Evaluation of Cost, Revenue Structure and Financial Ratio for Pomelo Cultivation in Nakhon Pathom Province

Abstract

          The objectives of this study were 1) to study and analyze cost and revenue structure of pomelo cultivation in Nakhon Pathom province and 2) to analyze financial ratio of pomelo cultivation in Nakhon Pathom province. Key informants were 49 pomelo farmers, the members of Pomelo Community Enterprise Network of Nakhon Chai Si in Nakhon Chai Si district. They consisted of 21 farmers from Sam Phran district and 28 farmers from Nakhon Chai Si district. Purposive sampling technique was used for data collection. The data were analyzed in terms of cost, revenue structure and financial ratio. The results revealed that for cultivating the pomelo, "Thong Dee" over twenty years, the average total cost were 42,545 baht which consisted of the average fixed cost of 1,299 baht and the average variable cost of 41,246 baht per farm. After analyzing revenue structure of 20 years, it showed that the net present value (NPV) was 791,608.35 baht per farm, the internal rate of return (IRR) of the project was 22.30 percent and the benefit-cost ratio (BCR) was 2.96 times. Consequently, it indicated that pomelo cultivation was worth  the investment. In additions, financial ratio analysis showed that the highness of gross profit margin was 99.90 in year 13 and the highness of net profit margin was 86.31 in year 15. The researchers suggested that there should be a policy to provide the farmers with the government  agencies with knowledge on Good Agricultural Practices (GAP). The farmers should plan and analyze factors related to production and take into account cost management for maximum efficiency. In addition, they should adopt technology information to help with analyzing plan of pomelo cultivation in order to get the product that meets the needs of consumers. As a result, this can lead the farmers to self-development and being agricultural leader or Smart Farmer.