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Feasibility of Cotton Cultivation in Thailand

Author

Listed:
  • Punnamee Sachakamol

    (Kasetsart University, Thailand)

Abstract

Most of the cotton texttile industry in Thailand are commodity player who focus more on bulk production, engaged in spinning and/or weaving operations and supply yarn fabric. Raw materials cost forms a major component of cost and operate at low margins. This research aims to study one of the biggest Cotton Yarn manufacturers in Thailand, where the requirement of raw cotton is approximately 18,000 tons per year. In order to reduce the raw materials cost, the feasibility study of cotton cultivation in Thailand is required to replace the imported cotton with home-grown cotton for at least 5 to 10 percent of the annual requirement. The net reveune is simulately estimated from carefully analysis the fixed cost, capital investment cost, commodity market trend, and demand of cotton yarn. These factors are put into the simulation software to forecast the Return of Investment and feasbility of cotton farming in Thailand.

Suggested Citation

  • Punnamee Sachakamol, 2012. "Feasibility of Cotton Cultivation in Thailand," Knowledge and Learning: Global Empowerment; Proceedings of the Management, Knowledge and Learning International Conference 2012,, International School for Social and Business Studies, Celje, Slovenia.
    • Handle: RePEc:isv:mklp12:919-912
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