Cost benefit analysis of organic vegetable production: case study of organic farmers network at Tha Tamnak Nakhon Chaisi, Nakhon Pathom

Abstract

The objective of this research is to assess the cost and benefits of producing and distributing organic vegetables for small scale farmers. The selected case study for this research is Tha Tamnak Organic Farmers Network situated at Nakhon Chaisi district, Nakhon Pathom province. The data consist of both qualitative and quantitative data through case study analysis in order to assess the cost and benefits of organic vegetable production.

               The result has shown that the net present value of producing organic vegetable for small scale farmers will yield positive return after 6 years of production. The average profit for each production is 12,327.27 baht. The internal rate of return is 12.22 percent. Suggested policy recommendation is to provide source of funding or no interest loan for small scale farmers dedicated to organic production. The no interest rate should be at least 6 years in order to assist farmers with less burden on high production initial fixed cost.