Hayami method application: A value-added analysis of rice crackers industry in ex-residency of Madiun

This study aimed to determine the value-added of rice processing into rice crackers in the Ex-Residency of Madiun, East Java. Three areas (Ponorogo Regency, Magetan Regency, and Madiun City) well-known as rice crackers producers were chosen as the locations. The sample in this study was selected purposively. The result shows that the average value-added per raw material was Rp 2,210.57/kg with an average of 946.67 kg/month for raw material used. Using the Hayami method, the average value-added was Rp 14,206.33 per working hour. Rice crackers SMEs are advised to continue to improve efficiency, especially in terms of cost and the use of raw materials to further increase the value-added.


Introduction
Ministry of Agriculture [1] stated that the agricultural sector has a significant role in the national economy, among others in the form of contributions in the formation of GDRP, provision of food, supply of foreign exchange resources, supply of industrial raw materials, provision of employment, poverty alleviation, increase of people's income, and bio-energy sources. In developing the agricultural sector, one of the obstacles that is often faced is the relatively low competitiveness of agricultural products. As the market competition is increasingly fierce, strategic efforts are needed to increase the competitiveness of agricultural commodities by increasing the value-added of superior commodities. Through increasing competitiveness, it is hoped that leading agricultural commodities will be able to provide maximum contribution in improving farmers' welfare and regional economic income.
According to Soekartawi [2], agro-industry is an industrial activity that processes agricultural raw materials into other forms that are more attractive, provide value-added, and create jobs for the community. Agro-industry is important to increase value-added, especially when production is abundant from low product prices, also for damaged or low product quality. Agro-industry development with sufficient available raw materials and time is a sufficient requirement for sustainable production. Optimization of value-added is generally achieved in an industrial pattern that is directly integrated with family farming and agricultural companies.
One of the leading industries in the Ex-Residency of Madiun that supports the development of agroindustry is the rice crackers industry. This industry enables rice commodities to have a value-added. As the staple food for Indonesian, rice is also one of the important raw materials for the food industries. The development of the rice crackers business as a home industry is supported by the availability of 2 sufficient raw materials, considering the production of rice in East Java Province is relatively high. This industry also creates a distinctive advantage in the Ex-Residency of Madiun.
Rice crackers or puli crackers are crackers made of rice that have been processed into rice and added with salt and a number of other seasonings. The dough is then thinly sliced, dried, and packed. Crackers are usually sold in raw form. Rice crackers have a savoury taste and a medium-hard texture. The processing is simple enough so that it is likely to be adopted as a home industry by rural communities, especially female farmers.
The development of rice cracker agroindustry in the Ex-Residency of Madiun is still faced with several obstacles such as limited capital, high production costs, limited marketing, and the obsolete technology so that the benefits are not optimal. By looking at this fact, it is necessary to conduct research to assess how much the value-added from processing rice into rice crackers by utilizing data from the MSMEs of rice crackers in the Ex-Residency of Madiun.

Basic method
The basic method used in this research is descriptive-analytic. According to Surakhmad [3], this research method focuses on problems that exist in the present (actual) by collecting data which is then compiled, explained, and then analyzed. This research was conducted in the Ex-Residency of Madiun, East Java Province which included Ngawi Regency, Magetan Regency, Pacitan Regency, Ponorogo Regency, Madiun City, and Madiun Regency. This research was conducted in February -May 2018. The location was chosen because rice crackers are superior product from three regencies/cities in the Ex-Residency of Madiun, namely Ponorogo Regency, Magetan Regency and Madiun City.
The sample in this study was determined purposively. The sample used in this study was MSMEs that processed rice into rice crackers in the Ex-Residency of Madiun, which had been operating for at least one year. Respondents in this study were the owners or managers of UMKM rice crackers.

Data analysis method
The data analysis method used in value-added study is the Hayami method. According to Sulistyowati, et.al [4]; Baihaqi, et.al [5]; Karyani, et.al [6]; and Matakena, et.al [7], the Hayami method is useful to analyze the value-added obtained from processing rice into rice crackers. According to Hayami and Kawagoe [8], the procedure for calculating value-added using the Hayami method uses a calculation component consisting of output, input, price, revenue and profit.

Research location review
The Ex-Residency of Madiun is one of the administrative division areas in East Java Province. The Ex-Residency of Madiun consists of Madiun Regency, Magetan Regency, Ponorogo Regency, Ngawi Regency, Pacitan Regency, and Madiun City. The geographical location and area of the regency that are members of the Ex-Residency of Madiun can be seen in Table 1.
The Ex-Residency of Madiun is geographically located directly adjacent to Grobogan, Blora and Bojonegoro Regencies in the north. Meanwhile, it borders Tulungagung, Trenggalek and Nganjuk Regencies from the east. In the south, it borders the Indian Ocean and in the west, it borders Karanganyar Regency.

Characteristics of respondents of MSMEs rice crackers in the ex-residency of Madiun, East Java
Characteristics of respondents are a general description of the background and condition of rice crackers MSMEs in the Ex-Residency of Madiun, East Java. Characteristics of respondents in this study can be seen in Table 2. Based on Table 2, the average age of respondents is 46 years and the average education of respondents is 9 years or graduating junior high. Of all respondents, the average number of respondent family members is 4 people. On average, the cracker industries have been running for 20 years, meaning that the cracker business owners can be said to have experience and have an established customer. The average building area owned by respondents is 214.33 m 2 . This building area greatly affects the sustainability of the rice cracker industry. This is because the cracker industry requires a large place of business for the drying process. The average length of operation is 7 hours/day, which depends on weather and sunlight conditions since the drying process is very dependent on sunlight. The average raw material used is 540.13 kg. Most respondents obtain raw materials by buying directly to the market.

Analysis of production cost
Production costs are generally defined as the total costs incurred from the preparation of production to the marketing of rice crackers. The total production costs are the sum of fixed costs and variable costs. Table 3, the fixed cost components of rice cracker business operators in the Ex-Residency of Madiun are the costs of depreciation of tools and machinery, electricity and water costs, labor costs, and land and building tax costs. The average amount of fixed costs for each month of rice cracker business in the Ex-Residency of Madiun was Rp 3,301,402.     Based on Table 6, the value-added consists of gross value-added, net value-added, value-added per raw material and value-added per labor. working hours per month of the rice cracker industry was 9,461.33 hours. This means that everyone hour of work can provide value-added of Rp. 14,206.33/hour

Conclusions
The average value-added per raw material in the Rice Crackers business in the Ex-Residency of Madiun was Rp2,210.57/kg with an average amount of raw material used for one month was 946.67 kg.
The average value-added calculation per working hours of the Rice Crackers business in the Ex-Residency of Madiun was Rp 14,206.33/hour.

Recommendations
The rice crackers MSMEs need to continue to attain a sufficient level of efficiency, especially in terms of cost and the use of raw materials to further increase the value-added.
The quality control must be improved to produce a quality product in accordance with consumer wills.