Techno-Economic Feasibility of Small-Scale Copra Processing across Coconut-Producing Districts in Buton Regency, Indonesia

Abstract

Copra remains the principal market outlet for coconut smallholders in many Indonesian islands, yet evidence on the financial feasibility of household-scale processing across heterogeneous producing districts remains limited. This study assessed the techno-economic feasibility of small-scale copra processing in seven coconut-producing districts of Buton Regency, Indonesia. A field-based cross-sectional design combined structured interviews, production records, direct process observation, and secondary district production statistics collected between September and December 2024. The analysis mapped the production base, documented the prevailing process, disaggregated fixed and variable costs, and estimated revenue, net income, and the benefit-cost ratio. Coconut production increased from 1,353.30 t in 2022 to 1,472.00 t in 2023 despite a small decline in cultivated area. The observed process uses dehusking, splitting, initial drying or smoking, kernel removal, final drying, cutting, and bagging. Mean total cost per processing cycle was IDR 9,103,942.98, of which variable costs accounted for 88.5%. Mean revenue was IDR 13,605,489.71 and mean net income was IDR 4,501,546.72. All districts were financially feasible, with benefit-cost ratios from 1.480 to 1.505. Lasalimu achieved the highest revenue and net income, while narrow interdistrict differences show a common low-technology production regime. The principal constraint is therefore not basic profitability but process dependence on raw-material and labour costs, weather-sensitive drying, and weak quality control. The study recommends low-cost dryer upgrading, standardized moisture and cleanliness control, collective input procurement, and district-specific technical support to convert existing production potential into more resilient rural agroindustry.