THE ON-GOING EVALUATION OF OIL PALM PRODUCTION: A CASE STUDY OF LAOR GARDEN CO., LTD., TAK PROVINCE
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Abstract
The purposes of this research were to evaluate on-going projects of palm oil production in Tak province and to identify the suitable time for replanting. The data were collected from plantation which covers an area of approximately 6.45 rais, with 142 palm oil trees and the age of palm oil tree is 10 and a half years old. Data using for analysis were divided into 2 parts 1) real data which collected during 2010-2019 and 2) forecast data (2020-2029) using polynomial method. The analysis was calculated at 20 years project life. The data were analyzed using
descriptive statistics such as percentage, mean and range.
Financial analysis showed that palm oil plantation in the area of approximately 6.45 rais within 20 years generated NPV 55,043.43 bath/rai. The investment also includes 8.28% of IRR and 1.39 BCR which these indicated the project’s financial worthiness. In addition, analysis results of switching value test (SVT) of cost and benefit indicated that the project could tolerate increasing of the cost up to 38.65% and decreasing of benefit up to 27.88% to maintain its worthiness. This implied that investment risk of the project was in low level. Moreover, the successional time was analyzed using concept of capital recovery factor (CRF), the results showed that the successional time is 25 years.
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