A Feasibility Study of Organic Vegetable Farming Investment in Nakhon Sawan Province

Abstract

The objectives of this research are (1) to study customer behaviour regarding the consumption of organic vegetables in the Nakhon Sawan province and (2) to examine the feasibility of investing in an organic vegetable farm in the Nakhon Sawan province. This research employs quantitative and qualitative methods, collecting the data from questionnaires and interviews with organic vegetable farmers, as well as using descriptive and financial feasibility analysis. The study on consumer behaviour indicates that most respondents purchase organic salad vegetables from general markets, normally purchasing once a week and spending 101-200 baht per purchase while spending 0-100 baht per purchase for regular vegetables. The primary influence on their purchasing decisions is their family and they tend to repurchase organic vegetables and recommend them to others because organic vegetables are safe and free from residues. Moreover, price is the most prioritised marketing factor for customers, followed by products, places, and promotions. The financial feasibility study of investing in an organic vegetable farm found that the project has a payback period (PB) of 2 years, 5 months, and a net present value (NPV) of 1,454,571.33 baht. The internal rate of return (IRR) from the investment is 28.76%, and the benefit-cost ratio (BCR) is 1.883. The sensitivity analysis indicates that if the products and price decrease while the cost of material increases by 25.28% and 96.68% respectively, the project would be unable to continue. However, an increase in the prices of raw materials and seeds by up to 100% would not affect the project's feasibility.