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Engineering economic analysis of meliponiculture in Malaysia considering current market price

F., Basrawi and Asnul Hadi, Ahmad and Daing Mohamad Nafiz, Daing Idris and Mohd Rashidi, Maarof and Chand, M. R. R. and Ahmad Syazwan, Ramli (2017) Engineering economic analysis of meliponiculture in Malaysia considering current market price. In: UTP-UMP Symposium on Energy Systems, SES 2017, 26-27 September 2017 , Perak, Malaysia. pp. 1-7., 131. ISSN 2261236X

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Abstract

Stingless bees (kelulut) keeping is now a trend in Malaysia. However, since demand for the source of colony in log is increasing, the log price is rapidly increasing. But, there is no data reported on the economic viability of meliponiculture in the current market price. Thus, the objective of this study is to clarify the economic viability of investment in meliponiculture in the current market price by engineering economic perspective. Investment in meliponiculture was analysed using Equivalent Annual Uniform Cost (EAUC), Internal Rate of Return (IRR) and Breakeven Analysis. A small start-up with 30 units of logs or hives was considered in the analysis. All raw data was acquainted from current Malaysian market price, but only revenue from honey was considered. It was found that EAUC indicated that the annual worth of the log system is 23% better than the hive system. However, IRR calculation indicated that both the log and the hive systems offer margin exceeding 55% which is a very good return in general investment. In addition, it was also found that the log system had breakeven after 8th month, whereas the hive was 13th month. Better economic value could be obtained if revenue from by-products are considered. Thus, it can be concluded that meliponiculture is still very economically viable in Malaysia market trend, and the hive systems could be a better choice if splitting colony, maintenance, safety and aesthetics points of view are considered.

Item Type: Conference or Workshop Item (Speeches)
Additional Information: Indexed by Scopus
Uncontrolled Keywords: Commerce; Economics; Investments; Market trends; Break-even analysis
Subjects: T Technology > TJ Mechanical engineering and machinery
Faculty/Division: Faculty of Mechanical Engineering
Depositing User: Pn. Hazlinda Abd Rahman
Date Deposited: 29 Aug 2018 04:35
Last Modified: 29 Aug 2018 04:35
URI: http://umpir.ump.edu.my/id/eprint/21089
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