Feasibility Study on Producing Physic Nut Oil for Diesel Oil Substitution in the Sriprachan Community, Suphan Buri Province
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2010-03-02
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Journal of Science and Technology Mahasarakham University - วารสารวิทยาศาสตร์และเทคโนโลยี มหาวิทยาลัยมหาสารคาม
Abstract
The objectives of this study were to study the suitable land management techniques required to cultivate physic nut in order to substitute diesel oil in agricultural engines and do an economic analysis of 20 physic nut oil producers. Some secondary data were obtained from research project under Kasetsart University Research and Development Institute. Data were analysed using net present values (NPV), benefit cost ratio (BCR) and internal rate of return (IRR). The results of the study showed that most rice farmers used vacant land to cultivate physic nuts at 1.34 rai/household. The total demand of community diesel oil for an agricultural engine was 2,968,416 liters per years, but physic nut oil production in the community met only 0.032 percent of total demand. Project economic analysis of physic nut oil production in a period of 10 years and with a discount rate of 5 percent, revealed that it was not worth when NPV is -1,083,059.13, BCR is 0.38 and IRR is not applicable. The project sensitivity analysis also revealed that the project would have economic worth if they had produced 20 percent of seedlings on sale. This study identified three causes of low feasibility in physic nut oil production for diesel oil substitution in agriculture. They were 1) economic factors 2) land use factor and 3) physic nut yield factor.
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Journal of Science and Technology Mahasarakham University - วารสารวิทยาศาสตร์และเทคโนโลยี มหาวิทยาลัยมหาสารคาม; Volume 27 Number 2 April-June 2008; 93-99