A 5-ha cockle farm requires a capital investment of around Rp15.1 million (Table 2). The annual cost of production is Rp9.64 million consisting of Rp5.0 million of fixed costs and Rp4.64 million of variable costs (Table 3). The expected yield is 105 mt with a cost of production of Rp92/kg. The payout period is 2.67 years with a capital recovery factor of 0.38. NPV at the 5th year is Rp2.31 million and IRR value is 55 per cent (Table 4). The cash flow of the farm is given in Table 5.
For a 50-ha cockle farm, it requires a capital investment of around Rp112.0 million (Table 6). The annual cost of production is Rp111.7 million consisting of Rp64.2 million of fixed costs and Rp47.5 million of variable costs (Table 7). The expected annual yield is 1 050 mt with a cost of production of Rp106 per kg. The payout period is 3.11 years. The capital recovery factor is 0.33. The NPV of the 5th year operation is Rp81.99 million and IRR is 57 (Table 8). The cash flow is given in Table 9.
The financial model is based on the follow values:
| i. | Sale price | 150 | Rp |
| ii. | Seed size ranging 6–10mm (1 Tin weighing 16 kg containing spat about 5 000 pcs/kg) | 3 000 | Rp/tin |
| iii. | Initial stocking density | 250 (2 000 | tin/ha pcs/sq.m) |
| Final stocking density (size above 480 pcs/kg) | 300 | pcs/sq.m | |
| iv. | Culture cycle | 12 | months |
| v. | Yield (size3.2–4cm or 50 pcs/kg) | 21 | ton/ha |
| vi. | Mortality | 35 | per cent |
Establishment costs of cockle culture operation are almost zero because of the culture is carried out on natural mud flat. As other seafarming commodities, the sale price of the output has a big influence on the net profit of the operation. If the sale price of the output increases or decrease 10 per cent, the net profit of the farm will change 12–14 per cent. Seed costs is another item that effect the net profit of the operation. If the seed cost increase 10 percent the profit will decrease about 1 percent.
