The Financial Feasibility and Willingness to Pay For Reverse Osmosis Salted Eggs: Evidence from a Techno-Economic and Market Acceptance Study

Abstract

Salted egg production is conventionally carried out using traditional methods, which are time-consuming and rely heavily on duck eggs as the primary raw material. This study aims to assess the technical and financial feasibility and market acceptance of an innovative salted egg product made from chicken eggs processed using Reverse Osmosis (RO) technology. The research methodology included experiments on the salting process, financial analysis (Cost of Goods Sold (COGS), Break-Even Point (BEP), Net Present Value (NPV), Internal Rate of Return (IRR)), and a Willingness to Pay (WTP) survey involving 120 consumers. The WTP was evaluated using open-ended questionnaires and an iterative bidding technique. The results indicate that the RO method can significantly accelerate the curing process, reducing the time to just three days, while yielding good organoleptic quality and ensuring microbiological safety. Economically, the study found a COGS of IDR 4,267 per egg, a BEP achievable within 25 production cycles, and NPV and IRR values that affirm the investment's viability. From a market perspective, the highest consumer interest was observed at a price of IDR 8,500, reflecting strong acceptance of this innovative product. These findings underscore the potential for reverse osmosis salted eggs to be developed as a high-value-added agro-industrial product with promising market prospects, particularly for Micro, Small, and Medium Enterprises (MSMEs).