Financial Feasibility of Nutmeg Cultivation with the Application of Integrated Pest Management Technology

Abstract

The purpose of this study was to analyze and to find out the financial feasibility of nutmeg cultivation by applying Integrated Pest Management (IPM) technology patterns. The data for 2007-2017 shows that the productivity of dried nutmeg crop seeds was 0.86 tons per hectare in 2007 and decreased 0.83 tons per hectare in 2017. The decline in production and mortality rate of nutmeg plants was increasing due to several factors, one of which was pest and disease attacks. The results of this study showed that the nutmeg cultivation system with IPM technology pattern for an average of 1 hectare land obtained NPV of Rp 144.185.587, Net B/C Ratio of 4.43, IRR of 17.97%, and Payback Period (PP) 12.19. Therefore, financially, the cultivation of nutmeg plants with IPM technology is feasible and profitable to be cultivated. The sensitivity analysis of nutmeg cultivation with IPM technology with the assumption that the possibility of costs increased by 10%, due to a decrease in production by 20% and a combination of costs up 10% and production decreased by 20% shows the results that the cultivation of nutmeg plants with IPM technology are still feasible to be cultivated.