Cost Reduction Model of Sericultur: Case Study of Queen Sirikit Sericulture Center, Khon Kaen Province

Abstract

The objectives of this article are: 1) to study on all direct costs and hidden costs of silkworm rearing of farmers who were members; 2) study on income of farmers in sericulture of members; and 3) study on cost reduction model and compare income obtained from cost reduction activities of farmers. For analysis, costs of silkworm rearing of farmers were classified. Research methodology was mixed method. Concepts or theories Value Chain Analysis, 4 M, theories on costs and production costs were used as the research framework. The key informants were 17 sericulture farmers and experts related to sericulture. Research tools were: 1) Interview Form; 2) Observation Form and content analysis. The results were concluded in the form of descriptive results. The results revealed that:

farmers had 3 costs of sericulture including direct costs, variable costs, and hidden costs. total costs could be classified as follows: Farmers had to bear variable costs caused by uncontrollable external factors followed by hidden costs in each procedure of agricultural process and direct costs caused by normal wear and tear of devices used in sericulture. Consequently, farmers had to have high total costs with lower income. there were 3 cost reduction models of silkworm rearing process including:
1) application of resources; 2) processing of excessive products; and 3) implementation of technological models in process.

Important findings of this research on cost reduction model were: 1) application of resources;
2) processing of excessive products; and 3) implementation of technological models in process.