Added Value Analysis of Skin Crackers at Home Industry in Batusangkar City

Abstract

Agroindustry of skin crackers is an effort to create added value of cow/ buffalo leather into the skin crackers. This study aims to determine  profit, the added value of cow/ buffalo leather processing into the skin crackers and benefit received by the owners and labors of added value skin crackers. The research method is a case study on skin crackers home industry "Mahkota Kulit" in Batusangkar City. Collected data were analyzed by using a simple statistical tools as well as descriptive and quantitative  approach. The results showed that the the profit of each production process of “Mahkota  Kulit†skin crackers is IDR 2,795,490.45 or IDR 88,745.73/kg, R/C 2.2 (efficient). Production of skin crackers capable of producing added value from processing of  cow/ buffalo  skin into the skin crackers IDR 73,785/kg with added value ratio of 70.2%. The benefit  received by the owners of the production factors can be seen from the amount of margin IDR 83,000/kg, distribution margins for the business owners of 87.62%, 1.28% for labor and the contribution for other inputs is 11.10%.