Analysis of the Financial in Oil Palm Planting Investments in Chon Buri Province (in Thai)

Abstract

This research was divided into two main parts which included analysis of cost and return on investment from oil palm farms and suggestion of policy for managing oil palm planting in the most suitable area compared with non-suitable area in Chon Buri province. The analytical result showed that the oil palm farming investment in the most suitable area of Chon Buri was commercially worthwhile since NPV (Net Present Value) was 19,228,056.04 baht on average 81,727.62 baht per rais greater than in the non-suitable that is 9,537,643.38 baht on average 74,547.78 baht per rais. Make an investment in oil palm farms in the most suitable area compensation to farmers is higher than in the non-suitable area. The case of BCR (Benefit Cost Ratio) in the most suitable area was 2.98 less than in the non-suitable area that is 3.52 shows that the investments in the non-suitable area get more profit. The IRR (Internal Rate of Return) both in the most suitable area and non-suitable area are higher than interest rate loan about 4 times therefore worthiness the investment in both areas. Finally, the policies for managing oil palm planting in the non-suitable area were proposed namely, development of supply chain.