Financial Return Analysis with Decision-Making for Selling Rubber Trees of Southern Thai Rubber Plantation Agriculturists

Abstract

           The primary objectives of this study were to ascertain the rubber tree selling patterns and decision-making conditions for selling rubber trees of Southern Thai rubber plantation agriculturists through the financial return analysis. Questionnaires were used for data collection from 392 Southern Thai rubber plantation agriculturists. Descriptive statistics were used for basic data analyses while the Pearson correlation coefficient was used for testing the research hypothesis and multiple regression analysis was used for ascertaining the influencing factors of this research. As a result of this study, it was discovered that Southern Thai rubber plantationagriculturistsoften cut 23 to 25 year old rubber trees down for selling when rubber tree treads have been imperfect and it is inefficient to get the natural latex out anymore. Economic Value Added and Pay Back Period have been used for measuring financial return received to decide selling the rubber trees at that time. While selling through brokers, agriculturists contact manufacturers themselves, and purchasing officers of factories directly contact agriculturists have traditionally been used as the method of selling rubber tree. Furthermore, the results also revealed that nine main conditions (the perfection of rubber tree tread; rubber tree quality; financial return received; agriculturists’ replacement from rubber trees to oil palms; the economy, society and the well-being/ quality of life of agriculturists; rubber tree age; rubber tree cropping location; price and price negotiation for trading rubber trees; and prepaid deposit before cutting rubber tree down) have influenced and then positively had direct relationships to the financial return for Southern Thai rubber tree agriculturists’ decision-making for selling rubber trees at significance level of 0.01. The results of this research can probably be applied to give knowledge, understanding and support for Thai rubber tree agriculturists in all Thai regions with obtaining the highest financial return by Thai government and related parties.