Cost and Net Profit Analysis of Organic Charolais Beef Cattle Breed Production in Chiang Mai Province

Abstract

The leading objectives of this inquiry were to study cost, net profit, a financial ratio analysis,and break-even point of an organic Charolais beef cattle farm located in Chiang Mai, Thailand by using In-depth interview. In 2019, The results of organic cattle by grazing system demonstrate:an average per head of cattle purchasing cost was 30,250 Baht, labor cost was 17,307.69 Baht,production expense was 13,653.85 Baht, Charolais beef cattle cost was 51,923.08 Baht, selling income was 51,923.08 Baht, gross profit was 15,076.92 Baht, Operating expenses were 4.926.92, resulting in a final net profit of 10,150 Baht. The financial ratios analysis exhibited: 1) production
efficiency ratios 2) profitability ratios and 3) efficiency ratios. The break-even point (sales Baht) was 669,116.17 Baht. The benefits of this research were production planning, profit planning, in addition to control production costs and expenses to maximize profits in organic Charolais beef cattle business.