Costs and Returns Analysis of the Product:A Case Study of Samean Farm in Nong-chik, Keereemart, Sukhothai

Abstract

The objective of this research is to study and analyze the costs and returns of investment in dairy farming of Samean Farm in Nong-chik, Keereemart, Sukhothai. Interview was used to collect the primary data from the population studied, the owner of Samean Farm. Also, secondary data such as literature, academic paper, and research as to dairy farming. The data was then analyzed for cost and return in the form of payback period, Net Present Value, and Internal Rate of Return. The research results showed that the investment costs of dairy farming of Samean Farm Including investment costs and operating expenses. The initial investment cost was 2,446,135 baht. The return of the dairy farm, derived from the sale of raw milk and pasteurized, was 2,141,052 baht. The daily product obtained was 440 kilograms of raw milk which was sold at 17.40 baht per kilogram. Moreover, the pasteurized milk was sold in 2 two types of price such as the wholesale price at 140 baht per dozen and the retail price at 15 baht per bottle. In addition, the data analyzed revealed that payback period was 2 years 9 months 2 days. The net present value (NPV) was 2,344,976.30 baht. Lastly, Internal Rate of Return of the farm was 7.50% which was higher than the lending interest rate of the bank for agriculture and agricultural cooperatives at 7%.