3. A BUSINESS PLAN FOR ORGANIC VEGETABLE FARM
BY
MISS NAWAPORN CHAROENWIRIYA
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
FACULTY OF COMMERCE AND ACCOUNTANCY
THAMMASAT UNIVERSITY
ACADEMIC YEAR 2018
COPYRIGHT OF THAMMASAT UNIVERSITY
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7. (3)
Independent Study Title BUSINESS PLAN FOR ORGANIC VEGETABLE
FARM
Author Miss Nawaporn Charoenwiriya
Degree Master of Business Administration
Faculty/University Faculty of Commerce and Accountancy
Thammasat University
Independent Study Advisor Assistant Professor Pinrada Metharom, Ph.D.
Academic Years 2018
EXECUTIVE SUMMARY
Presently, consumers are the trend of healthy consumption trend to surge
up, in addition to exercise for health. Having healthy nutrition is another option that
consumers place importance On, and especially eating vegetable which is grow by
organic method. Data from Euro Monitor International (2018) revealed that the size of
the Thai organic vegetable market in 2017 amounted to 23,600 tons, with growth rate
of 18.3% in 2016, and average 5 years growth rate of 13.8% per year.
Therefore, as mentioned above, I have recognized good opportunity to
create Organic Vegetable farm business plan together with my business partner having
1 rai of land at Wongsawang, Bangsue, Bangkok which is suitable for cultivation. We,
thereby, has established an organic vegetable farm business under the name “Grow
ME Organic" as an organic farm business with the business model of planting and
distributing organic vegetables. The farm is emphasizing the delivery of organic salad
vegetables without any chemicals and chemical fertilizers throughout the planting
process. By being certified organic production standard (Organic Thailand) from the
Department of Agriculture Ministry of Agriculture and Cooperatives, customers will be
able to eat organic vegetables which are fresh, clean, safe and free of chemicals.
Moreover, it’s good for the health of customers and their families. Along with the
distribution of special signature dressing of Grow ME Organic salad menu, bringing 5
organic vegetable salads and 3 organic grains with 1 organic dressing so that customers
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8. (4)
can eat easily. Furthermore we have 2 distribution channels in Bangkok and nearby
which customers can order organic products, contact for further information, and be
informed about marketing promotion activities via online channels such as Facebook,
Instagram, and Line. Besides, we have an offline channel to contact via phone. In
addition, there are our business partners to distribute through the store and business
organizations also.
From the feasibility study of the business found that it requires investment
of 457,900 THB and from the analysis of cash flow projection, it is found that the Grow
ME Organic farm has a net present value (NPV) of 389,413 THB in 5 years which is
positive with an Internal Rate of Return (IRR) of 40% which is higher than the Financial
Cost (WACC) which is equal to 20% and the business has a payback period of 3 years
and 4 months which is equal to expectation. As reason above, it’s demonstrating value
of Investment, business attractiveness, and business growth opportunities.
Keywords: Organic salad vegetables, Organic vegetable farm, Grow ME Organic
Ref. code: 25616002030663FWP