kg there is 31,14% added value from the tempeh output. The value-added ratio of  Karlim's tempeh agro-industry is between 15% and 40%, meaning that the processing of soybeans into value-added tempeh is in the medium category based on the Hubei category (1997) in Epaga et al, (2019) [19].

Labor compensation is the result of multiplying the labor coefficient by labor wages. Labor benefits are rewards that workers receive in processing one kilogram of soybean raw material. The compensation for labor received by workers in  Karlim's tempeh agroindustry is Rp. 1.500 for each processing of one kilogram of soybeans. The share of labor is a comparison between labor compensation and added value in the form of a percentage. The share of labor in  Karlim's tempeh agroindustry is 25,68%

The amount of profit obtained by Karlim's tempeh agro-industry can be calculated by the difference between added value and labor compensation, so that it can be said to be net added value because it has been deducted by labor compensation. The profit gained from processing tempeh is Rp. 4.340/kg of raw materials with a profit rate of 23.14%. The level of profit is the ratio between the amount of profit and the value of output in the form of a percentage.

1. Compensation for Factors of Production

The amount of margin resulting from the difference between production value and raw material prices is Rp. 6.750. The amount of this margin is then divided between the income earned, other inputs and company profits. The biggest compensation received by Pak Karlim's tempeh farming business comes from the profits of the agro-industry, followed by labor income and finally the contribution of other inputs. Agribusiness profits contributed the largest remuneration, namely 64,29%. This means that the profit of agro-industry increases by Rp. 64.29 for every Rp. 100 company margin. The second reward after income is 22,22% of labor income, meaning that labor income contributes Rp. 22.22 for every Rp. 100 company margin. The proportion of other contributions is 13.48%, namely other contributions of Rp. 13.48 with each Rp. 100 on each company's margin. Added value is generated from the difference between product value and product value, the price of other means of production, and the price of raw materials. The added value of processing soybeans into tempeh is Rp. 5.840/kg of raw materials. This means that the use of soybeans to be processed into tempeh in one kilogram creates an added value of Rp. 5.840/kg. The added value of processing soybeans into tempeh is 37.23%. This means that the added value of processing soybean tempeh is included in the category of moderate added value.

Based on the results of research and data analysis conducted by Tempeh agroindustriya Karlim, the following conclusions can be drawn:

1. The profit obtained in processing soybeans into tempeh in Karlim's tempeh agroindustry is Rp. 388.353 in every single production process. The business feasibility of Karlim's tempeh agroindustry was analyzed using R/C analysis, and the R/C results were 1.26. The results of the R/C showing a value > 1 indicate that Karlim's tempeh agroindustry is still feasible to run and develop.

2. The added value obtained by Karlim's tempeh agroindustry is Rp. 5.840/kg. The added value ratio was obtained at 31,14%. Based on the added value ratio, it can be categorized that the added value obtained by Karlim's tempeh agroindustry is categorized as moderate added value.

The authors declare that they have no conflict of interest.

No funding sources 

The study was approved by the Institutional Ethics Committee of "Veteran" National Development University

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