Abstract:
The purpose of this feasibility study was to investigate the feasibility of investing in beef cattle business in Phayao Province. The population used in this study was a member of Dok Kham Tai Beef Cattle Cooperative. In addition, eight beef cattle farming entrepreneurs were selected by means of purposive sampling as a sampling technique. Semi-structured interviews were conducted as a tool for data collection to interview beef cattle operators, and then the strengths, weaknesses, opportunities, SWOT analysis, competitive environmental analysis (Five Forces Model), and financial ratios as payback period (PB), net present value (NPV), benefit-cost ratio (B/C Ratio) and internal rate of return (IRR) were analyzed.
The results of internal and external business environment analysis (SWOT Analysis) showed that the beef cattle business was a feasible investment due to the increasing demand for beef in both domestic and ASEAN markets. The beef cattle business had the potential to expand and grow the beef export business including the expansion of overseas consumer base. This would lead to a worthwhile investment. Furthermore, the results of competitive environmental analysis (Five Forces Model) revealed that there was the potential return of an investment because of only a few competitors in the market. Besides, the standard and quality of the beef cattle could not be replaced by other replacement products. Therefore, it would be cost-effective to run the beef cattle business with 1,266,000 baht for an initial investment, and an average annual operating cost of 78,039 baht a year. The average annual net return on beef cattle business was 406,058 baht per year. The payback period was four years and a month with the net present value of +278,465.77 baht. Additionally, the benefit-cost ratio was 1.17 times, and the internal rate of return was 15.68%. All of these elements combined led to the conclusion that the beef cattle business in Phayao Province was feasible and worthwhile investment.