| Summary: | The paper aim to developing of Seaweed Jelly industry value chain model that can increase sustainable value added. Detail purpose of this paper are designing initial model, constucting development model,and then calculates the amount of value added projectionthat can be accepted from the development model of Seaweed Jelly industry value chain. The research was conducted in the coastal area of Muna Regency of Southeast Sulawesi Province, ie Lasunapa Village, Gonebalano Village, and Lagasa Village, where 50 respondents were assigned to each village through purposive sampling technique, The analysis used is Activity Based Costing (ABC), Focus Group Discussion (FGD), and Hayami Method. The paper finding showed that; (1) there is an increase of product value added from Rp. 29,050,-/kg on the initial model, to Rp. 33,250,-/kg on thedevelopment model resulting in an increase in profit from Rp. 9,050,-/kg on the initial model to Rp. 13,250,-/kg on the development model; (2) there is an increase of profit margin from Rp. 54.000,-/kg on the initial model to Rp. 59,500,-/kg on the development model. This research does not carry out a deep analysis of the institutional industry, so that the future needs to be done institutional model development of the seaweed jelly industry. The paper include implication for the increasing productivity and community welfare. The paper includes implications for the cost reduction and increase value added of seaweed jelly industry. This paper resulting an development model and value added projection from that development model.
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