A cost-benefit analysis of a new product development from organic broken-milled rice in Thailand

• Main Authors: Aungvaravong, Chuenjit, Likitwongkajon, Napaporn, Yanakittkul, Phaibun
• Format: Conference or Workshop Item
• Language: English
• Published: 2016
• Subjects: S Agriculture (General); TS Manufactures
• Online Access: http://repo.uum.edu.my/20813/1/ICAS%202016%20338-342.pdf; http://repo.uum.edu.my/20813/; http://icas.my/index.php/proceedings/210-a-cost-benefit-analysis-of-a-new-product-development-from-organic-broken-milled-rice-in-thailand

This paper aims to carry out a cost-benefit analysis of a new product development from a by-product.In this case, the by- product is organic broken-milled rice and the new product development is organic rice pudding.Data was obtained from multi supply chain of a primary data, for instance, farmers, retailer, and entrepreneurship on a rice supply chain and a secondary data from the published literature. The study found that the payback period (PB) of the investment is 2 years and 7 months (940 days) with the net present value (NPV) is 3,008,099 Thai Baht (assuming that the discount rate is 8%) and 22.73% of internal rate of return on investment (IRR). The results indicates that investment in the organic rice pudding product could be profitable in the long run.