Production and Marketing of Siamese Red Ruby Pomelo: Case Study of Pak Phanang District, Nakhon Si Thammarat Province

Abstract

This research aims 1) to study the cost and benefit including investment worthiness analysis of Siamese red ruby pomelo. 2) to study marketing function, marketing institution and marketing channel of Siamese red ruby pomelo and 3) to study marketing cost, marketing margin, and market share of the Siamese red ruby pomelo. The data for this study were collected from farmers and different groups of purveyors. By using purposive sampling, 137 samples were selected. The findings showed that the total cost of the pomelo production was 98,925.47 baht per rai per year. This included 91,228.71 bath per rai per year of the variable cost and 7,696.75 bath per rai per year of the fixed cost. The average benefit was 340,703.90 baht per rai per year. Moreover, the size of cultivated area and differences in plantation arrangements did not affect the cost and benefit of Siamese red ruby pomelo production. By analysing the investment worthiness at the interest rate of  7 percent, it was found that the Siamese red ruby pomelo production could be a profitable investment as the Net Present Value (NPV), the Internal Rate of Return (IRR) and the Benefit-Cost ratio (B/C ratio) were approximately 454,833.68 baht, 15 percent and 1.38 respectively.

With regards to marketing aspects, it was found that there were some middlemen such as local merchants, exporters, and retailers, who played important marketing roles in purchasing and selling.  Most products of farmers around 44.2 percent were sold to local merchants and 40 percent were sold to consumers directly. The rest were sold to retailers. Local merchants were sold their products to retailers for 28.3 percent and the rest, 15.9 percent, were sold to exporters. The average marketing cost was 6.34 baht each. The marketing margin was 65.38 baht each or 36.65 percent of the retail price. Besides, farmers and merchants received 113.00 and 65.38 baht for the marketing share per one pomelo which was equivalent to 65.35 and  36.65 baht of the retail price.