Economic Sustainability in Agricultural Business: A Comparative Feasibility Analysis of Melon Varieties for Small-Scale Farmers

Abstract

Economic sustainability is an important factor for long-term agricultural business. It refers to the situation in which farmers face increasing pressure to maintain profitability while also addressing production challenges and market volatility. The case involved premium melon cultivation, where variety selection becomes a strategic management decision because each variety has unique characteristics in terms of production durability, fruit quality, and consumer preference, all of which have a direct impact on the farm's financial performance. A comparative economics report is available to assist decision-makers in selecting melon varieties that will improve long-term business sustainability. This study assesses the economic viability of Sweet Net and Okasa F1, a variety grown by Beken Community in Sukajaya, Bekasi. The case used financial indicators such as Gross Profit Margin (GPM), Benefit-Cost Ratio (BCR), Break-Even Point (BEP), and Payback Period, as well as a qualitative descriptive analysis from a Beken Community team member. The case results show that the Sweet Net outperforms Okasa F1 in terms of economic performance, with a gross profit margin of 39%, a Benefit-Cost Ratio of 1.6, and a quick payback period of approximately three years. According to the operations and marketing team, Sweet Net is more susceptible to fruit cracking and, as previously stated, requires extensive maintenance support. According to the statement, the improved profitability was largely attributed to its sweeter taste, crisper texture, and consumers' willingness to pay a higher price. Okasa F1's sweetness and fruit character appear to be less appealing to market value, resulting in a lower investment return, despite significantly lower production costs and better fruit durability. The findings demonstrate the potential for variety to generate profit for farmers by investigating how plant resistance, fruit traits, and customer preferences influence economic outcomes in the Beken Community. This approach may provide melon farmers and stakeholders with insights into optimising variety selection for strategic socioeconomic decisions. This study provides both short-term financial liquidity and long-term community resilience; it also improves the community business model.