Cost analysis ofproduct development to enhance the income of the germinated parboiled rice community enterprise group, , Ban Khok Sawang, Chiang Khruea Subdistrict, Mueang District, Sakon Nakhon Province

Abstract

This research aimed to 1) analyze the production costs of germinated parboiled rice products; and 2) develop and process the products to enhance the income of the Ban Khok Sawang Community Enterprise Group in Sakon Nakhon Province. Mixed-methods research approach was employed, combining both quantitative and qualitative research method. The sample consisted of 30 members of the community enterprise, selected through purposive sampling. The research instruments included questionnaires and cost-collection form. Quantitative data were analyzed using descriptive statistics and financial feasibility indicators, such as return on investment (ROI), net present value (NPV), payback period, and break-even point. The results revealed that the total investment in machinery and equipment amounted to 3,012,900 THB. The average raw material cost was 19 THB per kilogram, with a total production volume of 24,000 kilograms. The average retail price was 60.15 THB per bag, and the average wholesale price was 53.59 THB per kilogram. The total production cost was 1,443,540 THB, while the total retail sales reached 1,920,000 THB, resulting in a net profit of 476,460 THB (a net profit margin of 19.85%). The break-even point was identified at 21,113 bags, equivalent to 1,689,041.60 THB, with a payback period of three years. Regarding product development, the group successfully launched “Saen Suk Soap”, a value-added product made from germinated parboiled rice powder. By positioning the product around natural and health-oriented benefits, it resulted in average annual income increase of 25,000–30,000 THB, representing 10% of total revenue. The annual working capital required was 665,040 THB, consisting of 507,600 THB in wholesale production costs and 157,440 THB in administrative expenses. Financial analysis indicated that the retail price scenario yielded a net present value (NPV) of 2,580,420 THB, with a payback period of 3 years and 6 months, while the wholesale scenario yielded an NVP of 2,348,100 THB, with a payback period of 3 years. These findings underscore the feasibility of integrating local wisdom with systematic cost management to foster sustainable grassroots economic growth. This study serves as a model for product development and management for other community enterprises. Furthermore, it provides a framework for formulating community economic policies based on area – based potential and local raw materials, ensuring both efficiency and long - term sustainability.