51
Table 5.2. Example data for minimum seed tolerance
Tolerance ∂Y∂SΔSΔY ∂Y∂FΔFΔY ∂Y∂LΔLΔY ∂Y∂WΔWΔY
Sn 1 0.026
0.020 0.194
99.999806 0.020
0.002 0.155
99.999878 0.014
0.001 0.108
99.999941 Sn 5
0.128 0.020
0.194 99.999727
0.101 0.002
0.155 99.999830
0.071 0.001
0.108 99.999917
Sn 10 0.256
0.020 0.194
99.999481 0.201
0.002 0.155
99.999678 0.142
0.001 0.108
99.999841
5.3.2. Profit Optimization of Organic Rice Farming
Equation 2 was used to calculate the optimum profit possibly obtained by farmer by means of optimizing the productivity components of seed, fertilizer,
labor and water. Optimization process was conducted using Excel Solver software. Profit was calculated by setting several levels of production. The model
optimization was based on the following: Decision variable: Seed S, Fertilizer F, Labor L, and Water W
Objective function: Y
LD
=2.664S
-0.002
F
0.00019
L
0.002
W
0.94
Constraints: a. Values of S, F, L, and W
≤ Maximum values of S, F, L, and S; b.
Values of S, F, L, and W ≥ Minimum values of S, F, L, and S. Table 5.3 shows the data for calculating profit of rice sale. Organic rice
farmers usually sell their production in the form of harvest-dry rough rice, but some of them especially those with higher land holding sell milled rice. Since they
do not have their own rice huller, they usually go to the nearest rice miller to mill their rough rice with a certain milling cost. The results of productivity or
production optimization are presented in Table 5.4, and the data was used further for profit calculation. It is seen from this table that the water productivity is higher
than 4.0 kgm
3
. The values are much higher than the water productivity of the conventional paddy cultivation, e.g., 2.19 kgm
3
in China Loeve et al. 2004 in
52
Wokker et al. 2011. Profit calculation was divided into two categories, i.e., harvest-dry rough sale and milled rice sale. Beside profit, RC Ratio was also
calculated for each category.
Table 5.3. Data for calculating profit of rice sale
No. Items
PriceCostWage Rp
1. Seed per kg
8,000.00 2.
Organic fertilizer per ton 700,000.00
3. Average labor wage per m-day
50,000.00 4.
Water per 1000 m
3
500,000.00 5.
Land leasing per two season 2,000,000.00
6. Milled rice per kg
10,000.00 7.
Packing per 5 kg 250.00
8. Milling cost per ton
750,000.00
Seed Tolerance Min Sn, 1
0.000 0.050
0.100 0.150
0.200 0.250
0.300
dYdSdSdY dYdFdFdY
dYdLdLdY
Min Ave
Max
Seed Tolerance Min Sn, 5
0.000 0.050
0.100 0.150
0.200 0.250
0.300
dYdSdS dY dYdFdF dY
dYdLdL dY
Min Ave
Max
Seed Tolerance Min Sn, 10
0.000 0.050
0.100 0.150
0.200 0.250
0.300
dYdSdS dY dYdFdF dY
dYdLdL dY
Min Ave
Max
Seed Tolerance Ave Sn, 1
0.000 0.050
0.100 0.150
0.200 0.250
0.300 0.350
dYdSdS dY dYdFdF dY
dYdLdL dY
Min Ave
Max
Seed Tolerance Ave Sn, 5
0.000 0.050
0.100 0.150
0.200 0.250
0.300 0.350
dYdSdS dY dYdFdF dY
dYdLdL dY
Min Ave
Max
Seed Tolerance Ave Sn, 10
0.000 0.050
0.100 0.150
0.200 0.250
0.300
dYdSdS dY dYdFdF dY
dYdLdL dY
Min Ave
Max
Seed Tolerance Max Sn, 1
0.000 0.050
0.100 0.150
0.200 0.250
0.300 0.350
dYdSdS dY dYdFdF dY
dYdLdL dY
Min Ave
Max
Seed Tolerance Max Sn, 5
0.000 0.050
0.100 0.150
0.200 0.250
0.300 0.350
dYdSdS dY dYdFdF dY
dYdLdL dY
Min Ave
Max
Seed Tolerance Max Sn, 10
0.000 0.050
0.100 0.150
0.200 0.250
0.300 0.350
dYdSdS dY dYdFdF dY
dYdLdL dY
Min Ave
Max
Figure 5.1. Results of sensitivity analysis for minimum seed tolerance
53
The results of profit and RC calculation for both categories are presented in Table 5.5 and Table 5.6, respectively. It can be seen from both tables that selling milled
rice is more profitable rather than selling it directly after harvest as harvest-dry rough rice. Furthermore, the values of RC Ratio of milled rice sale are somewhat
higher than those of harvest-dry rough rice sale. Several studies on the comparison between SRI and Non-SRI by means of financial farming analysis were already
conducted. Mutakin 2008 reported from his study that the productivity of SRI and Non-SRI organic rice were 10.0 tonha and 5.0 tonha, respectively; and the
profit from both methods were Rp 14,145,000.00
and
Rp 5,175,000.00, respectively. Other study conducted by DISIMP NTT 2008 in Nusa Tenggara
Timur Province reported that for Non-SRI method profit or net revenue and RC Ratio varied from Rp 47,750.00 RC: 1.01 to Rp 2,892,500.00 RC: 1.68;
whilst, net revenue and RC Ratio for SRI method varied from Rp 1,196,500.00 RC: 1.41 to Rp 7,749,500.00 RC: 1.68.
Table 5.4. Result of productivity or production optimization
No. S
kgha F
tonha L
m-dha W
1000m
3
ha Water Productivity
kgm
3
Production ton
1 7.0
7.5 160.0
1.60 4.4
7.0 2
7.0 7.5
160.0 1.84
4.4 8.0
3 7.0
7.5 160.0
2.07 4.3
9.0 4
7.0 7.5
160.0 2.31
4.3 10.0
Table 5.5. Result of profit and RC calculation for harvest-dry rough rice sale
No. Production
Harvest-Dry Rough Rice ton
Cost Rp Revenue Rp
Profit Rp RC
1 7.00
21,357,833 26,250,000
4,892,167 1.23
2 8.00
22,224,966 30,000,001
7,775,036 1.35
3 9.00
23,092,407 33,750,001
10,657,594 1.46
4 10.00
23,960,125 37,500,002
13,539,876 1.57
54
Table 5.6. Result of profit and RC calculation for milled rice sale
No. Production
Milled Rice ton
Cost Rp Revenue Rp
Profit Rp RC
1 7.00
21,357,833 29,137,500
7,779,667 1.36 2
8.00 22,224,966
33,300,002 11,075,036 1.50
3 9.00
23,092,407 37,462,501
14,370,094 1.62 4
10.00 23,960,125
41,625,001 17,664,876 1.74
5.4. Conclusion
