Cost and Benefit Analysis of Mai Nadi Model Native Chicken Community Enterprise

Abstract

The objectives of this research are (1) to study the cost of raising native chickens and (2) to study the financial return of investing in raising native chickens of Mai Nadi model native chicken community enterprise. The quantitative and qualitative research were conducted. The key informants are members of the Mai Nadi model native chicken community enterprise, Moo. 8,  Ban Mai Nadi, Ban Kham Sub-district, Chattuat District, Chaiyaphum province. Questionnaires and semi-structured interviews were used as research tools. The results revealed that a member of Mai Nadi model native chicken community enterprise most of them were female, marital status, completed elementary education, aged 51-60 years old, their main occupation was farming, their average monthly income was less than 5,000 baht, and they had been a member for 3 years or more. The cost of raising Mai Nadi model native chicken community enterprise consists of the cost of fixed assets purchasing such as building houses, sprayer, weighing machine, water pumping, feeding device, watering device, lighting equipment, incubator light and nesting baskets, totaling 275,000 baht. Native chicken farmers will earn income from selling native chickens in 2 ways: (1) direct income from selling native chickens 302,400 baht per year and (2) indirect income from the sale of chicken manure 3,000 baht per year, totaling 305,400 annual incomes. After deducting from production costs per year of 272,590 baht Mai Nadi model native chicken community enterprise will have a net profit of 32,810 baht per year. Financial analysis is a comparison between the benefits and costs of a project. To consider whether investing in raising native chickens is worth the investment, it is find that (1) the payback period is 3.67 years (2) the discounted payback period is 4.18 years (3) Net Present Value is 448,937 baht, (4) Cost-Benefit Ratio is 1.22 and (5) Internal Rate of Return is 31.12%.