Analysis of Cost and Returns from Pig Raising in Nakhon Si Thammarat Province

Abstract

   This research aimed to analyze the costs and returns of pig raising in Nakhon Si Thammarat Province. The research instrument was a structured interview, and data were collected through in-depth interviews with 376 pig farmers in the province who were business owners. The sample size was calculated using Yamane’s formula, then stratified random sampling was applied across districts, followed by purposive selection of farmers registered with the district livestock office who resided in the study area, maintained continuous pig raising, and had complete cost and return data for the production cycles studied. Data were analyzed using descriptive statistics, including percentages and calculations of pig farming costs and revenues. Financial tools were applied to evaluate the project using seven methods: gross profit margin, net profit margin, break-even point, payback period, net present value, return on investment, and internal rate of return. In addition, qualitative data were analyzed using content analysis to interpret and draw conclusions. 

   The study found that pig farmer in Nakhon Si Thammarat Province had a total pig raising cost of 368,716.42 baht/year, consisting of fixed costs of 34,696.42 baht/year and variable costs of 334,020.00 baht/year. The income from pig raising was 449,520.00/year. The returns  from pig raising were as follows:  the gross profit margin was 24.48%, the net profit margin was 19.14%, the break-even point was 25 animals pigs or 140,000.00 baht, the payback period was 1 year, 8 months, and 21 days, the net present value was positive at 540,644.41 baht, the return on investment was 47.80%, and the internal rate of return was 64.34%.