Cost-Benefit Analysis of Banana Shoot Microbial Fermentation Production: An Evaluation through Cost Accounting and Production Economics in the Context of New Organic Farmers

Abstract

The objectives of this research were to: 1) analyze the production costs of Banana Shoot Microbial Fermentation based on cost accounting principles, 2) evaluate economic returns using production economics, 3) compare costs and returns between scenarios including and excluding packaging costs, and 4) provide empirical data to inform decision-making among new organic farmers in Nan province. This study utilized a descriptive research design with a case study approach by purposively selecting a target population of 793 participants from project attendees in Phu Phiang and Mueang districts, Nan province. The research tool employed was a Cost Recording Form, which was validated for content validity by three experts. Quantitative data were collected via real-time observation and recording of actual costs during the 70-liter expanded formula production process across 9 practical training sessions. Data were analyzed using descriptive statistics (Descriptive Analysis), classifying costs into direct materials, direct labor, and manufacturing overhead, and evaluating cost-effectiveness through gross profit and Return on Investment (ROI).

          The research results corresponding to the objectives are as follows: 1) Based on the cost accounting analysis, the total cost for the scenario including packaging was 4,236.25 THB (60.52 THB per liter), while the scenario excluding packaging was 2,356.88 THB (33.67 THB per liter). 2) Regarding the evaluation of economic returns, the production yielded high cost-effectiveness, generating a gross profit ranging from 6,263.75 to 8,143.13 THB, with a Return on Investment (ROI) between 147.86% and 345.51%, and obtaining banana shoot residue as a by-product. 3) The comparison of costs and returns revealed that the scenario excluding packaging (for household use) significantly reduced costs and increased the gross profit margin from 59.65% to 77.55%. 4) To provide empirical data informing decision-making, the findings indicate that eliminating packaging costs is a key strategy for minimizing costs and maximizing returns, providing empirical evidence to empower new farmers to confidently produce chemical substitutes for sustainable self-reliance.