Cost and Benefit Analysis of Pineapple Plantation: A Case Study of Smallholder Farmers in Huai Sai Nua Sub-District, Cha-am District, Phetchaburi Province

Abstract

The purpose of this research was to study cost and benefit of investing in pineapple plantations of smallholder farmers in Huai Sai Nua sub-district, Cha-Am district, Phetchaburi Province. Conceptual framework was based on total production costs and economies of scale concepts. Purposive sampling was applied to select 29 farmers investing in pineapple plantations of smallholder farmers in Huai Sai Nua sub-district, Cha-Am district, Phetchburi Province to collect financial data concerning their crop during 2012 – 2016. Cost benefit analysis was applied to analyze financial data using discount rates of 7% and 12% respectively. Research findings revealed that investing in all sizes of pineapple plantation yielded the smallholder farmers appropriate return; major problems of pineapple plantation mostly came from factors of production including high prices of chemical fertilizer and water shortage; production of the large sized farm was the most efficient in terms of the shortest payback period and the highest returns, which was according to economy of scale concept; and sensitivity analysis revealed that when revenue decreased by 10% or production cost increased by 10%, all size of farm still provide appropriate return while large farm still yielded the highest return. These results implied that farmers should consider investing in large sized farm or joint-farming for a larger size.