Study Program of Agribusiness, Faculty of Agriculture University of Sebelas Maret Surakarta, Jalan Ir. Sutami No. 36 A, Surakarta 57126, Indonesia

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This study aims to determine the value added of rice processing into rice crackers in the Ex-Residency of Madiun, East Java. Three areas (Ponorogo Regency, Magetan Regency and Madiun City) well-known as rice crackers producers are chosen as location. The sample in this study is selected purposively. The result shows that the average value added per raw material is Rp 2,210.57/kg with raw material used is 946.67 kg/month, in average. Using the Hayami method, the average value added is Rp 14,206.33 per working hour. Rice crackers SMEs are advised to continue to improve efficiency, especially in terms of cost and the use of raw materials to further increase the value added.