Suluh Elman Swara, Candra Adi Intyas, Camille Anne Espejo Mendoza
Small-scale catfish processing generates substantial by-products that are often underutilised, limiting value creation and business sustainability. This study evaluates the sustainability of a zero-waste catfish by-product processing micro, small, and medium enterprises (MSMEs) in Pasuruan Regency, Indonesia, by integrating Porter’s value chain analysis with financial feasibility assessment. A descriptive case study approach was employed using primary data collected through observation, interviews, questionnaires, and documentation. The value chain analysis identifies that operational activities dominate both asset allocation and cost structure, accounting for approximately 66.7% of total operating costs, indicating that processing operations are the main source of value creation. Financial results demonstrate short-term profitability, with a Revenue–Cost Ratio of 1.38, a profit margin of 27.35%, and a Return to Total Capital (RTC) of 17.57%. Long-term feasibility is supported by a positive Net Present Value (NPV) of IDR 68,001,876, a Net Benefit–Cost Ratio of 1.19, an Internal Rate of Return of 9.84%, and a payback period of 6.25 years. However, sensitivity analysis reveals high vulnerability to cost increases and revenue declines, indicating that business sustainability depends on operational efficiency and revenue stability. This study demonstrates that integrating value chain analysis with financial feasibility assessment provides a comprehensive framework for evaluating sustainability in fisheries-based MSMEs. Copyright: © 2026 The authors. This article is published by IIETA and is licensed under the CC BY 4.0 license (http://creativecommons.org/licenses/by/4.0/).
Department of Industrial Engineering, Faculty of Engineering, Universitas Brawijaya, Malang, 65145, Indonesia; Department of Socio-Economy Fisheries and Marine, Faculty of Fisheries and Marine Science, Universitas Brawijaya, Malang, 65145, Indonesia; Department of Agribusiness Management and Entrepreneurship, University of the Philippines Los Baños, Los Baños, 4031, Philippines
