A Feasibility Study on the Business in Purchasing Food Waste for Processing into Compost in Laksi District, Bangkok

Abstract

This article aimed to determine the economic feasibility of businesses, which purchase food waste for processing into compost in Laksi District, in terms of finance and marketing. In-depth interviews with 3 entrepreneurs who operate organic fertilizer businesses were conducted as a benchmark. Business feasibility studies are based on the medium-sized industry operation model. Food waste was purchased from department stores, government offices, and educational institutions in the Laksi District. The result of the study found that the business has a Net Present Value (NPV) is 744,356.68 baht, the Benefit-Cost Ratio (BCR) is 1.02 times, an Internal Rate of Return (IRR) is 12.40% and Payback Period (PB) is 7 years 5 months and 27 days. Considering the finances, the business is an attractive investment. But considering the financial risks from Sensitivity Analysis and Switching Value Test, the business model is still somewhat unstable and prone to failure. So, the business is not worth the investment, as is. Despite the associated risks, the business has potential because the result of the Marketing Study score is 78.67 from 115 or 68.41%. This indicates that the competitiveness of the business is relatively high due to the popularity of consumer health and environmental protection. Therefore, the business of purchasing food waste for processing into compost in Laksi District has much potential but first requires adjustments in strategies, to align with popular trends and sustainable competitiveness before it should be worthy of investment.