The Financial Costs-Benefit Analysis of Organic Layers in Organic Households in Chiang Mai Province, Thailand

Abstract

This study aims to investigate the financial-costs-benefit analysis of organic layers in organic households in Chiang Mai, Thailand by separation into three categories; 200 layers, 100 layers and 50 layers in a household. In depth semi-structured interview to collect data from 12 organic agriculturists were used. The result found that there were 12 female interviewees aged between 50-60 years old; almost all interviewees education level was primary education, with the average income being around 7,000-10,000 baht per month. The results revealed that the net profit per year on three the categories were equal to 79,015.53, 44,050.71 and 13,135.59 baht, respectively. Moreover, the result from the cost and benefit analysis found that the total net cash inflow for six years was 726,639.08, 404,876.77 and 139,429.30 baht, consecutively. The payback periods were 3.93, 3.95 and 3.06 years, respectively. The net present value was to 412,048.93, 234,691.28 and 70,073.23 baht, consecutively and the internal rate of return was 24.96, 24.79 and 15.25 percent, respectively. Thus, this project on three categories is quite interesting for investment, because the payback period covered under the project and the net present value was positive in all layer sizes enabling higher internal rates of return.