full2010.pdf - page 1842

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The Marketing Potential and Feasibility of Business in Charcoal from Rice Husk Briquettes in Phatthalung
Province
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Abstract
The objectives of this paper are to study the situations, problems and opportunities on the marketing
potential and feasibility of business in charcoal from rice husk in Phatthalung Province. The data analysis has been
done by using fundamental financial methods to evaluate the feasibility of the investment. The capacity of
charcoal production was 800 kg/day. The investment cost was 1,910,000 baht with a loan interest rate at 6.125%
during 10 years. The results of this marketing study showed that 58.8% and 52.1% of consumers and
entrepreneurs used charcoal for cooking activities. Consumers bought charcoal at a store 1-2 times a month and 3-
4 kg per time. Entrepreneurs bought charcoal at a store 3-4 times a month and more than 60 kg per time. The
results of the feasibility study showed that the net present value was 6,228,470 baht, the internal rate of return was
43.54, the benefit-cost ratio was 1.33, the payback period was 9 year 8 months and the break-even point was 858
tons. The sensitivity analysis by switching value showed that benefits could be decreased by 25%, costs could be
increased by 33% and the project could be delayed for production by 7 month. In conclusion, all of the financial
variables showed that this project was a worthwhile investment.