Agricultural Cost and Return of Coffee Cultivation, Mae Suai Amphoe, Chiangrai Province

Abstract

The objective of this research aimed to study Cost and Return of coffee cultivation were analyzed in order to study the problems and obstacles in terms of agricultural impact toward coffee cultivation in the Mae Suai Amphoe, Chiangrai Province. Population of the study includes 292 agriculturalists who are coffee growers in Mae Suai Amphoe, Chiangrai Province. Questionnaire on cost and return on coffee cultivation was used as a research instrument. Data collection was conducted and analyzed using basic statistics including Frequency Distribution, Percentage. Rate of return was analyzed using Financial Ratios. Result of the study shows that, 80.47 percent of coffee growers are male, 54.45 percent aged 31 – 40 years old. 41.78 percent grow the coffee by self-experimentation. 73.63 percent of coffee are merchandised in the form of parchment coffee. And 78.77 percent are sold through middleman traders. Cost of coffee cultivation consists of fixed cost and variable cost. Fixed cost can be determined from the depreciation according to the utilization which relates to coffee cultivation. Depreciation of overall assets values at 1,242.54 Baht per Rai per year. Variable cost consists of (1) Cost of raw mat erial for coffee cultivation values at 7,223.74 Baht per Rai. (2) Labor cost at 7,470.45 Baht per Rai and (3) Production cost averages at 608.00 Baht per Rai. Productivity of coffee cultivation averages at 815 kilograms per Rai per year. Selling price average at 20.15 Baht per kilogram which generates income at 16,422.25 Baht per Rai per year. For the Return of coffee cultivation, small coffee growers make loss in the first two years at 122.48 Baht per Rai. And the Return on investment for small coffee growers make profit at 4,005.94 Baht per Rai from the third year onwards. Net profit calculates at 35.85 percent and the break-even point is at 69.52 kilograms per Rai. The 3 most common problems and obstacles for coffee plantation are coffee price fluctuation, followed by high cost of fertilizers and insecticides, and the shortage of labor.