Economic analysis of cassava crocket manufacturing process from raw cassava roots as an initiative for waste reduction

Abstract

Cassava crocket is a convenient product which uses cassava root as main raw material. An economic analysis of anonymous cassava crocket processing plant was carried out to characterize inputs and outputs of the process and evaluate the profitability of production using Gross Margin and Profitability Ratio. Primary data obtained through interviewing production staff and Secondary data was used for the analysis and samples for analysis were collected using online multistage random sampling method over 60 working days. According to the results main wastes generated through the process were cassava peel, squeezed cassava liquid which were 21.5±1.3% and 20.8±1.7% of the raw cassava root weight respectively. According to the results of economic analysis the total raw material cost account for 41.3% of the total variable cost while the labour costs, transportation, rent and other costs accounted for 39.0%, 6.0%,12.5% and 1.2% respectively. From the total raw material cost the cost of Coconut oil made up the highest value which was 54% and cassava, scraped coconut, spices mix and salt made up 36%, 7%, 2% and 1% respectively. The cost and return analysis revealed the Gross margin of 360,740 LKR per year and benefit cost ratio of 1.76. This study reveals the production of cassava crocket in cottage level is profitable.